SOUTHERN OHIO CLEANUP COMPANY LLC: $400M Department of Energy Contract

The Department of Energy (DOE) has awarded a $400M delivery order to Southern Ohio Cleanup Company LLC, a subsidiary of Amentum Holdings, Inc. ($AMTM), for decontamination and decommissioning (D&D) at the Portsmouth site in Ohio. The task order covers fiscal years 2026 through 2031, providing a six-year revenue stream for the contractor. Amentum, a government services company with $7.9B in annual revenue (FY2025), has been reporting negative net income, making this contract a valuable addition to its backlog. The award represents approximately 0.84% of annual revenue, a meaningful but not transformative boost.

This contract is part of DOE's environmental management mission, which involves cleaning up Cold War-era nuclear sites. The Portsmouth site is a former uranium enrichment facility, and D&D work includes decontaminating buildings, managing waste, and restoring the site. Amentum's expertise in nuclear cleanup positions it well for future DOE awards, as the agency continues to allocate billions for environmental remediation.

The contract connects to legislative signals such as HR10675, a bill aimed at strengthening critical mineral, energy, manufacturing, and technology supply chains. While not directly funding this contract, the bill signals congressional support for energy infrastructure and supply chain resilience, which could lead to increased DOE spending on cleanup and modernization. Additionally, HR10687, which addresses power plant retirement transparency, aligns with the decommissioning aspect of this contract.

Downstream, subcontractors specializing in environmental remediation and nuclear services may benefit. Companies like Tetra Tech ($TTEK) and Jacobs ($J) are typical subcontractors on DOE cleanup contracts, though specific awards are not confirmed. These firms have established relationships with DOE and could see increased demand for their services as the Portsmouth project progresses.

Historically, DOE environmental cleanup contracts provide stable, multi-year revenue for prime contractors and their supply chains. Past awards have led to sustained backlog growth for companies like Amentum and its predecessors. For investors, this contract reinforces Amentum's position in the nuclear cleanup market and provides a predictable revenue stream, though the company's overall financial health remains challenged by broader losses.