Revenue Performance - Machine Clothing segment's net revenues decreased by 5.7% to $174.7 million in Q1 2025 compared to $185.2 million in Q1 2024[102] - Albany Engineered Composites segment's net revenues decreased by 11.0% to $114.1 million in Q1 2025 compared to $128.1 million in Q1 2024[102] - Total net revenues for the company decreased by 7.8% to $288.8 million in Q1 2025 compared to $313.3 million in Q1 2024[102] - In the first quarter of 2025, net revenues decreased by $10.5 million or 5.7% compared to the same period in 2024, primarily due to a decrease in publication, tissue, and pulp grades[121] - The Machine Clothing segment accounted for 60% of consolidated revenues, with net revenues of $174.7 million in Q1 2025, down from $185.2 million in Q1 2024[120] - The Albany Engineered Composites segment represented 40% of consolidated revenues, with net revenues of $114.1 million in Q1 2025, a decrease of $14.0 million or 11.0% from Q1 2024[125] Profitability and Margins - Gross profit for the Machine Clothing segment remained consistent at 45.7% in both 2024 and 2025, while Albany Engineered Composites segment's gross profit margin decreased from 18.8% in 2024 to 14.5% in 2025[105] - Operating income for the Machine Clothing segment decreased by $5.9 million or 13.3% to $38.4 million in Q1 2025 compared to Q1 2024[123] - Gross profit for the Albany Engineered Composites segment decreased by $7.4 million, with the gross profit margin dropping from 18.8% in Q1 2024 to 14.5% in Q1 2025[128] Expenses - SG&A expenses decreased by 1.9% to $53.8 million in Q1 2025 compared to $54.8 million in Q1 2024, but as a percentage of net revenues, it increased from 17.5% to 18.6%[106] - Technical and research expenses decreased by 6.1% to $11.9 million in Q1 2025 compared to $12.7 million in Q1 2024, with a slight increase in percentage of net revenues from 4.0% to 4.1%[107] - Restructuring expenses increased to $2.5 million in Q1 2025 from $2.2 million in Q1 2024[108] - Restructuring expenses for the Machine Clothing segment totaled $3.3 million in Q1 2025, primarily related to workforce reductions and facility closures[111] Cash Flow and Liquidity - Net cash provided by operating activities was $2.1 million in Q1 2025, down from $9.6 million in the same period last year, driven by reduced gross profit[131] - As of March 31, 2025, the company had cash and cash equivalents of $119.4 million and total liquidity of approximately $503.0 million[135] - As of March 31, 2025, the company has cash investments in foreign operations exceeding $140.0 million[137] Tax and Interest - The effective income tax rate for Q1 2025 was 26.6%, a decrease from 29.2% in Q1 2024, mainly due to favorable discrete tax adjustments[118] - Interest expense increased to $3.7 million in Q1 2025, up from $3.3 million in Q1 2024, primarily due to higher average debt balances[114] - An increase of one percentage point in weighted average interest rates would increase interest expense by $2.4 million, based on unhedged variable rate debt of $242.734 million[144] Strategic Initiatives - The company plans to consolidate its headquarters in Portsmouth, NH, affecting approximately 100 employees, with an estimated cost of $7.0 million over the next year and a half[139] - The company faces pricing pressures across all markets, but aims to improve earnings through cost controls and manufacturing productivity efficiencies[99] Foreign Operations and Currency Exposure - The company has off-balance sheet arrangements, including guarantees, with financial assurances of less than $10 million[140] - The total net assets of non-U.S. operations subject to potential loss amount to approximately $593.9 million, with a hypothetical 10% adverse change in foreign currency rates potentially resulting in a loss of $59.4 million[142] - The company has foreign currency transaction exposures totaling $156.9 million, with a net foreign currency asset of $57.9 million as of March 31, 2025[142]

Financial Performance - Net revenues for Q1 2025 were $289 million, a decrease of 7.8% year-over-year, with a 6.9% decline after adjusting for currency translation[16]. - Gross profit was $96 million, down 11.2% from $109 million in Q1 2024, resulting in a gross margin decline of 130 basis points[16]. - Operating income decreased to $28 million from $39 million in the prior year, attributed to lower gross profit in both AEC and Machine Clothing segments[16]. - Net income attributable to the Company was $17 million ($0.56 per share), compared to $27 million ($0.87 per share) in Q1 2024[16]. - Adjusted diluted earnings per share for Q1 2025 were $0.73, down from $0.90 in Q1 2024, with Adjusted EBITDA decreasing by 14.8% to $56 million[16]. - Total net revenues for Q1 2025 were $288,774, down 6.9% from $313,330 in Q1 2024, with a currency translation impact of $3,002[24]. - Adjusted EBITDA for Q1 2025 was $55,718, compared to $65,375 in Q1 2024, reflecting a margin of 19.3%[24]. - Net income for Q1 2025 was $17,349, a decrease of 36.7% compared to $27,369 in Q1 2024[23]. - The company’s diluted earnings per share for Q1 2025 were $0.56, down from $0.87 in Q1 2024[26]. - Net income for the twelve months ended December 31, 2024, was $88,055,000, with a net income of $17,349,000 for the three months ended March 31, 2025[27]. - Adjusted EBITDA for the trailing twelve months as of March 31, 2025, was $222,311,000, with an adjusted EBITDA of $55,718,000 for the three months ended March 31, 2025[27]. Guidance and Projections - The company reaffirmed full-year 2025 revenue guidance of $1.165 billion to $1.265 billion[17]. - Capital expenditures are projected to be between $85 million and $95 million for 2025[17]. - Machine Clothing revenue is expected to be between $705 million and $755 million, with Adjusted EBITDA between $220 million and $240 million[17]. - Albany Engineered Composites revenue is forecasted to be between $460 million and $510 million, with Adjusted EBITDA between $60 million and $70 million[17]. - The forecast for full-year 2025 Adjusted EBITDA ranges from $240,000,000 to $260,000,000[30]. - The forecasted diluted earnings per share (EPS) for 2025 is between $3.00 and $3.40[30]. - Restructuring costs for the full year 2025 are estimated at $3,000,000[30]. Cash Flow and Financial Position - Free cash flow for Q1 2025 was $(13,478), an improvement from $(17,283) in Q1 2024[26]. - Cash and cash equivalents at the end of Q1 2025 were $119,354, slightly down from $125,412 at the end of Q1 2024[23]. - The company reported a net cash provided by operating activities of $2,119 for Q1 2025, significantly lower than $9,597 in Q1 2024[23]. - The company’s long-term debt increased to $416,429 as of March 31, 2025, from $318,531 at the end of 2024[26]. - The net leverage ratio as of March 31, 2025, is 1.34, indicating the company's financial leverage[27]. Operational Insights - The company operates 30 facilities in 13 countries and employs approximately 5,400 people worldwide[33]. - Albany International Corp. is a leading developer and manufacturer of engineered components, focusing on advanced materials processing and automation capabilities[32]. - The company anticipates growth in its Albany Engineered Composites segment, which supports both commercial and military aerospace applications[43]. Market Challenges - The effective tax rate for Q1 2025 was 26.6%, down from 29.2% in Q1 2024, due to favorable discrete tax adjustments[16]. - The company expects to face macroeconomic challenges, including inflationary cost pressures and geopolitical events, which may impact future financial results[42].

Financial Data and Key Metrics Changes - The company reported record revenues of nearly $1.25 billion for the full year, driven by organic growth at AEC and the Heimberg acquisition [8] - Consolidated net sales for Q4 were $287 million, down from $324 million in the same quarter last year, primarily due to lower revenue at AEC [36] - GAAP net income for the quarter was $18 million compared to $30 million last year, largely due to EAC adjustments [39] - GAAP diluted EPS was $0.56 per share in this quarter versus $0.97 in the same period last year [39] - Consolidated adjusted EBITDA was $50 million for Q4 versus $75 million in the prior year period [40] Business Line Data and Key Metrics Changes - Machine clothing revenues in Q4 were $188 million, a decrease of 1.9% year-over-year, primarily due to strong comparisons to the prior year [36] - AEC net sales were $99 million, down from $132 million in Q4 2023, impacted by EAC adjustments and lower LEAP revenues [36] - Machine clothing gross margin decreased from 48.8% in Q4 2023 to 44.4% in 2024, largely due to lower gross margins at Heimberg [37] - AEC gross margins decreased from 20% in Q4 2023 to 6.8%, primarily driven by EAC adjustments [37] Market Data and Key Metrics Changes - North America continues to be a strong contributor, while South America remains stable with slightly improving trends [12] - Europe was generally flat year-over-year, with expectations for growth into 2025 [12] - Asia was also flat year-over-year with slight weakness in China [12] Company Strategy and Development Direction - The company is focused on growth in the machine clothing segment over the next five years, leveraging technology and manufacturing leadership [31] - AEC is expected to show modest growth led by CH-53K and advanced air mobility, largely offset by LEAP [46] - The company plans to enhance overall growth through disciplined capital allocation and R&D investments, with $1 billion in available capital [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the CH-53K program and advanced air mobility platforms [18][19] - The company is cautious about Boeing's production rates and is monitoring the situation closely [70] - Management highlighted the importance of cash flow and balance sheet efficiency, targeting free cash flow between $90 million and $120 million for 2025 [62] Other Important Information - The company initiated a share repurchase program, repurchasing $15 million of shares in Q4, with a new program authorized up to $250 million [10] - The company is consolidating headquarters and divesting a non-core business in Italy [26] - An overhaul of the executive compensation program was announced, aligning incentives with long-term value creation [28] Q&A Session Summary Question: Update on AEC and margin expectations for 2025 - Management indicated that AEC margins could improve to the mid to high teens over time, with current projections reflecting a 13.5% margin [56][58] Question: Free cash flow expectations for 2025 - The company expects free cash flow to range between $90 million and $120 million, with a focus on working capital efficiency [60][62] Question: Concerns regarding Boeing's production rates - Management acknowledged inventory issues and expressed cautious optimism about a potential ramp-up in production rates later in the year [70][72] Question: Impact of tariff risks and trade pressures - Management stated that the impact from China is minimal and that they are analyzing potential impacts from trade uncertainties [99] Question: New defense programs and cost pressures - Management is aware of potential cost pressures from the new administration but remains confident in the stability of their long-term contracts [101]

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].

Core Insights - The article highlights the upcoming end of 2024 and the last week without market closures, indicating a significant time for investors to prepare for year-end strategies [1] Group 1: Investment Strategy - The focus is on dividend increases from 14 companies, which can provide a growing income stream for investors [1] - The article emphasizes the importance of establishing a plan for younger investors to secure a stable retirement [1] Group 2: Tools and Resources - Customstockalerts.com is introduced as a utility for investors to monitor stock performance, including alerts for price changes, dividend yields, and upcoming dividends [1] - The platform allows users to set specific alerts and receive notifications via text or email, enhancing investment decision-making [1]

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 ...