Albany International (AIN) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered the strongest financial performance of the year, with consolidated revenue rising to $321.2 million, up 12% year-over-year, driven by Engineered Composites growth and disciplined execution on strategic priorities, partially offset by Machine Clothing softness in Asia.

• Adjusted EBITDA for Q4 2025 was $57.3 million (17.8% margin), up from $50 million (17.4%) last year, and Adjusted EPS increased to $0.65 from $0.58.

• Strategic review of the Amelia Earhart facility in Salt Lake City and the structures assembly business is progressing, with Guggenheim retained as advisor and strong interest from potential buyers.

• Corporate relocation to Portsmouth, NH completed, enhancing talent acquisition and retention.

• Innovation remains central, with 86 submissions to the new internal awards program and continued investment in proprietary technologies.

Financial highlights

• Q4 consolidated sales reached $321.2 million, up 12% year-over-year, primarily from Engineered Composites.

• Adjusted EBITDA was $57.3 million (17.8% margin), up from $50 million (17.4%) last year.

• Gross profit for Q4 2025 was $99.9 million (31.1% margin), up 10.6% from Q4 2024.

• Operating income rose to $29.9 million (9.3% margin), up 22.9% year-over-year.

• Free cash flow for Q4 was $51 million, down from $59.3 million, reflecting higher capex and working capital needs.

Outlook and guidance

• Q1 2026 consolidated revenue expected between $275 million and $285 million; Adjusted EPS forecasted at $0.50–$0.60; effective tax rate of 27%.

• Machine Clothing revenue guidance: $160–$165 million; Engineered Composites: $115–$120 million.

• Q1 results will be the lowest of the year due to Machine Clothing downtime, with a $0.10–$0.15 EPS impact.

• Engineered Composites to see continued growth, especially in LEAP and missile programs; Machine Clothing stable in Europe/North America, weak in China.

• Full-year effective tax rate expected at 24.3%.