Albany International Reports Third-Quarter 2024 Results

Rhea-AI Summary

Albany International reported Q3 2024 results with net revenues of $298 million, up 6.1% year-over-year. Machine Clothing revenues grew 9.9% to $183 million, while Engineered Composites revenues increased 0.7% to $115 million. Gross profit declined 11.2% to $90 million, with operating income falling to $25 million from $40 million last year. Net income was $18 million ($0.57 per share). The company updated its 2024 guidance, projecting total revenue between $1.23-1.25 billion and adjusted EPS of $3.10-3.30.

Positive

• Revenue growth of 6.1% to $298 million
• Machine Clothing segment revenue increased 9.9%
• Strong free cash flow generation of $78 million year-to-date
• Stable global order backlog over $1 billion
• Lower effective tax rate of 6.6% vs 25.3% in prior year

Negative

• Operating income decreased 37.5% to $25 million
• Gross profit declined 11.2% to $90 million
• Gross margin declined nearly 6.0%
• Net income fell to $18 million from $27 million year-over-year
• Adjusted EBITDA decreased 17.2% to $54 million

Insights

Financial Analyst

Albany International reported mixed Q3 2024 results with some concerning trends. While revenue grew 6.1% to $298 million, operating income declined significantly to $25 million from $40 million last year. The Machine Clothing segment showed strength with 9.9% revenue growth, but Engineered Composites profitability was severely impacted by contract adjustments.

Key concerns include gross margin deterioration of nearly 6% and a 17.2% drop in Adjusted EBITDA to $54 million. The company also lowered full-year guidance, now expecting Adjusted EPS of $3.10-$3.30 and total revenue of $1.23-1.25 billion. The $78 million year-to-date free cash flow generation is a bright spot.

The $1 billion+ backlog provides some stability, but operational challenges at the Salt Lake facility need close monitoring. The stock may face near-term pressure as margins recover.

ROCHESTER, N.H.--(BUSINESS WIRE)-- Albany International Corp. (NYSE:AIN) today reported operating results for its third quarter of 2024, which ended September 30, 2024.

"I am pleased with the overall results of the quarter as we focused on operational excellence evidenced by strong results at Machine Clothing and Free Cash Flow generation of $78 million year-to-date. We are addressing the issues announced earlier this month, with specific emphasis on our Salt Lake Facility. Revenues of $298 million was up $17 million or 6.1% over prior year," said President and CEO, Gunnar Kleveland.

"In Machine Clothing, revenues of $183 million grew year-over-year, driven by our Heimbach acquisition. Our global order backlog remains stable and we continue to make progress with the integration at Heimbach.

"In Engineered Composites, we recorded revenues of $115 million, while our profitability was impacted by our previously announced EAC adjustments. Our backlog is well over $1 billion and longer term we continue to see growth in our defense and commercial programs," concluded Kleveland.

For the third quarter ended September 30, 2024:

• Net revenues were $298 million, up 6.1%, or 5.8% after adjusting for currency translation, when compared to the prior year. MC's net revenues increased 9.9%, reflecting a full quarter of Heimbach Net revenues, which was partially offset by lower net revenues in the rest of the segment due to decreased sales in packaging and publication grades. AEC's net revenues were largely in line with the prior year, increasing 0.7%, primarily driven by growth on certain commercial and space programs, which was partially offset by lower revenues on CH-53K and other defense programs.
• Gross profit of $90 million was 11.2% lower than the $102 million reported for the same period of 2023; overall gross margin declined nearly 6.0% driven by changes in the estimated profitability of long-term contracts at AEC.
• Selling, General, and Administrative (SG&A) expenses were $52 million, largely in line with prior year.
• Operating income was $25 million, compared to $40 million in the prior year, the result of lower Gross profit at AEC and increased Technical, Research and Restructuring expenses at MC.
• Effective tax rate for the quarter was 6.6%, compared to 25.3% for the third quarter of 2023. The 2024 rate was lower primarily due to favorable discrete tax adjustments in the current period exceeding favorable discrete tax adjustments in the prior period.
• Net income attributable to the Company was $18 million ($0.57 per share), compared to $27 million ($0.87 per share) in the third quarter of 2023; Adjusted diluted earnings per share (or Adjusted diluted EPS, a non-GAAP measure) was $0.80 per share in the third quarter of 2024, compared to $1.02 per share in the third quarter of 2023. Adjusted EBITDA (a non-GAAP measure) was $54 million, compared to $65 million in the third quarter of 2023, a decrease of 17.2%.

Please see the tables below for a reconciliation of non-GAAP measures to their comparable GAAP measures.

Outlook for Full-Year 2024:

The company is updating its guidance for the full year of 2024 as follows:

• Total company revenue between $1.23 billion to $1.25 billion;
• Effective income tax rate of approximately 27%;
• Capital expenditures in the range of $85 to $90 million;
• Adjusted diluted earnings per share between $3.10 and $3.30;
• Total company Adjusted EBITDA between $237 million to $247 million;
• Machine Clothing revenue between $745 million to $755 million;
• Machine Clothing Adjusted EBITDA between $238 million and $243 million;
• Albany Engineered Composites revenue between $485 million to $495 million; and
• Albany Engineered Composites Adjusted EBITDA between $68 million to $73 million.

ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited)
		Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024				2023
Net revenues		$	298,386		$	281,106		$	943,710		$	824,325
Cost of goods sold			208,002			179,271			632,257			520,468
Gross profit			90,384			101,835			311,453			303,857
Selling, general, and administrative expenses			52,097			51,975			162,447			147,214
Technical and research expenses			10,844			9,708			35,369			30,303
Restructuring expenses, net			2,272			82			6,584			227
Operating income			25,171			40,070			107,053			126,113
Interest expense/(income), net			2,411			3,653			8,680			10,049
Other (income)/expense, net			3,257			56			5,932			(4,910	)
Income before income taxes			19,503			36,361			92,441			120,974
Income tax expense			1,282			9,207			22,131			39,908
Net income			18,221			27,154			70,310			81,066
Net income attributable to the noncontrolling interest			192			45			366			396
Net income attributable to the Company		$	18,029		$	27,109		$	69,944		$	80,670
Earnings per share attributable to Company shareholders - Basic		$	0.58		$	0.87		$	2.24		$	2.59
Earnings per share attributable to Company shareholders - Diluted		$	0.57		$	0.87		$	2.23		$	2.58
Shares of the Company used in computing earnings per share:
Basic			31,251			31,185			31,234			31,163
Diluted			31,367			31,283			31,333			31,256
Dividends declared per Class A share		$	0.26		$	0.25		$	0.78		$	0.75

ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited)
		September 30, 2024				December 31, 2023
Assets
Cash and cash equivalents		$	127,222			$	173,420
Accounts receivable, net			271,975				287,781
Contract assets, net			195,782				182,281
Inventories			160,617				169,567
Income taxes prepaid and receivable			8,316				11,043
Prepaid expenses and other current assets			40,399				53,872
Total current assets		$	804,311			$	877,964
Property, plant and equipment, net			583,455				601,989
Intangibles, net			40,996				44,646
Goodwill			180,912				180,181
Deferred income taxes			26,979				22,941
Noncurrent receivables, net			—				4,392
Other assets			116,548				102,901
Total assets		$	1,753,201			$	1,835,014
Liabilities and Shareholders' Equity
Accounts payable		$	77,873			$	87,104
Accrued liabilities			138,700				142,988
Current maturities of long-term debt			555				4,218
Income taxes payable			1,593				14,369
Total current liabilities			218,721				248,679
Long-term debt			361,639				452,667
Other noncurrent liabilities			154,634				139,385
Deferred taxes and other liabilities			21,531				26,963
Total liabilities			756,525				867,694
Commitments and Contingencies
Shareholders' Equity:
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued			—				—
Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 40,916,568 issued in 2024 and 40,856,910 in 2023			41				41
Additional paid in capital			452,656				448,218
Retained earnings			1,056,514				1,010,942
Accumulated items of other comprehensive income:
Translation adjustments			(137,373	)			(124,901	)
Pension and postretirement liability adjustments			(17,341	)			(17,346	)
Derivative valuation adjustment			1,165				9,079
Treasury stock (Class A), at cost; 9,661,845 shares in 2024 and 2023			(364,665	)			(364,665	)
Total shareholders' equity			990,997				961,368
Noncontrolling interest			5,679				5,952
Total equity			996,676				967,320
Total liabilities and shareholders' equity		$	1,753,201			$	1,835,014

ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
		Nine Months Ended September 30,
			2024				2023
Cash flows from operating activities:
Net income		$	70,310			$	81,066
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			61,813				50,164
Amortization			5,190				4,614
Change in deferred taxes and other liabilities			(7,552	)			(1,264	)
Impairment of property, plant and equipment			1,425				577
Non-cash interest expense			769				1,148
Compensation and benefits paid or payable in Class A Common Stock			4,438				5,189
Provision/(recovery) for credit losses from uncollected receivables and contract assets			40				641
Foreign currency remeasurement loss/(gain) on intercompany loans			2,263				(4,704	)
Fair value adjustment on foreign currency contracts			1,105				581
Gain on sale of assets			(515	)			—
Changes in operating assets and liabilities that provided/(used) cash, net of impact of business acquisition:
Accounts receivable			17,980				(18,172	)
Contract assets			(15,194	)			(16,550	)
Inventories			5,918				(293	)
Prepaid expenses and other current assets			2,768				(3,030	)
Income taxes prepaid and receivable			2,602				1,597
Accounts payable			7,316				(6,661	)
Accrued liabilities			(8,320	)			(16,454	)
Income taxes payable			(11,995	)			(5,810	)
Noncurrent receivables			(579	)			2,276
Other noncurrent liabilities			(17	)			(3,602	)
Other, net			220				2,499
Net cash provided by operating activities			139,985				73,812
Cash flows from investing activities:
Purchase of business, net of cash acquired			—				(133,470	)
Purchases of property, plant and equipment			(61,985	)			(48,850	)
Purchased software			(101	)			(276	)
Proceeds received from sale of assets			1,033				—
Net cash used in investing activities			(61,053	)			(182,596	)
Cash flows from financing activities:
Proceeds from borrowings			48,106				71,249
Principal payments on debt			(142,691	)			(51,479	)
Debt acquisition costs			—				(4,108	)
Taxes paid in lieu of share issuance			(2,832	)			(3,136	)
Dividends paid			(24,356	)			(23,365	)
Net cash (used in)/provided by financing activities			(121,773	)			(10,839	)
Effect of exchange rate changes on cash and cash equivalents			(3,357	)			(647	)
(Decrease)/increase in cash and cash equivalents			(46,198	)			(120,270	)
Cash and cash equivalents at beginning of period			173,420				291,776
Cash and cash equivalents at end of period		$	127,222			$	171,506

The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure:

(in thousands, except percentages)		Net revenues as reported, Q3 2024			(Decrease)/ increase due to changes in currency translation rates				Q3 2024 revenues on same basis as Q3 2023 currency translation rates			Net revenues as reported, Q3 2023			% Change compared to Q3 2023, excluding currency rate effects
Machine Clothing		$	183,033		$	727			$	182,306		$	166,588		9.4	%
Albany Engineered Composites			115,353			159				115,194			114,518		0.6	%
Consolidated total		$	298,386		$	886			$	297,500		$	281,106		5.8	%
(in thousands, except percentages)		Net revenues as reported, YTD 2024			(Decrease)/ increase due to changes in currency translation rates				YTD 2024 revenues on same basis as 2023 currency translation rates			Net revenues as reported, YTD 2023			% Change compared to 2023, excluding currency rate effects
Machine Clothing		$	561,828		$	(999	)		$	562,827		$	479,027		17.5	%
Albany Engineered Composites			381,882			161				381,721			345,298		10.5	%
Consolidated total		$	943,710		$	(838	)		$	944,548		$	824,325		14.6	%

The following table presents Gross profit and Gross profit margin:
(in thousands, except percentages)		Gross profit, Q3 2024			Gross profit margin, Q3 2024			Gross profit, Q3 2023			Gross profit margin, Q3 2023
Machine Clothing		$	88,921		48.6	%		$	79,257		47.6	%
Albany Engineered Composites			1,463		1.3	%			22,578		19.7	%
Consolidated total		$	90,384		30.3	%		$	101,835		36.2	%
(in thousands, except percentages)		Gross profit, YTD 2024			Gross profit margin, YTD 2024			Gross profit, YTD 2023			Gross profit margin, YTD 2023
Machine Clothing		$	262,449		46.7	%		$	238,031		49.7	%
Albany Engineered Composites			49,004		12.8	%			65,826		19.1	%
Consolidated total		$	311,453		33.0	%		$	303,857		36.9	%

A reconciliation from Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods has been calculated as follows:
Three months ended September 30, 2024
(in thousands)		Machine Clothing				Albany Engineered Composites				Corporate expenses and other				Total Company
Net income/(loss) (GAAP)		$	51,481			$	(10,293	)		$	(22,967	)		$	18,221
Interest expense/(income), net			—				—				2,411				2,411
Income tax expense			—				—				1,282				1,282
Depreciation and amortization expense			8,094				13,154				1,062				22,310
EBITDA (non-GAAP)			59,575				2,861				(18,212	)			44,224
Restructuring costs			2,976				34				31				3,041
Foreign currency revaluation (gains)/losses (a)			1,435				(348	)			1,793				2,880
Other transition expenses			—				993				(509	)			484
Strategic/integration costs			410				—				2,559				2,969
Pre-tax (income) attributable to noncontrolling interest			(41	)			(8	)			—				(49	)
Adjusted EBITDA (non-GAAP)		$	64,355			$	3,532			$	(14,338	)		$	53,549
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)			35.2	%			3.1	%			—				17.9	%

Three months ended September 30, 2023
(in thousands)		Machine Clothing				Albany Engineered Composites				Corporate expenses and other				Total Company
Net income/(loss) (GAAP)		$	50,710			$	9,374			$	(32,930	)		$	27,154
Interest expense/(income), net			—				—				3,653				3,653
Income tax expense			—				—				9,207				9,207
Depreciation and amortization expense			5,976				12,510				975				19,461
EBITDA (non-GAAP)			56,686				21,884				(19,095	)			59,475
Restructuring costs			82				—				—				82
Foreign currency revaluation (gains)/losses (a)			(656	)			19				516				(121	)
CEO transition expenses			—				—				2,052				2,052
Inventory step-up impacting Cost of goods sold			1,370				—				—				1,370
Strategic/integration costs			—				273				1,642				1,915
Pre-tax (income) attributable to noncontrolling interest			—				(73	)			—				(73	)
Adjusted EBITDA (non-GAAP)		$	57,482			$	22,103			$	(14,885	)		$	64,700
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)			34.5	%			19.3	%			—				23.0	%

Nine months ended September 30, 2024
(in thousands)		Machine Clothing				Albany Engineered Composites				Corporate expenses and other				Total Company
Net income/(loss) (GAAP)		$	153,276			$	8,329			$	(91,295	)		$	70,310
Interest expense/(income), net			—				—				8,680				8,680
Income tax expense			—				—				22,131				22,131
Depreciation and amortization expense			24,276				39,374				3,353				67,003
EBITDA (non-GAAP)			177,552				47,703				(57,131	)			168,124
Restructuring costs			4,581				3,144				146				7,871
Foreign currency revaluation (gains)/losses (a)			(1,247	)			(110	)			636				(721	)
Other transition expenses			—				993				984				1,977
Strategic/integration costs			1,468				182				3,409				5,059
Pre-tax (income) attributable to noncontrolling interest			(110	)			(193	)			—				(303	)
Adjusted EBITDA (non-GAAP)		$	182,244			$	51,719			$	(51,956	)		$	182,007
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues-non-GAAP)			32.4	%			13.5	%			—				19.3	%

Nine months ended September 30, 2023
(in thousands)		Machine Clothing				Albany Engineered Composites				Corporate expenses and other				Total Company
Net income/(loss) (GAAP)		$	153,400			$	27,460			$	(99,794	)		$	81,066
Interest expense/(income), net			—				—				10,049				10,049
Income tax expense			—				—				39,908				39,908
Depreciation and amortization expense			15,682				36,246				2,850				54,778
EBITDA (non-GAAP)			169,082				63,706				(46,987	)			185,801
Restructuring costs			227				—				—				227
Foreign currency revaluation (gains)/losses (a)			1,870				19				(3,609	)			(1,720	)
CEO transition expenses			—				—				2,052				2,052
Inventory step-up impacting Cost of goods sold			1,370				—				—				1,370
Strategic/integration costs			—				813				2,005				2,818
Pre-tax (income) attributable to noncontrolling interest			—				(474	)			—				(474	)
Adjusted EBITDA (non-GAAP)		$	172,549			$	64,064			$	(46,539	)		$	190,074
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues-non-GAAP)			36.0	%			18.6	%			—				23.1	%

Per share impact of the adjustments to earnings per share are as follows:
Three months ended September 30, 2024 (in thousands, except per share amounts)		Pre tax Amounts				Tax Effect				After tax Effect				Per share Effect
Restructuring costs		$	3,041			$	345			$	2,696			$	0.09
Foreign currency revaluation (gains)/losses (a)			2,880				1,000				1,880				0.06
Other transition expenses			484				121				363				0.01
Strategic/integration costs			2,969				799				2,170				0.07
Three months ended September 30, 2023 (in thousands, except per share amounts)		Pre tax Amounts				Tax Effect				After tax Effect				Per share Effect
Restructuring costs		$	82			$	21			$	61			$	0.00
Foreign currency revaluation (gains)/losses (a)			(121	)			(35	)			(86	)			0.00
CEO transition expenses			2,052				—				2,052				0.07
Inventory step-up impacting Cost of goods sold			1,370				411				959				0.03
Strategic/integration costs			1,915				476				1,439				0.05
Nine months ended September 30, 2024 (in thousands, except per share amounts)		Pre tax Amounts				Tax Effect				After tax Effect				Per share Effect
Restructuring costs		$	7,871			$	1,511			$	6,360			$	0.20
Foreign currency revaluation (gains)/losses (a)			(721	)			(262	)			(459	)			(0.01	)
Other transition expenses			1,977				443				1,534				0.05
Strategic/integration costs			5,059				1,373				3,686				0.12
Nine months ended September 30, 2023 (in thousands, except per share amounts)		Pre tax Amounts				Tax Effect				After tax Effect				Per share Effect
Restructuring costs		$	227			$	68			$	159			$	0.01
Foreign currency revaluation (gains)/losses (a)			(1,720	)			(504	)			(1,216	)			(0.04	)
CEO transition expenses			2,052				—				2,052				0.07
Withholding tax related to internal restructuring			—				(3,026	)			3,026				0.10
Inventory step-up impacting Cost of goods sold			1,370				411				959				0.03
Strategic/integration costs			2,818				725				2,093				0.07

The following table provides a reconciliation of Diluted Earnings per share to Adjusted Diluted Earnings per share:
		Three months ended September 30,							Nine months ended September 30,
Per share amounts (Diluted)			2024				2023			2024				2023
Earnings per share attributable to Company shareholders - Basic (GAAP)		$	0.58			$	0.87		$	2.24			$	2.59
Effect of dilutive stock-based compensation plans			(0.01	)			—			(0.01	)			(0.01	)
Earnings per share attributable to Company shareholders - Diluted (GAAP)		$	0.57			$	0.87		$	2.23			$	2.58
Adjustments, after tax:
Restructuring costs			0.09				—			0.20				0.01
Foreign currency revaluation (gains)/losses (a)			0.06				—			(0.01	)			(0.04	)
CEO and other transition expenses			0.01				0.07			0.05				0.07
Withholding tax related to internal restructuring			—				—			—				0.10
Inventory step-up impacting Cost of goods sold			—				0.03			—				0.03
Strategic/integration costs			0.07				0.05			0.12				0.07
Adjusted Diluted Earnings per share (non-GAAP)		$	0.80			$	1.02		$	2.59			$	2.82

The calculations of net debt are as follows:
(in thousands)		September 30, 2024			December 31, 2023			September 30, 2023
Current maturities of long-term debt		$	555		$	4,218		$	27,246
Long-term debt			361,639			452,667			463,339
Total debt			362,194			456,885			490,585
Cash and cash equivalents			127,222			173,420			171,506
Net debt (non-GAAP)		$	234,972		$	283,465		$	319,079

The calculation of net leverage ratio as of September 30, 2024 is as follows:
Total Company
		Twelve months ended				Nine months ended								Trailing twelve months ended
(in thousands)		December 31, 2023				September 30, 2023				September 30, 2024				September 30, 2024 (non-GAAP) (b)
Net income/(loss) (GAAP)		$	111,610			$	81,066			$	70,310			$	100,854
Interest expense/(income), net			13,601				10,049				8,680				12,232
Income tax expense			48,846				39,908				22,131				31,069
Depreciation and amortization expense			76,733				54,778				67,003				88,958
EBITDA (non-GAAP)			250,790				185,801				168,124				233,113
Restructuring costs			282				227				7,871				7,926
Foreign currency revaluation (gains)/losses (a)			1,296				(1,720	)			(721	)			2,295
CEO and other transition expenses			2,719				2,052				1,977				2,644
Inventory step-up impacting Cost of goods sold			5,480				1,370				—				4,110
Strategic/integration costs			5,194				2,818				5,059				7,435
Pre-tax (income) attributable to noncontrolling interest			(665	)			(474	)			(303	)			(494	)
Adjusted EBITDA (non-GAAP)		$	265,096			$	190,074			$	182,007			$	257,029

(in thousands, except for net leverage ratio)	September 30, 2024
Net debt (non-GAAP)	$	234,972
Trailing twelve months Adjusted EBITDA (non-GAAP)		257,029
Net leverage ratio (non-GAAP)		0.91

(a) Foreign currency revaluation (gains)/losses represent unrealized gains and losses arising from the remeasurement of monetary assets and liabilities denominated in non-functional currencies on the balance sheet date.

(b) Calculated as amounts incurred during the twelve months ended December 31, 2023, less those incurred during the nine months ended September 30, 2023, plus those incurred during the nine months September 30, 2024.

The tables below provide a reconciliation of forecasted full-year 2024 Adjusted EBITDA and Adjusted Diluted EPS (non-GAAP measures) to the comparable GAAP measures.
Forecast of Full Year 2024 Adjusted EBITDA		Machine Clothing								Engineered Composites
(in millions)		Low				High				Low				High
Net income attributable to the Company (GAAP) (c)		$	198			$	203			$	11			$	17
Income attributable to the noncontrolling interest			—				—				(1	)			(1	)
Interest expense/(income), net			—				—				—				—
Income tax expense			—				—				—				—
Depreciation and amortization			32				32				53				52
EBITDA (non-GAAP)			230				235				63				68
Restructuring costs			7				7				3				3
Foreign currency revaluation (gains)/losses (d)			(1	)			(1	)			—				—
Strategic/integration costs			2				2				—				—
Other transition expenses			—				—				1				1
Pre-tax (income)/loss attributable to non-controlling interest			—				—				1				1
Adjusted EBITDA (non-GAAP)		$	238			$	243			$	68			$	73
(c) Interest, Other income/expense and Income taxes are not allocated to the business segments
Forecast of Full Year 2024 Adjusted EBITDA		Total Company
(in millions)		Low				High
Net income attributable to the Company (GAAP)		$	84			$	90
Income attributable to the noncontrolling interest			(1	)			(1	)
Interest expense/(income), net			15				15
Income tax expense			31				34
Depreciation and amortization			91				92
EBITDA (non-GAAP)			220				230
Restructuring costs			10				10
Foreign currency revaluation (gains)/losses (d)			(1	)			(1	)
Strategic/integration costs			5				5
Other transition expenses			2				2
Pre-tax (income)/loss attributable to non-controlling interest			1				1
Adjusted EBITDA (non-GAAP)		$	237			$	247
		Total Company
Forecast of Full Year 2024 Earnings per share (diluted) (e)		Low				High
Net income attributable to the Company (GAAP)		$	2.69			$	2.89
Restructuring costs			0.26				0.26
Foreign currency revaluation (gains)/losses (d)			(0.01	)			(0.01	)
Other transition expenses			0.03				0.03
Strategic/integration costs			0.13				0.13
Adjusted Diluted Earnings per share (non-GAAP)		$	3.10			$	3.30
(d) Due to the uncertainty of these items, we are unable to forecast the full year impact for 2024. Amounts above represent actual results for the nine months ended September 30, 2024.
(e) Calculations based on weighted average shares outstanding estimate of approximately 31.3 million

About Albany International Corp.

Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Rochester, New Hampshire, operates 32 facilities in 14 countries, employs approximately 6,000 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.

Non-GAAP Measures

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted diluted earnings per share (or Adjusted Diluted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These amounts are then compared to the U.S. dollar amount as reported in the current period.

EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted Diluted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Excluded costs or benefits, such as restructuring costs, foreign currency revaluation gains and losses, and costs related to strategic, acquisition, integration and other transition-related initiatives that the Company may take, do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues.

The Company defines Adjusted Diluted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results.

The Company’s Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Diluted EPS may not be comparable to similarly titled measures of other companies.

Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness.

Net leverage ratio informs the investors of the Company's financial leverage at the end of the reporting period, providing an indicator of the Company's ability to repay its debt.

We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Forward-Looking Statements

This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during the current year and in future years; expectations in the current period and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Diluted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030119209/en/

Investor / Media Contact:

JC Chetnani

VP-Investor Relations and Treasurer

jc.chetnani@albint.com

Source: Albany International Corp.

FAQ

What was Albany International's (AIN) revenue in Q3 2024?

Albany International reported revenue of $298 million in Q3 2024, representing a 6.1% increase from the same period last year.

What was Albany International's (AIN) earnings per share in Q3 2024?

Albany International reported diluted earnings per share of $0.57 in Q3 2024, compared to $0.87 in Q3 2023.

What is Albany International's (AIN) revenue guidance for full-year 2024?

Albany International expects total company revenue between $1.23 billion to $1.25 billion for full-year 2024.

How much was Albany International's (AIN) Machine Clothing revenue in Q3 2024?

Machine Clothing revenue was $183 million in Q3 2024, up 9.9% year-over-year.