Albany International Corp.

What they do

Albany International operates through two segments: Machine Clothing (MC), the world's leading producer of custom-designed paper machine clothing and engineered fabrics; and Albany Engineered Composites (AEC), which manufactures advanced composite components for aerospace and defense, including fan blades and fan cases for the LEAP engine under a long-term exclusive supply contract via Albany Safran Composites (ASC).

Revenue drivers

• Machine Clothing — The largest segment, generating $708.1 million in 2025 (60% of total net revenues), primarily from paper machine clothing (forming, pressing, drying fabrics, and process belts) and engineered fabrics for nonwovens and industrial applications.
• Albany Engineered Composites — Generated $474.7 million in 2025 (40% of total net revenues), driven by sales of composite fan blades and fan cases for the LEAP engine to SAFRAN, which accounted for approximately 15% of consolidated net revenues in 2025.
• Aerospace programs (other than LEAP) — Includes CH-53K helicopter, F-35 fighter jet, and other defense and space applications, contributing to AEC's revenue base, though specific figures are not disclosed.

Recent performance

In 2025, total net revenues declined to $1.18 billion from $1.23 billion in 2024, and the company reported a net loss of $57.3 million (diluted EPS of -$1.94), versus net income of $87.6 million in 2024. Operating cash flow for 2025 was $152.5 million, down from $218.4 million in 2024. In the June 2026 quarter, revenue was $329.5 million, with total assets of $1.71 billion and long-term debt of $450.7 million as of June 30, 2026. Dividends per share increased from $1.05 in 2024 to $1.09 in 2025.

Strategy

Management focuses on maintaining leadership in machine clothing through product innovation and cost efficiency, while growing the composites segment with new aerospace and defense programs. Key investments include supporting the LEAP program ramp-up and developing capabilities for advanced air mobility, space-launch vehicles, and other defense platforms. The company also aims to integrate the Heimbach Group acquisition and achieve expected synergies, as noted in risk factors.

Risks

• Paper demand decline — Continued decline in publication grades and changes in packaging formats reduce demand for paper machine clothing, pressuring MC revenues.
• Aerospace program dependence — Reliance on SAFRAN and LEAP program for ~15% of consolidated revenues exposes AEC to aircraft production rate changes and program delays/cancellations.
• Supply chain and cost inflation — Increasing labor, raw material, energy, and logistics costs, exacerbated by geopolitical conflicts, could squeeze margins.
• Geopolitical and trade policy risk — Proposed tariffs and trade policy changes could adversely impact results, along with risks from Russia-Ukraine and Middle East conflicts.

Outlook

Management did not provide specific forward-looking guidance in the provided excerpts. However, the risk factors indicate expectations of ongoing pressures from paper industry consolidation and potential aerospace inventory destocking, while new program ramps and production rate increases are expected to drive long-term growth in composites. The company continues to monitor geopolitical and trade developments that could affect operations and financial results.