Albany International(US:AIN)2025-04-30 20:22Financial 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].