Core Viewpoint - Albany International reported quarterly earnings of $0.58 per share, missing the Zacks Consensus Estimate of $0.65 per share, and down from $1.22 per share a year ago, indicating a significant earnings surprise of -10.77% [1][2] Financial Performance - The company posted revenues of $286.91 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.93%, and down from $323.58 million year-over-year [2] - Over the last four quarters, Albany International has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Market Performance - Albany International shares have not added value since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The stock is currently rated Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.87 on revenues of $307.02 million, and for the current fiscal year, it is $3.79 on revenues of $1.27 billion [7] - The estimate revisions trend for Albany International is currently unfavorable, which may impact future stock movements [6] Industry Context - The Textile - Products industry, to which Albany International belongs, is currently in the bottom 10% of over 250 Zacks industries, suggesting a challenging environment for the stock [8]

Financial Performance - Net revenues for 2024 increased to $1,230.6 million, up 7.2% from $1,147.9 million in 2023[326]. - Gross profit decreased to $401.8 million in 2024, down 5.0% from $423.7 million in 2023[326]. - Operating income for 2024 was $131.4 million, a decline of 21.6% compared to $167.9 million in 2023[326]. - Net income attributable to the Company decreased to $87.6 million in 2024, down 21.1% from $111.1 million in 2023[326]. - Basic earnings per share attributable to Company shareholders fell to $2.81 in 2024, down 21.1% from $3.56 in 2023[326]. - The Company reported a comprehensive income of $25.8 million in 2024, significantly down from $122.4 million in 2023[328]. - The Company recorded total transaction losses of $8,395,000 in 2024, compared to gains of $1,265,000 in 2023[356]. - Total other (income)/expense, net for 2024 was $1,721,000, a significant improvement from a loss of $6,163,000 in 2023[478]. - The net income attributable to the company for the year ended December 31, 2024, was $87.623 million, a decrease from $111.120 million in 2023[497]. - The basic net income per share for 2024 was $2.81, down from $3.56 in 2023, while diluted net income per share was $2.80 compared to $3.55 in 2023[497]. Assets and Liabilities - Total assets decreased to $1,648.7 million in 2024, down from $1,835.0 million in 2023[330]. - Cash and cash equivalents at the end of 2024 were $115.3 million, a decrease of 33.5% from $173.4 million at the end of 2023[332]. - The company has $17.0 million in defined benefit pension plans for 2024, with plan assets exceeding projected benefit obligations[387]. - The pension benefit obligation was $137.1 million, a decrease of $21.2 million from the previous year[454]. - The fair value of pension plan assets decreased to $103.1 million as of December 31, 2024, from $112.7 million in 2023[458]. - The funded status of the pension plans was $(33.97) million as of December 31, 2024, compared to $(45.64) million in 2023[458]. - Total plan assets as of December 31, 2024, amounted to $103,137,000, down from $112,688,000 in 2023[465]. Revenue Segments - The Machine Clothing (MC) segment generated revenues of $749.9 million in 2024, up from $670.8 million in 2023, representing a growth of about 11.8%[416]. - Albany Engineered Composites (AEC) segment revenues totaled $480.7 million in 2024, compared to $477.1 million in 2023, indicating a slight increase of 0.7%[416]. - Revenue from engineered fabrics in the MC segment increased to $107.3 million in 2024, compared to $71.2 million in 2023, marking a significant growth of approximately 50.7%[418]. - Heimbach contributed net revenues of $141.6 million in 2024, impacting the Machine Clothing segment's operating income negatively by $20.0 million[436]. - Approximately 36% of AEC's net revenues in 2024 were related to U.S. government contracts or programs[428]. Debt and Interest Rates - As of December 31, 2024, the company had variable rate debt totaling $146.8 million, with an increase of one percentage point in weighted average interest rates potentially increasing interest expense by $1.5 million[304]. - The company has a significant amount of variable rate debt, with USD borrowings at an all-in interest rate of 6.00% and EUR borrowings at 4.40%[304]. - The company is subject to risks from fluctuations in foreign currency exchange rates and interest rates, which could materially impact operational results[301]. Taxation - Total income tax expense for 2024 was $29,034,000, a decrease from $48,846,000 in 2023, representing a reduction of approximately 40.5%[481]. - The effective income tax rate for 2024 was 24.8%, down from 30.4% in 2023[481]. - Cash payments for taxes amounted to $47,300,000 in 2024, compared to $54,500,000 in 2023, indicating a decrease of about 13.5%[487]. - The company recorded a net tax benefit of $5,000,000 in 2024 for the establishment of a deferred tax asset in a foreign jurisdiction[483]. - The total deferred tax assets as of December 31, 2024, amounted to $27.897 million for the U.S. and $35.312 million for non-U.S. operations[491]. Pension and Benefits - The company made employer contributions of $8.7 million to pension plans in 2024, up from $3.6 million in 2023[458]. - The net periodic benefit cost for pension plans in 2024 was $3,047,000, an increase from $2,805,000 in 2023, while the cost for other postretirement benefits was $1,304,000, compared to a cost of $(1,328,000) in 2023[460]. - The company recognized a net actuarial loss of $19.5 million in accumulated other comprehensive income as of December 31, 2024[458]. Risks and Compliance - Future funding and compliance risks are associated with contracts in the Albany Engineered Composites segment, particularly with government entities and OEM customers[14]. - The company faces risks from large customer purchase reductions, payment defaults, or contract non-renewal, which could adversely impact financial performance[14]. - The company may experience costly and disruptive legal disputes and settlements that could affect its financial condition[14]. - The company has undertaken no obligation to publicly update or revise any forward-looking statements, except as required by applicable law[14]. Acquisitions - The Company completed the acquisition of Heimbach GmbH, a manufacturer of paper machine clothing and technical textiles, on August 31, 2023[335]. - The acquisition of Heimbach, completed on August 31, 2023, is now included in the MC segment's financial results, enhancing its market position[425].

Financial Performance - Albany International reported record revenues of nearly $1.25 billion for the full year 2024, driven by organic growth and the Heimbach acquisition[12]. - For Q4 2024, net revenues were $286.9 million, down 11.3% year-over-year, with Machine Clothing revenues decreasing by 1.9% and Albany Engineered Composites revenues decreasing by 25.0%[13]. - Gross profit for Q4 2024 was $90.3 million, a decrease of 24.6% compared to $119.9 million in Q4 2023, primarily due to reduced profitability in long-term contracts at AEC[13]. - Operating income for Q4 2024 was $24.3 million, down 41.8% from $41.8 million in the prior year, impacted by decreased gross profit and increased restructuring expenses[13]. - Net income for the twelve months ended December 31, 2024, was $88,055, down from $111,610 in 2023, representing a decrease of approximately 21.1%[23]. - Adjusted Diluted EPS for Q4 2024 was $0.58, down from $1.22 in the same period last year[16]. - Adjusted diluted earnings per share for the year ended December 31, 2024, was $3.18, down from $4.06 in 2023[28]. Cash Flow and Investments - Free Cash Flow generated in Q4 2024 was $59 million, contributing to a total of $137 million for the full year[12]. - Net cash provided by operating activities increased to $218,441 in 2024 from $148,056 in 2023, reflecting a growth of about 47.4%[23]. - The company reported a net cash used in investing activities of $80,180 in 2024, a decrease from $217,899 in 2023[23]. - Proceeds from borrowings increased to $145,595 in 2024, compared to $78,040 in 2023, indicating a rise of approximately 86.1%[23]. - The cash and cash equivalents at the end of the period decreased to $115,283 in 2024 from $173,420 in 2023, a decline of about 33.5%[23]. Future Projections - For full-year 2025, Albany International expects total company revenue between $1.165 billion and $1.265 billion, with Adjusted EBITDA between $240 million and $260 million[17]. - The company expects full-year 2025 Adjusted EBITDA to range from $220 million to $240 million for Machine Clothing and $60 million to $70 million for Albany Engineered Composites[31]. - Net income attributable to the Company for Full Year 2025 is expected to range from $94 million to $107 million[32]. - Adjusted Diluted Earnings per share for Full Year 2025 is forecasted to be between $3.00 and $3.40[32]. Segment Performance - Machine Clothing segment reported a gross profit of $346,044 for YTD 2024, with a gross profit margin of 46.1%, compared to 49.4% in YTD 2023[24]. - Albany Engineered Composites segment experienced a significant revenue decline of 25.0% in Q4 2024 compared to Q4 2023[24]. - Adjusted EBITDA for the total company in Q4 2024 was $49,962, with an adjusted EBITDA margin of 17.4%[25]. - The adjusted EBITDA margin for Machine Clothing was 30.1% for the year ended December 31, 2024, down from 33.4% in 2023[26]. Restructuring and Expenses - Restructuring expenses for the year ended December 31, 2024, totaled $15,143 thousand, compared to $282 thousand in 2023[27]. - The company reported a foreign currency revaluation loss of $8,414 thousand for the year ended December 31, 2024[27]. Tax and Financial Ratios - The effective income tax rate for Q4 2024 was 28.0%, an increase from 22.6% in Q4 2023, due to a shift in taxable income to higher-rate jurisdictions[16]. - Net debt as of December 31, 2024, was $203,248 thousand, down from $283,465 thousand in 2023[29]. - The net leverage ratio as of December 31, 2024, was 0.88, indicating improved financial stability[30]. Company Overview - The Company operates 30 facilities across 13 countries and employs approximately 5,400 people globally[35]. - Albany International is a leading producer in the Machine Clothing segment, essential for various industrial applications[44]. - The Company emphasizes the importance of non-GAAP measures for providing insight into operational performance[36]. - Forward-looking statements include expectations for revenues, EBITDA, and Adjusted EPS, subject to risks and uncertainties[42]. - The Company does not undertake any obligation to publicly update or revise forward-looking statements[45].

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Group 1 - A. O. Smith Corporation (AOS) is a water heating and treatment company with a Zacks Consensus Estimate for its current year earnings revised 7.1% downward over the last 60 days [1] - Albany International Corp. (AIN) is an industrial materials company with a Zacks Consensus Estimate for its current year earnings revised 15.4% downward over the last 60 days [1] - Arcadis NV (ARCAY) is an infrastructure consulting company with a Zacks Consensus Estimate for its current year earnings revised 9.4% downward over the last 60 days [2]

Group 1 - Albany International (AIN) has been added to the Zacks Rank 5 (Strong Sell) List, with a 12.5% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Baidu (BIDU) is also on the Zacks Rank 5 (Strong Sell) List, experiencing a nearly 7.2% downward revision in the consensus estimate for its current year earnings over the last 60 days [2] - AB SKF (SKFRY) has been included in the Zacks Rank 5 (Strong Sell) List, with a 5.2% downward revision in the consensus estimate for its current year earnings over the last 60 days [3]

Albany International Corp. (NYSE:AIN) Q3 2024 Earnings Conference Call October 30, 2024 9:00 AM ET Company Participants JC Chetnani - VP, Investor Relations and Treasurer Gunnar Kleveland - President and Chief Executive Officer Robert Starr - Executive Vice President and Chief Financial Officer Conference Call Participants Peter Arment - Robert W. Baird Michael Ciarmoli - Truist Securities Jordan Lyonnais - Bank of America Chigusa Katoku - JPMorgan Jack Ayers - TD Cowen Operator Good day, and thank you for ...

Albany International (AIN) came out with quarterly earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 77.78%. A quarter ago, it was expected that this textile and composite maker would post earnings of $0.89 per share when it actually produced earnings of $0.89, delivering no surprise. Over the last four quart ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 1-10026 ALBANY INTERNATIONAL CORP. (Exact name of registrant as specified in its charter) Delaware (State or other ...

Exhibit 99.1 Albany International Updates Expectations for Aerospace Business and the Company's 2024 Full Year Outlook Company to Hold Conference Call Today at 8:30 a.m. ET to Discuss Update Rochester, N.H. – October 3, 2024 – Albany International Corp. (NYSE: AIN) announced today that it is providing a preliminary update to its full year outlook largely to reflect revised revenue and profitability expectations for the aerospace business within its Engineered Composites (AEC) segment. Following its regular ...