Albany International Raises Third-Quarter Adjusted Earnings Outlook to $1.50
The materials science maker lifted third-quarter adjusted EPS guidance to a range of $1.40 to $1.50 after reversing a CH-53K loss reserve.
Albany International Corp. (AIN) completed a strategic review of its Amelia Earhart Drive facility in Salt Lake City and decided to keep the plant, reversing a plan announced in October 2025 to explore selling the structures assembly business. The company also reversed a previously announced reach-forward loss on the Sikorsky CH-53K helicopter program after renegotiating the contract, and it raised third-quarter 2026 adjusted earnings guidance.
President and Chief Executive Officer Gunnar Kleveland said the amended Sikorsky agreement reduces program risk, generates positive cash flow, stabilizes 53K aircraft production, and offsets projected losses while continuing support for the customer. The contract modification is expected to generate positive cash flow beginning in 2027.
In October 2025, Albany said it expected to recognize an approximately $147 million loss reserve adjustment in the third quarter of 2025, primarily related to greater-than-planned labor content and higher material inputs on the CH-53K contract. At that time, Kleveland said that without changes to the contract, there was no path to profitability on the program as originally bid, and the company described the adjustment as the full loss anticipated over the remaining eight-year life of the program. It also said it was exploring strategic alternatives for the structures assembly business, including a potential sale of all or part of the Amelia Earhart Drive site.
The September 2026 announcement ended that review. Albany will retain the facility and continue with its current production scope on the CH-53K under the new terms with Sikorsky, a Lockheed Martin company. The company partnered with Sikorsky to ensure continuity of production of the heavy-lift helicopters for the United States Marine Corps.
Chris Stone, president of Albany Engineered Composites, said the company entered into a contract extension for composite fuselage frames on the Boeing 787 Dreamliner, a legacy program for the Salt Lake City site, and recently secured new defense contracts with a strategic customer that will expand the program portfolio. Stone said the retention of the facility preserves capacity for commercial aerospace, defense, and advanced air mobility work.
The entire Salt Lake City site generated approximately $130 million of revenue, after EAC charges, for the trailing twelve months ended September 30, 2025.
Third-quarter 2026 adjusted EPS guidance was raised from prior guidance of $0.60 to $0.70 to a range of $1.40 to $1.50. Consolidated net revenue outlook for the third quarter remained unchanged at $320 million to $330 million. Machine Clothing net revenue outlook remained unchanged at $165 million to $170 million, and Engineered Composite net revenue outlook remained unchanged at $155 million to $160 million. The third-quarter effective tax rate is 31.5%.
For the fourth quarter of 2026, Albany set consolidated net revenue of $325 million to $335 million, Machine Clothing net revenue of $170 million to $175 million, Engineered Composite net revenue of $155 million to $160 million, and adjusted EPS of $0.65 to $0.75. The fourth-quarter effective tax rate is 31.5%.
Albany is a materials science developer and manufacturer of engineered components with two core businesses: Machine Clothing, which makes consumable belts for paper and industrial applications, and Albany Engineered Composites, which makes advanced materials-based components for aerospace. The company is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, and employs approximately 5,700 people.
The company scheduled an investor call for September 2, 2026, at 8:30 a.m. Eastern Time.