Albany International reported a sharp year-over-year improvement in third-quarter results, with higher Engineered Composites sales and favorable adjustments from renegotiating its CH-53K contract lifting revenue and earnings. The company also said it completed a strategic review of its Amelia Earhart Drive facility, allowing management to turn its attention toward future aerospace and defense opportunities.
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Revenue rose 34% to $349.5 million, from $261.4 million a year earlier. The increase was driven mainly by higher volume in Engineered Composites and about $11.6 million of positive program adjustments related to the CH-53K contract renegotiation.
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Albany recorded net income of $41.7 million, or $1.46 per diluted share, compared with a net loss of $97.8 million, or $3.37 per share, in the third quarter of 2025.
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Adjusted EBITDA was $100.1 million, versus a loss of $91.1 million in the year-earlier quarter. Adjusted diluted earnings per share were $1.68, compared with an adjusted loss of $3.29.
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Contract-related adjustments materially boosted this quarter’s results. Albany’s figures show favorable third-quarter effects of $33.4 million on gross margin, $44.4 million on EBITDA and $0.88 per diluted share. The company said the EBITDA effect included a $44.4 million CH-53K impact, partly offset by $11.0 million of catch-up depreciation and amortization. By contrast, the prior-year comparison included a $147.3 million unfavorable adjustment related to the CH-53K program.
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Gross profit was $140.4 million, compared with a gross loss of $49.9 million a year earlier. Besides the contract adjustment, Albany cited higher volume and margins in Engineered Composites. Those benefits were partly offset by lower volume, geographic mix and weaker fixed-cost absorption in Machine Clothing.
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Machine Clothing sales were at the high end of management’s expectations, despite a changing market environment, according to CEO Gunnar Kleveland. The company did not provide segment revenue figures in the material presented here.
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Free cash flow was positive at $36.5 million. Albany paid $7.9 million in dividends and invested $12.2 million in capital during the quarter.
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The Amelia Earhart Drive facility review is complete. Management said the review was finalized in under a year and that the company can now focus more directly on opportunities in areas including missiles, hypersonics, space and next-generation aircraft. The release did not specify further financial terms or operating changes resulting from the review.
Albany will discuss the results on a webcast scheduled for 9 a.m. Eastern on October 29. Management also said it plans to update investors on its direction at an investor day in December.