Amentum

Amentum has 47.2 billion dollars in total contract backlog against just 14 billion in annual revenue, giving the company more than three years of forward visibility. The book-to-bill ratio is 1.1 times, which means new contracts are flowing in faster than work is being completed. 95 percent of fiscal 2026 revenue is already locked into existing or recompete contracts.

Amentum is positioned at the center of three major government spending priorities at once. They support the Golden Dome missile defense system through a long-standing partnership with the Missile Defense Agency, they're building small modular reactors with Rolls-Royce and have over 1 billion dollars in nuclear awards, and they hold a 995 million dollar Air Force contract for MQ-9 Reaper drone operations.

The longest government shutdown in history hit Amentum hard last year, causing the company to swing to negative 142 million dollars in cash flow in the first quarter. With 81 percent of revenue tied to federal contracts, any future shutdown, continuing resolution, or budget delay directly hurts collections and creates lumpy revenue patterns that scare investors.

Net debt to EBITDA sits around 3.2 times, above the peer average of 2.6 times. Management has been paying down debt steadily, but until they get below 3 times, the company has limited flexibility to make acquisitions or aggressively return capital. The merger integration is still ongoing, and execution on cost synergies is the key swing factor for 2026 earnings.