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    Amentum Holdings (AMTM) Wins Preferred Sellafield Role, Is The Stock Still Undervalued?

    Simply Wall St·10/01/2026 23:19:04
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    Amentum Holdings: New UK Nuclear Contract Puts Long-Term Workfront In Focus

    Amentum Holdings (AMTM) just saw its OneAxIoM joint venture picked as preferred supplier for Sellafield Ltd’s PACE framework, a UK nuclear asset program valued at up to $2.78b.

    The framework still awaits formal award. However, the nine year initial term, plus an optional six year extension, points to potentially long-lived engineering, project delivery and asset care work tied to one of Britain’s most complex nuclear sites.

    Amentum Holdings’ preferred bidder status at Sellafield comes against a weak tape, with the share price at $18.48 after a 1-day share price return of 1.99%. However, the stock is still down 7.55% over 30 days and the total shareholder return over 1 year has declined 26.52%, pointing to pressure on sentiment even as new contract wins start to reshape the narrative.

    Scan beyond Amentum Holdings and spot other contractors riding similar infrastructure and nuclear tailwinds with our hand picked 19 nuclear energy infrastructure stocks

    Amentum Holdings has a fresh nuclear contract story, but a share price that has already fallen sharply. Is most of the easy rerating already behind the stock, or does the current valuation still leave meaningful upside on the table?

    Most Popular Narrative: 38% Undervalued

    Against the last close at $18.48, the most followed valuation view pegs fair value for Amentum Holdings at about $29.58. This implies a wide gap that hinges on how its contract backlog and margin story play out from here under an 8.72% discount rate.

    Ramp up of large, long duration awards such as the U.S. Space Force Range contract, Sellafield remediation and NASA Cosmos is set to convert the current $47 billion backlog and $20 billion of pending bids into higher run rate revenues and improved operating leverage, supporting sustained earnings growth.

    See why 10 investors see Amentum Holdings as 38% undervalued.

    Result: Fair Value of $29.58 (UNDERVALUED)

    Still, Amentum Holdings faces two swing factors: execution risk on large, complex contracts, and any prolonged U.S. funding disruption that could stall awards and squeeze visibility.

    Find out about the key risks to this Amentum Holdings narrative.

    Next Steps

    If the split sentiment on Amentum Holdings leaves you unsure, move fast and review the underlying data yourself to test the thesis from both sides. To weigh the potential downsides against the possible upsides in one place, start with our breakdown of 3 key rewards and 2 important warning signs

    Looking beyond Amentum Holdings for more investment ideas?

    If Amentum Holdings has caught your attention, do not stop there. Use the Simply Wall Street screener to quickly surface fresh ideas that match your style.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.