SOUTHERN OHIO CLEANUP COMPANY LLC: $265M Department of Energy Contract
Summary
$265M DOE task order to Amentum’s subsidiary for 6 years of decontamination work at Portsmouth. Adds ~0.56% annual revenue; strengthens backlog for a company turning around from net losses.
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Key Takeaways
- 1.Amentum directly receives $265M for 6 years of work, adding ~$44M/year to revenue.
- 2.Contract is a follow-on, not new, but provides multi-year visibility and margin improvement opportunity.
- 3.No direct legislative tailwind; contract relies on DOE appropriations.
Market Implications
For $AMTM, this is a steady-state win that reinforces the investment thesis of stable government services revenue. The stock may not pop on this news since it is a known follow-on, but it de-risks the backlog. The downstream structured relationship with $TTEK and $PESI as potential subcontractors makes them small-cap beneficiaries worth watching. For the energy/environmental services ETF (e.g., $PSCE, $ICLN), this is a single data point confirming government spending momentum.
Full Analysis
Southern Ohio Cleanup Company LLC, a wholly owned subsidiary of Amentum Holdings Inc. ($AMTM), received a $265M task order from the Department of Energy for decontamination and decommissioning at the Portsmouth site. The contract runs from September 2025 through September 2031, providing multi-year visibility. Amentum is a pure-play environmental cleanup and nuclear services contractor for the U.S. government. This contract is a renewal and expansion of existing work, not a net new win, but it solidifies the company's dominant position at DOE's environmental sites.
Amentum's most recent fiscal year (ending September 2023) reported revenue of $7.9B, but net income was negative -$314M. The $44M annualized revenue contribution is modest at ~0.6% of total revenue, but environmental remediation work typically carries higher margins than larger construction/integration contracts. For a company currently unprofitable, every incremental high-margin dollar improves the path to profitability. The contract structure as a task order under an existing IDIQ means it leverages existing infrastructure, likely supporting margin improvement.
No related bills in the HillSignal database directly fund or authorize this DOE cleanup work. The listed bills are dominated by agricultural spending and a JROTC defense bill; none share the objective of nuclear decommissioning. This contract is funded through DOE's Environmental Management appropriation, which is part of annual energy and water development appropriations, not a specific authorization bill.
Subcontractors and supply chain beneficiaries include companies providing heavy decommissioning equipment, hazardous waste disposal, and radiological protection services. Key likely subcontractors include Tetra Tech ($TTEK, ~$300M environmental services revenue from government), Jacobs Solutions ($J, former competitor in D&D but now a clean-tech/solutions firm), and smaller specialized firms like Perma-Fix Environmental Services ($PESI).
Historically, large multi-year DOE cleanup contracts provide stable, recurring revenue streams. Amentum's share price has historically responded positively to task order announcements, though the effect is muted for follow-on awards. The key catalyst for $AMTM remains progress toward profitability, which this contract supports incrementally.
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 task order to the LLC that is a wholly owned subsidiary of Amentum Holdings. The parent company will consolidate the revenue.
Who must act
Department of Energy awards task order to Southern Ohio Cleanup Company LLC, which is part of Amentum.
What happens
$265M contract over approximately 6 years (FY2026-2031) equates to ~$44M/year in added revenue, representing roughly 0.56% of Amentum's annual revenue base ($7.9B).
Stock impact
Amentum's revenue from its Environment & Energy segment will increase by this amount. The contract is a follow-on to earlier D&D work, providing predictable long-term cash flows. Amentum's net margin is currently negative, so incremental high-margin environmental cleanup work can directly improve profitability.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
CENTRAL PLATEAU CLEANUP COMPANY, LLC: $1.0B Department of Energy Contract
CENTRAL PLATEAU CLEANUP COMPANY, LLC: $1.0B Department of Energy Contract
CENTRAL PLATEAU CLEANUP COMPANY, LLC: $946M Department of Energy Contract
CENTRAL PLATEAU CLEANUP COMPANY, LLC: $946M Department of Energy Contract
SOUTHERN OHIO CLEANUP COMPANY LLC: $344M Department of Energy Contract
SOUTHERN OHIO CLEANUP COMPANY LLC: $344M Department of Energy Contract
AMENTUM SERVICES, INC.: $21.0M National Aeronautics and Space Administration Contract Vehicle
CENTRAL PLATEAU CLEANUP COMPANY, LLC: $53.1M Department of Energy Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components into the United States
This proclamation imposes a 100% ad valorem tariff on imports of unmanned aircraft systems (UAS) over 25 kg, those with thermal imagers, docking stations, and certain components, and a 25% tariff on UAS under 25 kg and other components, citing national security under Section 232 of the Trade Expansion Act. It also authorizes the Department of Commerce to establish an onshoring program offering preferential tariff treatment for companies that build new U.S. manufacturing facilities for UAS and components.
Adjusting Imports of Polysilicon and its Derivatives into the United States
This proclamation invokes Section 232 of the Trade Expansion Act to impose a minimum import price (MIP) program on polysilicon and its derivatives, a 15% ad valorem tariff on polysilicon derivatives, and directs the Secretary of Commerce to offer incentives for domestic production. It aims to protect and revive the U.S. polysilicon industry by restricting imports that threaten national security, particularly for semiconductor and solar supply chains.
Presidential Determination Pursuant to Section 101 of the Defense Production Act of 1950, as Amended, on Recoverable Critical Minerals and Materials
This memorandum invokes the Defense Production Act (DPA) Section 101 to declare that recoverable critical minerals and materials (such as black mass, end-of-life rare-earth magnets, and scrap) are essential to national defense and that the U.S. cannot meet defense needs without disrupting civilian markets. It directs the Secretary of Commerce to issue regulations and take actions—including priority contracts and supply-chain interventions—to rapidly expand domestic recovery and processing of these materials, while explicitly excluding copper scrap already covered by a separate proclamation.
Contract Details
Recipient
SOUTHERN OHIO CLEANUP COMPANY LLC
Award Amount
$265,045,067
Awarding Agency
Department of Energy
Sub-Agency
Department of Energy
Contract Type
DELIVERY ORDER
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