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Albany International (AIN)
NYSE:AIN

Albany International (AIN) AI Stock Analysis

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AIN

Albany International

(NYSE:AIN)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
$57.00
▼(-1.66% Downside)
Action:ReiteratedDate:12/09/25
Albany International's overall stock score reflects significant challenges in financial performance and valuation, with declining revenue and profitability. Technical indicators suggest bearish momentum, and the strategic review adds uncertainty. However, the company's focus on core technology and potential strategic realignment offer some positive outlook for future recovery.
Positive Factors
Engineered Composites Growth
A decade-long 12% organic CAGR in engineered composites signals durable demand and scalable competitive advantage in high-value aerospace and defense markets. This growth implies strong customer validation of Albany's 3D weaving tech, supporting long‑term revenue and margin expansion.
Machine Clothing Profitability
Consistently >30% EBITDA margins in Machine Clothing indicate a structurally profitable business with strong pricing power and recurring service contracts. This provides resilient cash generation and stabilizes consolidated results through paper industry cycles, supporting reinvestment and shareholder returns.
Moderate Leverage and Capital Discipline
A 0.50 debt-to-equity ratio and stable equity ratio point to a balanced capital structure that preserves financial flexibility. Combined with sizeable recent shareholder returns, this allows continued R&D and capex investment while retaining capacity to absorb program shocks without excessive refinancing risk.
Negative Factors
CH-53K Program Loss
A confirmed $147M multi-year loss reserve from a fixed-price program is a structural earnings drag that will depress profitability and cash flow for years, consume management attention, and may force contract repricing, margin resets, or asset sales to shore up long‑term financial health.
Eroding Profitability
A sustained gross margin decline of roughly nine percentage points signals persistent cost or pricing pressure across segments. Lower margins reduce operating leverage, constrain free cash flow generation and R&D funding, and make the business more sensitive to cyclical demand shifts over the medium term.
Strategic Uncertainty in Structures Business
The strategic review and potential divestiture of the structures assembly unit creates execution and revenue risk: customer contract adjustments, workforce reconfiguration and loss of integrated capabilities could disrupt supply chains and near-term revenue visibility while management repositions the company.

Albany International (AIN) vs. SPDR S&P 500 ETF (SPY)

Albany International Business Overview & Revenue Model

Company DescriptionAlbany International Corp., together with its subsidiaries, engages in the textile and materials processing business. The company operates in two segments, Machine Clothing (MC) and Albany Engineered Composites (AEC). The MC segment designs, manufactures, and markets paper machine clothing for use in the manufacturing of papers, paperboards, tissues, and towels. This segment offers forming, pressing, and drying fabrics, as well as process belts used in the manufacture of nonwovens, fiber cement and several other industrial applications; and engineered fabrics. The AEC segment 3D-woven and injected composite components for aircraft engines composite airframe and engine components for military and commercial aircraft. It operates in the United States, Switzerland, Brazil, China, France, Mexico, and internationally. Albany International Corp. was incorporated in 1895 and is headquartered in Rochester, New Hampshire.
How the Company Makes MoneyAlbany International generates revenue primarily through the sale of its engineered composite products and machine clothing solutions. The Engineered Composites segment earns money by providing high-performance materials for aerospace and defense applications, where demand is driven by advancements in technology and the need for lightweight, durable parts. The Machine Clothing segment derives revenue from the sale of fabrics used in the paper manufacturing process, with contracts often structured to include both product sales and ongoing service agreements. Key revenue streams are bolstered by long-term contracts with major aerospace manufacturers and partnerships with leading companies in the paper industry, which help stabilize income and ensure a steady demand for its products. Additionally, Albany International invests in research and development to innovate new materials and applications, further enhancing its market position and potential revenue growth.

Albany International Earnings Call Summary

Earnings Call Date:Feb 24, 2026
(Q4-2025)
|
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call presented a constructive operating and financial picture driven by a strong Engineered Composites ramp (large revenue and EBITDA gains), disciplined capital returns, and continued investment in innovation. These positives were balanced by persistent Machine Clothing weakness in China, an equipment-related Q1 earnings headwind ($0.10–$0.15 EPS), higher tax and interest costs, and near-term cash flow/working capital pressure. Management expects to recover lost Machine Clothing production over the year and to benefit from ongoing AEC program ramps, while pursuing a strategic review of the Amelia Earhart (Salt Lake City) facility.
Q4-2025 Updates
Positive Updates
Consolidated Revenue Growth
Total consolidated sales of $321.2M in Q4, up 12% year-over-year (vs. $286.9M), driven primarily by higher volumes in Engineered Composites.
Adjusted EBITDA and Margin Improvement
Adjusted EBITDA of $57.3M in Q4 versus $50.0M a year ago (+14.6%), with an Adjusted EBITDA margin of 17.8% versus 17.4% in the prior-year quarter.
Engineered Composites Strong Ramp
Engineered Composites revenue of $143.7M versus $98.8M a year ago (approximately +45%), with segment Adjusted EBITDA of $18.5M versus $6.0M the prior year, reflecting substantial program ramps (LEAP, missile programs, F-35) and improved margins.
Improved Operating Income and Gross Profit
Gross profit increased to $99.9M (up ~10.6% YoY) and operating income rose to $29.9M (up ~23% YoY), reflecting leverage from higher sales and program execution.
Strong Capital Allocation and Shareholder Returns
Generated approximately $81M of free cash flow for 2025, returned ~$218M to shareholders during the year (including repurchase of roughly 10% of shares outstanding), repurchased $16.8M in the quarter and declared a $0.28 quarterly dividend.
Continued Investment in Growth and Innovation
Invested ~$72M in capital expenditures and ~$48M in R&D in 2025; launched internal innovation awards (86 submissions) and expanded capabilities (e.g., CMC and carbon-carbon near-net-shape work) to support long-term growth.
Negative Updates
Machine Clothing Revenue Pressure (China)
Machine Clothing sales declined to $177.5M from $188.1M year-over-year (approx -5.6%), driven by continued weakness and paper overcapacity in China and certain strategic exits in Europe.
Equipment Failure and Near-Term EPS Impact
Equipment failure at a North American Machine Clothing facility in January caused downtime; management expects a $0.10–$0.15 negative EPS impact in Q1 and will recover lost production over the year.
First-Quarter Revenue and EPS Guidance Below Q4
Q1 guidance calls for consolidated revenue of $275M–$285M and Adjusted EPS $0.50–$0.60, with the quarter expected to be the lowest of the year due to the facility downtime and non-recurring ramp items.
Higher Tax Rate and Interest Expense
Effective tax rate in Q4 increased to 39.3% (versus 28.0% prior-year) due to expiration of a foreign tax credit and unfavorable discrete items; interest expense rose to $5.9M from $3.9M year-over-year, pressuring net income.
Working Capital and Free Cash Flow Volatility
Quarterly free cash flow was $51M versus $59.3M prior-year quarter (down ~14%), reflecting higher capital spending and working capital investments to support ramping programs; net debt ended around $343M.
Continued Regional/Grade Headwinds
Publication grades continue secular decline; Asia (China) demand remains weak at a lower run rate expected to persist through 2026, limiting recovery in Machine Clothing despite stability in North America and Europe.
Company Guidance
The company guided Q1 consolidated revenue of $275–$285 million and Adjusted EPS of $0.50–$0.60, noting Q1 will be the lowest quarter as a January machine failure will depress results by about $0.10–$0.15 of EPS (with management expecting to recover the lost volume over the balance of 2026); they expect the Q1 effective tax rate to be ~27% and the full‑year effective tax rate to be ~24.3%. Quarterly guidance explicitly includes the revenues and margins of the Amelia Earhart (Salt Lake City) facility; Machine Clothing demand is expected to see China weakness persist at a lower run rate through 2026 with margins roughly in line with H2 2025, while Engineered Composites should continue to grow (LEAP, engine and missile programs) with solid segment‑level growth in 2026 and normalized margins versus the prior year.

Albany International Financial Statement Overview

Summary
Albany International faces challenges with declining revenue and profitability in the TTM period, impacting its income statement and cash flow. However, the balance sheet remains stable with moderate leverage and a solid capital structure. The company has shown resilience in previous years, indicating potential for recovery.
Income Statement
65
Positive
Albany International's income statement shows a decline in revenue growth with a negative rate of -3.12% in the TTM period, indicating a challenging market environment. The gross profit margin has decreased from 40.72% in 2021 to 31.61% in the TTM, reflecting pressure on profitability. The net profit margin has also turned negative at -5.25%, highlighting operational challenges. However, the company has shown resilience in previous years with positive growth rates and margins.
Balance Sheet
70
Positive
The balance sheet reveals a moderate debt-to-equity ratio of 0.50 in the TTM, suggesting a balanced approach to leverage. The return on equity has decreased to 6.69% in the TTM, indicating reduced profitability. The equity ratio remains stable, reflecting a solid capital structure. Overall, the company maintains a stable financial position despite recent profitability challenges.
Cash Flow
60
Neutral
Cash flow analysis shows a decline in free cash flow growth at -5.88% in the TTM, indicating potential liquidity concerns. The operating cash flow to net income ratio is 0.73, suggesting adequate cash generation relative to earnings. The free cash flow to net income ratio of 0.60 indicates a reasonable conversion of earnings to cash. Despite recent declines, the company has historically maintained strong cash flow metrics.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.15B1.23B1.15B1.03B929.24M900.61M
Gross Profit234.38M401.78M423.72M389.78M378.39M371.07M
EBITDA60.82M131.36M257.36M218.86M257.58M228.11M
Net Income-53.54M87.62M111.12M95.76M118.48M98.59M
Balance Sheet
Total Assets1.70B1.65B1.84B1.64B1.56B1.55B
Cash, Cash Equivalents and Short-Term Investments108.31M115.28M173.42M291.78M302.04M241.32M
Total Debt481.54M387.20M514.86M495.12M380.85M433.59M
Total Liabilities956.59M699.75M867.69M774.71M678.46M730.07M
Stockholders Equity739.30M943.54M961.37M863.05M873.97M816.07M
Cash Flow
Free Cash Flow90.30M138.19M64.50M31.87M163.78M98.79M
Operating Cash Flow157.23M218.44M148.06M128.21M217.47M140.25M
Investing Cash Flow-64.69M-80.18M-217.90M-96.35M-53.70M-42.39M
Financing Cash Flow-110.33M-183.83M-52.64M-23.65M-99.64M-60.67M

Albany International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price57.96
Price Trends
50DMA
55.29
Positive
100DMA
53.50
Positive
200DMA
58.96
Negative
Market Momentum
MACD
0.94
Positive
RSI
53.69
Neutral
STOCH
64.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIN, the sentiment is Neutral. The current price of 57.96 is above the 20-day moving average (MA) of 57.60, above the 50-day MA of 55.29, and below the 200-day MA of 58.96, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 64.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIN.

Albany International Risk Analysis

Albany International disclosed 39 risk factors in its most recent earnings report. Albany International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Albany International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.34B9.568.61%-2.61%-11.87%
66
Neutral
$163.04M28.042.86%5.74%-0.44%-55.22%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
$1.68B-30.64-6.19%2.13%-9.37%-160.13%
51
Neutral
$75.62M-3.25-9.61%-5.26%42.84%
45
Neutral
$93.06M-2.11-28.97%1.35%27.42%-5275.12%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AIN
Albany International
57.96
-20.62
-26.24%
GIII
G-III Apparel Group
30.60
3.65
13.53%
LAKE
Lakeland Industries
9.43
-13.54
-58.94%
SGC
Superior Group of Companies
10.10
-4.00
-28.36%
UFI
Unifi
4.00
-1.55
-27.93%

Albany International Corporate Events

Business Operations and StrategyM&A Transactions
Albany International Explores Sale of Salt Lake Facility
Neutral
Dec 5, 2025

On November 25, 2025, Albany International Corp. discussed its exploration of strategic alternatives for its structures assembly business, including a potential sale of its Amelia Earhart Drive Facility in Salt Lake City. The company is selecting a financial advisor and developing financial models for the facility, with interest primarily from private equity investors. Ongoing discussions with customers aim to adjust contracts to offset cost increases. If the divestiture is completed, the company expects the Adjusted EBITDA margin for its Albany Engineered Composites segment to be in the mid to high teens.

The most recent analyst rating on (AIN) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on Albany International stock, see the AIN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025