Key Highlights

  • Adjusted EPS of USD 1.68 topped the USD 1.48 consensus estimate, versus an adjusted loss of USD 3.29 last year.
  • Net revenue of USD 349.5 million rose 34% and beat the USD 326.1 million consensus estimate.
  • Engineered Composites revenue climbed 107% in constant currency while Machine Clothing declined 3.0% on Americas weakness.
  • Free cash flow reached USD 36.5 million, and net debt stood at USD 343.0 million with USD 79.1 million cash.

Albany International Corp. (NYSE:AIN) reported third-quarter 2026 adjusted diluted earnings per share of USD 1.68, above a consensus estimate of USD 1.48 and a swing from an adjusted loss of USD 3.29 in the prior-year quarter. GAAP diluted EPS was USD 1.46, compared with a loss of USD 3.37 a year earlier. Net revenue rose 34% to USD 349.5 million from USD 261.4 million, ahead of a consensus estimate of USD 326.1 million.

The comparison is shaped by the CH-53K helicopter program. The company completed its strategic review of the Amelia Earhart Drive facility and renegotiated the contract, which produced a USD 33.4 million favorable gross margin adjustment and about USD 11.6 million of revenue. Last year's quarter carried a USD 147.3 million unfavorable adjustment. The adjustment added USD 0.88 to diluted EPS this quarter. Gross profit was USD 140.4 million and operating income was USD 59.4 million.

Segment Performance and Margins

Engineered Composites revenue rose 107.0% in constant currency to USD 179.7 million, driven by commercial work on the LEAP program and defense work on CH-53K and missile programs. Segment adjusted EBITDA margin was 36.5%, with underlying volume and efficiency gains alongside the contract adjustment. Gross margin in the segment was 36.2%.

Machine Clothing revenue was USD 169.8 million, down 3.0% in constant currency on cyclical declines in the Americas. Adjusted EBITDA margin narrowed to 27.2% from 31.0% on volume and geographic mix, and gross margin was 44.4% against 46.9%. Consolidated adjusted EBITDA was USD 100.1 million, a 28.6% margin, and restructuring expense rose to USD 7.3 million from USD 3.2 million on footprint work in Machine Clothing.

Fourth-Quarter Guidance and Capital Position

For the fourth quarter, the company guided to consolidated net revenue of USD 325 million to USD 335 million, with Machine Clothing at USD 170 million to USD 175 million and Engineered Composites at USD 155 million to USD 160 million. Adjusted EPS is guided to USD 0.65 to USD 0.75, and the fourth-quarter effective tax rate was revised to 29.5% from 31.5%.

CEO Gunnar Kleveland said the company can now shift from legacy challenges to aerospace and defense opportunities such as missiles, hypersonics, space and next-generation aircraft. Free cash flow of USD 36.5 million compared with USD 25.7 million a year earlier. The company paid USD 7.9 million in dividends and spent USD 12.2 million on capital, and total debt was USD 422.1 million.

Numbers to Revisit

Four items frame the next disclosure. Revenue guidance comes first, with the fourth-quarter range of USD 325 million to USD 335 million sitting below the third-quarter figure of USD 349.5 million. Adjusted EPS guidance of USD 0.65 to USD 0.75 is second. Machine Clothing margin is third, at 27.2% against 31.0%. The fourth is the investor day scheduled for December, where management plans to outline its path forward. The earnings webcast is set for October 29 at 9:00 a.m. Eastern Time.