Albany International (AIN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 33.7% YoY to $349.5M; adjusted EBITDA was $100.1M and adjusted diluted EPS was $1.68, with Engineered Composites growth and CH-53K contract revisions driving the improvement.

• The Amelia Earhart Drive strategic review concluded with the facility retained and CH-53K terms amended, reducing uncertainty and shifting focus toward aerospace and defense growth.

Financial highlights

• Q3 gross profit was $140.4M and operating income was $59.4M, versus losses of $49.9M and $116.5M, respectively, in Q3 2025.

• Q3 free cash flow was $36.5M versus $25.7M; operating cash flow was $48.6M.

• 9M revenue rose 14.9% to $990.4M; adjusted EBITDA was $206.1M versus $15.5M, and adjusted diluted EPS was $3.10 versus a loss of $1.81.

Outlook and guidance

• Q4 revenue guidance is $325M–$335M: Machine Clothing $170M–$175M and Engineered Composites $155M–$160M; adjusted EPS is $0.65–$0.75.

• Q4 effective tax rate guidance is 29.5%; Machine Clothing revenue is expected to be slightly down for FY 2026, while Engineered Composites is expected to grow YoY.

• Engineered Composites’ underlying Q3 EBITDA margin was ~12.5% excluding identified impacts; management sees this as a reasonable Q4/early-2027 base and targets a mid-teens margin exiting 2027.

• Machine Clothing catch-up volumes and the replacement machine are expected by year-end.