Amentum Trades Below 9x Forward Earnings While Deleveraging to 3.0x Target
Amentum trades at less than 9x forward earnings and 8x EV/EBITDA despite a $47.8 billion backlog and a deleveraging plan from 4.1x to 3.0x net debt/EBITDA. Recent refinancing savings of $19.6 million annually, combined with a shift toward higher-margin fixed-price contracts, position the defense contractor for potential margin expansion and valuation re-rating.
Amentum trades at less than 9x forward earnings and 8x EV/EBITDA despite carrying a $47.8 billion backlog and targeting debt reduction that could reset its valuation among defense peers. The government services contractor, which provides technical and mission support to U.S. defense and intelligence agencies, currently carries net debt at 4.1x EBITDA and has set a deleveraging target of 3.0x.
The company recently refinanced its debt structure, generating approximately $19.6 million in annual interest savings. That refinancing, combined with the shift in contract mix toward higher-margin fixed-price work, positions Amentum to expand operating margins while servicing a backlog that extends visibility across multiple fiscal years. The backlog figure reflects awarded but not yet executed work across defense, intelligence, and civil agency customers.
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