Albany International(US:AIN)2025-07-30 20:35Financial Performance - Net revenues for Q2 2025 were $311 million, a decrease of 6.2% year-over-year, or 7.4% when adjusted for currency translation[17]. - Gross profit was $98 million, down 13.2% from $112 million in Q2 2024, with a gross margin decrease of 260 basis points[17]. - Operating income fell to $22 million compared to $43 million in the prior year, attributed to lower gross profit in both Machine Clothing and Albany Engineered Composites[17]. - Net income attributable to the Company was $9 million ($0.31 per share), down from $25 million ($0.79 per share) in Q2 2024[17]. - Adjusted diluted earnings per share for Q2 2025 were $0.57, compared to $0.89 in Q2 2024, reflecting a decrease of 36%[17]. - Consolidated total net revenues for Q2 2025 were $311,399, reflecting a 7.4% decrease compared to Q2 2024[25]. - The company reported a gross profit of $97,507 for Q2 2025, down from $112,383 in Q2 2024[25]. - Net income for the six months ended June 30, 2025, was $26,681, a decrease from $52,089 in 2024[24]. - Adjusted EBITDA for the total company in Q2 2025 was $51,882, with an adjusted EBITDA margin of 16.7%[26]. - Adjusted EBITDA for the six months ended June 30, 2025, was $107,599, down from $128,458 in 2024, reflecting a decline of 16.2%[27]. - The adjusted EBITDA margin for the total company was 17.9% for the six months ended June 30, 2025, compared to 19.9% in 2024[27]. - Free cash flow for the six months ended June 30, 2025, was $4,302, significantly lower than $46,333 in the same period of 2024, indicating a decrease of 90.7%[29]. - The diluted earnings per share for the six months ended June 30, 2025, was $0.87, down from $1.66 in 2024, a decrease of 47.0%[29]. Revenue Guidance - The company reaffirmed full-year 2025 revenue guidance of $1.165 billion to $1.265 billion[18]. - Machine Clothing revenue is projected to be between $705 million and $755 million for the full year[18]. - Albany Engineered Composites revenue is expected to be between $460 million and $510 million for 2025[18]. Capital Expenditures and Cash Flow - Capital expenditures are estimated to be in the range of $85 to $95 million for the year[18]. - Net cash provided by operating activities was $34,833, down from $92,989 in the previous year[24]. - Net cash used in investing activities was $27,288, compared to $45,627 in the prior year[24]. - Proceeds from borrowings in financing activities were $171,995, significantly higher than $43,282 in the previous year[24]. - Cash and cash equivalents at the end of the period were $106,689, down from $116,439 at the end of the previous year[24]. Tax and Interest Expenses - The effective tax rate for Q2 2025 was 31.3%, up from 27.9% in Q2 2024, primarily due to favorable discrete tax adjustments in the prior period[17]. - Interest expense for the six months ended June 30, 2025, was $8,805, compared to $6,269 in 2024, reflecting an increase of 40.5%[27]. Debt and Leverage - Net debt as of June 30, 2025, was $337,997, an increase from $260,618 as of June 30, 2024[29]. - The net leverage ratio as of June 30, 2025, was 1.60, compared to 1.00 as of December 31, 2024, indicating increased leverage[30]. Restructuring and Foreign Currency - Restructuring costs for the six months ended June 30, 2025, totaled $5,387, compared to $4,830 in the same period of 2024, an increase of 11.5%[28]. - Foreign currency revaluation gains for the six months ended June 30, 2025, were $13,523, a significant increase from losses of $3,601 in 2024[28]. - The company experienced a foreign currency remeasurement gain of $7,171 in the first half of 2025[24]. Future Projections - The forecast for Full Year 2025 Adjusted EBITDA for the total company is projected to be between $240 million and $260 million[33]. - The forecasted net income attributable to the company (GAAP) for 2025 is expected to range from $78 million to $90 million[33]. - Adjusted diluted earnings per share (non-GAAP) is anticipated to be between $3.00 and $3.40 for 2025[33]. - The company expects depreciation and amortization expenses to be between $89 million and $93 million for the full year 2025[33]. - The forecast for EBITDA (non-GAAP) for the total company is estimated to be between $221 million and $241 million[33]. - Restructuring costs are projected to remain constant at $5 million for the full year 2025[33]. - Foreign currency revaluation losses are expected to be $14 million for the full year 2025[33]. Company Overview - Albany International operates 30 facilities across 13 countries and employs approximately 5,400 people globally[36]. - The company is a leading developer and manufacturer of engineered components, focusing on advanced materials processing and automation capabilities[35]. - Albany International is listed on the New York Stock Exchange under the symbol AIN[36].