Key Highlights:

  • Revenue came in at USD 329.5 million, representing 5.8% year-over-year growth driven by higher activity in the Engineered Composites segment.
  • Adjusted EPS totaled exceeded the company forecast range despite consolidated revenue coming in modestly lower than expected.
  • Q3 Revenue Guidance was projected to be between USD 320 million to USD 330 million.
  • Adjusted EBITDA was reported at USD 57.8 million, reflecting a margin of 17.6% and a year-over-year improvement from USD 51.9.

Albany International Corporation (NYSE:AIN) is scheduled to report third quarter results on Wednesday, Oct. 28, after the market close. Consensus estimates call for adjusted earnings per share of USD 1.48 on revenue of USD 326.12 million, against a market capitalization of USD 1.79 billion.

In the most recently reported quarter, Revenue came in at USD 329.5 million, representing 5.8% year-over-year growth driven by higher activity in the Engineered Composites segment. Adjusted EPS totaled exceeded the company forecast range despite consolidated revenue coming in modestly lower than expected.

Machine Clothing Revenue and Other Business Trends

Machine Clothing Revenue came in at USD 178.7 million, with volume consistency offset by equipment downtime in North America. Machine Clothing Adjusted EBITDA totaled USD 50 million, maintaining a 28% margin through cost management and operational efficiency. Engineered Composites Revenue stood at USD 150.8 million, a quarterly record for the segment representing 16% growth driven by ramps in LEAP and Boeing programs. Engineered Composites Adjusted EBITDA was reported at USD 20 million, with the margin increasing to 13.3% from 8.5% in the prior year due to higher production rates.

What Management Guided

Q3 Adjusted EPS Guidance came in at forecast in the range of USD 0.60 to USD 0.70.

Gross Profit and Capital Position

Gross Profit came in at USD 107.9 million, resulting in a 32.7% margin compared to 31.3% last year. Operating Income totaled USD 32.1 million, reflecting a 9.8% margin driven by stronger gross profit performance. Free Cash Flow stood at a net use of USD 14.5 million, compared to a gain of USD 17.8 million last year, due to inventory builds for program ramps and seasonal shutdowns. Net Debt was reported at USD 373.3 million at quarter end, comprised of USD 77.3 million in cash and USD 450.7 million in total debt. Full Year Machine Clothing Revenue was expected to be slightly down versus 2025 due to customer consolidation and capacity rationalization in the paper industry.

Capital Expenditures and Additional Detail

Capital Expenditures came in at USD 11.9 million, focused on facility optimization and investments for key customer programs. Research and Development Expense totaled USD 11.7 million, reflecting ongoing investment in advanced material science and innovation. Interest Expense stood at USD 6.1 million, an increase from the prior year driven by higher average debt balances. Pratt & Whitney Contract was reported at involves the manufacturing of resin transfer molded parts for Geared Turbofan engine inlets at the Mexico facility starting in early 2027. Salt Lake City Strategic Review was narrowed to eight final candidates with a decision pending based on maximizing shareholder value.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Q3 Revenue Guidance was projected to be between USD 320 million to USD 330 million.