- Total Sales Growth: Consolidated sales rose 12% to $321.2 million, driven by Engineered Composites growth.
- Engineered Composites Performance: Sales surged to $143.7 million (up 45% YoY), with LEAP program volume up 27%.
- Free Cash Flow: Generated $81 million in 2025, supporting shareholder returns and strategic investments.
- Q1 Guidance: Revenue expected between $275–285 million, with Adjusted EPS of $0.50–$0.60.
- AEC Margin Outlook: 13% margin guidance for 2026, excluding CH-53K program charges and Salt Lake strategic review impacts.
Segment Performance
The Machine Clothing segment saw sales decline mid-single digits year-over-year, driven by lower volumes in China. In contrast, the Engineered Composites business delivered a strong performance, with sales growth driven by broad-based volume increases across multiple programs, including the LEAP program. As Willard Station noted, "We're aligned with production, with our volume up 27% year-over-year on the LEAP program."
Outlook and Guidance
For the first quarter, Albany International expects consolidated revenue to be in the range of $275 million to $285 million, with Adjusted EPS in the range of $0.50 to $0.60. The company anticipates year-over-year growth in Engineered Composites, but at a moderate pace compared to the fourth quarter. Looking ahead to the full year, Albany International expects continued growth across key platforms, including LEAP, engine programs, and missile applications.
Valuation and Growth Expectations
Analysts estimate next year's revenue growth at -3.4%. Given the current valuation metrics, the stock trades at a P/E Ratio of -27.46, P/B Ratio of 2.15, and EV/EBITDA of -34.69. The company's Free Cash Flow Yield is 5.1%, indicating a relatively attractive return for investors. With a ROE of -7.0% and ROIC of -2.61%, the company's profitability metrics are negative, but the Net Debt / EBITDA ratio is -6.08, indicating a healthy debt position.