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Albany International (AIN)
NYSE:AIN
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Albany International
(NYSE:AIN)
72Outperform
Positive Factors
Future Outlook
The company reaffirmed its 2025 outlook, expecting adjusted EPS and revenue within previously set ranges.
Negative Factors
Acquisition Outcomes
The Heimbach acquisition has yet to deliver accretive growth while tariff risk could further hit Machine Clothing’s portfolio.
Demand Challenges
The analyst maintains an Underperform rating due to anticipated demand challenges ahead for Albany International.
Financial Performance
Albany International reported earnings with a decline in revenue and margins, missing estimates from BofA.
Inventory Pressure
Revenues from LEAP remain pressured by excess fan blade inventory held at Safran, GE, and AIN, restricting margin upside.
Program Execution
Existing execution challenges on Albany Engineered Composites (AEC)’s largest programs appear poised to impede profitability.
Albany International (AIN) vs. S&P 500 (SPY)
Market Cap
$1.92B
Dividend Yield1.66%
Average Volume (3M)272.99K
Price to Earnings (P/E)25.7
Beta (1Y)1.11
Revenue Growth1.17%
EPS Growth-30.24%
CountryUS
Employees5,400
SectorConsumer Cyclical
Sector Strength58
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.73
Shares Outstanding30,200,000
10 Day Avg. Volume243,992
30 Day Avg. Volume272,985
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.27
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.08
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$72.25Price Target Upside12.57% Upside
Rating ConsensusHold
Number of Analyst Covering4
Albany International Business Overview & Revenue Model
Company DescriptionAlbany 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.
How the Company Makes MoneyAlbany International makes money through its two main business segments. The Machine Clothing segment generates revenue by producing custom-designed fabrics and belts essential for the manufacturing process in the paper and pulp industry, providing critical components to enhance productivity and efficiency. The Albany Engineered Composites segment contributes to revenue through the development and sale of advanced composite structures, primarily used in the aerospace industry for commercial and military aircraft. Significant partnerships with major aerospace manufacturers, along with long-term contracts, bolster the company's earnings. The company's revenue streams are diversified across multiple geographies and customer bases, ensuring a stable financial performance.
Albany International Financial Statement Overview
Summary
Albany International shows solid financial performance with consistent revenue growth and effective cost management, although there are challenges in net income growth and return on equity.Income Statement
Albany International's income statement reflects consistent revenue growth, with a notable increase from $900.6M in 2020 to $1.2B in TTM. The gross profit margin has been relatively stable, although the net profit margin shows a slight decline in TTM (6.4%) compared to previous years. EBIT and EBITDA margins remain solid, indicating effective cost management despite some pressure on net income growth.―
Balance Sheet
The balance sheet displays a healthy equity position with a debt-to-equity ratio of 0.46 in TTM, though this has increased from 0.40 in 2021. The equity ratio remains robust at 53.3%, reflecting strong solvency. However, the decreasing return on equity, from 13.5% in 2021 to 8.6% in TTM, suggests some challenges in generating returns.72
Cash Flow
Albany International's cash flow is strong, with positive free cash flow throughout the periods analyzed. The operating cash flow to net income ratio is favorable, highlighting efficient cash generation. However, there is a slight decline in free cash flow growth year-on-year, which may indicate increasing capital expenditures or operational costs.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.23B | 1.15B | 1.03B | 929.24M | 900.61M | Gross Profit |
| 401.78M | 417.37M | 389.78M | 378.39M | 371.07M | EBIT |
| 131.36M | 172.36M | 181.02M | 178.01M | 166.08M | EBITDA |
| 131.36M | 257.82M | 218.71M | 251.10M | 223.47M | Net Income Common Stockholders |
| 87.62M | 111.12M | 95.76M | 118.48M | 98.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 115.28M | 173.42M | 291.78M | 302.04M | 241.32M | Total Assets |
| 1.65B | 1.84B | 1.64B | 1.56B | 1.55B | Total Debt |
| 387.20M | 514.86M | 444.93M | 350.00M | 398.01M | Net Debt |
| 271.92M | 341.44M | 153.15M | 47.96M | 156.69M | Total Liabilities |
| 699.75M | 867.69M | 774.71M | 678.46M | 730.07M | Stockholders Equity |
| 943.54M | 961.37M | 863.05M | 873.97M | 816.07M |
| Cash Flow | Free Cash Flow | |||
| 138.19M | 63.63M | 31.87M | 163.78M | 97.86M | Operating Cash Flow |
| 218.44M | 148.06M | 128.21M | 217.47M | 140.25M | Investing Cash Flow |
| -80.18M | -217.90M | -96.35M | -53.70M | -42.39M | Financing Cash Flow |
| -183.83M | -52.64M | -23.65M | -99.64M | -60.67M |
Albany International Technical Analysis
Negative
64.18
Price Trends
68.62
Negative
74.48
Negative
78.54
Negative
Market Momentum
-1.28
Negative
44.64
Neutral
31.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIN, the sentiment is Negative. The current price of 64.18 is below the 20-day moving average (MA) of 64.48, below the 50-day MA of 68.62, and below the 200-day MA of 78.54, indicating a bearish trend. The MACD of -1.28 indicates Negative momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 31.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIN.
Albany International Risk Analysis
Albany International disclosed 39 risk factors in its most recent earnings report. Albany International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Albany International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.92B | 25.70 | 8.32% | 1.66% | 1.17% | -30.24% | |
68 Neutral | $1.12B | 5.96 | 11.99% | ― | 2.66% | 14.16% | |
66 Neutral | $170.38M | 14.41 | 6.05% | 5.42% | 4.12% | 36.65% | |
61 Neutral | $6.58B | 11.81 | 3.06% | 3.99% | 2.54% | -21.54% | |
51 Neutral | $1.68B | ― | -43.06% | ― | -29.44% | -1343.00% | |
51 Neutral | $86.80M | ― | -15.73% | ― | 2.51% | 32.95% | |
47 Neutral | $152.46M | ― | -13.39% | 0.73% | 34.10% | -432.13% |
* Consumer Cyclical Sector Average
Performance Comparison
AIN
Albany International
64.18
-22.59
-26.03%
GIII
G-III Apparel Group
26.03
-1.73
-6.23%
HBI
Hanesbrands
4.89
0.43
9.64%
LAKE
Lakeland Industries
16.38
-1.23
-6.98%
SGC
Superior Group of Companies
10.22
-9.03
-46.91%
UFI
Unifi
4.62
-0.90
-16.30%
Albany International Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -2.40%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong operational performance and strategic wins, particularly in the Machine Clothing and Engineered Composites segments. Despite some revenue declines and challenges in certain regions, the company's robust backlog and ongoing efficiency improvements paint a positive outlook. The sentiment is positive, as achievements and future prospects outweigh the current challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance and Shareholder Returns
Albany International reported revenues of $289 million with an adjusted EBITDA margin of 19.3% and an adjusted diluted EPS of $0.73. Free cash flow was ahead of plan, and the company expects another strong free cash flow year. A dividend and $69 million worth of shares were repurchased, with $193 million remaining under the share repurchase authorization.
Machine Clothing Segment Success
Machine Clothing reported revenues of $175 million and an adjusted EBITDA margin of 28.4%. The integration of Heimbach is proceeding to plan, and there is a strong global MC order backlog with an order-to-sales ratio above 1.
New Business Wins in Engineered Composites
The AEC segment continues to win new business, including a long-term agreement with Bell on the 525 program and an addition to the JASSM backlog. The AEC backlog was $1.3 billion at quarter-end, providing visibility into future performance.
Operational Improvements and Efficiency Gains
The company is undertaking significant actions to improve operational efficiencies, including the integration of Heimbach and SAP system upgrades to S/4HANA. These efforts are expected to yield strong synergy benefits.
Negative Updates
Revenue Decline in Key Segments
Consolidated net sales decreased by 7.8% from $313 million in the first quarter of last year. Machine Clothing net sales decreased by 5.7%, and AEC net sales were lower by 11% due to EAC adjustments and lower LEAP sales.
Challenges in China and North America
The Machine Clothing segment experienced a slight decline in deliveries in North America and mixed performance in Asia, with some weakness in China.
EAC Adjustments Impacting AEC Segment
AEC recorded a total EAC adjustment of $7 million for the quarter, impacting the adjusted EBITDA margin, which was 13.5% compared to 16.6% in the prior year.
Company Guidance
During Albany International's first quarter 2025 earnings call, the company provided guidance on various financial metrics and strategic initiatives. The quarter's revenue was reported at $289 million, with an overall adjusted EBITDA margin of 19.3%, and an adjusted diluted EPS of $0.73. The company generated a free cash flow that was ahead of plan, and they anticipate another strong free cash flow year for 2025. Capital was returned to shareholders through a regular quarterly dividend and a reinitiated share repurchase program, with $69 million worth of shares repurchased during the quarter, leaving $193 million of capacity under the latest $250 million share repurchase authorization. The Machine Clothing segment reported revenues of $175 million and an adjusted EBITDA margin of 28.4%, while the Engineered Composites segment achieved revenues of $114 million with an adjusted EBITDA margin of 13.5%. The company reaffirmed its full-year guidance, expecting stronger performance in the second half due to ramp-ups in their AEC operations and acceleration of Heimbach synergies. The AEC backlog stood at $1.3 billion, excluding LEAP volumes beyond the current calendar year. The call also highlighted the integration progress of Heimbach and ongoing efforts to mitigate potential tariff impacts, while emphasizing the strategic importance of their regional supply chain setup.Albany International Corporate Events
Business Operations and Strategy
Albany International Secures Contract with Bell Textron
Positive
Apr 29, 2025
Albany International‘s subsidiary, Albany Engineered Composites, Inc., has secured a seven-year contract with Bell Textron, Inc. to produce composite structure components for the Bell 525 helicopter. This agreement marks a strategic partnership with Bell, enhancing AEC’s presence in the rotorcraft business and potentially opening up further opportunities for collaboration in the aerospace sector.
Spark’s Take on AIN Stock
According to Spark, TipRanks’ AI Analyst, AIN is a Neutral.
Albany International’s overall score reflects a mixed financial performance with concerns about recent profitability data. The technical analysis suggests bearish market sentiment, while valuation remains moderate. Despite challenges, the earnings call highlights strategic initiatives aimed at future growth, balancing against current operational difficulties.
To see Spark’s full report on AIN stock, click here.
Executive/Board Changes
Albany International Announces VP Controller Resignation
Neutral
Mar 14, 2025
On March 10, 2025, Albany International Corp. announced the resignation of John J. Tedone, its Vice President – Controller and Chief Accounting Officer, effective March 20, 2025. Mr. Tedone is leaving to pursue another professional opportunity, and his departure is not due to any disagreements related to financial disclosures or accounting practices. Robert Starr, the Executive Vice President and Chief Financial Officer, will temporarily assume the role of Principal Accounting Officer until a successor is appointed. The company has started the search for a new Controller and Chief Accounting Officer.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.