Albany International Retains Salt Lake Site After CH-53K Deal, Raises Q3 EPS Outlook

Albany International will retain its Amelia Earhart Drive structures assembly facility in Salt Lake City after reaching an amended agreement with Sikorsky on the CH-53K program. The revised terms include higher pricing per ship set and provisions intended to reduce exposure to material-cost inflation. The company expects to accelerate cash into 2026 and produce positive cash flow beginning in 2027. The revised arrangement reduces risk by shortening the production-horizon commitment and the total number of aircraft deliveries. Other programs include an extension for composite fuselage frames on Boeing’s 787 Dreamliner, two recently secured defense contracts with a strategic customer, BETA ALIA aircraft advanced-composite parts, and F-35 advanced-composite parts. Albany also referenced a recently announced teaming agreement with Sikorsky related to hypersonic development. Albany will reverse the portion of its previously disclosed $147 million CH-53K loss reserve related to the post-amendment period during the third quarter, while continuing to reserve for expected losses until the amendment takes effect. The company expects to absorb some additional costs as it progresses through the learning curve on the CH-53K program. Albany will also recognize approximately $12 million in cumulative depreciation and amortization in the third quarter as the facility returns to held-for-use status. Albany raised its third-quarter adjusted EPS outlook to $1.40–$1.50 from $0.60–$0.70 while maintaining consolidated revenue guidance of approximately $320 million–$330 million. Fourth-quarter revenue is projected at $325 million–$335 million, with adjusted EPS of $0.65–$0.75.