Albany International Reports 7.8% Revenue Decline and Decreased Net Income in Q1 2025

Albany International Corp. reported a decline in financial performance for the first quarter of 2025, with consolidated revenues of $288.8 million, down 7.8% from $313.3 million in the same period of 2024. The decrease was primarily driven by lower revenues in both its Machine Clothing (MC) and Albany Engineered Composites (AEC) segments, which saw declines of 5.7% and 11.0%, respectively. The company's net income also fell to $17.3 million, compared to $27.4 million in the prior year, reflecting a decrease in profitability.

The company's gross profit for the quarter was $96.5 million, down from $108.7 million in the previous year, with gross profit margins decreasing from 34.7% to 33.4%. The AEC segment experienced a significant drop in gross profit margin from 18.8% to 14.5%, largely due to increased cost assumptions affecting the profitability of long-term contracts, which resulted in a cumulative decrease of $7.0 million in estimated profitability. In contrast, the MC segment maintained a stable gross profit margin of 45.7%.

Operationally, Albany International has been undergoing restructuring efforts, particularly in its MC segment, which included ceasing operations at several facilities. These actions resulted in restructuring expenses of $2.5 million for the quarter. The company also reported a net cash provided by operating activities of $2.1 million, a significant decrease from $9.6 million in the first quarter of 2024, attributed to lower gross profit and changes in working capital.

In terms of strategic developments, Albany International has been focusing on consolidating its headquarters in Portsmouth, New Hampshire, which is expected to impact approximately 100 employees and incur costs of around $7.0 million over the next year and a half. The company also repurchased 925,443 shares for a total cost of $69.2 million during the quarter, as part of its ongoing share repurchase program, which has been authorized up to $250 million.

Looking ahead, Albany International anticipates continued challenges in both segments due to market conditions, including pricing pressures and demand fluctuations. The MC segment expects ongoing declines in publication-grade paper demand, while the AEC segment is focused on ramping up production levels for various aerospace programs. The company remains committed to improving earnings through cost controls and productivity efficiencies, despite the current economic headwinds.