Prepared remarks
Good morning, ladies and gentlemen, and welcome to the Amentum Q1 Fiscal Year 2026 Results Conference Call. This call is being recorded on Tuesday, February 10, 2026. I would now like to turn the conference over to Nathan Rutledge.
Thank you, and good morning, everyone. We hope you've had an opportunity to read our earnings release, which we issued yesterday afternoon and is posted on our Investor Relations website. We have also provided presentation slides to facilitate today's call. So let's move to Slide 2. Please note that this morning's discussion will contain forward-looking statements that are subject to important factors that could cause actual results to differ materially from anticipated. I refer you to our SEC filings for a discussion of these factors, including the Risk Factors section of our annual report on Form 10-K. The statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future but specifically disclaim any obligation to do so. In addition, we will discuss non-GAAP financial measures, which we believe provide useful information for investors. Both our earnings release and supplemental presentation slides include reconciliations to the most comparable GAAP measures. We do not provide reconciliations of forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain significant items. These non-GAAP financial measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Our safe harbor statement included on this slide should be incorporated as part of any transcript of this call. With me today to discuss our business and financial results are John Heller, Chief Executive Officer; and Travis Johnson, Chief Financial Officer. We are also joined by other members of management, including Steve Arnette, Chief Operating Officer. With that, moving to Slide 3, it's my pleasure to turn the call over to our CEO, John Heller.
Thank you, Nathan, and thank you, everyone, for joining us today. We entered the new fiscal year continuing our strong momentum, including another robust quarter of bookings that reinforce our alignment to the high-demand mission areas of nuclear energy, space, and critical digital infrastructure. As a result, this morning, I'm pleased to share another quarter of results that put Amentum on track toward achieving both our near-term fiscal year 2026 outlook and our longer-term strategic growth objectives. Our differentiated business continues to perform. And as a management team, we're setting clear priorities and expectations, and we're executing. Bottom line, momentum continues to deliver. So let's jump right in with our quarterly results. While the longest government shutdown in history impacted performance in the quarter, I am especially proud of our teams around the world who remain focused, delivering exceptional outcomes for our customers and results largely in line with our expectations. Key highlights, which Travis will cover in more detail shortly, include revenue of $3.2 billion, reflecting normalized growth of 3%, adjusted EBITDA of $263 million with robust margins of 8.1%, and adjusted diluted earnings per share of $0.54, up 6% year-over-year. This performance is a direct result of our agile business model, disciplined execution, consistent focus on our strategic priorities, and continued demand across our end markets. Let's turn to Slide 4, where I'll highlight how Amentum's focus on growth translated into a series of strategically significant wins this quarter. We delivered $3.3 billion in net bookings, resulting in a first quarter and last 12 months book-to-bill of 1x and 1.1x, respectively. Including strategic joint venture awards, our imputed book-to-bill was 1.3x for the last 12 months. This consistent performance enabled our industry-leading backlog to grow 4%, reaching over $47 billion. And at quarter end, we had $23 billion in proposals awaiting award, the majority of which are new business to Amentum, including nearly $2 billion already won and under protest or awaiting corrective action. As I'll discuss in more detail, we continue to make meaningful progress advancing large multiyear opportunities directly aligned with our higher-margin accelerating growth markets, a point evidenced by our consistent book-to-bill performance at or above 1x. Our business development engine prioritizes scale, duration, and strategic relevance, grounded in deep customer relationships, shaping solutions, and building long-cycle programs where customers value trusted partners. We are particularly encouraged by our progress in nuclear energy, an accelerating growth market for Amentum, which is showing robust demand signals, both overseas and in the United States. Years of technical investment and program execution have led to tangible awards, including nearly $1 billion in the first quarter alone, reinforcing our role as a trusted partner across both existing facilities and new build programs. Leveraging our technical leadership in nuclear energy, Amentum was selected by Rolls-Royce as the global program delivery partner for its small modular reactors, including initial deployments in the U.K. and Czech Republic. Under this partnership, we will apply decades of experience in nuclear engineering and design, systems integration, and program governance. Amentum was also awarded a 10-year $730 million contract by EDF Nuclear Power to support new and existing power stations in the U.K., reinforcing our role as a trusted partner to one of the world's largest nuclear utilities. And in the Netherlands, Amentum secured a 5-year $207 million contract to provide planning and engineering services supporting the future development of up to 2 gigawatt scale power plants, strengthening our position in Europe's energy transition. Beyond nuclear, we continue to win work that reflects the breadth and diversification of our portfolio across customers, geographies, and contract types. Our capabilities in digital engineering, advanced sustainment, and other mission-critical operations are resonating with customers, both domestically and internationally. Award highlights include the U.S. Air Force's 6-year single award IDIQ with a ceiling value of up to $995 million for unmanned sustainment, modernization, and training. Under this contract, Amentum will deploy specialized solutions and expertise in the U.S. and globally to reinforce readiness and training capabilities. Next, we were awarded a DISA Compute-as-a-Service contract, a 5-year $120 million award to deliver scalable computing power on demand. We're excited to support our customers' mission through this unique outcome-based contract and see it as a potential model for shaping future proposals. Finally, we secured a 3-year $270 million contract from a foreign military customer to provide advanced C5ISR solutions. Our progress this quarter demonstrates consistent execution against our strategy and reinforces our confidence in our ability to continue building a high-quality backlog and delivering durable long-term growth. Before we dive into our Space Systems and Technologies market, let's turn to Slide 5 to step back and reanchor our discussion in the growth framework we introduced last quarter. We outlined 3 accelerating growth markets where Amentum is particularly well-positioned: Space Systems and Technologies, critical digital infrastructure, and global nuclear energy. These markets are characterized by strong demand visibility, attractive margin profiles, and long-term growth potential across government and commercial customers. These markets also align with enduring macro trends and support the technological needs of a growing global economy. Please turn to Slide 6 to cover in more detail Space Systems and Technologies, which we view as a set of interconnected markets that scale together across satellites, launch, integrated systems, and satellite communications. Together, they represent an approximately $90 billion market projected to grow around 9% annually over the next 5 years, driven by higher launch cadence and increasing mission demand. Starting with satellites, demand continues to shift towards proliferated low earth orbit constellations. Smaller satellites now dominate launch volumes across broadband, sensing, and national security missions. These architectures enhance resilience but also increase integration and life cycle complexity, areas where customers value experienced system integrators. Integrated systems are also changing rapidly. Infrastructure is becoming more software-defined, virtualized, and cloud-integrated. While this improves scalability, it also raises the importance of integration, cybersecurity, automation, and end-to-end mission operations as data volumes and mission tempo increase. Launch activity is accelerating. Lower-cost commercial launch, reusable vehicles, and increased competition are driving a higher cadence across government and commercial customers. As launch volumes expand, operational demands increase across mission integration, safety, and sustainment. Satellite communications or SATCOM is also expanding as a foundational layer of global connectivity. Growth in broadband constellations, mobile communications, and sovereign networks is driving higher throughput and adoption of multi-orbit architectures. SATCOM underpins mission-critical defense, mobility, and commercial applications worldwide. Taken together, these trends are expanding the space market and increasing demand for companies like Amentum that can integrate, operate, and sustain complex systems across their full life cycle. Moving to Slide 7. Let's discuss how Amentum is uniquely positioned with robust experience and capabilities to advance the future of space. Beginning with missile defense and command and control integration and modernization, demand continues to rise for resilience-based domain awareness and integrated missile warning and tracking. These priorities are central to U.S. and allied national security strategies and are driving sustained investment. Amentum supports these national security missions today through programs such as IRES, providing advanced engineering sustainment and NIS2 supporting global surveillance, missile warning, and classified communications. As hypersonic and ballistic threats evolve, demand for satellite-based tracking will only increase. Our performance and expanding capabilities position Amentum well for space-enabled missile defense opportunities such as Golden Dome under the $151 billion SHIELD IDIQ on which Amentum was recently awarded a position. Amentum plays a critical role providing full life cycle solutions for human exploration and has numerous active programs supporting Orion, the space launch system, and exploration ground systems. These programs require continuous engineering, integration, operations, and sustainment across multiyear mission cycles. They are not one-time development efforts but long-duration recurring opportunities supported by sustained demand across multiple human space flight missions. These efforts require advanced propulsion, power, autonomy, and payload integration, areas where Amentum brings deep expertise and where we see growth across both national security and commercial customers. Finally, in deep space research and development, Amentum focuses on robotic exploration and early-stage systems that extend human reach beyond Earth's orbit. Our work includes missions such as space vehicles designed to operate in extreme lunar environments. We also see growing opportunities to support emerging technologies, including propulsion systems that will leverage advances in nuclear energy and Mars-related ascent and sample return technologies, where early research and systems engineering are critical to reducing risk. We're positioned to lead mission-critical space integration today while scaling and extending our capabilities to capture long-term growth across the space economy of tomorrow. In summary, Amentum enters the remainder of the fiscal year from a position of strength. Our results, backlog, and pipeline reflect disciplined execution, durable customer demand, and the value of our differentiated capabilities across complex mission-critical environments. As global needs evolve across defense, energy, space, and digital infrastructure, we are well positioned to support our customers' most important missions while creating long-term value for our stakeholders. We remain focused on execution, growth, and delivering on the commitments we've made. With that, I'll turn it over to Travis.
Thank you, John, and good morning, everyone. I'm excited to discuss with you today Amentum's solid first quarter performance, our continued trajectory to achieve net leverage less than 3x by year-end, enabling a more flexible and opportunistic capital deployment posture, and our confidence in achieving full year results in line with the guidance provided in November. To echo John's sentiment, I'm particularly encouraged by the continued successful execution of our strategy, evidenced by another quarter of robust bookings and outstanding margin performance, both of which were enabled by the relentless focus and dedication to operational excellence from our employees around the globe. With that, let's begin with an overview of our financial performance on Slide 8. Revenue in the first quarter totaled $3.24 billion, reflecting the joint venture transitions and divestitures previously discussed, as well as impacts from the government shutdown. Underlying growth normalizing for these items was approximately 3%, driven by the ramp-up of new contract awards in our critical digital infrastructure and Space Systems and Technologies accelerating growth markets. Adjusted EBITDA of $263 million benefited from a 40 basis point year-over-year increase in adjusted EBITDA margins to 8.1%. Alongside continued strategic progress to prioritize higher-margin work, margin expansion was enabled by strong program performance and reduced indirect spending as a result of realized cost synergies and disciplined expense management during the shutdown. Adjusted diluted earnings per share of $0.54 was up 6% from a year ago and reflects lower interest expense driven by our debt reduction initiative. Moving to our reportable segment results on Slide 9. Digital Solutions delivered revenue of $1.34 billion, representing 4% growth on a reported basis and a robust 8% after normalizing for the items mentioned previously. The year-over-year increase was driven by the continued ramp-up of new contract awards, led by strength from commercial programs and critical digital infrastructure. Adjusted EBITDA increased to $103 million as a result of the higher revenue volume, resulting in adjusted EBITDA margins of 7.7%. Turning to Global Engineering Solutions. Revenue was $1.9 billion, reflecting the impacts from JV transitions, the divestiture, and the government shutdown. Normalizing for these items, underlying revenue was consistent with the prior year as revenue from new contract awards were offset by the expected ramp down of certain historical programs. Adjusted EBITDA of $160 million reflects an 80 basis point year-over-year increase in adjusted EBITDA margins to 8.4%. The strong profitability was enabled by prioritizing higher-margin growth opportunities, disciplined program execution, and delivering against cost synergy initiatives. Now turning to Slide 10 to cover our cash flow and capital structure highlights. First quarter free cash flow included an additional pay cycle compared to the prior year quarter and was impacted by temporary collections timing from the government shutdown and holiday closures, resulting in a use of $142 million. It is important to emphasize that this is only timing related. In fact, collections in the first 5 days of the second quarter more than doubled compared to the same period in the prior year. As a result, we anticipate strong free cash flow in the second quarter and remain confident in meeting our full year free cash flow guidance. From a liquidity perspective, our position remains healthy with Q1 ending cash on hand of $247 million, a fully undrawn $850 million revolver, and no near-term maturities. We're also pleased with the recent Moody's credit rating upgrade, which underscores our improving financial profile, immediately reduces interest expense on our Term Loan B by 25 basis points, and positions us for enhanced financial flexibility and market access moving forward. With a strong balance sheet, robust liquidity, and focus on generating sustainable free cash flow, we are well positioned to deliver enduring value for our shareholders. Achieving our target net leverage of less than 3x by the end of the fiscal year remains a priority. And looking into fiscal year 2027 and beyond, we will remain disciplined in our approach, maintaining a prudent capital structure that enables flexible and opportunistic deployment. On Slide 11, let's now turn to our fiscal year 2026 full year outlook. As a result of Q1 performance, backlog of $47 billion, including $7 billion in funded backlog, up 23% from last quarter and with 95% of revenue expected to come from existing or recompete business, we remain confident in the outlook provided in November. We are reaffirming guidance for the year, including revenue in the range of $13.95 billion to $14.3 billion, adjusted EBITDA between $1.1 billion and $1.14 billion, adjusted diluted earnings per share between $2.25 and $2.45, and free cash flow between $525 million and $575 million. All metrics reflect healthy underlying organic growth and the primary guidance assumptions remain unchanged. From a timing perspective, we continue to expect quarterly sequential increases in revenue, adjusted EBITDA, and adjusted diluted earnings per share as we move beyond the government shutdown and will benefit from additional working days in the remaining quarters. To assist with modeling, we have included a breakout of working days by quarter in the appendix. And I will also note that for Q2, consensus estimates are in line with our expectations. From a free cash flow perspective, as previously shared, we have seen a rebound in collections and therefore expect approximately 25% of our to-go free cash flow generation in the second quarter. Wrapping up on Slide 12. We are pleased with our start to the year, which reflects our ability to deliver solid results through disciplined operational execution and strategic focus. With continued robust bookings, strong market demand signals, and progress towards our leverage reduction goals, we are confident in achieving our full year outlook and in positioning Amentum for sustained value creation. With that, operator, please open the line for questions.
Questions and answers
Your first question comes from Colin with Cantor.
Travis, do you mind focusing on the free cash flow progression through the year and maybe talk about Cogniz, how you think about this quarter's performance, second half performance and then maybe discussing how you think about potentially selling receivables in order to bolster the free cash flow that...
So as stated in my prepared remarks, there were two primary drivers for Q1 cash performance, both of which were simply timing-related and have no impact on our expectations for the full year. And so first, as noted on our last earnings call, we had an additional pay cycle relative to Q1 of last year, which obviously will normalize as we move through the rest of the fiscal year. And second, there was an unexpected government holiday closure, which you guys may be familiar with. So the administration gave government employees an additional two days off in addition to Christmas and New Year's at the end of December and headed into the new year. And so that pushed some collections into the first part of January due to delays in customer approvals and processing. So really, again, just timing-related and perhaps to provide some more context, collections in the first week of the second quarter were $100 million higher than they were in the first week of Q2 of last year, kind of just reemphasizing that it was just collections timing that was pushed due to delays in approvals. And so looking ahead for the rest of the year, given the rebound we've already seen in the beginning of the second quarter, we're confident in achieving results that are in line with the guidance that we reaffirmed for the full year with the midpoint being at $550 million. And roughly 25% of that to-go free cash flow, we do expect in the second quarter. And then obviously, Q4, as it always has been, will be our strongest free cash flow quarter as a result of our alignment with government at fiscal year-end. And then just to touch on your comment on account receivable factoring. As you're aware, we do have an account receivable factoring program in place, and we do leverage that to manage working capital as we move throughout the year.
Got it. That's great color. And then maybe following up, if you can kind of refresh how you think about the award outlook by end market, particularly focusing on unfunded awards and how you think about the magnitude and timing of those funded awards.
Sure. I'll start with just saying you noticed that we had an uptick in funded backlog during the quarter. It's something we've talked about really since last year, and we saw some administrative delays on the contracting side just with having funding. We're pleased to see that bounce back up to nearly $7 billion, a 23% increase from Q4. But as we've said, we're comfortable with funded backlog in that range of $5 billion to $7 billion with what it means for the rest of our full year outlook. And in terms of kind of looking ahead, obviously, with $23 billion in pending awards and $35 billion or more of bids expected to be submitted this year, we're on track to achieve our full year book-to-bill greater than 1. And a lot of those key awards, we expect will come from the accelerating growth markets that John highlighted in his prepared remarks. In fact, just this quarter, we had over $1 billion in awards in our global nuclear energy business. So really highlighting the strength of that piece of the portfolio. And I'll just mention, I think the kind of history of our consistent book-to-bill performance speaks for itself, right? Five straight quarters of book-to-bill 1x or greater, including imputed book-to-bill of 1.3x on an LTM basis.
Your next question comes from Tobey with Truist.
I wanted to ask about nuclear, particularly regarding the recent new business announcements. How does this impact the profit and loss statement and contribute to revenue and profit growth? Additionally, could you provide insights on the current nuclear bids, whether submitted or in the pipeline, and whether this indicates a faster growth rate compared to the company's overall metrics?
Well, the first thing we want to highlight is that in Q1, we secured $1 billion in awards in the nuclear sector. Nuclear represents slightly more than $2 billion of our overall $14 billion business, showing that we are making significant progress and seeing acceleration in that market. However, these contracts won't generate immediate revenue or profitability since it takes time for the nuclear business to have a meaningful quarterly impact. Over the course of a year, we do expect growth in markets such as nuclear, space, and digital to positively influence our margins. We are aiming for year-over-year margin improvement driven by these three sectors, with nuclear making a notable contribution through the contract awards we announced, including those from EDF and the Netherlands. We also announced Rolls-Royce, but that award came after the quarter ended. We continue to see advancements in the nuclear sector, and we anticipate it becoming a significant focus for the business, especially with the strong European market and substantial awards this quarter. In the U.S. market, we are observing real acceleration as larger deals, new projects, existing plant extensions, and the SMR market gain traction, backed by considerable inbound demand. However, it may take a few more quarters for the financial aspects of these projects to materialize. We are collaborating with various companies to ensure these U.S. projects stay on track, which will contribute to future growth. Additionally, the initial phase of a nuclear project typically involves engineering, governance, obtaining regulatory approvals, and preparing for construction. Revenue for these projects significantly increases once construction commences, which can take anywhere from 1 to 5 years to reach that stage. Therefore, these projects generally span 5 to 10 years, with potential long-term revenue that can last for decades. It typically takes around 2 to 5 years to reach peak revenue in the nuclear sector.
When you look at your bids submitted and pipeline for the whole firm, is there an embedded favorable mix shift from a margin perspective based on the complexion of those bids and pipeline?
Tobey, this is Travis. I would characterize it like this. Obviously, we're starting to strategically prioritize higher-margin work, both in the accelerated growth markets that John highlighted but also in our core markets, right? We still have $10 billion worth of the markets which we're a leader in, great work, and still growth opportunity there. But we're also looking to expand margins in that part of the portfolio, which will be a big part of the story. And as we look at the bids going in, including things like contract mix, we are certainly seeing a shift over time. As we've stated, it will take time with $47 billion in backlog, right? It's a big shift this year, but we are seeing that. And you'll see in our contract mix composition in the 10-Q, you'll see we've started to progress towards a higher percentage of fixed price work. So we are starting to see that as awards and that strategic shift and prioritization unfold.
Your next question comes from Seth with JPMorgan.
I wanted to ask in cash flow about the investing cash flows that go into the joint ventures. It's a significant amount in the quarter. How do we think about those cash requirements going forward and how they should be relative to your CapEx and free cash flow?
Yes, this quarter was abnormally large contributions to our equity method investments, and it's really a direct result of the big joint venture awards that we had last year. They're all starting to ramp up. At the initial phases of those joint ventures, you have initial capital contributions from partners, and Amentum had our piece in that. The two larger ones for the quarter were in Fort Smith and our Hanford work. We don't expect that level as we move throughout the rest of the year. And then you also saw some return of contributions, which we would also expect over time as those programs ramp up and mature.
Okay. Okay. Great. And then just a quick follow-up in Global Engineering Solutions. Obviously, very tight margin there historically in that mid-7% range and then nearly 100 basis points higher in this quarter. What happened there that would make us not think that this should be that kind of the margin that we saw in Q1 is not sustainable in Global Engineering Solutions?
Yes, the margin performance for the entire company, particularly driven by Global Engineering Solutions, was a highlight for the quarter. Factors such as revenue and cash flow timing, which were affected by the government shutdown, influenced our results, but fortunately, that is now behind us. We are very proud of our team's margin performance, which wasn’t limited to just one area. There are several contributing factors. Firstly, we made progress on our strategic goal to focus on higher-margin work, evidenced by a higher percentage of fixed price projects in our 10-Q. Additionally, we experienced some beneficial mix impacts from the government shutdown, as lower-margin work was affected, and we continue to see advantages from our cost synergy initiatives along with strong program performance. Various elements contributed to the positive results for Global Engineering Solutions. Looking ahead to the rest of the year, our projected margins at the enterprise level align with the midpoint of our full-year guidance, which accounts for a range of outcomes. The upper end of this guidance could reach up to 8.2%. We are optimistic about the quarter and the path ahead to meet our full-year targets concerning EBITDA and EBITDA margin.
Your next question comes from Kristine with Morgan Stanley.
John, we're seeing over 100 gigawatts of industrial gas turbine power capacity to enter the market by 2030. And it looks like this capacity is expected to come in sooner than nuclear projects. I mean, they're a little bit of shorter duration than nuclear. I was wondering how applicable your core capabilities in nuclear are for these kinds of projects. I mean, these are still fairly large builds. Is this an opportunity for you?
Yes. Thanks, Kristine. And we're very aware that to meet the power needs of the nation and frankly, the world, that you're going to have to look and there's a big article today, of course, in Wall Street Journal on coal, restarting coal plants, extending coal plants and other sources to create the bridge to where nuclear can step in. And our focus is on bringing that nuclear infrastructure online. And what you're seeing and this administration is very active in supporting using kind of the existing infrastructure and bringing that infrastructure online that is more carbon-based while we bring these SMR or gigawatt size plant projects online in parallel. So we're seeing projects being discussed and planned and the money coming together behind the overall plan to bring all this additional power online. And nuclear is a huge part of that, which is going to keep us extremely busy. So our focus is on that nuclear power, which is happening absolutely in parallel. And these types of projects are not necessarily behind the scenes. I mean, you're hearing about some of this with SoftBank getting involved in Japan and other large projects. And you hear about the nuclear element of that. But to get to the ability to have that nuclear power, which is 5, 6, or 7 years down the road, you're going to have to have some bridge power capability brought online. And that's where you're seeing this additional capacity you're mentioning. But the nuclear projects are going to keep us very busy that they're working on to really facilitate the accelerating demand. It's going to go far beyond what these near-term fossil fuel projects can handle.
Super helpful. And also on the DISA Compute As-a-Service contract that you won in the quarter, how is this structured? Are the economics of this contract similar to a traditional contract? And providing this as a service, is this business model also repeatable for the commercial end market?
Yes. We're excited about the DISA award. I think if you take it in a larger context, it's one of the great examples of how the government is really focusing on trying to get to more outcomes-based contracting. And so it's inherently on demand to provide compute capacity and power for DISA and their clients. And so that's scalable, kind of outcome-based, you can think in terms of not as an overall effort, kind of fixed price, but rather a unit-based fixed price that allows us to deliver outcomes. And we think it's a great contract model, very much in line with how the government is trying to modernize procurement models. And so we think it is a structure that could replicate across other opportunities.
Your next question comes from Ken with RBC Capital Markets.
Travis, maybe I wondered if you can size the mix impact on margins in the quarter. I think you called that out as a headwind as a result of the shutdown and some of the maybe lower-margin work that wasn't booked in the quarter, wasn't billed in the quarter. How do we think about that? And how do we think about that then playing out as we think about the progression of margins through the remainder of the year?
So between kind of the four drivers that I mentioned earlier being just overall strategic progress to prioritize higher-margin work, which means that we have lower margin work falling off and we're winning work that's coming online that's higher margin. The kind of one-time impact from the quarter of the mix from the government shutdown impact, realized cost synergies, and then strong program performance, it was really, especially in Global Engineering Solutions, kind of evenly spread across those drivers. So not one kind of outsized contribution relative to those four things, but rather a combination of all of them. And then as we look to the rest of the year, again, the midpoint of our guidance is 7.9%, but the whole range contemplates EBITDA margins up to 8.2%. So obviously, we put out guidance that contemplates a range of different outcomes. And while we're pleased with the Q1 performance, we're obviously just being prudent in our approach to look at the variety of outcomes that could happen for the year.
Your next question comes from John with Morgan Stanley.
Yes. No, we're really excited to highlight that this quarter. Our teams are working across the space domain in very different areas that we outlined in the presentation. We thought that would be really good to share. I'm glad that you brought that up because we were really excited to make that a centerpiece of the quarter. And our position in the market is really built on long-standing roles and mission-critical programs, really on missile warning systems, missile defense, space domain awareness, command and control. I mentioned programs like IRES and NIS2, great examples of our advanced engineering sustainment hypersonic and ballistic missile development, another area. We recently won a contract to support the U.K.'s hypersonic program. We're real excited about that. So we see that the strength of our history positions us in these areas that we highlighted. And we think there's some real good opportunities as obviously, the U.S. government is very much focused in these areas. The space race is real with China, the opportunity to get back to the moon and Artemis II mission and then Artemis III. So a lot of things happening that align well with our strengths.
Yes. To provide additional context to John's remarks, we view this as a broad approach to the various opportunities in the space market, rather than a single opportunity or phase of the system life cycle. We've categorized our focus into satellites, launch, SATCOM, and integrated systems. Currently, we are actively involved in critical missions with the Missile Defense Agency, other segments of the Department of Defense, and even NASA. We are proud of the in-house expertise we have developed for these key missions. The primary theme at this stage is that these missions are becoming increasingly complex, which necessitates a partner capable of delivering agile and scalable systems to accommodate the need for rapid technology integration. Moving forward, we feel optimistic for three reasons. First, we are deploying our proven expertise in areas where spending is becoming more stable, evident in the missions we are supporting. Second, we have secured the right contract vehicles, including those with the DoD and NASA, and we've gained a position on the Shield contract, allowing us to compete for work in support of Golden Dome. Recently, we also achieved a win on the COSMOS contract with NASA, though we are awaiting the resolution of a protest. These developments provide us with a clear path to growth in 2026 and into 2027. Lastly, the capabilities we have developed in-house at Amentum can be applied across various missions, whether in national security space, deep space exploration, or emerging commercial opportunities, as we have effectively interconnected that expertise to provide the best solutions for all opportunities in the space market.
Your next question comes from Trevor with Citizens.
Can you explain the timing of the nuclear contribution and the overall new business anticipated for 2026? It seems that this isn't primarily influenced by revenue from existing contracts. How do you reconcile the potential upside? What is driving that, and what factors might have affected your ability to meet expectations?
Yes. I'll just make a quick comment. Maybe Travis can get into the numbers, but a quick comment that's a little tongue-in-cheek on the industry. But 21% of our revenue right now is non-U.S. government. In the U.S. government, we still have protests on new awards. We've mentioned we have $2 billion of new awards sitting in protest. So our BD engine is working. We're really excited with our strategy that we've outlined. Our win rates are strong and our backlog is growing, but we have protests. But what's interesting is in the non-U.S. government business, we really have no protests, right? So we're able to transition those awards, whether it's in the nuclear space or foreign government space, immediately into revenue and contribution to margin improvement. And so that's kind of another exciting part about the nuclear market is we announced $1 billion of awards. We still have the Rolls-Royce that came in after. We have other things happening in our nuclear market really excited about, and we're not seeing any protests. So we get to translate that into project work and see that contribute. But of course, in '26, as Travis said, we only have about 5% of new business to fill the gap. But if you can get the work that we're winning in our accelerated growth markets started, that can have a greater impact on the fiscal year.
Yes. And I'll just add. I think John covered it really well. But as we look at kind of bridging Q1 to the rest of the year run rate, there's really just a couple of mechanical things that are going to get us there. Obviously, first and foremost, there's going to be no government shutdown impact in the remaining quarters, and that was roughly $150 million. We're also going to benefit from additional working days in the remaining quarters. So in Q1, there were 60 working days. In Q2 and Q3, there will be 63 working days. And in Q4, there's 64 working days. So just kind of math on average daily run rate, right, that's an additional $150 million a quarter. And then obviously, the other net organic contributions, including things like ramp-up of new contract awards. We mentioned our Space Force Range contract previously that only had one month worth of revenue in the first quarter, and we'll obviously have full quarter benefit in the remaining quarters. So fairly simple bridge to kind of get you to how we see the rest of the year playing out. And then in terms of where we fall within the guidance range, I think John hit it really well. It's really just continuing to submit high-quality bids and expect to still submit over $35 billion this year. But we have $23 billion in pending awards, and we have pretty good visibility into those, but there can always be variability of timing of those and then, of course, process, as John mentioned. So I'd say if we're looking at variability within kind of our guidance ranges, it would be just that and how does that play out during the rest of the year.
Your next question comes from Mariana with Bank of America.
The first question is about the Golden Dome Shield contract that you were shortlisted for. We haven't seen many awards yet. What are your thoughts on the timing of those awards and potential opportunities?
Yes. I believe the Golden Dome initiative starts with our current efforts. In January, General Guetlein, the Pentagon's appointed leader for the Golden Dome system, discussed the priorities for the first two years, emphasizing the importance of establishing a baseline command and control capability for this integrated system, which includes interceptors. Presently, we are actively engaged in various projects that are bringing this vision to fruition. We are supporting the Missile Defense Agency, particularly through our IRES contract, where we have laid down a digital backbone to integrate these systems within our missile defense framework. Moreover, we are developing prototype systems, such as hypersonic tracking and ballistic space sensors, which have been highlighted in the media. Together with the Missile Defense Agency, Amentum is heavily involved in this work. Additionally, I'd like to point out our collaboration with the Space Force on their NORAD mission, enhancing their ability to detect and track threats and improve missile warning capabilities. We continue to support and enhance their systems for those mission requirements. Currently, we see relevant tasking on our existing contract that contributes to the future Golden Dome solutions. Furthermore, as you noted, we, along with several other companies, have secured a spot on the Shield contract and have begun to see initial plans for upcoming procurements under this contract. Like other participants, we are preparing for those opportunities. As we move into 2026, we anticipate increased activity in this area. We are excited about our current projects and the outlook on forthcoming procurements.
And then if we can switch gears to NASA. Earlier this week, they announced the solicitation for the second iteration of the NASA engineering support contract that you guys have. And I understand you probably cannot comment on a particular contract, but how should we think about opportunities and challenges going on for your NASA exposure going forward, especially as we think about new leadership and a focus on more commercial terms, the same that we're seeing at the Department of Defense? What are the opportunities and challenges there and competitive dynamics going forward?
We are pleased to have recently met with the new NASA administrator and his team. We are excited to support NASA in achieving the President's National Space policy goals and maintaining U.S. leadership in space exploration, which everyone is aligned on. Specifically, we have enjoyed interacting with the new NASA leadership at the Kennedy Space Center, where the team is preparing for the Artemis II mission, now scheduled for a March launch window. We take pride in our support of this historic mission, which aims to take humans further into space than ever before while ensuring their safe return. Preparing for Artemis II is a top priority for us. Administrator Isaacman has emphasized the need for NASA to focus on rebuilding internal talent, strengthening contractual agreements, and fostering technical resilience, all of which we fully support. NASA plays a crucial leadership role globally, and now more than ever, it is critical for them to lead in this area. As we engage with the new leadership, we believe the administrator is focused on ensuring the agency successfully delivers missions while adhering to cost and schedule constraints. At Amentum, we are confident that our expertise and favorable cost position equip us to be a significant part of the solutions required. We are excited about the agency's direction under Administrator Isaac. Having been at Kennedy with both our team and NASA's team, we are grateful for their commitment to meticulously ensuring the mission is executed safely and effectively. The nation will be watching closely as we embark on this historic mission in March.
Your next question comes from Gavin with UBS.
You pointed out U.S. nuclear is still in early stages of acceleration. And I think I heard you say maybe a few more quarters until we see some tangible progress there. Is that the time frame we should expect for some potential award announcements?
Yes. I would say there's a lot of activity. We are extremely busy. We haven't made any announcements, but trust me, our team could not be busier given the support of this administration as well as the need, the demand that is there from the hyperscalers and the whole community, understanding that energy and meeting the energy needs of our industry is a national security issue. So it's all hands on deck, great relationship with the government and commercial business as well as foreign investment and really working together to allow this to happen in the United States, this resurgence of nuclear, call it, the second nuclear renaissance and bringing that on. And part of it is the excitement around small modular reactors, right? So SMR development is really happening. We have in the U.S., some great companies that are leading that effort. And for Amentum, we're working with these companies. And we're a key part of the supply chain to allow these projects to happen. We're doing that in Europe. We have all that expertise. We've been working in the nuclear industry going back to the Manhattan project here in the U.S. at developing next-generation energy capability here in the U.S. and now seeing the demand for electricity and bringing nuclear back on, Amentum is extremely well positioned to be a part of that success here in the U.S. So, we think '26 is going to see some real progress, and that will really create momentum into '26, '27, and beyond.
Okay. That's great. And then just back to the shutdown impact briefly. The full year assumes some headwind. I think the first quarter was a little bit light of where you guys guided. Was that larger shutdown impact than you expected? And what gives you confidence that can be recaptured this year instead of slipping to the right?
Yes. So when we issued guidance back in November, we contemplated an approximate 1% impact from the government shutdown. And that kind of played out with the majority of that occurring in the first quarter as we stated. So it was in line with kind of what our expectations were when we set the guidance range, which obviously is the reason why we reaffirmed the guidance. But we're really confident with, again, only 5% of revenues expected to come from new business, 93% is firm, only 2% recompete. And with the $23 billion in pending awards, we have good line of sight into where the revenue is going to come from for the rest of the year.
Your last call is from Andre with BTIG.
In much of the same way that you previously broke down the different pieces of the nuclear end market, are you willing to share just how big each of the four space end markets are for you now and how big they could become?
I believe we have a comprehensive understanding of the space market. To be honest, our presence across various areas makes it somewhat challenging to differentiate revenue among the four segments. You could say that most, if not all, of our revenue in the space market primarily relates to the integrated systems segment, which encompasses everything from front-end design to development, integration, and testing, all leading toward integrated systems. Additionally, we need to consider the Space Force Range contract, which has recently ramped up and significantly increased our activity in the launch sector of the overall market. As we move toward a more normalized state, it will become easier for us to accurately determine how revenues are distributed across the four segments.
Got it. Got it. That makes sense. And then I guess just to zoom out into just the accelerated growth markets overall. Are you able to provide a book-to-bill for those markets as a collective? And maybe just through that, talk about more of the opportunities you're seeing there?
Yes. On the book-to-bill, and I'll let John elaborate on the opportunities moving forward. Obviously, Q1 was a highlight, over $1 billion or right around $1 billion of the $3.3 billion in net bookings tied to just the global nuclear energy part of the accelerating growth market. So I think it's fair to say, if you look at over the last 12 months, there's been proportionately outsized contribution from our accelerating growth markets, as you would expect with awards such as Space Force Range, a lot of the other international nuclear opportunities. So certainly, they are the leading factor in our book-to-bill performance. That said, we still are excited about what our core growth markets are contributing, and they continue to have robust bookings as well.
We don’t divide the book-to-bill, but this quarter we achieved $1 billion in nuclear awards. We will keep sharing details on where these awards are coming from. A key highlight of our momentum is that we have consistently delivered on our commitments. Our team has established a strong strategy, which we have shared with the marketplace over the past two quarters. This strategy is effective and is showing results. We believe that diversifying our momentum is a significant strength, demonstrated in both our core markets and our accelerating growth markets, where we are capable of competing for the largest and most complex contracts. Going forward, we will provide more detailed information. Developments are occurring in the digital infrastructure market, and we plan to discuss that next quarter. Last quarter, we addressed global nuclear, and our Space Systems and Technologies offerings are gaining traction. We are witnessing momentum in these accelerating growth markets while maintaining strength in our core markets that we have served for decades. We intend to continue sharing more details related to these growth markets as we progress. Our pipeline is shaping up well across both our core and the three accelerating growth markets. This aligns with our strategy of prioritizing higher-margin areas while leveraging our leadership in core markets. We are enthusiastic about how our pipeline is consolidating, and our focus on scaling new business is paying off, which we saw reflected in our margins this quarter. It’s worth noting that we faced challenges due to additional government holidays affecting our cash flow. However, regarding aspects we can control that relate to our strategy, we have continued to deliver, and I am very proud of our team’s efforts each quarter to meet the marketplace expectations we have set.
Thank you for joining today's call. There are no further questions at this time. Thank you for joining. You may now disconnect.