Albany Engineered Composites Soars with $180M Bell Textron Contract: A Strategic Win for Aerospace Composites

The aerospace industry is in a state of perpetual motion, driven by the need for lighter, stronger, and more efficient materials. Albany Engineered Composites (AEC), a division of Albany International (AIN), has just secured a pivotal position in this race with a seven-year, $180 million contract from Bell Textron, Inc. to supply advanced composite components for the Bell 525 Relentless helicopter. This deal underscores AEC’s growing dominance in the aerospace composites market and offers investors a compelling thesis for long-term growth.

A Decisive Step for AEC’s Aerospace Ambitions

The contract, announced in April 2025, marks AEC’s most significant win to date in the rotorcraft sector. The Bell 525, a cutting-edge fly-by-wire helicopter, relies on AEC’s composite materials for critical structural components, leveraging their lightweight yet high-strength properties to enhance fuel efficiency and operational safety. The seven-year agreement ensures steady revenue visibility for Albany International through 2032, aligning with Bell’s production timeline for the helicopter, which began initial deliveries in 2020.

The Composite Materials Revolution in Aerospace

Composites—lightweight materials like carbon fiber and resin systems—are the unsung heroes of modern aviation. They reduce weight, improve fuel efficiency, and withstand extreme conditions, making them indispensable for both commercial and military aircraft. The global aerospace composites market is projected to grow at a 6.5% CAGR through 2030, driven by rising demand for electric and hybrid aircraft, advanced fighter jets, and rotorcraft like the Bell 525.

AEC’s expertise lies in automated fiber placement (AFP) and thermoplastic composites, technologies critical to producing complex, high-performance parts. The company’s 2016 acquisition of Harris Corporation’s aerostructures business—a move that expanded its program portfolio—has positioned it as a key supplier to major aerospace players, including Bell.

Executive Leadership and Strategic Partnerships

AEC’s success is also rooted in its executive leadership. Christopher Stone, AEC’s president, brings decades of experience in aerospace supply chains, including a 13-year tenure at Bell Textron. His insider knowledge of rotorcraft manufacturing has likely smoothed the path for this partnership. The contract announcement emphasizes AEC’s role as a “key supplier” in Bell’s growing rotorcraft programs, hinting at potential follow-on deals for other Bell platforms, such as the V-280 Valor tiltrotor.

Data-Driven Investment Case

Let’s examine the numbers behind this opportunity:

• Revenue Growth: Albany International’s engineered composites segment reported $330 million in sales in 2020, up from $101 million in 2015, fueled by acquisitions and strategic contracts. The Bell deal adds ~$25 million annually to this segment, assuming even distribution over seven years.
• Competitive Advantage: AEC’s AFP technology and partnerships with industry leaders like Safran (LEAP engine components) and Lockheed Martin establish it as a trusted innovator.
• Risk Mitigation: The seven-year contract spreads revenue over time, reducing dependency on short-term demand fluctuations.

Risks and Considerations

While the contract is a major win, risks persist:
1. Customer Concentration: Bell Textron accounts for a significant portion of AEC’s revenue, making the company vulnerable to delays in Bell’s production schedules.
2. Competition: Firms like Hexcel (HXL) and Toray Industries also vie for composites contracts. Albany must continue innovating to stay ahead.
3. Geopolitical Uncertainty: Trade policies and defense budgets could impact rotorcraft demand, particularly in military programs like the V-280.

Conclusion: AEC’s Contract Signals Long-Term Growth

The $180 million Bell Textron contract is more than a revenue boost—it’s a strategic endorsement of AEC’s technical prowess. With the global aerospace composites market expanding and Bell’s 525 program gaining traction, AEC is poised to capitalize on secular trends.

Investors should note that Albany International’s stock has underperformed the S&P 500 by 15% over the past five years, suggesting room for revaluation as this contract delivers. Pair this with the 6.5% CAGR of the composites market and AEC’s leadership in advanced materials, and the case for AIN becomes compelling.

While risks exist, the seven-year agreement’s stability and the broader demand for lightweight materials in aviation make AEC a solid bet for investors seeking exposure to the aerospace renaissance.

Final Verdict: Buy Albany International (AIN) for its structural growth in a high-margin, growing sector. Monitor quarterly updates on Bell’s production cadence and potential follow-on contracts for further upside.