Albany International 2025 Q2 Earnings Misses Targets as Net Income Declines 62.2%

Albany International (AIN) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Albany International's earnings for Q2 2025 fell short of market expectations, with both revenue and EPS declining compared to the previous year. The company maintained its full-year guidance, anticipating significant growth opportunities, as expressed by Willard Station. He conveyed optimism about executing plans and achieving the company's goals, aiming to deliver increased value to customers and shareholders.

Revenue
Albany International reported a decrease in total revenue for Q2 2025, amounting to $311.40 million, down from $331.99 million in the same quarter of 2024. The Machine Clothing segment generated $180.93 million, while Albany Engineered Composites contributed $130.47 million. Corporate expenses were recorded as zero, and the consolidated operating income matched the total revenue figure, standing at $311.40 million.

Earnings/Net Income
Albany International's EPS dropped significantly, declining by 60.8% to $0.31 in Q2 2025 from $0.79 in Q2 2024. Correspondingly, net income fell to $9.33 million, a 62.2% decrease from the $24.72 million reported in Q2 2024. The sharp decline in EPS signals a challenging financial performance for the quarter.

Price Action
The stock price of Albany International has edged down 1.28% during the latest trading day, has edged down 2.16% during the most recent full trading week, and has edged up 2.09% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Albany International shares 30 days after an earnings release that showed quarter-over-quarter revenue increase over the past three years yielded moderate returns but failed to match the benchmark. This approach resulted in a compound annual growth rate (CAGR) of 2.52%, with a total return of 12.47%, significantly lagging behind the benchmark return of 87.46%. The Sharpe ratio stood at 0.24, indicating a reasonable risk-adjusted return, yet the strategy showed no significant downside risk with a maximum drawdown of 0.00%. Despite moderate returns, the strategy's performance was underwhelming compared to the benchmark, suggesting investors might need to consider alternative investment strategies for better returns.

CEO Commentary
Gunnar Kleveland, Company President and CEO, expressed enthusiasm about Willard Station joining Albany International, highlighting his extensive industry background and dual expertise in operations and finance as valuable assets to the organization. Kleveland emphasized confidence in Station's leadership to positively impact the company's financial strategy and contribute to its long-term growth and profitability goals. He also acknowledged the dedication of interim CFO JC Chetnani, appreciating his steady leadership during the transition period.

Guidance
Albany International anticipates significant growth opportunities ahead, as stated by Willard Station. He expressed eagerness to collaborate with the leadership team and engage with investors, analysts, and banking partners to strengthen relationships. Station conveyed optimism about executing plans and achieving the company's goals, aiming to deliver increased value to customers and shareholders.

Additional News
Albany International recently experienced a significant change in its leadership team with the appointment of Willard Station, a seasoned industry expert, as the new CEO. His dual expertise in operations and finance is expected to enhance the company's strategic direction. Additionally, the company announced a quarterly dividend of $0.27 per share, reflecting its consistent commitment to providing shareholder returns. Furthermore, Albany International has been actively pursuing opportunities to strengthen its market presence, focusing on strategic collaborations and partnerships to drive growth. These developments underscore Albany's commitment to enhancing its operational capabilities and delivering value to its stakeholders.