UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report: July 30, 2025 (Date of earliest event reported) ALBANY INTERNATIONAL CORP. (Exact name of registrant as specified in its charter) | Delaware | 1-10026 | 14-0462060 | | --- | --- | --- | | (State or other jurisdiction | (Commission | (I.R.S Employer | | of incorporation) | File Number) | Identification No.) | | 216 Airport Drive ...

Core Viewpoint - Albany International (AIN) is expected to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $0.73 per share, reflecting an 18% decrease year-over-year, and revenues of $295.26 million, down 11.1% from the previous year [3]. - The consensus EPS estimate has been revised 1.76% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Albany International is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.73% [12]. - The stock currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Albany International exceeded the expected earnings of $0.58 per share, achieving $0.73, which was a surprise of +25.86% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - Albany International does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making investment decisions ahead of the earnings release [17].

Company Overview - Albany International's market capitalization is $2 billion[13] - The company's 2024 revenue reached $1.231 billion[13] - Adjusted EBITDA for 2024 was $232 million[13] - The company's net debt in 2024 was $203 million[13] Machine Clothing (MC) Segment - The MC segment holds approximately 37% of the global paper machine clothing market share[63, 65] - Machine Clothing adjusted EBITDA margin is approximately 37% including Heimbach acquisition[83] - The Heimbach Group acquisition broadens the manufacturing footprint and enhances the sales and service network[81] Albany Engineered Composites (AEC) Segment - The AEC segment is focused on technology differentiation and maximizing customer solutions[101] - The company is investing in next-generation technologies for future growth in the AEC segment[97] Financial Performance & Strategy - The company's strategy for continued growth includes serving vital industries and solid execution[9] - The company's capital deployment is primarily focused on organic growth[37]

Financial Data and Key Metrics Changes - The company has shown tremendous growth in the bottom line of its machine clothing segment, while the top line remains stable [7] - The integration of Heimbach is expected to improve overall margins, despite some headwinds faced in the European market [24][25] Business Line Data and Key Metrics Changes - The machine clothing segment is characterized by a strong focus on quality, with a double-digit price advantage over competitors due to superior product quality [16][17] - The aerospace segment is experiencing significant growth opportunities, particularly in advanced air mobility and space, with a strong partnership with Safran on the LEAP engine [10][27] Market Data and Key Metrics Changes - The aerospace market is expected to grow significantly, driven by commercial and defense programs, with a goal to achieve a 70% defense mix in the future [31] - The paper industry is facing challenges due to the decline in newspaper production, but growth in packaging and tissue is expected to offset this decline [12] Company Strategy and Development Direction - The company aims to expand its product portfolio in engineered fabrics and leverage its weaving technology for organic growth [20][53] - There is a focus on operational excellence and cost control to achieve high teens EBITDA margins in the aerospace business [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the aerospace sector's growth, particularly with Boeing's production ramp-up and the potential for increased LEAP engine volumes [41][43] - The company is taking a conservative approach to revenue projections for the LEAP program, anticipating upside if Boeing continues to increase production [43] Other Important Information - The company is exploring opportunities in hypersonics and aims to replace titanium with domestically sourced products, which could significantly impact future growth [40][61] - The company has faced challenges with employee turnover and training, but improvements have been made to enhance workforce stability and productivity [48] Q&A Session Summary Question: What is the biggest value proposition Albany offers in the machine clothing segment? - The company is known for its high-quality products that help customers save on their largest cost inputs, which are primarily pulp, energy, and water [16] Question: How does Albany assess the potential impact of tariffs on its business? - The company is marginally impacted by tariffs due to its regionalized operations and the stability of USMCA [13][15] Question: What are the paths to organic growth in the machine clothing segment? - Opportunities include expanding the product portfolio in engineered fabrics and leveraging technology to grow market presence [20] Question: What competitive advantages does the aerospace segment have? - The company boasts a 99% on-time delivery rate and unique capabilities in 3D weaving, which are significant competitive advantages [32][35] Question: What is the outlook for the LEAP program revenue? - The company has taken a conservative approach for the current year but anticipates upside if production rates increase as expected [43]

Company Overview - Albany International Corp. (AIN) is currently experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jun 20, 2025 $65 Call option [1] - The company holds a Zacks Rank of 4 (Sell) within the Textile - Products industry, which is positioned in the bottom 7% of the Zacks Industry Rank [3] Market Expectations - The high implied volatility indicates that the market anticipates a substantial price movement for Albany International shares, potentially due to an upcoming event that could trigger a significant rally or sell-off [2][3] - Over the past 30 days, the Zacks Consensus Estimate for the current quarter has decreased from 73 cents per share to 69 cents, reflecting a negative sentiment among analysts [3] Trading Strategies - The current high implied volatility may present a trading opportunity, as seasoned options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from the decay of the option's value [4]

Financial Data and Key Metrics Changes - The company reported revenues of $289 million for the first quarter, down 7.8% from $313 million in the same period last year [20] - Adjusted EBITDA margin was 19.3%, with adjusted diluted EPS at $0.73, compared to $0.90 in the prior year [7][23] - Consolidated gross profit was $96 million, or 33.4% of sales, down from $109 million or 34.7% of sales in the prior year [20][22] Business Line Data and Key Metrics Changes - Machine Clothing segment reported revenues of $175 million, a decrease of 5.7% year-over-year, with an adjusted EBITDA margin of 28.4% [9][23] - Engineered Composites segment revenues were $114 million, down 11% year-over-year, with an adjusted EBITDA margin of 13.5% [14][24] - The overall adjusted EBITDA for the company was $56 million, down from $65 million in the prior year [23] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries, but strong order flow indicates market strength [9] - Europe showed signs of recovery with good deliveries and strong orders, while Asia faced mixed results with some weakness in China [10] - The global empty order backlog remains strong with an order-to-sales ratio above one, providing confidence in the outlook for the year [10] Company Strategy and Development Direction - The company is focused on integrating Heimbach and expects benefits to accelerate in the second half of the year [6] - There is a strong emphasis on operational efficiency and process improvements across various programs [6][19] - The company is also upgrading its SAP system to improve operational efficiencies and analytics [19] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the markets, the company was not affected by tariffs or disruptions in the first quarter [6] - The outlook for the second half of the year is expected to be stronger due to ramping at AEC and the acceleration of Heimbach synergies [25] - Management remains confident in achieving original synergy targets with a 3.5 to 4 times effective purchase multiple [11] Other Important Information - The company repurchased $69 million worth of shares in the first quarter, with $193 million remaining under the latest share repurchase authorization [8] - The effective tax rate for the quarter was 26.6%, down from 29.2% in the prior year, mainly due to favorable discrete tax adjustments [22] Q&A Session Summary Question: Status of LEAP program and inventory management - Management indicated that they expect to meet Safran's production schedule and are monitoring inventory levels closely [27][41] Question: Opportunities for backlog growth - Management sees opportunities in space and missile programs, as well as ramping up across Boeing and Airbus engines [29] Question: Details on the new contract with Bell - The company has secured a seven-year contract with Bell, taking on complex parts and is optimistic about the potential returns [36][38] Question: LEAP revenue growth expectations - Management maintains a cautious outlook but sees potential for growth as Boeing and Airbus ramp up production [41] Question: Confidence in Machine Clothing segment growth - Management attributes the decline in organic growth to divestitures but remains confident due to strong backlog and order strength [59]

Financial Data and Key Metrics Changes - The company reported revenues of $289 million for Q1 2025, down 7.8% from $313 million in Q1 2024 [20] - Adjusted EBITDA margin was 19.3%, with adjusted diluted EPS at $0.73, compared to $0.90 in the same period last year [7][24] - GAAP net income attributable to the company was $17 million, down from $27 million last year, with GAAP diluted EPS at $0.56 compared to $0.87 [23] Business Line Data and Key Metrics Changes - Machine Clothing segment reported revenues of $175 million, a decrease of 5.7% year-over-year, with an adjusted EBITDA margin of 28.4% [20][24] - Engineered Composites segment revenues were $114 million, down 11% from the previous year, with an adjusted EBITDA margin of 13.5% [14][24] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries, but strong order flow indicates market strength [8] - Europe is showing signs of recovery with good deliveries and strong orders, while Asia is mixed with some weakness in China [8] Company Strategy and Development Direction - The company is focused on integrating Heimbach and expects to see benefits from this integration in the second half of the year [6][11] - The strategy includes enhancing operational efficiencies and regionalizing business operations to mitigate tariff impacts [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding market conditions, noting that the company was not significantly affected by tariffs in Q1 [6] - The outlook for the second half of 2025 is expected to be stronger due to ramping up at AEC and accelerating Heimbach synergies [26] Other Important Information - The company repurchased $69 million worth of shares in Q1 and has $193 million remaining under its share repurchase authorization [7] - The company is upgrading its SAP system to improve operational efficiencies and analytics [19] Q&A Session Summary Question: Status of LEAP program and inventory management - Management indicated that they are monitoring inventory levels and expect to meet Safran's production schedule, with potential upside in the second half of the year [28] Question: New opportunities for backlog growth - Management noted that there are opportunities in space and missile programs, as well as ramping up across Boeing and Airbus engines [30] Question: Details on the seven-year contract with Bell - Management expressed excitement about the contract, highlighting the opportunity to demonstrate capabilities and achieve projected returns in the high teens for AEC [38] Question: Confidence in Machine Clothing segment growth - Management attributed the decline in organic growth to divestitures but emphasized strong backlog and order strength for the upcoming quarters [56]

Financial Data and Key Metrics Changes - The company reported revenues of $289 million for the first quarter, down 7.8% from $313 million in the same period last year [20] - Adjusted EBITDA margin was 19.3%, with adjusted diluted EPS at $0.73, compared to $0.90 in the prior year [7][23] - Consolidated gross profit was $96 million, or 33.4% of sales, down from $109 million or 34.7% of sales in the prior year [20][22] Business Line Data and Key Metrics Changes - Machine Clothing segment reported revenues of $175 million, a decrease of 5.7% year-over-year, with an adjusted EBITDA margin of 28.4% [9][23] - Engineered Composites segment revenues were $114 million, down 11% from the previous year, with an adjusted EBITDA margin of 13.5% [14][24] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries, but strong order flow indicates market strength [9] - Europe showed signs of recovery with good deliveries and strong orders, while Asia faced mixed results with some weakness in China [10] Company Strategy and Development Direction - The company is focused on integrating Heimbach and expects to see benefits from this integration accelerate in the second half of the year [6][11] - The strategy includes enhancing operational efficiencies and regionalizing business operations to mitigate tariff impacts [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the markets but noted that tariffs did not materially impact performance in the first quarter [6] - The company reaffirmed its full-year guidance, expecting stronger performance in the second half of 2025 due to ramping up at AEC and Heimbach synergies [25] Other Important Information - The company repurchased $69 million worth of shares in the first quarter, with $193 million remaining under the current share repurchase authorization [8] - The balance sheet remains strong with a cash balance of over $119 million and $384 million of borrowing capacity [24] Q&A Session Summary Question: Status of LEAP program and inventory management - Management indicated that they are monitoring inventory levels and expect to meet Safran's production schedule, with potential upside in the second half of the year [27][41] Question: Opportunities for backlog growth - Management noted that there are new opportunities in space and missile programs, and they are selective about the projects they pursue [28][39] Question: Details on the new contract with Bell - The company has secured a seven-year contract with Bell, taking over complex parts production, which is seen as an opportunity to demonstrate capabilities [36][38] Question: LEAP revenue growth expectations - Management maintained their plan for the year but noted potential for upside as demand from Boeing and Airbus increases [41] Question: Confidence in Machine Clothing segment growth - Management attributed the decline in organic growth to divestitures but expressed confidence in strong backlog and order strength for the upcoming quarters [59]

Core Insights - Albany International (AIN) reported revenue of $288.77 million for the quarter ended March 2025, reflecting a year-over-year decline of 7.8% and an EPS of $0.73 compared to $0.90 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $290.24 million by 0.51%, while the EPS exceeded the consensus estimate of $0.58 by 25.86% [1] Revenue Performance - Albany Engineered Composites generated revenue of $114.08 million, surpassing the average estimate of $112.10 million, but showing an 11% decline year-over-year [4] - Machine Clothing revenue was reported at $174.70 million, below the average estimate of $178.14 million, with a year-over-year decrease of 5.7% [4] Operating Income - Albany Engineered Composites reported an operating income of $1.62 million, significantly better than the average estimate of -$0.90 million [4] - Machine Clothing's operating income was $38.43 million, which fell short of the average estimate of $44.26 million [4] Stock Performance - Albany International's shares have returned -5.2% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - Albany International reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, but down from $0.90 per share a year ago, representing an earnings surprise of 25.86% [1] - The company posted revenues of $288.77 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.51% and down from $313.33 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] Stock Performance - Albany International shares have declined approximately 16.8% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $301.21 million, and for the current fiscal year, it is $3.18 on revenues of $1.21 billion [7] Industry Outlook - The Zacks Industry Rank indicates that the Textile - Products sector is currently in the bottom 5% of over 250 Zacks industries, suggesting potential underperformance compared to the top 50% of ranked industries [8] - The outlook for the industry can significantly impact the stock's performance, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]