Albany International Reports Fourth-Quarter 2025 Results
MWN-AI** Summary
Albany International Corp. (NYSE: AIN) reported its operating results for the fourth quarter of 2025 on February 24, 2026. The company recorded net revenues of $321.2 million, a notable increase from $286.9 million in Q4 2024. However, net income fell to $14.0 million, translating to earnings per share (EPS) of $0.49, down from $17.7 million or $0.57 EPS in the previous year. Adjusted EBITDA rose to $57.3 million, reflecting growth from $50.0 million a year prior, with an adjusted EPS of $0.65.
President & CEO Gunnar Kleveland highlighted a strategic review of their structures assembly business as a means to realign with core priorities and enhance growth opportunities. He emphasized a commitment to innovation and capitalizing on differentiated technologies in Machine Clothing and Engineered Composites.
The company's Machine Clothing segment experienced a 7.9% revenue decline, primarily due to market challenges in Asia, while Engineered Composites soared 43.1%, attributed to robust performance in commercial and defense programs. Despite the revenue fluctuations, the overall gross profit improved to $99.9 million, a 10.6% increase.
Albany's capital allocation continued to reflect a balanced approach, with $16.8 million in share repurchases and a $7.9 million dividend. The company generated free cash flow of $51.0 million despite higher capital expenditures of $22.7 million, focusing on optimization and technology advancements.
For Q1 2026, Albany anticipates revenues between $275 million and $285 million and an adjusted EPS between $0.50 and $0.60, amidst a planned effective tax rate of 27.0%, pointing to a cautious but hopeful outlook as they navigate market uncertainties.
MWN-AI** Analysis
Albany International Corp. (NYSE: AIN) reported a strong fourth quarter for 2025, with net revenues reaching $321.2 million, a 12% increase from $286.9 million in Q4 2024. While earnings per share (EPS) decreased to $0.49 from $0.57 due to a higher effective tax rate and increased operational costs, adjusted earnings per share of $0.65 reflected improved operational efficiency and strategic growth in their Engineered Composites segment. The adjusted EBITDA margin increased slightly, showcasing the company's ability to manage costs effectively amidst evolving market conditions.
The standout performer was the Engineered Composites business, which enjoyed a remarkable 43.1% revenue increase fueled by solid demand from both commercial and defense sectors. Conversely, the Machine Clothing segment faced a downturn, primarily due to softness in Asian markets affected by overcapacity. Despite these challenges, Albany’s robust balance sheet allows for continued capital investments, including $22.7 million in new initiatives and strategic maneuvers, such as a review of their structures assembly business in Salt Lake City. These adaptations are expected to align the remaining Aerospace portfolio with growth priorities.
Investors can view Albany International as a resilient player capable of navigating short-term setbacks while leveraging its innovative capacities for long-term growth. The ongoing focus on capital return through share repurchases and dividends signals a commitment to shareholder value, despite fluctuations in net income.
As the market anticipates continued volatility, potential investors should consider Albany International’s strong cash position and proactive strategies. A prudent approach would involve looking for entry points in the stock as price adjustments occur due to quarterly fluctuations, given the strong historical performance and future growth opportunities in advanced materials within the aerospace sector. Thus, a “buy” rating is advisable with an eye on long-term value generation in a diversifying industrial landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Q4 2025 net revenue of $321.2 million, compared to $286.9 million in Q4 2024.
- Q4 2025 net income of $14.0 million, or earnings per share (EPS) of $0.49, compared to net income of $17.7 million, or EPS of $0.57, in the prior year.
- Adjusted EBITDA of $57.3 million in Q4 2025 and Adjusted EPS per diluted share of $0.65, compared to $50.0 million and $0.58 in Q4 2024.
- Repurchased $16.8 million, or 360,267 shares of common stock in the fourth quarter of 2025, paid $7.9 million in dividends and invested $22.7 million in capital in the fourth quarter, continuing its commitment of balanced capital allocation.
Albany International Corp. (NYSE:AIN) today reported operating results for its full year and for its fourth quarter of 2025, which ended December 31, 2025.
Gunnar Kleveland, Albany International’s President and Chief Executive Officer said, “We are underway with the previously announced strategic review of our structures assembly business and its associated production site in Salt Lake City, and have engaged an advisor to help guide this transaction. This action will position the remaining Aerospace portfolio to align more closely with our strategic priorities and to pursue growth opportunities where our differentiated technologies provide a clear competitive advantage and stronger returns.”
Kleveland continued, “Our strong balance sheet continues to support Albany’s culture of innovation, as we develop advanced materials with broad and expanding applications in both Machine Clothing and Engineered Composites. In Machine Clothing, where our service model, quality, and product performance differentiate us in the market, we are applying our technologies to explore new markets and applications. In Engineered Composites we have several key opportunities in negotiations that will leverage our 3D woven, braiding, and out-of-autoclave technologies across a number of strategic Commercial Aerospace, Defense, and Advanced Air Mobility (AAM) platforms. With 2026 now underway, we remain confident that our culture of innovation will drive new customer solutions and chart a strong path for future growth.”
Consolidated Results
The Company’s net revenues were $321.2 million in the fourth quarter of 2025, compared to $286.9 million in the prior year, or $314.6 million on a same currency basis. The increase was primarily driven by higher volume in the Engineered Composites business, partially offset by softness in the Asia markets of the Machine Clothing business.
Gross profit of $99.9 million in the fourth quarter of 2025 was 10.6% higher than $90.3 million reported for the same period of 2024, as a result of strong sales in the Engineered Composites business.
Selling, general, and administrative expenses were $54.1 million in the fourth quarter of 2025, compared to $48.4 million in the same period of 2024, driven primarily by increases in personnel costs as well as higher global information system investments.
Operating income was $29.9 million, compared to $24.3 million in the prior year, an increase of 22.9%, driven by increased gross profit and decreased restructuring expenses, which was partially offset by higher selling, general, and administrative expenses.
The effective tax rate for the quarter was 39.3% compared to a 28.0% effective tax rate in the fourth quarter of 2024. The increase in tax rate was due to the expiration of a foreign tax credit and a less favorable discrete tax adjustment compared to the fourth quarter of 2024.
The net income attributable to the Company was $13.9 million, or $0.49 per share, compared to $17.7 million, or $0.57 per share in the fourth quarter of 2024.
Adjusted diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.65 per share, compared to $0.58 per share for the same period of last year.
Adjusted EBITDA (a non-GAAP measure) was $57.3 million, compared to $50.0 million in the fourth quarter of 2024, an increase of 14.7% due to higher sales and improved margin performance in the AEC business. Adjusted EBITDA margin was 17.8% and 17.4% in the prior year.
Will Station, Albany International’s Chief Financial Officer, said, “Over the past 6 months, we have sharpened our strategy to focus more squarely on our core competitive advantages. In the fourth quarter, we delivered our strongest financial performance of the year, with revenue up 12.0% and Adjusted EBITDA margins improving 40 basis points year over year. That focus is guiding how we operate the business and how we allocate capital, with a clear objective of investing where we can generate attractive returns and maximize long-term value for shareholders.”
Machine Clothing
MC's net revenues decreased 7.9% after adjusting for currency translation, primarily driven by weakness in the Asia markets due to overcapacity, partially offset by continued strength in the tissue market globally.
MC’s adjusted EBITDA margin was 27.4%, compared to 28.5% in the fourth quarter of 2024. The margin decline is primarily impacted by lower volumes in Asia, partially offset by the benefits of ongoing footprint optimization initiatives. The Company continued to execute its plan of rationalizing production across its network of facilities.
Engineered Composites
AEC's net revenues increased 43.1% after adjusting for currency translation, driven by strength across commercial and defense programs, most notably on the commercial side of AEC within the LEAP program, and on the defense side under the F-35 and missile programs.
Adjusted EBITDA margin was 12.9%, compared to 6.1% in the fourth quarter of 2024. This strong improvement highlights the underlying strength and resilience of the business as AEC continues to ramp-up production across key platforms while focusing on profitable growth.
Capital Allocation Balance Sheet and Cash Flow
Albany generated free cash flow of $51.0 million in the quarter, compared to $59.3 million in the prior-year period.
The Company continued to return capital to shareholders through dividends and share repurchases. Albany repurchased 360,267 shares of its common stock during the quarter and declared a quarterly dividend of $0.28 per share in December.
Capital expenditures were $22.7 million, compared to $19.1 million in the fourth quarter of 2024, and included facility optimization and customer program investments. Research and development expenses totaled $12.1 million, compared to $10.7 million in the fourth quarter of 2024, consistent with the Company’s commitment to advancing proprietary technologies and supporting long-term growth in both Machine Clothing and Engineered Composites.
Albany ended the quarter with cash and cash equivalents of $112.4 million and total debt of $455.7 million, resulting in a net debt position of $343.3 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders.
Outlook for the First Quarter of 2026
- Consolidated revenue between $275 million and $285 million
- Machine Clothing revenue between $160 million and $165 million
- Engineered Composite revenue between $115 million and $120 million
- Adjusted EPS between $0.50 and $0.60
- First quarter effective tax rate of 27.0%
Fourth-Quarter 2025 Results Conference Call/Webcast
The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Tuesday, February 24, 2026. Interested parties are encouraged to listen to the live webcast via the Company’s Investor Relations website at investors.albint.com or by registering via the link here . The event can also be accessed by dialing +1 (800) 715-9871 and using the access code 9655516.
An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Tuesday, February 24, 2026.
ALBANY INTERNATIONAL CORP. | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||
Net revenues | $ | 321,206 | $ | 286,905 | $ | 1,182,813 | $ | 1,230,615 | |||||
Cost of goods sold | 221,341 | 196,582 | 938,893 | 828,839 | |||||||||
Gross profit | 99,865 | 90,323 | 243,920 | 401,776 | |||||||||
Selling, general, and administrative expenses | 54,107 | 48,435 | 218,326 | 210,882 | |||||||||
Technical and research expenses | 12,100 | 10,728 | 48,015 | 46,097 | |||||||||
Restructuring expenses, net | 3,787 | 6,854 | 13,682 | 13,438 | |||||||||
Operating income/(loss) | 29,871 | 24,306 | (36,103 | ) | 131,359 | ||||||||
Interest expense/(income), net | 5,903 | 3,869 | 20,605 | 12,549 | |||||||||
Other (income)/expense, net | 909 | (4,211 | ) | 5,079 | 1,721 | ||||||||
Income (loss) before income taxes | 23,059 | 24,648 | (61,787 | ) | 117,089 | ||||||||
Income tax expense/(benefit) | 9,061 | 6,903 | (4,828 | ) | 29,034 | ||||||||
Net income/(loss) | 13,998 | 17,745 | (56,959 | ) | 88,055 | ||||||||
Net income/(loss) attributable to the noncontrolling interest | 118 | 66 | 383 | 432 | |||||||||
Net income/(loss) attributable to the Company | $ | 13,880 | $ | 17,679 | $ | (57,342 | ) | $ | 87,623 | ||||
Earnings per share attributable to Company shareholders - Basic | $ | 0.49 | $ | 0.57 | $ | (1.94 | ) | $ | 2.81 | ||||
Earnings per share attributable to Company shareholders - Diluted | $ | 0.48 | $ | 0.56 | $ | (1.94 | ) | $ | 2.80 | ||||
Shares of the Company used in computing earnings per share: | |||||||||||||
Basic | 28,531 | 31,223 | 29,566 | 31,231 | |||||||||
Diluted | 28,709 | 31,355 | 29,566 | 31,338 | |||||||||
Dividends declared per share, Class A | $ | 0.28 | $ | 0.27 | $ | 1.09 | $ | 1.05 | |||||
ALBANY INTERNATIONAL CORP. | |||||||
December 31, | December 31, | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 112,350 | $ | 115,283 | |||
Accounts receivable, net | 235,084 | 246,688 | |||||
Contract assets, net | 87,102 | 166,557 | |||||
Inventories | 121,589 | 145,845 | |||||
Income taxes prepaid and receivable | 43,937 | 19,187 | |||||
Prepaid expenses and other current assets | 34,990 | 37,132 | |||||
Assets held for sale | 293,783 | — | |||||
Total current assets | 928,835 | 730,692 | |||||
Property, plant and equipment, net | 482,568 | 563,431 | |||||
Intangibles, net | 21,427 | 38,127 | |||||
Goodwill | 162,508 | 176,261 | |||||
Deferred income taxes | 68,499 | 28,757 | |||||
Other assets | 54,872 | 111,428 | |||||
Total assets | $ | 1,718,709 | $ | 1,648,696 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | $ | 64,499 | $ | 66,095 | |||
Accrued liabilities | 139,385 | 141,904 | |||||
Income taxes payable | 35,090 | 18,367 | |||||
Liabilities held for sale | 203,323 | — | |||||
Total current liabilities | 442,297 | 226,366 | |||||
Long-term debt | 455,663 | 318,531 | |||||
Other noncurrent liabilities | 86,850 | 138,830 | |||||
Deferred taxes and other liabilities | 1,797 | 16,022 | |||||
Total liabilities | 986,607 | 699,749 | |||||
SHAREHOLDERS' EQUITY | |||||||
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | — | — | |||||
Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 40,989,106 issued in 2025 and 40,917,539 in 2024 | 41 | 41 | |||||
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; none issued and outstanding in 2024 and 2023 | — | — | |||||
Additional paid in capital | 460,472 | 452,933 | |||||
Retained earnings | 976,373 | 1,065,763 | |||||
Accumulated items of other comprehensive income: | |||||||
Translation adjustments | (119,008 | ) | (181,555 | ) | |||
Pension and postretirement liability adjustments | (23,911 | ) | (14,328 | ) | |||
Derivative valuation adjustment | (619 | ) | (106 | ) | |||
Treasury stock (Class A), at cost; 12,685,782 shares in 2025 and 9,844,746 in 2024 | (567,139 | ) | (379,210 | ) | |||
Total Company shareholders' equity | 726,209 | 943,538 | |||||
Noncontrolling interest | 5,893 | 5,409 | |||||
Total equity | 732,102 | 948,947 | |||||
Total liabilities and shareholders' equity | $ | 1,718,709 | $ | 1,648,696 | |||
ALBANY INTERNATIONAL CORP. | ||||||||
Twelve Months Ended December 31, | ||||||||
2025 | 2024 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | (56,959 | ) | $ | 88,055 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 82,712 | 82,452 | ||||||
Amortization | 5,202 | 6,842 | ||||||
Change in deferred taxes and other liabilities | (43,315 | ) | (15,331 | ) | ||||
Impairment of property, plant, equipment, and inventory | (390 | ) | 2,038 | |||||
Non-cash interest expense | 1,029 | 1,025 | ||||||
Contract loss provision | 139,665 | — | ||||||
Share-based compensation | 10,060 | 4,715 | ||||||
Provision/(recovery) for credit losses from uncollected receivables and contract assets | (139 | ) | 310 | |||||
Foreign currency remeasurement (gain)/loss on intercompany loans | 8,883 | 81 | ||||||
Gain on sale of assets | (1,566 | ) | (513 | ) | ||||
Changes in operating assets and liabilities that provided/(used) cash: | ||||||||
Accounts receivable | (724 | ) | 31,764 | |||||
Contract assets | (23,189 | ) | 12,289 | |||||
Inventories | 17,627 | 14,627 | ||||||
Prepaid expenses and other current assets | 1,865 | 4,002 | ||||||
Income taxes prepaid and receivable | (25,060 | ) | (8,574 | ) | ||||
Accounts payable | 9,172 | (3,084 | ) | |||||
Accrued liabilities | 7,975 | (1,275 | ) | |||||
Income taxes payable | 14,507 | 6,918 | ||||||
Noncurrent receivables | — | (780 | ) | |||||
Other noncurrent liabilities | (2,550 | ) | (7,702 | ) | ||||
Other, net | 7,669 | 582 | ||||||
Net cash provided by operating activities | 152,474 | 218,441 | ||||||
INVESTING ACTIVITIES | ||||||||
Purchases of property, plant and equipment | (69,830 | ) | (80,249 | ) | ||||
Purchased software | (1,675 | ) | (958 | ) | ||||
Proceeds received from sale of assets | 3,243 | 1,027 | ||||||
Net cash used in investing activities | (68,262 | ) | (80,180 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Proceeds from borrowings | 272,003 | 145,595 | ||||||
Principal payments on debt | (147,044 | ) | (279,838 | ) | ||||
Purchase of Treasury shares | (186,012 | ) | (14,175 | ) | ||||
Taxes paid in lieu of share issuance | (2,521 | ) | (2,931 | ) | ||||
Dividends paid | (32,477 | ) | (32,483 | ) | ||||
Net cash used in financing activities | (96,051 | ) | (183,832 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 8,906 | (12,566 | ) | |||||
Increase/(decrease) in cash and cash equivalents | (2,933 | ) | (58,137 | ) | ||||
Cash and cash equivalents at beginning of period | 115,283 | 173,420 | ||||||
Cash and cash equivalents at end of period | $ | 112,350 | $ | 115,283 |
Financial tables and reconciliations of non-GAAP measures to comparable GAAP measures. Year-to-date information revised to include the third-quarter CH-53 contracts reserve program adjustment, now determined to represent an operational item that should be included in our full-year adjusted results.
The following tables present Net revenues and the effect of changes in currency translation rates: | ||||||||||
(in thousands, except percentages) | Net revenues as reported, Q4 2025 | (Decrease) due to changes in currency translation rates | Q4 2025 revenues on same basis as Q4 2024 currency translation rates | Net revenues as reported, Q4 2024 | % Change compared to Q4 2024, excluding currency rate effects | |||||
Machine Clothing | $ | 177,493 | $ | 4,311 | $ | 173,182 | $ | 188,079 | (7.9 | )% |
Albany Engineered Composites | 143,713 | 2,303 | 141,410 | 98,826 | 43.1 | % | ||||
Consolidated total | $ | 321,206 | $ | 6,614 | $ | 314,592 | $ | 286,905 | 9.7 | % |
(in thousands, except percentages) | Net revenues as reported, YTD 2025 | (Decrease)/increase due to changes in currency translation rates | YTD 2025 revenues on same basis as 2024 currency translation rates | Net revenues as reported, YTD 2024 | % Change compared to 2024, excluding currency rate effects | |||||
Machine Clothing | $ | 708,066 | $ | 1,207 | $ | 706,859 | $ | 749,907 | (5.7 | )% |
Albany Engineered Composites | 474,747 | 1,444 | 473,303 | 480,708 | (1.5 | )% | ||||
Consolidated total | $ | 1,182,813 | $ | 2,651 | $ | 1,180,162 | $ | 1,230,615 | (4.1 | )% |
The following tables present Gross profit and Gross profit margin: | ||||||||
(in thousands, except percentages) | Gross profit, Q4 2025 | Gross profit margin, Q4 2025 | Gross profit, Q4 2024 | Gross profit margin, Q4 2024 | ||||
Machine Clothing | $ | 78,001 | 43.9 | % | $ | 83,595 | 44.4 | % |
Albany Engineered Composites | 21,864 | 15.2 | % | 6,728 | 6.8 | % | ||
Consolidated total | $ | 99,865 | 31.1 | % | $ | 90,323 | 31.5 | % |
(in thousands, except percentages) | Gross profit, YTD 2025 | Gross profit margin, YTD 2025 | Gross profit, YTD 2024 | Gross profit margin, YTD 2024 | |||||
Machine Clothing | $ | 323,732 | 45.7 | % | $ | 346,044 | 46.1 | % | |
Albany Engineered Composites | (79,812 | ) | (16.8 | )% | 55,732 | 11.6 | % | ||
Consolidated total | $ | 243,920 | 20.6 | % | $ | 401,776 | 32.6 | % | |
| A reconciliation from Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods has been calculated as follows: | ||||||||||||
Three months ended December 31, 2025 | ||||||||||||
(in thousands) | Machine Clothing | Albany Engineered Composites | Corporate expenses and other | Total Company | ||||||||
Net income/(loss) (GAAP) | $ | 36,976 | $ | 3,935 | $ | (26,913 | ) | $ | 13,998 | |||
Interest expense, net | — | — | 5,903 | 5,903 | ||||||||
Income tax expense | — | — | 9,061 | 9,061 | ||||||||
Depreciation and amortization expense | 8,566 | 13,502 | 366 | 22,434 | ||||||||
EBITDA (non-GAAP) | 45,542 | 17,437 | (11,583 | ) | 51,396 | |||||||
Restructuring expenses, net | 1,933 | 1,458 | 396 | 3,787 | ||||||||
Foreign currency revaluation (gains)/losses (a) | 581 | 110 | 1,360 | 2,051 | ||||||||
Strategic/integration costs | 559 | — | — | 559 | ||||||||
Other transition expenses | — | (355 | ) | — | (355 | ) | ||||||
Pre-tax (income) attributable to noncontrolling interest | — | (137 | ) | — | (137 | ) | ||||||
Adjusted EBITDA (non-GAAP) | $ | 48,615 | $ | 18,513 | $ | (9,827 | ) | $ | 57,301 | |||
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP) | 27.4 | % | 12.9 | % | — | 17.8 | % | |||||
Three months ended December 31, 2024 | ||||||||||||
(in thousands) | Machine Clothing | Albany Engineered Composites | Corporate expenses and other | Total Company | ||||||||
Net income/(loss) (GAAP) | $ | 41,927 | $ | (7,911 | ) | $ | (16,271 | ) | $ | 17,745 | ||
Interest expense, net | — | — | 3,869 | 3,869 | ||||||||
Income tax expense | — | — | 6,903 | 6,903 | ||||||||
Depreciation and amortization expense | 8,479 | 13,528 | 284 | 22,291 | ||||||||
EBITDA (non-GAAP) | 50,406 | 5,617 | (5,215 | ) | 50,808 | |||||||
Restructuring expenses, net | 6,584 | 505 | 183 | 7,272 | ||||||||
Foreign currency revaluation (gains)/losses (a) | (3,314 | ) | 100 | (4,479 | ) | (7,693 | ) | |||||
Other transition expenses | — | (241 | ) | (244 | ) | (485 | ) | |||||
Strategic/integration costs | 7 | — | 60 | 67 | ||||||||
Pre-tax (income) attributable to noncontrolling interest | (14 | ) | 7 | — | (7 | ) | ||||||
Adjusted EBITDA (non-GAAP) | $ | 53,669 | $ | 5,988 | $ | (9,695 | ) | $ | 49,962 | |||
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP) | 28.5 | % | 6.1 | % | — | 17.4 | % |
Twelve months ended December 31, 2025 | ||||||||||||
(in thousands) | Machine Clothing | Albany Engineered Composites | Corporate expenses and other | Total Company | ||||||||
Net income/(loss) (GAAP) | $ | 156,212 | $ | (145,135 | ) | $ | (68,036 | ) | $ | (56,959 | ) | |
Interest expense, net | — | — | 20,605 | 20,605 | ||||||||
Income tax expense | — | — | (4,828 | ) | (4,828 | ) | ||||||
Depreciation and amortization expense | 32,849 | 53,731 | 1,334 | 87,914 | ||||||||
EBITDA (non-GAAP) | 189,061 | (91,404 | ) | (50,925 | ) | 46,732 | ||||||
Restructuring expenses, net | 8,510 | 3,259 | 602 | 12,371 | ||||||||
Foreign currency revaluation (gains)/losses (a) | 6,281 | 58 | 8,814 | 15,153 | ||||||||
Strategic/integration costs | 741 | — | 616 | 1,357 | ||||||||
Other transition expenses | — | (767 | ) | — | (767 | ) | ||||||
Pre-tax (income) attributable to noncontrolling interest | 122 | (596 | ) | — | (474 | ) | ||||||
Adjusted EBITDA (non-GAAP) | $ | 204,715 | $ | (89,450 | ) | $ | (40,893 | ) | $ | 74,372 | ||
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP) | 28.9 | % | (18.8 | )% | — | 6.3 | % | |||||
Twelve months ended December 31, 2024 | ||||||||||||
(in thousands) | Machine Clothing | Albany Engineered Composites | Corporate expenses and other | Total Company | ||||||||
Net income/(loss) (GAAP) | $ | 183,632 | $ | (11,603 | ) | $ | (83,974 | ) | $ | 88,055 | ||
Interest expense, net | — | — | 12,549 | 12,549 | ||||||||
Income tax expense | — | — | 29,034 | 29,034 | ||||||||
Depreciation and amortization expense | 33,917 | 54,228 | 1,149 | 89,294 | ||||||||
EBITDA (non-GAAP) | 217,549 | 42,625 | (41,242 | ) | 218,932 | |||||||
Restructuring expenses, net | 11,165 | 3,649 | 329 | 15,143 | ||||||||
Foreign currency revaluation (gains)/losses (a) | (4,561 | ) | (10 | ) | (3,843 | ) | (8,414 | ) | ||||
Other transition expenses | — | 752 | 740 | 1,492 | ||||||||
Strategic/integration costs | 1,475 | 182 | 3,469 | 5,126 | ||||||||
Pre-tax (income) attributable to noncontrolling interest | (124 | ) | (186 | ) | — | (310 | ) | |||||
Adjusted EBITDA (non-GAAP) | $ | 225,504 | $ | 47,012 | $ | (40,547 | ) | $ | 231,969 | |||
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP) | 30.1 | % | 9.8 | % | — | 18.8 | % | |||||
Per share impact of the adjustments to earnings per share are as follows: | ||||||||||||
Three months ended December 31, 2025 (in thousands, except per share amounts) | Pre tax Amounts | Tax Effect | After tax Effect | Per share Effect | ||||||||
Restructuring expenses, net | $ | 3,787 | $ | 788 | $ | 2,999 | $ | 0.10 | ||||
Foreign currency revaluation (gains)/losses (a) | 2,051 | 427 | 1,624 | 0.06 | ||||||||
Strategic/integration costs | 559 | 116 | 443 | 0.02 | ||||||||
Other transition expenses | (355 | ) | (74 | ) | (281 | ) | (0.01 | ) | ||||
Three months ended December 31, 2024 (in thousands, except per share amounts) | Pre tax Amounts | Tax Effect | After tax Effect | Per share Effect | ||||||||
Restructuring expenses, net | $ | 7,272 | $ | 1,244 | $ | 6,028 | $ | 0.19 | ||||
Foreign currency revaluation (gains)/losses (a) | (7,693 | ) | (2,599 | ) | (5,094 | ) | (0.16 | ) | ||||
Strategic/integration costs | 67 | (75 | ) | 142 | 0.00 | |||||||
Other transition expenses | (485 | ) | (121 | ) | (364 | ) | (0.01 | ) | ||||
Year ended December 31, 2025 (in thousands, except per share amounts) | Pre tax Amounts | Tax Effect | After tax Effect | Per share Effect | ||||||||
Restructuring expenses, net | $ | 12,371 | $ | 2,573 | $ | 9,798 | $ | 0.33 | ||||
Foreign currency revaluation (gains)/losses (a) | 15,153 | 3,152 | 12,001 | 0.41 | ||||||||
Strategic/integration costs | 1,357 | 282 | 1,075 | 0.04 | ||||||||
Other transition expenses | (767 | ) | (160 | ) | (607 | ) | (0.02 | ) | ||||
Year ended December 31, 2024 (in thousands, except per share amounts) | Pre tax Amounts | Tax Effect | After tax Effect | Per share Effect | ||||||||
Restructuring expenses, net | $ | 15,143 | $ | 2,758 | $ | 12,385 | $ | 0.40 | ||||
Foreign currency revaluation (gains)/losses (a) | (8,414 | ) | (2,839 | ) | (5,575 | ) | (0.18 | ) | ||||
Strategic/integration costs | 5,126 | 1,308 | 3,818 | 0.12 | ||||||||
Other transition expenses | 1,492 | 373 | 1,119 | 0.04 | ||||||||
The following table provides a reconciliation of Earnings per share to Adjusted Diluted Earnings per share: | ||||||||||||
Three months ended December 31, | Twelve months ended December 31, | |||||||||||
Per share amounts | 2025 | 2024 | 2025 | 2024 | ||||||||
Earnings per share attributable to Company shareholders - Basic (GAAP) | $ | 0.49 | $ | 0.57 | $ | (1.94 | ) | $ | 2.81 | |||
Effect of dilutive stock-based compensation plans | (0.01 | ) | (0.01 | ) | — | (0.01 | ) | |||||
Earnings per share attributable to Company shareholders - Diluted (GAAP) | $ | 0.48 | $ | 0.56 | $ | (1.94 | ) | $ | 2.80 | |||
Adjustments, after tax: | ||||||||||||
Restructuring costs | 0.10 | 0.19 | 0.33 | 0.40 | ||||||||
Foreign currency revaluation (gains)/losses (a) | 0.06 | (0.16 | ) | 0.41 | (0.18 | ) | ||||||
Strategic/integration costs | 0.02 | — | 0.04 | 0.12 | ||||||||
CEO and other transition expenses | (0.01 | ) | (0.01 | ) | (0.02 | ) | 0.04 | |||||
Adjusted Diluted Earnings per share (non-GAAP) | $ | 0.65 | $ | 0.58 | $ | (1.18 | ) | $ | 3.18 | |||
(a) Foreign currency revaluation (gains)/losses represent unrealized gains and losses arising from the remeasurement of monetary assets and liabilities denominated in non-functional currencies on the balance sheet date. | ||||||||||||
The calculations of net debt are as follows: | ||||||||||
(in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||
Current maturities of long-term debt | $ | — | $ | — | $ | — | $ | — | $ | — |
Long-term debt | 455,663 | 480,631 | 444,686 | 416,429 | 318,531 | |||||
Total debt | 455,663 | 480,631 | 444,686 | 416,429 | 318,531 | |||||
Cash and cash equivalents | 112,350 | 108,310 | 106,689 | 119,354 | 115,283 | |||||
Net debt (non GAAP) | $ | 343,313 | $ | 372,321 | $ | 337,997 | $ | 297,075 | $ | 203,248 |
Free cash flow is defined as GAAP "Net cash provided by operating activities" in a period less "Purchases of property, plant and equipment" and "Purchased software" in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow: | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Net cash provided by operating activities | $ | 73,702 | $ | 78,456 | $ | 152,474 | $ | 218,441 | |||||||
Purchases of property, plant and equipment | (22,271 | ) | (18,264 | ) | (69,830 | ) | (80,249 | ) | |||||||
Purchased software | (425 | ) | (857 | ) | (1,675 | ) | (958 | ) | |||||||
Free cash flow | $ | 51,006 | $ | 59,335 | $ | 80,969 | $ | 137,234 |
About Albany International Corp.
Albany International is a leading materials science developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses.
- Machine Clothing is the world’s leading producer of custom-designed consumable belts, essential for the manufacture of paper, paperboard, tissue, and towel, as well as pulp, non-wovens, and a variety of other industrial applications.
- Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms.
Albany International is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, employs approximately 5,700 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com .
Non-GAAP Measures
This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.
Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These amounts are then compared to the U.S. dollar amount as reported in the current period.
EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues.
The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results.
The Company’s Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EPS may not be comparable to similarly titled measures of other companies.
Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness.
Net leverage ratio informs the investors of the Company's financial leverage at the end of the reporting period, providing an indicator of the Company's ability to repay its debt.
We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Forward-Looking Statements
This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements.
Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2026 and in future years; expectations in 2026 and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260224445841/en/
Investor / Media Contact:
Karen Blomquist
Director, Investor Relations
Tel +603.330.2461
Email Karen.Blomquist@albint.com
FAQ**
How does Albany International Corporation AIN plan to address the weakness in the Asia markets for its Machine Clothing business, considering the reported revenue decline of 7.9% in Q4 2025?
With the focus on Engineered Composites driving a 43.1% revenue increase, what specific strategies is Albany International Corporation AIN implementing to capitalize on these growth opportunities in commercial and defense programs?
Given the increase in selling, general, and administrative expenses to $54.1 million in Q4 2025, what cost management measures is Albany International Corporation AIN considering to improve profitability moving forward?
As Albany International Corporation AIN engages an advisor for its strategic review of the structures assembly business, what are the anticipated outcomes, and how do they align with the company’s long-term growth priorities?
**MWN-AI FAQ is based on asking OpenAI questions about Albany International Corporation (NYSE: AIN).
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