Albany International Corp. today announced the completion of the strategic review of its Amelia Earhart Drive facility in Salt Lake City, Utah. Following new business wins, a renegotiated Boeing 787 contract for one-piece composite fuselage frames, and new contract terms with Sikorsky, a Lockheed Martin Company, on the CH-53K programme, Albany will retain the facility and end the previously announced strategic review. Under the new agreement with Sikorsky, Albany will continue with its current production scope on CH-53K, having improved the financials for the programme. Albany partnered with Sikorsky to ensure continuity of production of these heavy lift helicopters, delivering a critical new capability for the United States Marine Corps.

Gunnar Kleveland, Albany International's President and Chief Executive Officer, said, "We are pleased to announce the completion of our strategic review of the Amelia Earhart Drive facility, which enables the continued execution of the CH-53K program through an amended contract. The contract reduces the program risk, generates positive cash flow, stabilizes 53K aircraft production, and offsets projected losses while maintaining support for our longstanding customer, Sikorsky. Throughout this process, our goal has been to maximize shareholder value while continuing to support our valued customers, as we carefully evaluated multiple alternatives. After reviewing all available options, we concluded that retaining the facility and continuing operations under the amended contract delivers the strongest overall economic outcome. We appreciate the continued engagement and partnership with Sikorsky through this process, which was critical to achieving an outcome that benefits both companies and our troops in the air and on the ground. The outcome of this process allows us to retain a strategically important and well-capitalized manufacturing facility that is well positioned to deliver on a number of existing growth programs and is a key enabler of future growth."

Chris Stone, President of Albany Engineered Composites said, "In support of that growth, we have entered a contract extension for the composite fuselage frames on the Boeing 787 Dreamliner, a notable legacy program for the Salt Lake City facility. In addition, we have also recently secured new defense contracts with a strategic customer that will expand our program portfolio and contribute to the long-term, balanced growth of our Salt Lake City business."

Mr. Stone continued, "The conclusion of the strategic review and retention of the Amelia Earhart Drive facility allows us to retain a world-class facility supporting critical A&D customers and programs, including the CH-53K program. Just as importantly, it ensures capacity and expertise to support a growing pipeline of commercial aerospace, defense, and advanced air mobility opportunities with several strategic customers that leverage our composite expertise. The extension with Boeing and the new defense contracts we have recently secured are key examples of the growth pipeline in front of us. I could not be prouder of the performance and professionalism of the team in Salt Lake City. Throughout this process, they remained focused on delivering for our customer and executing at a high level. Their professionalism and dedication played a key role in preserving the strong relationship we have built with our customer and in enabling this outcome. In addition, I'd like to thank Sikorsky for their continued support and collaboration throughout the process and Guggenheim Securities, who served as exclusive financial advisor to Albany International Corp. in connection with its strategic review. I am excited for the future of this site and our business as a whole."

Updated outlook for the third quarter of 2026

– Consolidated net revenue outlook remains unchanged at between $320 million and $330 million

– Machine Clothing net revenue outlook remains unchanged at between $165 million and $170 million

– Engineered Composite net revenue outlook remains unchanged at between $155 million and $160 million

– Adjusted EPS increased from prior guidance of $0.60 to $0.70 to between $1.40 and $1.50

– Third-quarter effective tax rate of 31.5%

Outlook for the fourth quarter of 2026

– Consolidated net revenue between $325 million and $335 million

– Machine Clothing net revenue between $170 million and $175 million

– Engineered Composite net revenue between $155 million and $160 million

– Adjusted EPS between $0.65 and $0.75

– Fourth-quarter effective tax rate of 31.5%