Free cash flow remains highly volatile, swinging from a $142 million deficit in 2026Q1 to a $231 million surplus in 2026Q2 due to significant fluctuations in working capital.
| Cash from Operations | 465M | 543M | 47M | 67M | 126M |
| Operating CF Margin % | - | 3.77% | 0.56% | 0.85% | 1.64% |
| Operating CF Growth % | 354.6% | 1055.32% | -29.85% | -46.83% | - |
| Net Income | 148M | 59M | -83M | -321M | -78M |
| Depreciation & Amortization | 467M | 519M | 251M | 325M | 292M |
| Stock-Based Compensation | 28M | 21M | 18M | 3M | 3M |
| Deferred Taxes | -38M | -47M | -115M | -62M | -7M |
| Other Non-Cash Items | 51M | 52M | -9M | 223M | 49M |
| Working Capital Changes | -177M | -61M | -15M | -101M | -133M |
| Change in Receivables | 3M | -171M | 81M | -68M | 99M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -185M | 54M | -211M | -24M | -263M |
| Cash from Investing | 216M | 228M | 475M | -17M | -1.79B |
| Capital Expenditures | -15M | -27M | -11M | -12M | -18M |
| CapEx % of Revenue | 0.11% | 0.19% | 0.13% | 0.15% | 0.23% |
| Acquisitions | 286M | 258M | 487M | -3M | -1.77B |
| Investments | - | - | - | - | - |
| Other Investing | -3M | -3M | -1M | -2M | -1M |
| Cash from Financing | -806M | -790M | -382M | -112M | 1.72B |
| Debt Issued (Net) | -773M | -759M | -570M | -101M | 1.83B |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -33M | -31M | 188M | -11M | -104M |
| Net Change in Cash | -118M | -15M | 147M | -61M | 57M |
| Free Cash Flow | 450M | 516M | 36M | 55M | 108M |
| FCF Margin % | 3.17% | 3.59% | 0.43% | 0.7% | 1.41% |
| FCF Growth % | 64.34% | 1333.33% | -34.55% | -49.07% | - |
| FCF per Share | 1.84 | 2.11 | 0.40 | 0.61 | 1.20 |
| FCF Conversion (FCF/Net Income) | 3.04x | 8.23x | -0.57x | -0.21x | -1.50x |
| Interest Paid | 220M | 306M | 373M | 362M | 0 |
| Taxes Paid | 70M | 107M | 95M | 26M | 0 |
Integration and margin dilution
As reported in financial statements, Amentum's operating cash flow to net income ratio has fluctuated wildly, reaching 4.17 in 2026Q2, which suggests that GAAP earnings are currently poor proxies for the actual cash-generating capacity of the firm's underlying government services and mission support operations.
The significant divergence between net income and operating cash flow indicates that non-cash charges, likely related to the amortization of intangibles from the Jacobs merger, are heavily depressing reported profitability. Investors should monitor whether this cash-flow-to-earnings gap narrows as integration-related accounting adjustments stabilize over the coming fiscal periods.
Based on the provided cash flow data, free cash flow has exhibited extreme instability, swinging from a negative $142 million in 2026Q1 to a positive $231 million in 2026Q2, highlighting the difficulty of maintaining consistent cash generation during the ongoing post-merger organizational consolidation phase.
The erratic FCF trajectory appears to be driven by lumpy working capital movements rather than fundamental shifts in operational efficiency. This inconsistency warrants further investigation into whether the company can achieve a sustainable FCF margin that aligns with its Tier 1 government contracting peers.
According to recent SEC filings, working capital changes have been the primary driver of cash flow variance, including a massive $296 million outflow in 2026Q1 followed by a $53 million inflow in 2026Q2, suggesting significant sensitivity to government contract payment cycles and project milestones.
These dramatic shifts in working capital may indicate that the company is struggling to synchronize its billing and collection cycles with the expanded scale of the combined entity. Such volatility suggests that cash flow remains highly susceptible to the timing of large-scale federal contract payments.
As evidenced by the reported figures, Amentum maintains a remarkably low capital intensity, with CapEx as a percentage of revenue consistently hovering around 0.2%, which suggests that the business model remains asset-light and focused on human capital rather than heavy infrastructure investment.
The minimal capital expenditure requirements provide a structural buffer that allows the company to preserve cash despite its thin net margins. This low-intensity profile appears to be a key defensive feature, enabling the firm to navigate integration costs without requiring significant external financing for maintenance.
Quick answers to the most common questions about buying AMTM stock.
Amentum Holdings, Inc. (AMTM) generated $543.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Amentum Holdings, Inc. (AMTM) generated $516.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Amentum Holdings, Inc. (AMTM) spent $27.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.