Albany International (AIN) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenues declined 7.8% year-over-year to $289 million, with both Machine Clothing (MC) and Albany Engineered Composites (AEC) segments experiencing lower sales; integration of Heimbach is progressing as planned.

• Net income attributable to the company was $17 million ($0.56 per share), down from $27 million ($0.87 per share) in Q1 2024; adjusted diluted EPS was $0.73, down from $0.90.

• Gross profit margin decreased to 33.4% from 34.7% year-over-year, mainly due to lower profitability in AEC's long-term contracts.

• Operating income fell to $28 million from $39 million, reflecting lower segment profits and higher restructuring charges.

• No material impact from tariffs in Q1 due to regional supply chains; ongoing monitoring of tariff landscape.

Financial highlights

• Q1 2025 revenues were $289 million, down 7.8% year-over-year from $313 million.

• Adjusted EBITDA margin was 19.3%; adjusted EBITDA was $56 million, down from $65 million year-over-year.

• Free cash flow was negative $13 million, an improvement from negative $17 million year-over-year.

• GAAP net income was $17 million, down from $27 million year-over-year; GAAP diluted EPS was $0.56, down from $0.87.

• Gross profit was $96 million (33.4% of sales), down from $109 million (34.7%) year-over-year.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $1.165–$1.265 billion; adjusted diluted EPS expected between $3.00 and $3.40.

• MC revenue guidance: $705–$755 million; AEC revenue: $460–$510 million.

• MC backlog and order-to-sales ratio above one, supporting confidence in 2025 outlook.

• LEAP program output expected to grow with demand as Boeing and Airbus ramp up.

• Capital expenditures projected at $85–$95 million; effective tax rate around 31%.