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Albany International Q3 2026 Earnings Report
Albany International reports record Q3 revenue and strategic CH-53K contract renegotiation.
In brief
Albany International reports record Q3 revenue and strategic CH-53K contract renegotiation. Albany International achieved $349.5 million Q3 revenue with 34% year-over-year growth, driven by engineered composites and a $12 million CH-53K contract renegotiation benefit. Originally reported by The Motley Fool.
Q3 Revenue
Albany International reported $349.5 million Q3 revenue, a 34% year-over-year increase driven by engineered composites production ramps and a $12 million contract renegotiation benefit.
Adjusted EBITDA
Adjusted EBITDA reached $100.1 million with a 28.6% margin, including a $44 million reach-forward loss reversal.
Adjusted EPS
Adjusted diluted EPS of $1.68 exceeded the company's previously revised output range after strategic review completion.
Machine Clothing Revenue
Machine clothing revenue decreased to $169.8 million due to customer consolidation and capacity rationalization in the Americas.
AEC Revenue
AEC revenue reached a record $179.7 million driven by higher production rates on LEAP, Boeing 787, and missile programs.
CH-53K Impact
CH-53K renegotiation provided $12 million to revenue and $44 million to adjusted EBITDA, improving long-term program economics.
AEC Margin Target
AEC aims for mid-teens margin by 2027 through increased pricing and volume after contract renegotiations.
Q4 Revenue Guidance
Q4 revenue guidance is $325 million to $335 million, with engineered composites growth offset by soft machine clothing demand.
Q4 EPS Guidance
Q4 adjusted EPS guidance is $0.65 to $0.75 per diluted share.
Free Cash Flow
Free cash flow increased to $36.5 million from $25.7 million last year, aided by contract settlements and tariff refunds.
Capital Expenditures
Capital expenditures decreased to $12.2 million from $18.3 million last year due to facility optimization.
Net Debt
Net debt reduced to $343 million through debt repayments as cash position improved.
Available Capital
Available capital stands at $457 million for future investments, acquisitions, and shareholder returns.
IBAS Award
IBAS award of $21.2 million supports development of vertically integrated ceramic matrix composites facility.
Machine Clothing Recovery
Machine clothing operations expect to catch up on volumes by year end after equipment failure.
Strategic Shift
Company shifted focus from legacy program issues to scaling engineered composites pipeline for growth.
The one thing
Albany International achieved $349.5 million Q3 revenue with 34% year-over-year growth, driven by engineered composites and a $12 million CH-53K contract renegotiation benefit.
