Albany International Corp. (AIN) announced on December 22, 2025 that its Albany Engineered Composites (AEC) segment has achieved the U.S. Department of War Cybersecurity Maturity Model Certification (CMMC) Level 2. The certification confirms that AEC meets the 110 security practices required to protect Controlled Unclassified Information (CUI) and is a prerequisite for working on a broad range of defense programs, including next‑generation military aircraft, missiles, rotorcraft, hypersonic weapons and advanced fighter jets.
CMMC Level 2 is the second tier of the Department of Defense’s cybersecurity framework and is required for any contractor that handles CUI. By becoming one of the first one percent of roughly 80,000 DoD suppliers to obtain this certification, AEC gains a competitive advantage and a clear path to new defense contracts that were previously inaccessible without the certification.
The certification comes at a time when AIN’s financial performance has been mixed. In Q3 2024, total revenue rose 6.1% year‑over‑year to $298 million, but net income fell to $18.2 million from $27.2 million, and the AEC segment reported a loss. The loss was largely attributed to “strategic adjustments in long‑term contract profitability” and changes in the estimated profitability of long‑term contracts. In Q4 2024, revenue declined 11.3% to $286.9 million, with AEC’s net revenues down 25.0% driven by weaker performance on the LEAP and CH‑53K programs. In Q3 2025, the company posted a net loss of $97.8 million, largely due to a $147.3 million pre‑tax loss reserve and program adjustments related to the CH‑53K program.
The AEC segment’s recent losses reflect the impact of those contract profitability adjustments. While the certification opens new opportunities, the segment still faces headwinds from legacy contract pricing and the need to re‑estimate profitability on long‑term agreements. Management has acknowledged these challenges and is actively reviewing the segment’s structure, including the conclusion of the Gulfstream contract to focus on high‑margin advanced composite technologies.
Chief Information Officer Brian Tullis emphasized that “achieving CMMC Level 2 ensures we remain a trusted partner to the U.S. Department of War and strengthens our position in the national security supply chain.” President and CEO Gunnar Kleveland noted that the company’s backlog exceeds $1 billion and that, despite the recent financial setbacks, the organization is pursuing strategic initiatives to improve profitability and capitalize on defense opportunities.
The certification positions AEC to bid on high‑margin defense projects, but the company must navigate current financial headwinds and continue to refine its contract profitability model. The combination of regulatory compliance and strategic focus on advanced composites signals a long‑term shift toward defense‑centric growth, while the recent earnings data underscore the need for disciplined cost management and execution to translate certification into tangible financial performance.
The overall impact of the certification is positive for AIN’s strategic trajectory, but the company’s financial performance remains a key factor for investors assessing the timing and scale of future contract wins.
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