Albany International 2025 Q3 Earnings Sharp Net Loss of $97.6M, Revenue Dips 12.4%

Albany International (AIN) reported Q3 2025 results marked by a significant revenue decline and a net loss. The company missed revenue estimates by 12.24%, with total revenue falling 12.4% year-over-year to $261.43 million. Despite a positive EPS surprise of 1.43%, the net loss of $97.64 million (-635.9% year-over-year) underscored operational challenges. The CEO highlighted strategic shifts amid external pressures, while the company withdrew full-year guidance and initiated a strategic review of its structures assembly business.

Revenue

Albany International’s Q3 2025 revenue totaled $261.43 million, a 12.4% decline from $298.39 million in Q3 2024. The Machine Clothing segment, its core business, contributed $174.95 million, down 4.4% year-over-year, driven by soft demand in Asia, particularly China. Meanwhile, the Albany Engineered Composites segment reported $86.48 million, a 25% drop from $115.35 million in the prior year, primarily due to the CH-53K program adjustments. Currency translation effects further pressured the Machine Clothing segment, reducing its revenue by 5.8% compared to the prior year.

Earnings/Net Income

The company swung to a net loss of $97.64 million in Q3 2025, compared to a net income of $18.22 million in Q3 2024. Earnings per share (EPS) turned negative at -$3.37, a 681% deterioration from $0.58 a year ago. The loss stemmed from a $147.3 million pre-tax charge related to the CH-53K program and higher restructuring expenses. Excluding these adjustments, adjusted net income was $20.6 million, or $0.71 per share, reflecting operational resilience despite headwinds. The sharp decline in profitability highlights the need for cost discipline and strategic realignment.

Post-Earnings Price Action Review

Following the earnings release, Albany International’s stock price declined 3.21% in the latest trading day, 5.03% for the week, and 2.91% month-to-date. The negative sentiment aligns with the company’s guidance withdrawal and the substantial net loss. Analysts have downgraded the stock to a Zacks Rank #5 (Strong Sell), citing unfavorable estimate revisions and underperformance relative to the S&P 500. The shares have lost 31.2% year-to-date, underscoring investor concerns over near-term profitability and operational challenges.

CEO Commentary

CEO Gunnar Kleveland acknowledged the challenging quarter but emphasized strategic initiatives to address headwinds. The company is focusing on cost discipline, operational efficiency, and R&D investments in advanced materials and automation. Kleveland highlighted progress in the LEAP program and a strategic review of the structures assembly business, including potential site sales. Despite near-term risks, the CEO expressed cautious optimism about long-term growth in renewable energy and aerospace markets.

Guidance

Albany International has withdrawn its full-year guidance due to ongoing strategic reviews and uncertainties in the Structures business. The company plans to reintroduce 2026 guidance with Q4 results. Analysts now expect $0.86 EPS and $291.84 million in revenue for the coming quarter, reflecting mixed expectations. The Zacks Industry Rank for the Textile - Products sector remains in the bottom 4%, further complicating the outlook.

Additional News

Albany International announced a strategic review of its structures assembly business, including potential site sales, to refocus on high-margin aerospace opportunities. The CH-53K program adjustments, which cost $46 million in revenue, are being restructured to mitigate long-term risks. Additionally, the company repurchased $50.5 million in shares and paid $8 million in dividends, underscoring its commitment to shareholder returns. These moves aim to stabilize operations while advancing growth in defense and commercial aerospace markets.