Albany International Reports 6.2% Revenue Decline in Q2 2025

Albany International Corp. reported a decline in financial performance for the second quarter of 2025, with net revenues of $311.4 million, down 6.2% from $332.0 million in the same period last year. For the first half of 2025, revenues totaled $600.2 million, a decrease of 7.0% compared to $645.3 million in the first half of 2024. The company's net income for the second quarter was $9.3 million, significantly lower than $24.7 million in the prior year, resulting in earnings per share of $0.31, down from $0.79.

The decline in revenue was attributed to reduced demand in Asia, unplanned equipment downtime in the Machine Clothing (MC) segment, and decreased revenues in the Albany Engineered Composites (AEC) segment due to reductions in certain commercial and space programs. The MC segment's revenues fell by 6.5% to $180.9 million, while AEC revenues decreased by 5.7% to $130.5 million. The company also faced increased costs related to long-term contracts, which negatively impacted gross profit margins, particularly in the AEC segment, where gross profit dropped to 10.5% from 17.0% year-over-year.

Operationally, Albany International has been undergoing restructuring efforts, incurring $4.2 million in restructuring expenses in the second quarter, compared to $2.1 million in the same period last year. The company has also been consolidating its corporate headquarters in Portsmouth, NH, which is expected to impact approximately 100 employees and cost an estimated $7 million over the next year and a half. As of June 30, 2025, the company had total assets of $1.72 billion, with cash and cash equivalents of $106.7 million.

Looking ahead, Albany International anticipates continued challenges in the MC segment due to declining demand for publication-grade paper, although there is expected growth in packaging and tissue grades in Europe. The AEC segment is ramping up production levels for various aerospace programs, but profitability remains under pressure due to increased cost assumptions. The company is focused on improving earnings through cost controls and manufacturing efficiencies, while also navigating the impacts of macroeconomic conditions, including inflation and supply chain constraints.