Revenue growth has stalled to -0.4% year-over-year as of 2026Q2, while gross margins have compressed significantly from 14.2% in early 2024 to 7.2% in the most recent quarter.
| Sales/Revenue | 14.2B | 14.39B | 8.39B | 7.87B | 7.68B |
| Revenue Growth % | 6.85% | 71.59% | 6.65% | 2.46% | - |
| Cost of Goods Sold | 13.08B | 13.36B | 7.59B | 7.08B | 6.91B |
| COGS % of Revenue | - | 92.82% | 90.49% | 90.06% | 89.96% |
| Gross Profit | 1.12B | 1.03B | 798M | 782M | 771M |
| Gross Margin % | 7.91% | 7.18% | 9.51% | 9.94% | 10.04% |
| Gross Profit Growth % | - | 29.57% | 2.05% | 1.43% | - |
| Operating Expenses | 598M | 531M | 507M | 725M | 650M |
| OpEx % of Revenue | - | 3.69% | 6.04% | 9.22% | 8.47% |
| Selling, General & Admin | 525M | 531M | 353M | 297M | 308M |
| SG&A % of Revenue | - | 3.69% | 4.21% | 3.78% | 4.01% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 154M | 428M | 342M |
| Operating Income | 525M | 503M | 291M | 57M | 121M |
| Operating Margin % | 3.7% | 3.49% | 3.47% | 0.72% | 1.58% |
| Operating Income Growth % | - | 72.85% | 410.53% | -52.89% | - |
| EBITDA | 992M | 1.02B | 542M | 382M | 413M |
| EBITDA Margin % | 6.99% | 7.1% | 6.46% | 4.86% | 5.38% |
| EBITDA Growth % | 13.24% | 88.56% | 41.88% | -7.51% | - |
| D&A (Non-Cash Add-back) | 467M | 519M | 251M | 325M | 292M |
| EBIT | 525M | 503M | 315M | 57M | 89M |
| Net Interest Income | -327M | -353M | -438M | -392M | -149M |
| Interest Income | 0 | 0 | 0 | 5M | 4M |
| Interest Expense | 327M | 353M | 438M | 397M | 153M |
| Other Income/Expense | -337M | -388M | -414M | -397M | -185M |
| Pretax Income | 188M | 115M | -123M | -340M | -64M |
| Pretax Margin % | 1.32% | 0.8% | -1.47% | -4.32% | -0.83% |
| Income Tax | 54M | 56M | -40M | -19M | 14M |
| Effective Tax Rate % | 28.72% | 48.7% | 32.52% | 5.59% | -21.88% |
| Net Income | 148M | 66M | -82M | -314M | -84M |
| Net Margin % | 1.04% | 0.46% | -0.98% | -3.99% | -1.09% |
| Net Income Growth % | 152.48% | 180.49% | 73.89% | -273.81% | - |
| Net Income (Continuing) | 134M | 59M | -83M | -321M | -78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 94M | 115M | 92M | 40.94M | 42M |
| EPS (Diluted) | 0.60 | 0.27 | -0.90 | -3.49 | -0.93 |
| EPS Growth % | 233.33% | 130% | 74.21% | -275.27% | - |
| EPS (Basic) | - | 0.27 | -0.90 | -3.49 | -0.93 |
| Diluted Shares Outstanding | 245M | 244M | 91M | 90M | 90M |
| Basic Shares Outstanding | 244M | 243M | 91M | 90M | 90M |
| Dividend Payout Ratio | - | - | - | - | - |
Integration and margin dilution
Following the transformative acquisition of Jacobs' segments, Amentum's revenue growth has decelerated significantly, with the most recent quarterly figures showing a 0.4% year-over-year decline as of 2026Q2, contrasting sharply with the triple-digit expansion rates observed during the immediate post-merger integration phase in early 2025.
The rapid revenue surge seen in 2025 appears to be a function of inorganic consolidation rather than organic demand acceleration. Investors should monitor whether the current contraction reflects a loss of legacy contract momentum or a strategic pruning of lower-margin work as the company seeks to stabilize its expanded footprint.
As reported in financial statements, Amentum's gross margin has compressed to 7.2% in 2026Q2, down from the 14.2% levels observed in early 2024, suggesting that the company's expanded scale has not yet translated into the expected pricing power or operational efficiencies within its government services portfolio.
The persistent thinness of these margins implies a heavy reliance on cost-plus contract structures that offer limited upside during periods of wage inflation. This structural profile warrants caution, as the company lacks the margin buffer typically seen in higher-tier defense peers to absorb unexpected operational cost overruns.
Based on the provided income statement data, operating income has failed to scale proportionally with revenue, as evidenced by a stagnant operating margin of 3.7% in 2026Q2, which indicates that SG&A expenses are consuming a significant portion of the gross profit generated by the combined entity.
The inability to drive meaningful operating leverage suggests that the integration of Jacobs' assets may be creating persistent overhead burdens. Without a clear path to reducing SG&A intensity, the company may struggle to improve its bottom-line performance even if revenue growth stabilizes in future periods.
According to recent SEC filings, Amentum's net income remains highly volatile, with net margins hovering at a razor-thin 1.6% in 2026Q2, a trend likely exacerbated by ongoing non-cash charges and integration-related expenses that obscure the underlying cash-generating capability of the core business operations.
The significant variance in net income, including the substantial loss reported in 2024Q4, suggests that GAAP earnings are currently an unreliable indicator of operational health. Analysts should focus on adjusting for these non-recurring items to determine if the company can achieve a sustainable, normalized profitability profile.
While management emphasizes the benefits of scale, the income statement data suggests a potential vulnerability, as the company's net margin of 0.46% leaves virtually no room for error in a sector where contract re-competes and labor cost inflation represent constant threats to profitability.
Short-sellers may focus on the risk that Amentum is essentially a low-margin pass-through vehicle that lacks the proprietary technology to command premium pricing. If the company fails to cross-sell higher-margin cyber capabilities into its industrial base, the current valuation may be difficult to justify against more efficient peers.
Quick answers to the most common questions about buying AMTM stock.
For fiscal year 2025, Amentum Holdings, Inc. (AMTM) reported total revenue of $14.39B. This represents a 87.5% increase compared to $7.68B in 2022.
Amentum Holdings, Inc. (AMTM) is profitable, generating $66.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.5%.
Amentum Holdings, Inc. (AMTM) reported an operating income of $503.0M, resulting in an operating profit margin of 3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Amentum Holdings, Inc. (AMTM) generated $1.03B in gross profit for the year, representing a gross profit margin of 7.2%. This demonstrates the company's core pricing power and production efficiency.