Core Insights - Albany International is currently in phase 16 of its Adhishthana cycle, indicating a critical period with weak Guna Triads and a significant decline, suggesting sustained caution ahead [1][5]. Guna Triads Analysis - The Guna Triads, consisting of phases 14, 15, and 16, are essential for determining the potential for a Nirvana move in phase 18. The absence of Satoguna in these phases indicates a lack of bullish structure [4][5]. - Albany International has experienced a 30% decline in phase 16, which, if it continues, will confirm the absence of Satoguna and negate the possibility of a Nirvana move in phase 18, expected to begin in June 2026 [5]. Himalayan Formation Insights - The stock mirrors a textbook Himalayan formation, having broken out of a long Cakra formation in phase 9, which initiated a rally of approximately 111% [9][10]. - Following the peak around $115 in phase 11, the stock has entered a descent phase, currently trading around $55, representing a loss of over 50% from its peak [10]. Investor Outlook - The combination of weak Guna Triads and ongoing descent suggests a bearish structure for Albany International through at least 2027. Recent disappointing earnings have further contributed to the negative momentum [11].

Core Insights - Albany International Corp. is under investigation by Holzer & Holzer, LLC for potential non-compliance with federal securities laws following the release of its second quarter 2025 operating results, which indicated that performance was significantly affected by timing and operational issues [1] Group 1: Company Performance - Albany International reported its second quarter 2025 operating results on July 31, 2025, highlighting that its performance was largely impacted by certain timing and operational issues [1] - Following the announcement of these results, the stock price of Albany International experienced a decline [1] Group 2: Legal Investigation - Holzer & Holzer, LLC is investigating Albany International to determine if the company complied with federal securities laws [1] - Investors who purchased Albany International stock and incurred losses are encouraged to contact Holzer & Holzer for legal assistance [2] Group 3: Holzer & Holzer, LLC Overview - Holzer & Holzer, LLC is recognized as a top-rated securities litigation law firm, focusing on the representation of shareholders and investors in various litigation cases, including shareholder class actions [3] - The firm has a history of recovering hundreds of millions of dollars for shareholders affected by corporate misconduct since its establishment in 2000 [3]

Financial Data and Key Metrics Changes - Consolidated net sales were $311 million, down 6.2% from $332 million in the same quarter last year [19] - Adjusted EBITDA margin decreased to 16.7% from 19% in the prior year [9] - GAAP net income attributable to the company for the quarter was $9.2 million compared to $24.6 million last year [22] - Adjusted diluted EPS was $0.57 versus $0.89 in the same period last year [23] Business Line Data and Key Metrics Changes - Machine Clothing reported revenues of $181 million, a decrease of 6.5% year-over-year [20] - Engineered Composites segment revenues were $130 million, reflecting a sequential growth of 14% from the first quarter [13] - Machine Clothing gross profit decreased to $84 million from $89 million in the prior year, while gross margin improved by 40 basis points to 46.3% [20] - AEC gross profit decreased to $14 million from $24 million, primarily due to cumulative EAC adjustments [21] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries due to packaging machine production curtailments [11] - Europe showed solid signs of recovery with good deliveries and orders, offsetting weakening conditions in Asia, particularly in China [11] - The global MC order backlog remains healthy, indicating confidence for a stronger second half of the year [11] Company Strategy and Development Direction - The company is focused on optimizing its global production footprint and has commenced two additional facility closures [7] - Investments in operational excellence are aimed at transforming execution of current programs and driving process improvements [8] - Advanced air mobility is identified as a significant source of growth, with new long-term agreements and investments in capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovery despite second quarter results lagging expectations due to timing and operational issues [5] - The company expects global growth to continue as tariff environments become more predictable [6] - Full year guidance is reaffirmed, projecting stronger performance in the second half driven by ramping programs and operational efficiencies [25] Other Important Information - The company successfully completed its S4HANA upgrade, enhancing systems and operational efficiencies [17] - Will Station has been appointed as the new CFO, bringing extensive experience from McKesson and Boeing [18] Q&A Session Summary Question: Can you talk about overall build rates in aerospace? - Management noted that ramp-up is occurring as Boeing is destocking and material is being brought in, indicating momentum towards prior production levels [28] Question: What factors could affect revenue range in the second half? - Key factors include Machine Clothing synergies and increased commercial programs at AEC, which are expected to drive growth and profitability [29] Question: Can you provide updates on the CH-53K program? - The ramp-up is being approached carefully, with significant investments in team training and production capabilities [33] Question: Can you elaborate on AEC margins and investments in labor? - AEC is performing well, but challenges remain with the CH-53K program, requiring more resources and time for ramp-up [37] Question: What gives confidence to maintain guidance despite challenges? - Confidence stems from improved performance indicators, including reduced quality issues and better operational efficiency [45] Question: What new programs are ramping up in the second half? - Existing and new programs, including the Bell 525 and JASSM, are expected to contribute to growth in the second half [48] Question: Can you provide details on the 3D woven composite parts? - The company is focused on replacing titanium with 3D woven technology, with certification expected in the next 18 months [55]

Financial Data and Key Metrics Changes - Consolidated net sales were $311 million, down 6.2% from $332 million in the same quarter last year [18] - Consolidated gross profit was $98 million, or 31.3% of sales, down from $112 million, or 33.9% of sales, in the prior year [19] - GAAP net income attributable to the company for the quarter was $9.2 million compared to $24.6 million last year, with GAAP diluted EPS at $0.31 versus $0.39 in the same period last year [21] - Adjusted diluted EPS was $0.57 versus $0.89 in the same period last year [22] - Consolidated adjusted EBITDA was $52 million for the quarter versus $63 million in the prior year period [22] Business Line Data and Key Metrics Changes - Machine Clothing reported revenues of $181 million, a decrease of 6.5% versus the second quarter of last year [18] - Engineered Composites segment revenues for the quarter were $130 million, reflecting a sequential growth of 14% from the first quarter [12] - Machine Clothing gross profit decreased to $84 million from $89 million in the prior year, while gross margin improved by 40 basis points to 46.3% [19] - AEC gross profit was $14 million, down from $24 million, largely due to cumulative EAC adjustments [20] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries in the second quarter, mainly due to packaging machine production curtailments [10] - Europe showed solid signs of recovery with good deliveries and orders, offsetting weakening conditions in Asia, particularly in China where softer demand was noted [10] Company Strategy and Development Direction - The company is focused on optimizing its global production footprint and has commenced two additional facility closures [7] - Investments in operational excellence are aimed at transforming execution of current programs and driving process improvements [7] - The emerging advanced air mobility market is seen as a significant source of growth, with continued investment in capabilities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovery despite second quarter results lagging expectations due to timing and operational issues [5] - The company expects global growth to continue as tariff environments become more predictable, with increased activity in the defense sector anticipated [6] - Full year guidance was reaffirmed, projecting stronger performance in the second half driven by ramping programs and operational efficiencies [23][24] Other Important Information - The company successfully completed its S4HANA upgrade across the entire organization, improving systems and operational efficiencies [15] - Will Station has been appointed as the new CFO, bringing extensive experience from McKesson and Boeing [16][17] Q&A Session Summary Question: Can you talk about overall build rates in aerospace? - Management noted that ramp-up is occurring as Boeing destocks and builds inventory, with momentum towards prior production levels [27] Question: What factors could affect revenue range in the second half? - Key factors include Machine Clothing synergies and increased commercial programs at AEC, with expectations for improved performance in the second half [28] Question: Can you provide updates on the CH-53K program? - The ramp-up is being managed carefully, with significant investments in training and resources, aiming for a two-per-month rate by year-end [32] Question: What are the drivers for reaffirming full year guidance? - Confidence in achieving performance levels with parts available and trained teams, alongside expected growth in both commercial and military programs [40][46] Question: Can you elaborate on the 3D woven composite parts replacing titanium? - The company is focused on developing 3D woven technology, with certification expected in the next 18 months, and positive reception noted at the Paris Air Show [54]

Core Viewpoint - Albany International reported quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.73 per share, and down from $0.89 per share a year ago, indicating an earnings surprise of -21.92% [1] Financial Performance - The company posted revenues of $311.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.47%, but down from $331.99 million year-over-year [2] - Over the last four quarters, Albany International has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Albany International shares have lost about 10.7% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.84 on revenues of $301.84 million, and for the current fiscal year, it is $3.19 on revenues of $1.2 billion [7] - The estimate revisions trend for Albany International was unfavorable ahead of the earnings release, which may impact future stock movements [6][5] Industry Context - The Textile - Products industry, to which Albany International belongs, is currently in the bottom 12% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Unifi, is expected to report a quarterly loss of $0.67 per share, reflecting a year-over-year change of -204.6% [9]

Revenue Performance - Net revenues for the three months ended June 30, 2025, decreased by 6.2% to $311.4 million compared to $332.0 million in the same period of 2024[110] - For the six months ended June 30, 2025, total net revenues decreased by 7.0% to $600.2 million compared to $645.3 million in the same period of 2024[114] - Machine Clothing segment revenues decreased by 6.5% to $180.9 million for Q2 2025, primarily due to reduced demand in Asia and unplanned equipment downtime[112] - Albany Engineered Composites segment revenues decreased by 5.7% to $130.5 million for Q2 2025, driven by reductions in certain commercial and space programs[113] - Machine Clothing segment revenues for the first half of 2025 decreased by 6.1% to $355.6 million, impacted by reduced demand in Asia and equipment downtime[115] - Albany Engineered Composites segment revenues for the first half of 2025 decreased by 8.2% to $244.6 million, primarily due to reductions in commercial and space programs[116] - For the three months ended June 30, 2025, net revenues decreased by $12.7 million or 6.5% compared to the same period in 2024, primarily due to reduced demand in Asia and unplanned equipment downtime[144] - For the six months ended June 30, 2025, net revenues for the Machine Clothing segment decreased by $23.2 million or 6.1% compared to the same period in 2024[145] Profitability and Margins - Gross profit for the three months ended June 30, 2025, was $97,507 thousand, a decrease from $112,383 thousand in 2024, representing a decline of 13.2%[117] - Albany Engineered Composites (AEC) gross profit margin decreased from 17.0% in 2024 to 10.5% in 2025, primarily due to cumulative changes in estimated profitability of long-term contracts, which decreased gross profit by $7.0 million in 2025[120] - Machine Clothing (MC) gross profit margin increased slightly from 45.9% in 2024 to 46.3% in 2025[120] - Gross profit for the three months ended June 30, 2025, decreased by $5.1 million, but the gross profit margin increased to 46.3% from 45.9% in the same period of 2024[146] - Operating income for the three months ended June 30, 2025, was $22,270 thousand, down from $42,905 thousand in 2024, reflecting a decrease of 48.2%[133] - Operating income for the three months ended June 30, 2025, decreased by $12.0 million or 24.2% compared to the same period in 2024, impacted by higher SG&A expenses[148] - AEC incurred a net operating loss of $2,674 thousand for the three months ended June 30, 2025, compared to a profit of $5,446 thousand in 2024[133] Expenses and Cost Management - Selling, General, and Administrative (SG&A) expenses increased by 5.4% for the three months ended June 30, 2025, with SG&A as a percentage of net revenues rising from 16.7% in 2024 to 18.8% in 2025[121] - Consolidated technical and research expenses increased by 5.8% for the three months ended June 30, 2025, with expenses as a percentage of net revenues rising from 3.6% in 2024 to 4.0% in 2025[124] - The company faces pricing pressures across all markets but aims to improve earnings through cost controls and manufacturing efficiencies[106] - The company announced plans to consolidate its corporate headquarters, impacting approximately 100 employees, with an estimated cost of $7.0 million over the next year and a half[167] Cash Flow and Liquidity - For the six months ended June 30, 2025, net cash provided by operating activities was $34.8 million, a decrease from $93.0 million in the same period of 2024, primarily due to lower gross profit[160] - As of June 30, 2025, the company had cash and cash equivalents of $106.7 million and total liquidity of approximately $462.0 million[164] - During the six months ended June 30, 2025, the company paid $16.7 million in dividends and repurchased shares for a total cost of $120.4 million[166] Tax and Interest Expenses - The effective income tax rate for the three months ended June 30, 2025, was 31.3%, up from 27.9% in 2024, mainly due to favorable discrete tax adjustments in the prior period[139] - Interest expense, net, increased to $5,150 thousand for the three months ended June 30, 2025, compared to $2,950 thousand in 2024, primarily due to higher average debt balances[136] - An increase of one percentage point in weighted average interest rates would increase interest expense by $2.6 million[172] Foreign Currency Exposure - The total net assets of non-U.S. operations and long-term intercompany loans in nonfunctional currencies amount to approximately $586.3 million[170] - A hypothetical 10% adverse change in foreign currency exchange rates could result in a potential loss in fair value of $58.6 million[170] - The company has exposure to various nonfunctional currency balances totaling $143.4 million, with a net foreign currency asset of $14.6 million as of June 30, 2025[170] - A hypothetical 10% change in currency rates could lead to an adjustment of approximately $1.5 million in the income statement[170] - The company has unhedged variable rate debt totaling $266.843 million as of June 30, 2025, with USD borrowings at an interest rate of 6.0% and EUR borrowings at 3.5%[172] - The company may enter into interest rate swap agreements to manage interest rate risk and fix rates on variable debt[172]

Financial Performance - Net revenues for Q2 2025 were $311 million, a decrease of 6.2% year-over-year, or 7.4% when adjusted for currency translation[17]. - Gross profit was $98 million, down 13.2% from $112 million in Q2 2024, with a gross margin decrease of 260 basis points[17]. - Operating income fell to $22 million compared to $43 million in the prior year, attributed to lower gross profit in both Machine Clothing and Albany Engineered Composites[17]. - Net income attributable to the Company was $9 million ($0.31 per share), down from $25 million ($0.79 per share) in Q2 2024[17]. - Adjusted diluted earnings per share for Q2 2025 were $0.57, compared to $0.89 in Q2 2024, reflecting a decrease of 36%[17]. - Consolidated total net revenues for Q2 2025 were $311,399, reflecting a 7.4% decrease compared to Q2 2024[25]. - The company reported a gross profit of $97,507 for Q2 2025, down from $112,383 in Q2 2024[25]. - Net income for the six months ended June 30, 2025, was $26,681, a decrease from $52,089 in 2024[24]. - Adjusted EBITDA for the total company in Q2 2025 was $51,882, with an adjusted EBITDA margin of 16.7%[26]. - Adjusted EBITDA for the six months ended June 30, 2025, was $107,599, down from $128,458 in 2024, reflecting a decline of 16.2%[27]. - The adjusted EBITDA margin for the total company was 17.9% for the six months ended June 30, 2025, compared to 19.9% in 2024[27]. - Free cash flow for the six months ended June 30, 2025, was $4,302, significantly lower than $46,333 in the same period of 2024, indicating a decrease of 90.7%[29]. - The diluted earnings per share for the six months ended June 30, 2025, was $0.87, down from $1.66 in 2024, a decrease of 47.0%[29]. Revenue Guidance - The company reaffirmed full-year 2025 revenue guidance of $1.165 billion to $1.265 billion[18]. - Machine Clothing revenue is projected to be between $705 million and $755 million for the full year[18]. - Albany Engineered Composites revenue is expected to be between $460 million and $510 million for 2025[18]. Capital Expenditures and Cash Flow - Capital expenditures are estimated to be in the range of $85 to $95 million for the year[18]. - Net cash provided by operating activities was $34,833, down from $92,989 in the previous year[24]. - Net cash used in investing activities was $27,288, compared to $45,627 in the prior year[24]. - Proceeds from borrowings in financing activities were $171,995, significantly higher than $43,282 in the previous year[24]. - Cash and cash equivalents at the end of the period were $106,689, down from $116,439 at the end of the previous year[24]. Tax and Interest Expenses - The effective tax rate for Q2 2025 was 31.3%, up from 27.9% in Q2 2024, primarily due to favorable discrete tax adjustments in the prior period[17]. - Interest expense for the six months ended June 30, 2025, was $8,805, compared to $6,269 in 2024, reflecting an increase of 40.5%[27]. Debt and Leverage - Net debt as of June 30, 2025, was $337,997, an increase from $260,618 as of June 30, 2024[29]. - The net leverage ratio as of June 30, 2025, was 1.60, compared to 1.00 as of December 31, 2024, indicating increased leverage[30]. Restructuring and Foreign Currency - Restructuring costs for the six months ended June 30, 2025, totaled $5,387, compared to $4,830 in the same period of 2024, an increase of 11.5%[28]. - Foreign currency revaluation gains for the six months ended June 30, 2025, were $13,523, a significant increase from losses of $3,601 in 2024[28]. - The company experienced a foreign currency remeasurement gain of $7,171 in the first half of 2025[24]. Future Projections - The forecast for Full Year 2025 Adjusted EBITDA for the total company is projected to be between $240 million and $260 million[33]. - The forecasted net income attributable to the company (GAAP) for 2025 is expected to range from $78 million to $90 million[33]. - Adjusted diluted earnings per share (non-GAAP) is anticipated to be between $3.00 and $3.40 for 2025[33]. - The company expects depreciation and amortization expenses to be between $89 million and $93 million for the full year 2025[33]. - The forecast for EBITDA (non-GAAP) for the total company is estimated to be between $221 million and $241 million[33]. - Restructuring costs are projected to remain constant at $5 million for the full year 2025[33]. - Foreign currency revaluation losses are expected to be $14 million for the full year 2025[33]. Company Overview - Albany International operates 30 facilities across 13 countries and employs approximately 5,400 people globally[36]. - The company is a leading developer and manufacturer of engineered components, focusing on advanced materials processing and automation capabilities[35]. - Albany International is listed on the New York Stock Exchange under the symbol AIN[36].

Core Viewpoint - Albany International (AIN) is expected to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $0.73 per share, reflecting an 18% decrease year-over-year, and revenues of $295.26 million, down 11.1% from the previous year [3]. - The consensus EPS estimate has been revised 1.76% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Albany International is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.73% [12]. - The stock currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Albany International exceeded the expected earnings of $0.58 per share, achieving $0.73, which was a surprise of +25.86% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - Albany International does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making investment decisions ahead of the earnings release [17].

Company Overview - Albany International's market capitalization is $2 billion[13] - The company's 2024 revenue reached $1.231 billion[13] - Adjusted EBITDA for 2024 was $232 million[13] - The company's net debt in 2024 was $203 million[13] Machine Clothing (MC) Segment - The MC segment holds approximately 37% of the global paper machine clothing market share[63, 65] - Machine Clothing adjusted EBITDA margin is approximately 37% including Heimbach acquisition[83] - The Heimbach Group acquisition broadens the manufacturing footprint and enhances the sales and service network[81] Albany Engineered Composites (AEC) Segment - The AEC segment is focused on technology differentiation and maximizing customer solutions[101] - The company is investing in next-generation technologies for future growth in the AEC segment[97] Financial Performance & Strategy - The company's strategy for continued growth includes serving vital industries and solid execution[9] - The company's capital deployment is primarily focused on organic growth[37]

Financial Data and Key Metrics Changes - The company has shown tremendous growth in the bottom line of its machine clothing segment, while the top line remains stable [7] - The integration of Heimbach is expected to improve overall margins, despite some headwinds faced in the European market [24][25] Business Line Data and Key Metrics Changes - The machine clothing segment is characterized by a strong focus on quality, with a double-digit price advantage over competitors due to superior product quality [16][17] - The aerospace segment is experiencing significant growth opportunities, particularly in advanced air mobility and space, with a strong partnership with Safran on the LEAP engine [10][27] Market Data and Key Metrics Changes - The aerospace market is expected to grow significantly, driven by commercial and defense programs, with a goal to achieve a 70% defense mix in the future [31] - The paper industry is facing challenges due to the decline in newspaper production, but growth in packaging and tissue is expected to offset this decline [12] Company Strategy and Development Direction - The company aims to expand its product portfolio in engineered fabrics and leverage its weaving technology for organic growth [20][53] - There is a focus on operational excellence and cost control to achieve high teens EBITDA margins in the aerospace business [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the aerospace sector's growth, particularly with Boeing's production ramp-up and the potential for increased LEAP engine volumes [41][43] - The company is taking a conservative approach to revenue projections for the LEAP program, anticipating upside if Boeing continues to increase production [43] Other Important Information - The company is exploring opportunities in hypersonics and aims to replace titanium with domestically sourced products, which could significantly impact future growth [40][61] - The company has faced challenges with employee turnover and training, but improvements have been made to enhance workforce stability and productivity [48] Q&A Session Summary Question: What is the biggest value proposition Albany offers in the machine clothing segment? - The company is known for its high-quality products that help customers save on their largest cost inputs, which are primarily pulp, energy, and water [16] Question: How does Albany assess the potential impact of tariffs on its business? - The company is marginally impacted by tariffs due to its regionalized operations and the stability of USMCA [13][15] Question: What are the paths to organic growth in the machine clothing segment? - Opportunities include expanding the product portfolio in engineered fabrics and leveraging technology to grow market presence [20] Question: What competitive advantages does the aerospace segment have? - The company boasts a 99% on-time delivery rate and unique capabilities in 3D weaving, which are significant competitive advantages [32][35] Question: What is the outlook for the LEAP program revenue? - The company has taken a conservative approach for the current year but anticipates upside if production rates increase as expected [43]