Albany International (AIN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 7.8% year-over-year to $311.3 million, driven by strong Engineered Composites growth and stabilization in Machine Clothing, though net income and Adjusted EBITDA declined due to higher costs and margin pressure.

• Adjusted diluted EPS was $0.60, down from $0.73 last year; net income attributable to shareholders was $15.3 million, down from $17.4 million.

• Operational excellence recognized, with Engineered Composites named one of America's Safest Companies.

• No material impact from Middle East conflict; supply chain risks remain monitored and controlled.

• Strategic review and planned sale of the Salt Lake City (CH-53K) facility is progressing, with related assets classified as held-for-sale.

Financial highlights

• Adjusted EBITDA was $48.2 million (15.5% margin), down from $55.7 million (18.9%–19.3%) year-over-year, reflecting mix shift and lower Machine Clothing volumes.

• Gross profit was $99.8 million (32.1% margin), down from 33.4% last year, impacted by higher Engineered Composites mix and production costs.

• Operating income was $25.4 million (8.1%–8.2% margin), down from 9.8% last year, due to higher SG&A and restructuring expenses.

• Free cash flow improved to a net use of $3.6 million from $13.5 million last year, driven by better customer collections and working capital management.

• Ended Q1 with $122.6 million in cash, $477 million in total debt, and $446 million in available capital.

Outlook and guidance

• Q2 2026 consolidated revenue expected between $335 million and $345 million; Adjusted EPS forecasted at $0.70–$0.80; effective tax rate projected at 31.5%.

• Machine Clothing revenue guidance: $180–$185 million; Engineered Composites: $155–$160 million.

• Machine Clothing expected to see modest sequential volume improvement; Engineered Composites to continue growth on program ramps, especially in aerospace and defense.

• Full-year outlook: stable demand in Europe and Americas for Machine Clothing; limited visibility in China and Asia due to overcapacity and macroeconomic uncertainty.

• Management expects to maintain adequate liquidity and compliance with debt covenants over the next twelve months.