Albany International(AIN) - 2024 Q4 - Annual Results

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].