Amentum Holdings, Inc. (AMTM) Stock Analysis

Amentum’s principal competitive advantages stem from its scale, contract diversity, technical expertise, and entrenched customer relationships. With over 53,000 employees and operations in 80+ countries, Amentum is among the largest U.S. government services contractors, rivaling Leidos, Booz Allen Hamilton, and KBR.¹ Its $45 billion backlog (3.2x annual revenue) and access to more than $450 billion in contract vehicles provide revenue visibility and resilience to budget cycles.²

Amentum’s portfolio is diversified across defense, intelligence, environment, space, and civilian markets.³ Approximately 65% of revenue is from cost-plus contracts, which reduce margin risk from cost overruns—a structural advantage over peers with higher fixed-price exposure.⁴ The company’s technical depth is evident in its leadership in nuclear remediation (managing 90% of the U.S. Department of Energy’s nuclear waste cleanup)⁵ and advanced engineering for defense and intelligence clients.⁶

Longstanding relationships with agencies such as the Department of Defense, NASA, and the U.K. Ministry of Defence underpin high recompete win rates and customer stickiness.⁷ Amentum’s capital-light model and disciplined cost structure support robust free cash flow (historically >95% conversion), enabling ongoing debt reduction and investment in innovation.⁸

Compared to peers, Amentum’s breadth across mission-critical domains, global reach, and proven execution on large, complex programs position it as a preferred partner for government modernization and national security priorities.⁹ However, its heavy reliance on U.S. federal contracts and exposure to regulatory and budgetary risks remain key vulnerabilities.¹⁰