Albany International (AIN) JPMorgan Industrials Conference 2026 summary

Recent performance and growth drivers

• Q4 AEC revenue reached $143 million, driven by strong program performance, absence of EAC adjustments, and material pull forward; ongoing production rates expected at $120 million per quarter going forward.

• Organic growth in Q4 was split roughly in thirds: program performance, lack of EAC cost growth, and accounting/material pull forward.

• Q1 guidance implies about 5% organic growth, reflecting a more modest ramp-up aligned with program schedules, with stronger growth expected as the year progresses.

• Full-year AEC organic growth is not expected to reach high single digits.

Margins, strategic review, and divestiture plans

• AEC margins were 9.7% in Q3 and 13% in Q4; full-year margins expected in the 10%-13% range.

• Completion of the Salt Lake City site divestiture is a top priority, with expectations for mid- to upper-teens AEC margins post-transition.

• The divestiture process is underway, with significant buyer interest and efforts to address stranded costs before and during the transition.

• Stranded cost analysis is ongoing, with an accounting firm engaged to support the process.

Portfolio composition and growth opportunities

• After the structured assembly business exit, LEAP is expected to comprise nearly half of AEC revenue, with growing exposure to missiles and space markets.

• 3D weaving technology is a key differentiator, with a healthy pipeline and strong OEM interest, especially for LEAP and GE9X programs.

• The business is focusing on high-growth, high-return areas, particularly leveraging 3D weaving for aerospace and defense applications.