Board Authorizes New $250 Million Share
Repurchase Program
Albany International Corp. (NYSE:AIN) today reported operating
results for its full year and fourth quarter of 2024, which ended
December 31, 2024.
"We continue to perform well in both our businesses, as
evidenced by strong results at Machine Clothing and ongoing
operational progress steered by new leadership at Engineered
Composites," said Gunnar Kleveland, President and Chief Executive
Officer. "For the full year we reported record revenues of nearly
one and a quarter billion dollars driven by organic growth and our
Heimbach acquisition. With increased focus on working capital and
cash flow, we generated Free Cash Flow of $59 million in the fourth
quarter, and $137 million for the full year underlining the
strength of the combined businesses. Our balance sheet continues to
be in excellent shape giving us the ability to execute our growth
strategy.
"With our proven ability to both grow and generate excess cash,
as part of our capital allocation strategy, we have re-initiated
our share repurchase program. In the fourth quarter of 2024 we
repurchased $15 million of shares. The Board has also authorized a
new share repurchase program which supersedes our current program
and is now up to $250 million."
For the fourth-quarter ended December
31, 2024:
- Net revenues were $286.9 million, down 11.3%, or 11.0% after
adjusting for currency translation, when compared to the prior
year. MC's net revenues decreased 1.9%, driven by decreased sales
in packaging and publication grades, in part offset by increased
sales in engineered fabrics. AEC's net revenues decreased 25.0%,
driven by a decrease of net revenues across commercial and defense
programs, most notably on the LEAP and CH-53K programs.
- Gross profit of $90.3 million was 24.6% lower than the $119.9
million reported for the same period of 2023, driven by reductions
in the estimated profitability of long-term contracts at AEC and by
lower Heimbach gross margins at MC.
- Selling, General, and Administrative expenses were $48.4
million, compared to $67.7 million in the same period of 2023; the
decrease was driven primarily by reductions in expense at Heimbach,
decreases in marketing and personnel-related costs at AEC and
Corporate, and decreases due to changes in currency translation
rates.
- Operating income was $24.3 million, compared to $41.8 million
in the prior year, a decrease of 41.8%, driven by decreased Gross
profit and increased Restructuring expenses, which was partially
offset by lower Selling, General, and Administrative expenses.
- The effective tax rate for the quarter was 28.0% compared to a
22.6% effective tax rate in the fourth quarter of 2023. The
increase in tax rate was due to a shift in taxable income to
higher-rate jurisdictions, as well as due to less favorable
discrete tax adjustments as compared to the prior year.
- Net income attributable to the Company was $17.7 million ($0.56
per share), compared to $30.5 million ($0.97 per share) in the
fourth quarter of 2023. Adjusted Diluted earnings per share (or
Adjusted EPS, a non-GAAP measure) was $0.58 per share, compared to
$1.22 per share for the same period of last year.
- Adjusted EBITDA (a non-GAAP measure) was $50.0 million,
compared to $75.0 million in the fourth quarter of 2023, a decrease
of 33.4%.
Please see the tables below for a reconciliation of non-GAAP
measures to their comparable GAAP measures.
"We are on sound financial footing as we enter 2025," said
Robert Starr, Chief Financial Officer. "Our businesses continue to
perform and generated healthy cash flow this year.
"Starting in the fourth quarter our Global Information System
costs (or GIS), which were previously included in Corporate
SG&A expenses, are now allocated to the business segments. This
presentation better reflects the performance of the individual
segments and is how we will review segment performance on a
go-forward basis. Our consolidated EPS remains unchanged, but our
Adjusted EBITDA margins for the individual segments will be
impacted by this allocation."
Outlook for the Full-Year
2025:
Albany International's initial financial guidance for the
full-year 2025:
- Machine Clothing revenue between $705 and $755 million;
- Machine Clothing Adjusted EBITDA between $220 and $240
million;
- Albany Engineered Composites revenue between $460 and $510
million;
- Albany Engineered Composites Adjusted EBITDA between $60 and
$70 million;
- Total company revenue between $1.165 and $1.265 billion;
- Total company Adjusted EBITDA between $240 and $260
million;
- Effective income tax rate at approximately 31%;
- Capital expenditures in the range of $85 to $95 million;
and
- Diluted Earnings Per Share between $3.00 and $3.40.
ALBANY INTERNATIONAL
CORP.
CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Net revenues
$
286,905
$
323,584
$
1,230,615
$
1,147,909
Cost of goods sold
196,582
203,723
828,839
724,191
Gross profit
90,323
119,861
401,776
423,718
Selling, general, and administrative
expenses
48,435
67,701
210,882
214,915
Technical and research expenses
10,728
10,324
46,097
40,627
Restructuring expenses, net
6,854
55
13,438
282
Operating income
24,306
41,781
131,359
167,894
Interest expense, net
3,869
3,552
12,549
13,601
Other (income)/expense, net
(4,211
)
(1,253
)
1,721
(6,163
)
Income before income taxes
24,648
39,482
117,089
160,456
Income tax expense
6,903
8,938
29,034
48,846
Net income
17,745
30,544
88,055
111,610
Net income attributable to the
noncontrolling interest
66
94
432
490
Net income attributable to the Company
$
17,679
$
30,450
$
87,623
$
111,120
Earnings per share attributable to Company
shareholders - Basic
$
0.57
$
0.98
$
2.81
$
3.56
Earnings per share attributable to Company
shareholders - Diluted
$
0.56
$
0.97
$
2.80
$
3.55
Shares of the Company used in computing
earnings per share:
Basic
31,223
31,195
31,231
31,171
Diluted
31,355
31,332
31,338
31,276
Dividends declared per share, Class A
$
0.27
$
0.26
$
1.05
$
1.01
ALBANY INTERNATIONAL
CORP.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and
per share data)
(unaudited)
December 31, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
115,283
$
173,420
Accounts receivable, net
246,688
287,781
Contract assets, net
166,557
182,281
Inventories
145,845
169,567
Income taxes prepaid and receivable
19,187
11,043
Prepaid expenses and other current
assets
37,132
53,872
Total current assets
$
730,692
$
877,964
Property, plant and equipment, net
563,431
601,989
Intangibles, net
38,127
44,646
Goodwill
176,261
180,181
Deferred income taxes
28,757
22,941
Noncurrent receivables, net
—
4,392
Other assets
111,428
102,901
Total assets
$
1,648,696
$
1,835,014
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable
$
66,095
$
87,104
Accrued liabilities
141,904
142,988
Current maturities of long-term debt
—
4,218
Income taxes payable
18,367
14,369
Total current liabilities
226,366
248,679
Long-term debt
318,531
452,667
Other noncurrent liabilities
138,830
139,385
Deferred taxes and other liabilities
16,022
26,963
Total liabilities
699,749
867,694
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per
share; authorized 2,000,000 shares; none issued
—
—
Class A Common Stock, par value $0.001 per
share; authorized 100,000,000 shares; 40,917,539 issued in 2024 and
40,856,910 in 2023
41
41
Additional paid in capital
452,933
448,218
Retained earnings
1,065,763
1,010,942
Accumulated items of other comprehensive
income:
Translation adjustments
(181,555
)
(124,901
)
Pension and postretirement liability
adjustments
(14,328
)
(17,346
)
Derivative valuation adjustment
(106
)
9,079
Treasury stock (Class A), at cost;
9,844,746 shares in 2024 and 9,661,845 in 2023
(379,210
)
(364,665
)
Total Company shareholders' equity
943,538
961,368
Noncontrolling interest
5,409
5,952
Total equity
948,947
967,320
Total liabilities and shareholders'
equity
$
1,648,696
$
1,835,014
ALBANY INTERNATIONAL
CORP.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Twelve Months Ended December
31,
2024
2023
OPERATING ACTIVITIES
Net income
$
88,055
$
111,610
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
82,452
70,374
Amortization
6,842
6,359
Change in deferred taxes and other
liabilities
(15,331
)
(2,046
)
Impairment of property, plant, equipment,
and inventory
2,038
1,773
Non-cash interest expense
1,025
1,404
Compensation and benefits paid or payable
in Class A Common Stock
4,715
6,936
Provision/(recovery) for credit losses
from uncollected receivables and contract assets
310
640
Foreign currency remeasurement (gain)/loss
on intercompany loans
81
(2,831
)
Fair value adjustment on foreign currency
options
—
(139
)
Gain on sale of assets
(513
)
—
Changes in operating assets and
liabilities that provided/(used) cash, net of impact of business
acquisition:
Accounts receivable
31,764
(11,038
)
Contract assets
12,289
(32,156
)
Inventories
14,627
15,093
Prepaid expenses and other current
assets
4,002
1,530
Income taxes prepaid and receivable
(8,574
)
(2,897
)
Accounts payable
(3,084
)
(5,672
)
Accrued liabilities
(1,275
)
(10,441
)
Income taxes payable
6,918
(1,988
)
Noncurrent receivables
(780
)
3,723
Other noncurrent liabilities
(7,702
)
(9,783
)
Other, net
582
7,605
Net cash provided by operating
activities
218,441
148,056
INVESTING ACTIVITIES
Purchase of business, net of cash
acquired
—
(133,470
)
Purchases of property, plant and
equipment
(80,249
)
(83,560
)
Purchased software
(958
)
(869
)
Proceeds received from sale of assets
1,027
—
Net cash used in investing activities
(80,180
)
(217,899
)
FINANCING ACTIVITIES
Proceeds from borrowings
145,595
78,040
Principal payments on debt
(279,838
)
(92,274
)
Debt acquisition costs
—
(4,108
)
Purchase of Treasury shares
(14,175
)
—
Taxes paid in lieu of share issuance
(2,931
)
(3,136
)
Dividends paid
(32,483
)
(31,163
)
Net cash used in financing activities
(183,832
)
(52,641
)
Effect of exchange rate changes on cash
and cash equivalents
(12,566
)
4,128
Increase/(decrease) in cash and cash
equivalents
(58,137
)
(118,356
)
Cash and cash equivalents at beginning of
period
173,420
291,776
Cash and cash equivalents at end of
period
$
115,283
$
173,420
Financial tables and reconciliation of
non-GAAP measures to comparable GAAP measures
The following tables present Net revenues and the effect of
changes in currency translation rates:
(in thousands, except
percentages)
Net revenues as reported,
Q4 2024
(Decrease) due to
changes in currency translation rates
Q4 2024 revenues on
same basis as Q4 2023 currency translation
rates
Net revenues as
reported, Q4 2023
% Change compared to
Q4 2023, excluding currency rate effects
Machine Clothing
$
188,079
$
(897
)
$
188,976
$
191,741
(1.4
)%
Albany Engineered Composites
98,826
(111
)
98,937
131,843
(25.0
)%
Consolidated total
$
286,905
$
(1,008
)
$
287,913
$
323,584
(11.0
)%
(in thousands, except
percentages)
Net revenues as reported,
YTD 2024
(Decrease)/ increase
due to changes in currency translation rates
YTD 2024 revenues
on same basis as 2023 currency translation
rates
Net revenues as
reported, YTD 2023
% Change compared to
2023, excluding currency rate effects
Machine Clothing
$
749,907
$
(1,896
)
$
751,803
$
670,768
12.1
%
Albany Engineered Composites
480,708
50
480,658
477,141
0.7
%
Consolidated total
$
1,230,615
$
(1,846
)
$
1,232,461
$
1,147,909
7.4
%
The following tables present Gross profit and Gross profit
margin:
(in thousands, except
percentages)
Gross profit, Q4
2024
Gross profit margin, Q4
2024
Gross profit, Q4
2023
Gross profit margin, Q4
2023
Machine Clothing
$
83,595
44.4
%
$
93,527
48.8
%
Albany Engineered Composites
6,728
6.8
%
26,334
20.0
%
Consolidated total
$
90,323
31.5
%
$
119,861
37.0
%
(in thousands, except
percentages)
Gross profit, YTD
2024
Gross profit margin, YTD
2024
Gross profit, YTD
2023
Gross profit margin, YTD
2023
Machine Clothing
$
346,044
46.1
%
$
331,558
49.4
%
Albany Engineered Composites
55,732
11.6
%
92,160
19.3
%
Consolidated total
$
401,776
32.6
%
$
423,718
36.9
%
A reconciliation from Net income/(loss) (GAAP) to Adjusted
EBITDA (non-GAAP) for the current-year and comparable prior-year
periods has been calculated as follows:
Three months ended December 31,
2024
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
41,927
$
(7,911
)
$
(16,271
)
$
17,745
Interest expense, net
—
—
3,869
3,869
Income tax expense
—
—
6,903
6,903
Depreciation and amortization expense
8,479
13,528
284
22,291
EBITDA (non-GAAP)
50,406
5,617
(5,215
)
50,808
Restructuring expenses, net
6,584
505
183
7,272
Foreign currency revaluation
(gains)/losses (a)
(3,314
)
100
(4,479
)
(7,693
)
Strategic/integration costs
7
—
60
67
Other transition expenses
—
(241
)
(244
)
(485
)
Pre-tax (income) attributable to
noncontrolling interest
(14
)
7
—
(7
)
Adjusted EBITDA (non-GAAP)
$
53,669
$
5,988
$
(9,695
)
$
49,962
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
28.5
%
6.1
%
—
17.4
%
Three months ended December 31,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
42,937
$
10,378
$
(22,771
)
$
30,544
Interest expense, net
—
—
3,552
3,552
Income tax expense
—
—
8,938
8,938
Depreciation and amortization expense
8,410
13,211
334
21,955
EBITDA (non-GAAP)
51,347
23,589
(9,947
)
64,989
Restructuring expenses, net
55
—
—
55
Foreign currency revaluation
(gains)/losses (a)
2,247
44
725
3,016
CEO and other transition expenses
—
—
667
667
Inventory step-up impacting Cost of goods
sold
4,110
—
—
4,110
Strategic/integration costs
984
268
1,124
2,376
Pre-tax (income) attributable to
noncontrolling interest
(24
)
(167
)
—
(191
)
Adjusted EBITDA (non-GAAP)
$
58,719
$
23,734
$
(7,431
)
$
75,022
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
30.6
%
18.0
%
—
23.2
%
Twelve months ended December 31,
2024
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
183,632
$
(11,603
)
$
(83,974
)
$
88,055
Interest expense, net
—
—
12,549
12,549
Income tax expense
—
—
29,034
29,034
Depreciation and amortization expense
33,917
54,228
1,149
89,294
EBITDA (non-GAAP)
217,549
42,625
(41,242
)
218,932
Restructuring expenses, net
11,165
3,649
329
15,143
Foreign currency revaluation
(gains)/losses (a)
(4,561
)
(10
)
(3,843
)
(8,414
)
Strategic/integration costs
1,475
182
3,469
5,126
Other transition expenses
—
752
740
1,492
Pre-tax (income) attributable to
noncontrolling interest
(124
)
(186
)
—
(310
)
Adjusted EBITDA (non-GAAP)
$
225,504
$
47,012
$
(40,547
)
$
231,969
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
30.1
%
9.8
%
—
18.8
%
Twelve months ended December 31,
2023
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
188,429
$
27,351
$
(104,170
)
$
111,610
Interest expense, net
—
—
13,601
13,601
Income tax expense
—
—
48,846
48,846
Depreciation and amortization expense
24,616
50,764
1,353
76,733
EBITDA (non-GAAP)
213,045
78,115
(40,370
)
250,790
Restructuring expenses, net
282
—
—
282
Foreign currency revaluation
(gains)/losses (a)
4,117
63
(2,884
)
1,296
CEO and other transition expenses
—
—
2,719
2,719
Inventory step-up impacting Cost of goods
sold
5,480
—
—
5,480
Strategic/integration costs
984
1,081
3,129
5,194
Pre-tax (income) attributable to
noncontrolling interest
(24
)
(641
)
—
(665
)
Adjusted EBITDA (non-GAAP)
$
223,884
$
78,618
$
(37,406
)
$
265,096
Adjusted EBITDA margin (Adjusted EBITDA
divided by Net revenues) (non-GAAP)
33.4
%
16.5
%
—
23.1
%
Per share impact of the adjustments to diluted earnings per
share are as follows:
Three months ended December 31,
2024
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
7,272
$
1,244
$
6,028
$
0.19
Foreign currency revaluation
(gains)/losses (a)
(7,693
)
(2,599
)
(5,094
)
(0.16
)
Strategic/integration costs
67
(75
)
142
0.00
Other transition expenses
(485
)
(121
)
(364
)
(0.01
)
Three months ended December 31,
2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
55
$
13
$
42
$
0.00
Foreign currency revaluation
(gains)/losses (a)
3,016
933
2,083
0.07
CEO and other transition expenses
667
—
667
0.02
Inventory step-up impacting Cost of goods
sold
4,110
908
3,202
0.10
Acquisition/integration costs
2,376
486
1,890
0.06
Year ended December 31, 2024
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
15,143
$
2,758
$
12,385
$
0.40
Foreign currency revaluation
(gains)/losses (a)
(8,414
)
(2,839
)
(5,575
)
(0.18
)
Strategic/integration costs
5,126
1,308
3,818
0.12
Other transition expenses
1,492
373
1,119
0.04
Year ended December 31, 2023
(in thousands, except per share
amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
282
$
70
$
212
$
0.01
Foreign currency revaluation
(gains)/losses (a)
1,296
416
880
0.03
CEO and other transition expenses
2,719
—
2,719
0.09
Withholding tax related to internal
restructuring
—
(3,026
)
3,026
0.10
Inventory step-up impacting Cost of goods
sold
5,480
1,211
4,269
0.14
Acquisition/integration costs
5,194
951
4,243
0.14
The following table provides a reconciliation of Earnings per
share to Adjusted Diluted Earnings per share:
Three months ended December
31,
Twelve months ended December
31,
Per share amounts
2024
2023
2024
2023
Earnings per share attributable to
Company shareholders - Basic (GAAP)
$
0.57
$
0.98
$
2.81
$
3.56
Effect of dilutive stock-based
compensation plans
(0.01
)
(0.01
)
(0.01
)
(0.01
)
Earnings per share attributable to
Company shareholders - Diluted (GAAP)
$
0.56
$
0.97
$
2.80
$
3.55
Adjustments, after tax:
Restructuring costs
0.19
—
0.40
0.01
Foreign currency revaluation
(gains)/losses (a)
(0.16
)
0.07
(0.18
)
0.03
Strategic/integration costs
—
0.06
0.12
0.14
CEO and other transition expenses
(0.01
)
0.02
0.04
0.09
Inventory step-up impacting Cost of goods
sold
—
0.10
—
0.14
Withholding tax related to internal
restructuring
—
—
—
0.10
Adjusted Diluted Earnings per share
(non-GAAP)
$
0.58
$
1.22
$
3.18
$
4.06
(a) Foreign currency revaluation
(gains)/losses represent unrealized gains and losses arising from
the remeasurement of monetary assets and liabilities denominated in
non-functional currencies on the balance sheet date.
The calculations of net debt are as follows:
(in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Current maturities of long-term debt
$
—
$
555
$
2,732
$
4,445
$
4,218
Long-term debt
318,531
361,639
374,325
434,689
452,667
Total debt
318,531
362,194
377,057
439,134
456,885
Cash and cash equivalents
115,283
127,222
116,439
125,412
173,420
Net debt (non GAAP)
$
203,248
$
234,972
$
260,618
$
313,722
$
283,465
Free cash flow is defined as GAAP "Net cash provided by
operating activities" in a period less "Purchases of property,
plant and equipment" and "Purchased software" in the same period.
Management believes free cash flow provides an important
perspective on our ability to generate cash from our business
operations and, as such, that it is an important financial measure
for use in evaluating the Company's financial performance.
Management uses free cash flow internally to assess overall
liquidity. The following table illustrates the calculation of free
cash flow:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
78,456
$
74,244
$
218,441
$
148,056
Purchases of property, plant and
equipment
(18,264
)
(34,710
)
(80,249
)
(83,560
)
Purchased software
(857
)
(593
)
(958
)
(869
)
Free cash flow
$
59,335
$
38,941
$
137,234
$
63,627
The calculation of net leverage ratio as of December 31, 2024 is
as follows:
Total Company
Twelve months ended
(in thousands)
December 31, 2024
Net income/(loss) (GAAP)
$
88,055
Interest expense, net
12,549
Income tax expense
29,034
Depreciation and amortization expense
89,294
EBITDA (non-GAAP)
218,932
Restructuring expenses, net
15,143
Foreign currency revaluation
(gains)/losses (a)
(8,414
)
Other transition expenses
1,492
Strategic/integration costs
5,126
Pre-tax (income) attributable to
noncontrolling interest
(310
)
Adjusted EBITDA (non-GAAP)
$
231,969
(in thousands, except for net leverage
ratio)
December 31, 2024
Net debt (non-GAAP)
$
203,248
Adjusted EBITDA (non-GAAP)
231,969
Net leverage ratio (non-GAAP)
0.88
The tables below provide a reconciliation of initial outlook for
the full-year 2025 Adjusted EBITDA and Adjusted EPS (non-GAAP
measures) to the comparable GAAP measures:
Initial Outlook Full Year 2025 Adjusted
EBITDA
Machine Clothing
AEC
(in millions)
Low
High
Low
High
Net income attributable to the Company
(GAAP) (b)
$
186
$
202
$
10
$
16
Income attributable to the noncontrolling
interest
—
—
(1
)
(1
)
Interest expense, net
—
—
—
—
Income tax expense
—
—
—
—
Depreciation and amortization
34
38
50
54
EBITDA (non-GAAP)
220
240
59
69
Restructuring expenses, net (c)
—
—
—
—
Foreign currency revaluation
(gains)/losses (c)
—
—
—
—
Strategic/integration costs (c)
—
—
—
—
Pre-tax (income)/loss attributable to
non-controlling interest
—
—
1
1
Adjusted EBITDA (non-GAAP)
$
220
$
240
$
60
$
70
(b) Interest, Other income/expense and
Income taxes are not allocated to the business segments.
Initial Outlook Full Year 2025 Adjusted
EBITDA
Total Company
(in millions)
Low
High
Net income attributable to the Company
(GAAP)
$
94
$
107
Income attributable to the noncontrolling
interest
(1
)
(1
)
Interest expense, net
15
13
Income tax expense
42
47
Depreciation and amortization
89
93
EBITDA (non-GAAP)
239
259
Restructuring expenses, net (c)
—
—
Foreign currency revaluation
(gains)/losses (c)
—
—
Strategic/integration costs (c)
—
—
Pre-tax (income)/loss attributable to
non-controlling interest
1
1
Adjusted EBITDA (non-GAAP)
$
240
$
260
Total Company
Forecast of Full Year 2025 Earnings per
share (diluted) (d)
Low
High
Net income attributable to the Company
(GAAP)
$
3.00
$
3.40
Restructuring expenses, net (c)
—
—
Foreign currency revaluation
(gains)/losses (c)
—
—
Strategic/integration costs (c)
—
—
Adjusted Diluted Earnings per share
(non-GAAP)
$
3.00
$
3.40
(c) Due to the uncertainty of these items,
we are unable to forecast these items for 2025.
(d) Calculations based on estimated
diluted shares outstanding of approximately 31.4 million.
About Albany International Corp.
Albany International is a leading developer and manufacturer of
engineered components, using advanced materials processing and
automation capabilities, with two core businesses.
- Machine Clothing is the world’s leading producer of
custom-designed, consumable belts essential for the manufacture of
paper, paperboard, tissue and towel, pulp, non-wovens and a variety
of other industrial applications.
- Albany Engineered Composites is a growing designer and
manufacturer of advanced materials-based engineered components for
demanding aerospace applications, supporting both commercial and
military platforms.
Albany International is headquartered in Rochester, New
Hampshire, operates 30 facilities in 13 countries, employs
approximately 5,400 people worldwide, and is listed on the New York
Stock Exchange (Symbol AIN). Additional information about the
Company and its products and services can be found at
www.albint.com.
Non-GAAP Measures
This release, including the conference call commentary
associated with this release, contains certain non-GAAP measures,
that should not be considered in isolation or as a substitute for
the related GAAP measures. Such non-GAAP measures include net
revenues and percent change in net revenues, excluding the impact
of currency translation effects; EBITDA, Adjusted EBITDA, and
Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted
Diluted earnings per share (or Adjusted EPS). Management believes
that these non-GAAP measures provide additional useful information
to investors regarding the Company’s operational performance.
Presenting Net revenues and change in Net revenues, after
currency effects are excluded, provides management and investors
insight into underlying revenues trends. Net revenues, or percent
changes in net revenues, excluding currency rate effects, are
calculated by converting amounts reported in local currencies into
U.S. dollars at the exchange rate of a prior period. These amounts
are then compared to the U.S. dollar amount as reported in the
current period.
EBITDA (calculated as net income excluding interest, income
taxes, depreciation and amortization), Adjusted EBITDA, and
Adjusted EPS are performance measures that relate to the Company’s
continuing operations. The Company defines Adjusted EBITDA as
EBITDA excluding costs or benefits that are not reflective of the
Company’s ongoing or expected future operational performance. Such
excluded costs or benefits do not consist of normal, recurring cash
items necessary to generate revenues or operate our business.
Adjusted EBITDA margin represents Adjusted EBITDA expressed as a
percentage of net revenues.
The Company defines Adjusted EPS as diluted earnings per share
(GAAP), adjusted by the after tax per share amount of costs or
benefits not reflective of the Company’s ongoing or expected future
operational performance. The income tax effects are calculated
using the applicable statutory income tax rate of the jurisdictions
where such costs or benefits were incurred or the effective tax
rate applicable to total company results.
The Company’s Adjusted EBITDA, Adjusted EBITDA margin, and
Adjusted EPS may not be comparable to similarly titled measures of
other companies.
Net debt aids investors in understanding the Company’s debt
position if all available cash were applied to pay down
indebtedness.
Net leverage ratio informs the investors of the Company's
financial leverage at the end of the reporting period, providing an
indicator of the Company's ability to repay its debt.
We encourage investors to review our financial statements and
publicly-filed reports in their entirety and not to rely on any
single financial measure.
Forward-Looking Statements
This press release may contain statements, estimates, guidance
or projections that constitute “forward-looking statements” as
defined under U.S. federal securities laws. Generally, the words
“believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,”
“will,” “should,” “look for,” “guidance,” “guide,” and similar
expressions identify forward-looking statements, which generally
are not historical in nature. Because forward-looking statements
are subject to certain risks and uncertainties (including, without
limitation, those set forth in the Company’s most recent Annual
Report on Form 10-K or Quarterly Report on Form 10-Q), actual
results may differ materially from those expressed or implied by
such forward-looking statements.
Forward-looking statements in this release or in the webcast
include, without limitation, statements about macroeconomic
conditions, including inflationary cost pressures, as well as
global events, which include but are not limited to geopolitical
events; paper-industry trends and conditions during 2025 and in
future years; expectations in 2025 and in future periods of
revenues, EBITDA, Adjusted EBITDA (both in dollars and as a
percentage of net revenues), Adjusted EPS, income, gross profit,
gross margin, cash flows and other financial items in each of the
Company’s businesses, and for the Company as a whole; the timing
and impact of production and development programs in the Company’s
AEC business segment and the revenues growth potential of key AEC
programs, as well as AEC as a whole; the amount and timing of
capital expenditures, future tax rates and cash paid for taxes,
depreciation and amortization; future debt and net debt levels and
debt covenant ratios; and changes in currency rates and their
impact on future revaluation gains and losses. Furthermore, a
change in any one or more of the foregoing factors could have a
material effect on the Company’s financial results in any period.
Such statements are based on current expectations, and the Company
undertakes no obligation to publicly update or revise any
forward-looking statements.
Statements expressing management’s assessments of the growth
potential of its businesses, or referring to earlier assessments of
such potential, are not intended as forecasts of actual future
growth, and should not be relied on as such. While management
believes such assessments to have a reasonable basis, such
assessments are, by their nature, inherently uncertain. This
release and earlier releases set forth a number of assumptions
regarding these assessments, including historical results,
independent forecasts regarding the markets in which these
businesses operate, and the timing and magnitude of orders for our
customers’ products. Historical growth rates are no guarantee of
future growth, and such independent forecasts and assumptions could
prove materially incorrect in some cases.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250226232527/en/
Investor / Media Contact:
JC Chetnani VP-Investor Relations and Treasurer
jc.chetnani@albint.com
Albany (NYSE:AIN)
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