Oct 29, 2026 earnings call — CH-53K settlement and engineered composites ramp
Albany reported record quarterly revenue of $349.5 million, up 34% year over year.
Revenue $0.3B (est $0.3B) · EPS $1.68 (est $1.48) · Next-quarter revenue outlook $0.3B–$0.3B
Key quotes
"The renegotiation of the CH 53 k program reached during the third quarter of 2026 resulted in a positive impact of approximately $12 million to revenue and $44 million to adjusted EBITDA."
"The segment delivered another record quarter. With revenue of $179.7 million Growth was driven by higher production rates across multiple programs."
"Machine clothing revenue was $169.8 million, modestly below the prior year due to anticipated weakness in The Americas during the quarter."
Analyst Q&A 3
AEC segment margins and growth
Q (Chigusa Katoku · JPMorgan): What was the underlying AEC EBITDA margin in Q3 after adjusting for the CH-53 contract and tariff refunds? Also, is that 12.5% a reasonable run rate into early 2027, and what is the underlying top-line growth for engineered composites?
A: They said the AEC EBITDA margin, excluding those charges, was about 12.5% for the quarter. They said 12.5% is a reasonable base into Q4 and the start of 2027, and margins should grow from there with a goal to be in the mid teens by exit 2027 driven by pricing, renegotiations, and higher volumes. On top-line, engineered composites growth is coming from LEAP, Boeing wide-body frames, missile programs, and engine sections, with more impact in 2027.
"If you back away the all of the impacts that you laid out there, you are looking at about a margin profile of 12.5% EBITDA margin for the quarter in AEC excluding those charges." — Sean C. Valashinas (CFO)
Hypersonics capacity, IBAS and machine recovery
Q (Alexandra Eleni Mandery · Truist): What capacity and CapEx does the missile/hypersonics ramp need, and how does the $21.2 million IBAS contract fit into the build-out? Also, an update on catching up volumes after the Machine Clothing equipment failure — will volumes be caught up by year-end?
A: They said the IBAS award lets them do more work in house by adding machining, inspection, and densification capability, with limited additional company investment. They said they have significant CMC capability now and some untapped capacity, and beyond Rochester they will pursue a mix of company and government investment as needed. On the machine issue, they said the equipment continues to run, the new machine is being assembled at their site, and they expect to be caught up by year end with significantly lowered risk.
"The additional money from IBAS will allow us to do everything in house." — Gunnar Kleveland (CEO)
Missile ramp timing, cash flow, capital plans
Q (Jan Engelbrecht · Baird): For missile programs, how long from talking to customers to qualification and production — similar to 30 months? Also, how should we think about steady-state cash dynamics exiting 2026 and operating cash in 2027, and high-level capital deployment plans?
A: They said that in a normal environment ramp takes 24 to 36 months, but with current urgency they expect faster ramps and to start seeing impact in 2027 and 2028. They said cash flow is a high focus, with improvements underway; Q4 has historically been strong and they expect strong cash flow near Q3 levels, and they will share more at Investor Day. On capital deployment they said they will remain disciplined, will take inbounds more seriously now that structural issues are behind them, and will weigh acquisitions and organic investments while maintaining dividends.
"I would say in a normal environment, once you get on the program, it takes 24 to 36 months to ramp up." — Gunnar Kleveland (CEO)