SOUTHERN OHIO CLEANUP COMPANY LLC: $243M Department of Energy Contract
Summary
The DOE awarded a $243M task order to Amentum’s subsidiary for decontamination and decommissioning at the Portsmouth site over FY2026–2031. This multi-year award adds stable, high-margin revenue to Amentum’s backlog, representing ~3.1% of annual revenue and reinforcing its leadership in DOE environmental cleanup.
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Key Takeaways
- 1.Amentum’s $243M DOE task order is a multi-year, high-margin environmental cleanup contract that adds ~3.1% to annual revenue.
- 2.The award reinforces Amentum’s position as a top DOE contractor for decommissioning and nuclear waste management.
- 3.Subcontractors like Perma-Fix Environmental Services ($PESI) may see downstream benefits from waste treatment and disposal needs.
Market Implications
The contract is a routine but meaningful addition to Amentum’s backlog. It does not shift the company’s competitive landscape but reinforces its DOE franchise. Investors should monitor Amentum’s ability to convert this into positive net income, given its current negative EPS. The stock may see modest upward pressure from improved backlog visibility.
Full Analysis
- The contract: The Department of Energy issued a $243M delivery order to Southern Ohio Cleanup Company LLC (Amentum’s subsidiary) for decontamination and decommissioning (D&D) at the Portsmouth, Ohio site. The work spans six fiscal years (2026–2031) and is a task order under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. 2) The parent company: Amentum Holdings, Inc. ($AMTM) is the direct parent. Amentum is a pure-play government services contractor focused on environmental management, nuclear cleanup, and national security. With FY2025 revenue of $7.9B, this $243M award represents ~3.1% of annual revenue. The multi-year structure provides predictable cash flow and supports Amentum’s operating income recovery (currently $57M). 3) Connection to legislation: No specific authorization bill is directly tied to this contract. The related bill signals (e.g., S4540, HR8944) are neutral and not linked to DOE cleanup spending. The contract is funded through DOE’s annual appropriations for Environmental Management. 4) Supply chain: Key subcontractors include small-cap environmental remediation firms and nuclear waste management specialists. Potential beneficiaries: Perma-Fix Environmental Services ($PESI) and US Ecology (now part of Republic Services, $RSG) may provide waste treatment and disposal services. 5) Historical pattern: DOE D&D contracts are typically multi-year, cost-reimbursable, and provide steady revenue. Amentum’s stock has historically traded in line with government services peers; this award adds backlog visibility without immediate transformative impact.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Direct contract award to subsidiary Southern Ohio Cleanup Company LLC, which is a wholly owned operating entity of Amentum Holdings, Inc.
Who must act
Department of Energy (DOE) – the recipient is Southern Ohio Cleanup Company LLC, a subsidiary of Amentum Holdings, Inc.
What happens
The $243M task order adds to Amentum’s backlog for decontamination and decommissioning services at the Portsmouth site over six fiscal years (2026–2031). This represents approximately 3.1% of Amentum’s FY2025 annual revenue of $7.9B.
Stock impact
Amentum’s core business is environmental management, nuclear cleanup, and facility decommissioning for the DOE. This contract reinforces its position as a leading DOE contractor and provides stable, multi-year revenue visibility. The company’s negative net income in FY2025 (-$314M) reflects legacy restructuring costs; this award supports margin recovery through high-margin, long-duration work.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
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HANFORD TANK WASTE OPERATIONS & CLOSURE, LLC: $1.4B Department of Energy Contract
FISHER SAND & GRAVEL CO: $2.6B Department of Homeland Security Contract
FERMI FORWARD DISCOVERY GROUP, LLC: $2.4B Department of Energy Contract
SPENCER CONSTRUCTION LLC: $1.1B Department of Homeland Security Contract
PANTEXAS DETERRENCE, LLC: $3.5B Department of Energy Contract
FISHER SAND & GRAVEL CO: $1.6B Department of Homeland Security Contract
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Contract Details
Recipient
SOUTHERN OHIO CLEANUP COMPANY LLC
Award Amount
$243,120,067
Awarding Agency
Department of Energy
Sub-Agency
Department of Energy
Contract Type
DELIVERY ORDER
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