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Albany International (AIN)
NYSE:AIN

Albany International (AIN) AI Stock Analysis

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Albany International

(NYSE:AIN)

Rating:73Outperform
Price Target:
$76.00
▲(10.90%Upside)
Albany International's overall stock score reflects its solid financial performance and positive earnings call sentiment. The technical analysis suggests mixed short and long-term momentum, while the valuation indicates potential overvaluation. The company's strategic partnerships and initiatives further bolster its outlook.
Positive Factors
Future Outlook
The company reaffirmed its 2025 outlook, expecting adjusted EPS and revenue within previously set ranges.
Negative Factors
Inventory Issues
Revenues from LEAP remain pressured by excess fan blade inventory held at Safran, GE, and AIN, restricting margin upside.
Profitability Challenges
More charges on key AEC programs reinforce a tough path ahead for profitability.
Revenue Performance
Albany International reported earnings with a decline in revenue and margins, missing estimates from BofA.

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 through the production and sale of engineered fabrics and composite materials. The Machine Clothing segment is a significant revenue stream, providing tailored fabrics essential for the paper manufacturing process, which are sold directly to paper mills and other industrial clients. Albany Engineered Composites contributes to earnings by supplying advanced composite materials and structures primarily to the aerospace industry, leveraging long-term contracts and partnerships with major aerospace manufacturers. The company's ability to innovate and maintain strong relationships with key industrial clients and aerospace companies is critical to its financial performance.

Albany International Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 4.64%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong operational performance and strategic wins, particularly in the Machine Clothing and Engineered Composites segments. Despite some revenue declines and challenges in certain regions, the company's robust backlog and ongoing efficiency improvements paint a positive outlook. The sentiment is positive, as achievements and future prospects outweigh the current challenges.
Q1-2025 Updates
Positive Updates
Strong Financial Performance and Shareholder Returns
Albany International reported revenues of $289 million with an adjusted EBITDA margin of 19.3% and an adjusted diluted EPS of $0.73. Free cash flow was ahead of plan, and the company expects another strong free cash flow year. A dividend and $69 million worth of shares were repurchased, with $193 million remaining under the share repurchase authorization.
Machine Clothing Segment Success
Machine Clothing reported revenues of $175 million and an adjusted EBITDA margin of 28.4%. The integration of Heimbach is proceeding to plan, and there is a strong global MC order backlog with an order-to-sales ratio above 1.
New Business Wins in Engineered Composites
The AEC segment continues to win new business, including a long-term agreement with Bell on the 525 program and an addition to the JASSM backlog. The AEC backlog was $1.3 billion at quarter-end, providing visibility into future performance.
Operational Improvements and Efficiency Gains
The company is undertaking significant actions to improve operational efficiencies, including the integration of Heimbach and SAP system upgrades to S/4HANA. These efforts are expected to yield strong synergy benefits.
Negative Updates
Revenue Decline in Key Segments
Consolidated net sales decreased by 7.8% from $313 million in the first quarter of last year. Machine Clothing net sales decreased by 5.7%, and AEC net sales were lower by 11% due to EAC adjustments and lower LEAP sales.
Challenges in China and North America
The Machine Clothing segment experienced a slight decline in deliveries in North America and mixed performance in Asia, with some weakness in China.
EAC Adjustments Impacting AEC Segment
AEC recorded a total EAC adjustment of $7 million for the quarter, impacting the adjusted EBITDA margin, which was 13.5% compared to 16.6% in the prior year.
Company Guidance
During Albany International's first quarter 2025 earnings call, the company provided guidance on various financial metrics and strategic initiatives. The quarter's revenue was reported at $289 million, with an overall adjusted EBITDA margin of 19.3%, and an adjusted diluted EPS of $0.73. The company generated a free cash flow that was ahead of plan, and they anticipate another strong free cash flow year for 2025. Capital was returned to shareholders through a regular quarterly dividend and a reinitiated share repurchase program, with $69 million worth of shares repurchased during the quarter, leaving $193 million of capacity under the latest $250 million share repurchase authorization. The Machine Clothing segment reported revenues of $175 million and an adjusted EBITDA margin of 28.4%, while the Engineered Composites segment achieved revenues of $114 million with an adjusted EBITDA margin of 13.5%. The company reaffirmed its full-year guidance, expecting stronger performance in the second half due to ramp-ups in their AEC operations and acceleration of Heimbach synergies. The AEC backlog stood at $1.3 billion, excluding LEAP volumes beyond the current calendar year. The call also highlighted the integration progress of Heimbach and ongoing efforts to mitigate potential tariff impacts, while emphasizing the strategic importance of their regional supply chain setup.

Albany International Financial Statement Overview

Summary
Albany International demonstrates solid revenue growth and cost management. The balance sheet shows healthy equity and manageable leverage. Despite strong cash flow, potential increased costs and reduced net income growth pose challenges.
Income Statement
78
Positive
Albany International's income statement reflects consistent revenue growth, with a notable increase from $900.6M in 2020 to $1.2B in TTM. The gross profit margin has been relatively stable, although the net profit margin shows a slight decline in TTM (6.4%) compared to previous years. EBIT and EBITDA margins remain solid, indicating effective cost management despite some pressure on net income growth.
Balance Sheet
72
Positive
The balance sheet displays a healthy equity position with a debt-to-equity ratio of 0.46 in TTM, though this has increased from 0.40 in 2021. The equity ratio remains robust at 53.3%, reflecting strong solvency. However, the decreasing return on equity, from 13.5% in 2021 to 8.6% in TTM, suggests some challenges in generating returns.
Cash Flow
75
Positive
Albany International's cash flow is strong, with positive free cash flow throughout the periods analyzed. The operating cash flow to net income ratio is favorable, highlighting efficient cash generation. However, there is a slight decline in free cash flow growth year-on-year, which may indicate increasing capital expenditures or operational costs.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.21B1.23B1.15B1.03B929.24M900.61M
Gross Profit
389.58M401.78M417.37M389.78M378.39M371.07M
EBIT
122.75M131.36M172.36M181.02M178.01M166.08M
EBITDA
199.46M131.36M257.82M218.71M251.10M223.47M
Net Income Common Stockholders
77.69M87.62M111.12M95.76M118.48M98.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
119.35M115.28M173.42M291.78M302.04M241.32M
Total Assets
1.69B1.65B1.84B1.64B1.56B1.55B
Total Debt
416.43M387.20M514.86M444.93M350.00M398.01M
Net Debt
297.07M271.92M341.44M153.15M47.96M156.69M
Total Liabilities
782.91M699.75M867.69M774.71M678.46M730.07M
Stockholders Equity
899.98M943.54M961.37M863.05M873.97M816.07M
Cash FlowFree Cash Flow
141.04M138.19M63.63M31.87M163.78M97.86M
Operating Cash Flow
210.96M218.44M148.06M128.21M217.47M140.25M
Investing Cash Flow
-68.90M-80.18M-217.90M-96.35M-53.70M-42.39M
Financing Cash Flow
-140.67M-183.83M-52.64M-23.65M-99.64M-60.67M

Albany International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price68.53
Price Trends
50DMA
65.46
Positive
100DMA
70.69
Negative
200DMA
75.34
Negative
Market Momentum
MACD
0.54
Negative
RSI
56.70
Neutral
STOCH
72.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIN, the sentiment is Positive. The current price of 68.53 is above the 20-day moving average (MA) of 66.89, above the 50-day MA of 65.46, and below the 200-day MA of 75.34, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AIAIN
73
Outperform
$2.07B27.588.32%1.61%1.17%-30.24%
66
Neutral
$929.34M4.9612.21%1.72%13.75%
62
Neutral
$6.88B11.072.77%4.28%2.67%-24.94%
SGSGC
61
Neutral
$162.22M22.953.71%5.72%2.28%-37.96%
HBHBI
52
Neutral
$1.66B-23.24%-33.72%-892.32%
UFUFI
49
Neutral
$90.15M-15.73%2.51%32.95%
46
Neutral
$130.92M-17.61%0.86%34.28%-495.11%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AIN
Albany International
68.53
-15.41
-18.36%
GIII
G-III Apparel Group
21.46
-5.98
-21.79%
HBI
Hanesbrands
4.69
-0.29
-5.82%
LAKE
Lakeland Industries
13.76
-10.15
-42.45%
SGC
Superior Group of Companies
10.15
-8.09
-44.35%
UFI
Unifi
4.91
-0.59
-10.73%

Albany International Corporate Events

Business Operations and Strategy
Albany International to Present at Wells Fargo Conference
Positive
Jun 10, 2025

On June 11, 2025, Albany International Corp. will present at the Wells Fargo 2025 Industrials & Materials Conference, showcasing its strategic focus on growth and innovation. The company emphasizes its strong market positioning in machine clothing and engineered composites, highlighting its role as a key partner in next-generation aerospace platforms and its commitment to sustainability and technological advancement.

The most recent analyst rating on (AIN) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Albany International stock, see the AIN Stock Forecast page.

Executive/Board Changes
Albany International Appoints New VP and Accounting Officer
Neutral
May 22, 2025

Albany International Corp. has appointed Sean Valashinas as Vice President – Controller and Principal Accounting Officer, effective June 9, 2025. Valashinas brings over 30 years of accounting experience, having previously worked at Resonetics and Standex International Corporation. His compensation package includes a base salary of $335,000, short-term and long-term incentives, and a special equity bonus, reflecting the company’s commitment to strengthening its financial leadership.

The most recent analyst rating on (AIN) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Albany International stock, see the AIN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Albany International Holds Successful Annual Stockholder Meeting
Positive
May 19, 2025

At Albany International‘s Annual Meeting of stockholders on May 16, 2025, four key items were voted on, including the election of nine board members, the ratification of KPMG LLP as the independent auditor, the approval of executive compensation, and the approval of the Employee Stock Purchase Plan. The results showed strong support for the board nominees, with Gunnar Kleveland and Bonnie C. Lind receiving the highest votes, while KPMG’s appointment was ratified with a significant majority, indicating confidence in the company’s governance and financial oversight.

The most recent analyst rating on (AIN) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Albany International stock, see the AIN Stock Forecast page.

Executive/Board Changes
Albany International Announces CFO Resignation and Interim Appointment
Neutral
May 19, 2025

On May 16, 2025, Albany International Corp. announced the resignation of its Chief Financial Officer, Robert Starr, effective May 23, 2025. Starr’s departure is not due to any disagreements over financial practices, and he will receive a separation package as part of a Voluntary Separation Agreement. The company has appointed Jairaj (JC) Chetnani as interim CFO while a formal search for a permanent replacement is conducted. Chetnani, who has been with Albany since 2023, brings over 27 years of financial experience, particularly in the Aerospace & Defense sector, ensuring continuity and a seamless transition for the company.

The most recent analyst rating on (AIN) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Albany International stock, see the AIN Stock Forecast page.

Business Operations and Strategy
Albany International Secures Contract with Bell Textron
Positive
Apr 29, 2025

Albany International‘s subsidiary, Albany Engineered Composites, Inc., has secured a seven-year contract with Bell Textron, Inc. to produce composite structure components for the Bell 525 helicopter. This agreement marks a strategic partnership with Bell, enhancing AEC’s presence in the rotorcraft business and potentially opening up further opportunities for collaboration in the aerospace sector.

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.