SOUTHERN OHIO CLEANUP COMPANY LLC: $369M Department of Energy Contract
Summary
Amentum Holdings ($AMTM) received a $369M DOE task order for decontamination and decommissioning at Portsmouth, adding ~0.8% annual revenue over six years. While not transformative, it provides stable backlog and supports Amentum's environmental services segment.
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Key Takeaways
- 1.Amentum ($AMTM) secures $369M DOE cleanup contract, adding ~0.8% annual revenue.
- 2.Contract runs through 2031, providing multi-year backlog stability.
- 3.No direct legislative connection; contract is a routine task order under existing DOE authority.
Market Implications
Amentum ($AMTM) may see a modest positive reaction as the contract reinforces its environmental cleanup franchise. However, the 0.8% revenue impact is not a major catalyst. The stock's performance will depend more on broader government services spending and Amentum's ability to improve profitability. No other publicly traded companies are directly impacted by this award.
Full Analysis
The Department of Energy awarded a $369 million delivery order to Southern Ohio Cleanup Company LLC, a subsidiary of Amentum Holdings ($AMTM), for decontamination and decommissioning (D&D) at the Portsmouth site. The contract runs from September 2025 through September 2031, providing a multi-year revenue stream.
Amentum, a publicly traded government services contractor with $7.9 billion in annual revenue, will recognize approximately $61.5 million per year from this award, representing about 0.78% of total revenue. While the company reported a net loss of $314 million in FY2025, this contract adds to its environmental cleanup backlog and supports its core D&D capabilities.
No specific legislation directly authorizes this contract; it is a task order under an existing DOE framework. The related bills in the database (e.g., HR7294, HR10218) are unrelated to environmental cleanup, so no legislative tailwind is present.
Downstream subcontractors for DOE D&D work often include small and mid-sized environmental services firms, but no specific publicly traded subcontractors are identified in this award. Investors should monitor Amentum's execution and margin performance on this contract.
Historically, multi-year DOE cleanup contracts provide stable revenue for government services contractors like Amentum, but stock price reactions are typically modest unless the contract is large relative to revenue. Given the 0.8% revenue impact, the market reaction is likely muted.
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 award of a delivery order under an existing DOE contract for decontamination and decommissioning services at the Portsmouth site.
Who must act
Department of Energy (DOE) awarding to Southern Ohio Cleanup Company LLC, a subsidiary of Amentum Holdings, Inc.
What happens
$369 million added to Amentum's backlog over a 6-year period (FY2026-2031), representing approximately $61.5 million in annual revenue, or roughly 0.78% of Amentum's FY2025 revenue of $7.9 billion.
Stock impact
Amentum is a pure-play government services contractor with a significant environmental cleanup portfolio. This contract reinforces its position in DOE's D&D market, providing stable, multi-year revenue. However, given Amentum's negative net income (-$314M in FY2025), the contract alone is not a turnaround catalyst but contributes to backlog and cash flow.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
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SOUTHERN OHIO CLEANUP COMPANY LLC: $369M Department of Energy Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Restoring Reciprocity in Government Procurement
This Presidential Memorandum directs the Office of Management and Budget, the U.S. Trade Representative, and other federal agencies to identify and remove Canadian-origin items from federal civil procurement where possible, citing Canada's 'Buy Canadian' policies as discriminatory. It also requires agencies to be notified of domestic alternatives and mandates ongoing monitoring of Canada's procurement practices, with provisions for restoring access if Canada changes its policies.
Providing Meaningful Water Quality Improvements Through Collaboration and Oversight of Federal Support
This executive order revokes Executive Order 13508, which had mandated Chesapeake Bay restoration efforts, and directs federal agencies to prioritize funding for direct, on-the-ground water quality projects. It also instructs the EPA to work with states to assess and encourage the repeal of stormwater management fees (rain taxes) that have burdened residents, aiming to reduce costs while maintaining environmental progress.
Adjusting Certain Delegations Under the Defense Production Act
This proclamation amends Executive Order 13603 to share authority under the Defense Production Act for energy matters between the Secretary of the Interior and the Secretary of Energy, allowing each to act independently, and directs inter-agency dispute resolution via the National Energy Dominance Council and National Security Council, with coordination from the Department of War when national defense is implicated.
Contract Details
Recipient
SOUTHERN OHIO CLEANUP COMPANY LLC
Award Amount
$368,804,998
Awarding Agency
Department of Energy
Sub-Agency
Department of Energy
Contract Type
DELIVERY ORDER
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