AMTM 2QFY26 Earnings - Quick Takeaways: DS drives growth, GES drives margin expansion, 2026 outlook reaffirmed

Research evidence excerpt

AMTM 2QFY26 Earnings - Quick Takeaways: DS drives growth, GES drives margin expansion, 2026 outlook reaffirmed

May 11, 2026 Amentum Holdings

(AMTM, Buy, $35 PT)

Andre Madrid

AMTM 2QFY26 Earnings - Quick Takeaways: DS drives growth, GES (332) 400-5033 amadrid@btig.comAEROSPACE drives margin expansion, 2026 outlook reaffirmed Ned Morgan

(212) 882-2357 nmorgan@btig.com

WHAT YOU SHOULD KNOW: Amentum reported 2QFY26 adj. EPS of $0.60, above Company DataAND consensus estimate of $0.57 and BTIG estimate of $0.58, largely due to higher than Closing Price $23.94

expected equity income and lower than expected SG&A expense. Our estimates are

Price Target $35.00 under review. Earnings call at 8am ET tomorrow. See below for more details on the

quarter. Market Cap (M) $5,865.30

Enterprise Value (M) $9,568.14

■ Revenue in line, but margins and cash flow surprised to the upside. Sales wereDEFENSE Shares Out (M) 245.00 $3.48bn (roughly flat Y/Y and in line with BTIGe and consensus), driven by ramp-

up on new awards in critical digital infrastructure and space systems, offset by a Avg Daily Vol-3 Months (M) 1.91

~3% impact due to JV accounting transitions and divestitures. Adjusted EBITDA of Dividend / Yield $0.00 / 0.0%

$275mn (+3% Y/Y) modestly beat BTIGe/consensus by ~1%, with margins of 7.9% Revenue (M)EQUITY expanding 23bps Y/Y on strong operational performance at Global Engineering FY Sep 2025A 2026E 2027E

Solutions (GES). FCF came in at $220mn (62% above BTIGe and 25% above

Q1 3,416.00 3,237.00A - consensus), driven by strong cash earnings, working capital discipline, and a

favorable pay-cycle benefit. Net leverage was 3.2x LTM. Post-quarter, AMTM Q2 3,491.00 3,477.43 -

completed a $1.4bn Term Loan A issuance to refinance and repay its Term Loan B, Q3 3,561.00 3,564.43 -