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1. Company Snapshot

1.a. Company Description

Albany International Corp., together with its subsidiaries, engages in the textile and materials processing business.The company operates in two segments, Machine Clothing (MC) and Albany Engineered Composites (AEC).The MC segment designs, manufactures, and markets paper machine clothing for use in the manufacturing of papers, paperboards, tissues, and towels.


This segment offers forming, pressing, and drying fabrics, as well as process belts used in the manufacture of nonwovens, fiber cement and several other industrial applications; and engineered fabrics.The AEC segment 3D-woven and injected composite components for aircraft engines composite airframe and engine components for military and commercial aircraft.It operates in the United States, Switzerland, Brazil, China, France, Mexico, and internationally.


Albany International Corp.was incorporated in 1895 and is headquartered in Rochester, New Hampshire.

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1.b. Last Insights on AIN

Albany International Corp.'s recent performance was negatively impacted by investigations into potential securities law violations, initiated by law firms Schall and Pomerantz. The probes focus on allegedly misleading statements and failure to disclose pertinent information. Additionally, Q3 earnings revealed a $0.71 per share profit, slightly beating estimates, but representing a year-over-year decline. The company also announced a strategic review of its structures assembly business, including a potential sale, and recognized a $147 million loss reserve adjustment.

1.c. Company Highlights

2. Disappointing Q3 Results with Strategic Review Underway

Albany International Corp.'s Q3 2025 revenue declined to $261.4 million from $298.4 million in the prior year, primarily due to a $46 million revenue charge associated with the CH-53K program loss reserve and program adjustments. The company reported a GAAP net loss of $97.8 million or $3.37 per diluted share, versus net income of $18 million or $0.57 per share in the prior year. Adjusted net income was $20.6 million or $0.71 per diluted share, compared to $35.2 million or $1.12 per diluted share in Q3 2024. The actual EPS of $0.71 was slightly higher than the estimated $0.7.

Publication Date: Nov -16

📋 Highlights
  • Revenue Decline:: Q3 2025 revenue fell to $261.4M (-12.4% YoY) due to a $46M charge from CH-53K program adjustments.
  • GAAP Net Loss:: Reported a $97.8M net loss (-$3.37 EPS) vs. $18M profit (-$0.57 EPS) in Q3 2024, driven by CH-53K reserves.
  • Strategic Restructuring:: Initiated review of Salt Lake City structures assembly business, with a $147M loss reserve on CH-53K over 8 years.
  • Program Closure:: Gulfstream program to close by year-end 2025; Machine Clothing revenue down 4% YoY to $175M due to Asia demand and exits.
  • 2026 Outlook:: Focus on 3D woven tech and hypersonics, with LEAP program ramp-up expected to boost margins (cost-plus contract) and growth in titanium replacements.

Segment Performance

The Engineered Composites segment revenue was $86.5 million, a decline driven by the CH-53K charge, but excluding this impact, revenue was $132.5 million, up from $128.7 million in the prior year, supported by higher LEAP program volumes. Machine Clothing revenue was $175 million, a 4% decline from the prior year, reflecting softer demand in Asia and strategic business exits in Europe.

Strategic Review and Outlook

The company has initiated a strategic review of its structures assembly business, which could include the sale of the site, as it does not align with the company's long-term strategic priority to focus on 3D woven technology and engineered components. The company is withdrawing its full-year 2025 guidance due to the ongoing strategic review but expects underlying trends from the third quarter to persist into the fourth quarter. As Gunnar Kleveland discussed, the strategic review led to a decision to focus on core 3D printing technology, seeing opportunities in hypersonics and defense.

Valuation and Future Prospects

With a P/E Ratio of -25.21 and an EV/EBITDA of 117.12, the market is pricing in significant challenges. However, the company's focus on 3D woven technology and engineered components, along with the expected ramp-up in the LEAP program, could provide steady margins. Analysts estimate next year's revenue growth at -1.0%. The company's efforts to rationalize its footprint and improve costs and margins in Machine Clothing are expected to bear fruit in the long term.

Dividend and Share Repurchase

The company has repurchased $50.5 million of common stock and declared a regular quarterly dividend of $0.27 per share, indicating its commitment to returning value to shareholders. With a Dividend Yield of 2.39%, the stock may attract income investors.

3. NewsRoom

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3,475 Shares in Albany International Corporation $AIN Purchased by AXQ Capital LP

Nov -25

Source: defenseworld.net

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Albany International (AIN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Nov -06

Source: zacks.com

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Albany International Corp. (AIN) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Y Intercept Hong Kong Ltd Purchases Shares of 9,591 Albany International Corporation $AIN

Nov -06

Source: defenseworld.net

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Albany International (AIN) Q3 Earnings Surpass Estimates

Nov -06

Source: zacks.com

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Albany International Reports Third-Quarter 2025 Results

Nov -05

Source: businesswire.com

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Albany International Initiates Review of Strategic Alternatives for Structures Assembly Business; Announces Loss Reserve Adjustment for CH-53K Program; Schedules Earnings Release Date

Oct -28

Source: businesswire.com

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SK hynix Presents Next Generation NAND Storage Product Strategy at OCP 2025

Oct -26

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.62%)

6. Segments

Machine Clothing

Expected Growth: 6.5%

Albany International Corp.'s Machine Clothing segment growth of 6.5% is driven by increasing demand for high-quality paper products, growth in tissue and towel markets, and expansion in emerging markets. Additionally, the company's focus on innovation, cost savings, and operational efficiency also contribute to the segment's growth.

Albany Engineered Composites

Expected Growth: 6.8%

Albany Engineered Composites' 6.8% growth is driven by increasing demand for lightweight materials in aerospace and industrial applications, coupled with the company's strategic investments in R&D, expansion into new markets, and operational efficiencies. Additionally, the growing trend towards sustainable and fuel-efficient solutions in the aerospace industry is expected to continue driving growth.

7. Detailed Products

Machine Clothing

Albany International Corp. designs and manufactures a wide range of machine clothing products, including forming fabrics, press felts, and dryer screens, used in the production of paper, tissue, and nonwoven products.

Engineered Composites

Albany International Corp. produces advanced composite materials and structures for aerospace, defense, and industrial applications, including aircraft components, satellite components, and industrial equipment.

PrimaLoft Products

Albany International Corp. manufactures PrimaLoft insulation products, which provide high-performance thermal insulation for outdoor apparel, gear, and home furnishings.

8. Albany International Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Albany International Corp. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is medium due to the moderate barriers to entry in the industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.56%
Debt Cost 9.89%
Equity Weight 67.44%
Equity Cost 10.39%
WACC 10.23%
Leverage 48.29%

11. Quality Control: Albany International Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.61$

Current Price

49.61$

Potential

-0.00%

Expected Cash-Flows