contract_awardAwarded Thursday, May 28, 2026Analyzed

SOUTHERN OHIO CLEANUP COMPANY LLC: $243M Department of Energy Contract

Bullish

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

  1. 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

Unconfirmed

No confirming evidence found yet from contracts, insider trades, or congressional activity

$$AMTM▲ Bullish
Est. $40.0M$50.0M revenue impact

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.

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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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