Albany International 2025 Q3 Earnings Sharp Net Loss as Earnings Plunge 681%

Albany International reported Q3 2025 earnings that fell well below expectations, with a net loss of $97.64 million (or $3.37 per share), compared to a profit of $18.22 million (or $0.58 per share) in the prior-year period. The results reflect a 635.9% deterioration in net income and a 681.0% drop in EPS. The company withdrew full-year guidance due to strategic reviews of its Structures business and CH-53K program adjustments, signaling heightened uncertainty.

Revenue

Total revenue declined 12.4% year-over-year to $261.43 million, driven by a 25% drop in the Albany Engineered Composites segment to $86.48 million and a 4.4% decline in the Machine Clothing segment to $174.95 million. The Machine Clothing segment faced weaker demand in Asian paper markets, particularly in China, while Engineered Composites grappled with CH-53K program adjustments.

Earnings/Net Income

The company swung to a $3.37 loss per share, a dramatic shift from a $0.58 profit. Net income deteriorated by 635.9% to a $97.64 million loss, primarily due to a $147.3 million pre-tax loss reserve on the CH-53K program and higher interest expenses. The earnings plunge reflects a 681% negative change, signaling a severe deterioration in profitability.

Post-Earnings Price Action Review

The strategy of buying AIN shares on the date of its earnings announcement and holding for 30 days showed poor performance over the past three years. The average return was -11.78%, with a maximum gain of 2.46% and a minimum loss of -15.31%. This indicates the strategy was unprofitable, with significant volatility during the holding period.

CEO Commentary

The CEO attributed the Q3 performance to macroeconomic headwinds and supply chain disruptions, noting margin compression in the Paper Machine Components segment but resilience in Industrial Air Filtration. Strategic priorities include accelerating digital transformation and expanding high-margin products. The CEO emphasized disciplined capital allocation and operational efficiency to navigate uncertainties while investing in sustainable growth.

Guidance

The company withdrew full-year 2025 guidance due to the ongoing strategic review of its Structures business and CH-53K program adjustments. It plans to reintroduce 2026 guidance with Q4 results. Forward-looking statements include a focus on stable operating cash flow, cost optimization, and prudent management of non-core expenses.

Additional News

Albany International initiated a strategic review of its structures assembly business, including potential sale of its Salt Lake City production site. The company also announced the close-out of its Gulfstream contract by year-end to reduce future exposure. Share repurchases totaled $50.5 million in Q3, reflecting ongoing capital allocation discipline. The CEO highlighted investments in advanced technologies and footprint optimization, while the stock remains under pressure with a Zacks Rank of #5 (Strong Sell).