Albany International (AIN) Status update summary

Strategic review outcome and contract amendments

• Completed a strategic review, resulting in the decision to retain the Salt Lake City facility, driven by new business wins and renegotiated contracts, notably with Sikorsky for the CH-53K helicopter and Boeing for the 787 fuselage frames.

• The amended CH-53K contract shortens the production horizon, increases price per ship set, limits exposure to material cost inflation, reduces program risk, stabilizes production, and is expected to generate positive cash flow starting in 2027.

• Additional contracts secured include a Boeing 787 Dreamliner extension, two new defense contracts, and advanced composite parts for BETA ALIA and F-35 aircraft, expanding the program portfolio and supporting long-term growth.

• The facility will continue to support both current and new aerospace, defense, and advanced air mobility programs, including a teaming agreement on hypersonic development.

• Investor call scheduled for September 2, 2026, to discuss these developments.

Financial guidance and outlook

• Third quarter revenue guidance: $165–$170 million for Machine Clothing, $155–$160 million for Engineered Composites, and $320–$330 million consolidated; Q3 adjusted EPS raised to $1.40–$1.50 from $0.60–$0.70.

• Fourth quarter revenue guidance: $170–$175 million for Machine Clothing, $155–$160 million for Engineered Composites, and $325–$335 million consolidated; Q4 adjusted EPS projected at $0.65–$0.75, with an effective tax rate of 31.5%.

• Double-digit growth and mid-to-upper teens EBITDA targeted for the Engineered Composites segment over the next several years.

• Third quarter effective tax rate set at 31.5%.

Accounting and reserve adjustments

• $12 million in cumulative depreciation and amortization catch-up for the Salt Lake City site will be recognized in Q3.

• Approximately $45 million of the loss reserve is being reversed this quarter, with remaining reserves to be absorbed until the contract amendment takes full effect in late 2027.

• The site is now classified as held for use, not held for sale, reflecting the strategic decision to retain it.

• Profitability improvements from the amended contract and new business wins will be realized incrementally, with 2028 as the first full year of enhanced margins.