AIN

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the general industrial machinery stocks, including Albany (NYSE:AIN) and its peers. Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 12 general industrial machinery stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 3.3% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results. Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries. Albany reported revenues of $329.5 million, up 5.8% year on year. This print fell short of analysts’ expectations by 3.1%. Overall, it was a slower quarter for the company with some shareholders anticipating a better outcome. Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, “Our second-quarter performance delivered the strongest Adjusted EBITDA we have achieved in the past two years and grew 11.5% year-over-year, despite modestly lower-than-expected revenue due to several discrete factors. This result reflects the progress we have made to build a more nimble company and underscores the strength of our operating model, our focus on profitable growth, and the dedication of the Albany team." Albany delivered the weakest performance against analyst estimates among its peers. The market seems disappointed with the results as the stock is down 13.7% since reporting and currently trades at $54.35. Read our full report on Albany here, it’s free. With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries. Columbus McKinnon reported revenues of $531.5 million, up 125% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates. Columbus McKinnon pulled off the fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 18% since reporting. It currently trades at $17.26. Is now the time to buy Columbus McKinnon? Access our full analysis of the earnings results here, it’s free. Tracing back to its invention of the mechanical milk bottle filler in 1884, JBT Marel (NYSE:JBTM) designs, manufactures, and sells equipment used for food processing and aviation. JBT Marel reported revenues of $981 million, up 4.9% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates. JBT Marel delivered the weakest full-year guidance update in the group. As expected, the stock is down 18.2% since the results and currently trades at $116.41. Read our full analysis of JBT Marel’s results here. Producers of the first asthma inhaler, 3M Company (NYSE:MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods. 3M reported revenues of $6.5 billion, up 5.6% year on year. This result beat analysts’ expectations by 1.5%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and full-year EPS guidance beating analysts’ expectations. The stock is up 7% since reporting and currently trades at $170.18. Read our full, actionable report on 3M here, it’s free. One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare. GE Aerospace reported revenues of $12.63 billion, up 24.5% year on year. This print surpassed analysts’ expectations by 6%. It was an exceptional quarter as it also put up full-year EPS guidance exceeding analysts’ expectations. GE Aerospace scored the biggest analyst estimate beat among its peers. The stock is down 8.2% since reporting and currently trades at $330.85. Read our full, actionable report on GE Aerospace here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Albany currently trades at $59.13 per share and has shown little upside over the past six months, posting a small loss of 0.8%. The stock also fell short of the S&P 500’s 11.6% gain during that period. Is now the time to buy Albany, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free. We’re cautious about Albany. Here are three reasons you should be careful with AIN, plus one stock we’d rather own. A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Albany grew its sales at a mediocre 6.4% compounded annual growth rate. This was below our standard for the industrials sector. Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions. Sadly for Albany, its EPS declined by 5.7% annually over the last five years while its revenue grew by 6.4%. This tells us the company became less profitable on a per-share basis as it expanded. A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). Over the last few years, Albany’s ROIC has unfortunately decreased significantly. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. We cheer for all companies making their customers lives easier, but in the case of Albany, we’ll be cheering from the sidelines. With its shares underperforming the market lately, the stock trades at $59.13 per share (or a trailing 12-month price-to-sales ratio of 1.4×). The market typically values companies like Albany based on their anticipated profits for the next 12 months, but there aren’t enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. We’d suggest looking at one of our top software and edge computing picks. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Albany’s second quarter was defined by a mix of operational progress and some regional headwinds across its core businesses. While sales growth in Engineered Composites contributed to stronger profitability, management acknowledged a modest revenue shortfall due to equipment downtime in Machine Clothing and lower demand in the Americas. CEO Gunnar Kleveland emphasized that, “the miss in revenue for the quarter was completely attributable to the machine failure,” and highlighted continued ramp-up in key aerospace and defense programs as a source of resilience. The company’s disciplined focus on execution, especially in Engineered Composites, helped offset softness in other segments. Is now the time to buy AIN? Find out in our full research report (it’s free). Revenue: $329.5 million vs analyst estimates of $340.1 million (5.8% year-on-year growth, 3.1% miss) Adjusted EPS: $0.82 vs analyst estimates of $0.74 (11.6% beat) Operating Margin: 11.7%, up from 8.7% in the same quarter last year Market Capitalization: $1.73 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Peter Arment (Baird): Asked about the outlook for Engineered Composites, especially new defense contracts and the impact of the Pratt & Whitney win. CEO Gunnar Kleveland explained that LEAP is ramping to 24/7 production, and the GTF contract will add significant volume from Mexico starting next year. Arment (Baird): Requested details on the Salt Lake City facility sale process. Kleveland confirmed that eight finalists remain, the process is on track, and the decision will prioritize shareholder value, with both sale and partnership structures under review. Andrew Steinhardt (Bank of America): Inquired about capacity constraints in Engineered Composites. Kleveland replied that current facilities are sufficient for near-term demand, but additional investment may be needed if all expected contract wins materialize. Steinhardt (BofA): Sought clarification on the financial impact and duration of the Machine Clothing equipment failure. CFO Willard Station said it drove modest revenue impact, and lost volume is expected to be recovered by year-end. Alexandra Mandery (Truist Securities): Probed into the cyclical declines in Americas Machine Clothing and timing for recovery. Kleveland explained that consolidation among papermakers led to a temporary lull, but a healthy backlog is expected as new machines require Albany’s high-speed belts. Looking ahead, the StockStory team will be monitoring (1) the speed and success of Machine Clothing’s volume recovery following equipment replacement, (2) sustained ramp-up and execution of new aerospace and defense contracts in Engineered Composites, and (3) the outcome of the Salt Lake City facility’s strategic review. Progress on restoring demand in the Americas and signs of improved order backlogs in Asia will also be key markers of future momentum. Albany currently trades at $61.01, down from $62.98 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Revenue: $329.5 million, up 5.8% year-over-year. Adjusted EBITDA: $57.8 million, up from $51.9 million in the prior year, with a margin of 17.6%. Gross Profit: $107.9 million, with a margin of 32.7% compared to 31.3% in the prior year. Operating Income: $32.1 million, representing a margin of 9.8% compared to 7.2% last year. Machine Clothing Revenue: $178.7 million, with adjusted EBITDA of $50 million and a margin of 28%. Engineered Composites Revenue: $150.8 million, a 16% increase year-over-year and a quarterly record, with adjusted EBITDA of $20 million or 13.3% of sales. Free Cash Flow: Net use of $14.5 million compared to a net gain of $17.8 million in the prior year. Capital Expenditures: $11.9 million. R&D Expense: $11.7 million. Cash and Debt: Ended the quarter with $77.3 million in cash and $450.7 million in total debt, resulting in net debt of approximately $373.3 million. Interest Expense: $6.1 million, up due to higher debt balances. Effective Tax Rate: 32% compared to 31.3% in the prior year. Warning! GuruFocus has detected 5 Warning Sign with AIN. Is AIN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EPS exceeded forecast range despite modestly lower-than-expected revenue, with strongest adjusted EBITDA in two years. Engineered Composites segment achieved record quarterly revenue of $150.8 million, up 16% year-over-year, driven by ramps in LEAP, Boeing programs, and CH-53K. Strong margin performance in Machine Clothing (28% adjusted EBITDA margin) despite lower volumes, reflecting disciplined cost management and operational execution. Strategic review of Salt Lake City site progressing well, with multiple indications of interest and down-selection to eight final candidates, indicating strong market interest. New business wins and collaborations, including Pratt & Whitney GTF contract, AMP collaboration, and ATI's Advanced Wing project, position for long-term growth. Machine Clothing revenue expected to be slightly down for full-year 2025 due to softer demand in Americas, customer consolidations, and capacity rationalization. Additional downtime from a machine replacement in North America impacted Q2 revenue, with reassembly not complete until end of year. Tooling for a next-generation defense contract shifted to second half, causing Engineered Composites revenue to slightly miss expectations. Free cash flow was a net use of $14.5 million in Q2, driven by inventory growth to support ramps and seasonal shutdowns, a significant year-over-year decline. Demand environment remains fluid with geopolitical uncertainty and elevated energy costs potentially extending challenges in the paper industry, particularly in Asia and South America. Q: Can you provide a high-level update on AEC, including the LEAP ramp, new defense program wins, and the GTF contract win?A: Gunnar Kleveland (President and CEO) stated that the LEAP ramp-up is significant, with operations moving to 24/7 across three sites this summer, and expects the program to continue ramping until late 2027. He noted that Airbus could potentially reach 75 aircraft per month by 2028. For defense, new programs are coming online for both aircraft and missiles, including JASM and LRASM, with the Department of War visiting Salt Lake City to discuss capacity ramp-ups. Regarding the Pratt & Whitney contract, Kleveland expressed excitement about the resin transfer molded parts for the GTF engine inlets, which will be produced in Mexico with production starting early next year. Q: Where do things stand on the Salt Lake City strategic review and sale process, and when will there be a resolution?A: Gunnar Kleveland (President and CEO) confirmed the process is on track, having received multiple indications of interest and down-selected to eight final candidates. He emphasized that while the sales process is progressing with bidding finalizing in the coming weeks, the company continues to work with Sikorsky and will ultimately make the decision that maximizes shareholder value. Q: How much growth in Engineered Composites can be supported with current capacity, and will investment in production be necessary to support elevated demand?A: Gunnar Kleveland (President and CEO) stated that current facilities and equipment can support immediate demand, but with the current demand levels, investment will be needed in the short to medium term. He noted that expansion opportunities exist within current sites and that the company has a good challenge of managing significant demand. Q: Can you provide more color on the cyclical declines in the Americas for Machine Clothing, including which products are impacted and when demand will pick back up?A: Gunnar Kleveland (President and CEO) explained that papermakers in the US took out older equipment in response to demand adjustments, creating a lull between machine shutdowns and new belt installations. However, he noted that the remaining machines run at high speeds where Albany has a competitive advantage, and the company sees a healthy order backlog towards the end of Q4 and into next year as they get back into newer, more advanced machines. Q: Can you provide any updates on the overcapacity issue in Asia and whether visibility has increased there?A: Gunnar Kleveland (President and CEO) noted that Asia has not taken out capacity like the Americas, with some growth in tissue where Albany has a strong position. The overcapacity is being handled through lower machine speeds, and papermakers are breaking even at best. He expects demand to return to healthy levels over the medium term but remains uncertain about the timing of Asia's recovery. Q: What is the progress on negotiations with Lockheed regarding the Salt Lake City asset, and are you leaning more toward divesting or renegotiating and keeping the asset?A: Gunnar Kleveland (President and CEO) stated the process is on track, with the sales process down-selected to eight candidates. He confirmed ongoing discussions with Sikorsky as part of the assessment, and the company is close to being able to announce something. The decision will be based on what provides the best return for shareholders. Q: What impacted free cash flow this quarter, as it was an outflow versus a seasonal inflow?A: The company representative explained the outflow was related to working capital timing, specifically building excess inventory in Europe to support deliveries during seasonal shutdowns. They expect cash flow to normalize in Q3 and Q4, consistent with historical patterns. Q: Can you quantify the financial impact of the equipment failure in Machine Clothing?A: The company representative stated the machine failure drove a modest impact for the quarter, and the revenue miss was completely attributable to it. The team is replacing the equipment, and they plan to catch up the lost volume by the end of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 9:00 a.m. ET Director of Investor Relations - Karen Blomquist President and Chief Executive Officer - Gunnar Kleveland Willard Station Operator: Hello, everyone. Thank you for joining us, and welcome to Albany International's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference call over to Karen Blomquist, Director of Investor Relations. Karen, please go ahead. Karen Blomquist: Thank you, operator, and good morning, everyone. Welcome to Albany International's Second Quarter 2026 Earnings Call. As a reminder, for those listening on the call, please refer to our press release issued this morning detailing our quarterly financial results. Contained in the text of the release is a notice regarding our forward-looking statements and the use of certain non-GAAP financial measures and their reconciliation to GAAP. For the purposes of this conference call, those same statements apply to our verbal remarks this morning. Additionally, our remarks today may reference our earnings presentation, which is available on the Investor Relations section of our website, albint.com. Today, we will make certain statements that are forward-looking and contain a number of risks and uncertainties, which could cause actual results to differ from those expressed or implied. For a full discussion of these risks and uncertainties, please refer to both our earnings release of August 4, 2026, as well as our SEC filings, including our 10-Q and our 10-K. Now I will turn the call over to Gunnar Kleveland, our President and CEO, who will provide opening remarks. Gunnar? Gunnar Kleveland: Thank you, Karen. Good morning, and welcome, everyone. Thank you for joining our second quarter earnings call. Before providing an overview of our performance for the quarter, I'd like to summarize our recent visit to the Farnborough International Airshow. Over the course of the week, we had highly productive engagements where we met with leading aerospace and defense OEMs as well as government officials to discuss the growing demand for advanced composite manufacturing solutions. Notably, the Department of War requested time with our team to explore how our differentiated commercial capabilities, including out-of-autoclave processing technologies can support faster production rates and lighter-weight solutions for critical defense applications such as solid rocket motors and titanium replacement. Also, as announced at the show, AEC has been selected as a collaboration partner on the Aerospace Technology Institute's Advanced Wing Enabling Ultra-Efficient Propulsion 2 project. We're excited to work with Airbus and the other partners to apply our advanced composite technologies to help develop composite wing applications for the next-generation single-aisle aircraft. We'll share more as the project gets underway. In addition, we continue to rapidly develop our high-temperature ceramic matrix composite capabilities, utilizing our advanced 3D woven and infusion technologies in support of solid rocket motors and hypersonic missile applications. We will have exciting news to share in the coming months as we grow our collaborative partnerships and expand our facilities to support the significant opportunities on this front. Turning to our second quarter highlights. Our performance reflects a more focused and disciplined operating model built around the actions we have taken over the past few years to strengthen and derisk the business. Across the company, our focus is on areas where we have a clear competitive advantage in industrial [ weaving ] and material science, which drive more durable, higher return growth. In the quarter, we delivered adjusted EPS that exceeded our forecast range despite modestly lower-than-expected consolidated revenue. On an adjusted EBITDA basis, we achieved the strongest results we have had in the past 2 years. We executed well and profitability strengthened with good execution across both segments. We're now seeing the benefits of our refined operating model in Engineered Composites that is focused on our proprietary 3D woven components. Our major programs are continuing to ramp. We're winning new business. Execution has improved and the portfolio contains materially less program risk. This is translating to stronger, healthier and more reliable growth. Next, I'd like to discuss the results by segment, beginning with Machine Clothing. Revenue for the quarter was $178.7 million. Underlying sales and volume were broadly consistent with our plan. However, we incurred additional downtime related to the machine we are replacing. To restore capacity on a permanent basis, we relocated a machine from one of our closed European facilities to the U.S. The machine has now arrived on site and the reassembly is underway with completion expected by the end of the year. We expect this action to strengthen our production capabilities and support our ongoing efforts to recover lost volume and customer demand. Excluding the effect of the machine downtime, demand trends are mixed across geographies. By region, China continued to show stabilization, while Europe remained a source of strength. In the Americas, volume was below expectations as we are seeing some moderation tied to customer facility closures and consolidations, lower inventory levels and a softer demand environment in South America. Additionally, ongoing geopolitical uncertainty and elevated energy costs across the paper manufacturing value chain could extend the challenges affecting the region. The situation remains fluid, and we're closely monitoring potential implications for demand and market conditions. During the second quarter, Will and I had the opportunity to spend time in China with our incredible team there. We're encouraged by the focus on safety, operational excellence and the commitment to winning in the changing market environment. We still have limited visibility in the market, but are encouraged by more stable volumes in that region for the past 3 quarters. By grade, tissue and packaging demand remains favorable, particularly in Asia. These areas of strength are partially offset by long-term secular decline in publication grades and softer pulp demand in South America. Adjusted EBITDA for Machine Clothing was $50 million, roughly flat with the prior year period as stable demand, continued execution and benefits from integration activities largely offset the impact of additional equipment downtime and modestly lower volume. Turning to Engineered Composites. Revenue for the quarter was $150.8 million compared to $130.5 million in the prior year. The 16% increase was driven by higher production rates across multiple programs, including LEAP, Boeing programs and CH-53K. As we work to scale on a strategic next-generation contract with a defense prime, the tooling, which we anticipated receiving in the second quarter has shifted into the back half of the year. This shift caused revenue to be slightly lower than our expectations. As an update on our strategic review, we're progressing according to our planned time line and have received multiple indications of interest. While at the same time, our team's focus remains on executing for Sikorsky and supporting the efforts of the DoW. We continue to engage closely with our customers throughout the strategic assessment process, and we will ultimately make the decision that we believe maximizes value for our shareholders. Looking ahead, we remain confident in the growth prospects for Engineered Composites. Demand across our core commercial aerospace and defense programs remain strong. and we continue to see production rates built across multiple platforms. Missile demand also remains elevated, and we're working closely with our customers to increase the output within our current capabilities. In addition, new programs continue to advance and represent important long-term growth opportunities for the segment, like the recently announced collaboration with A&P that combines their leading braiding capabilities with our resin transfer molding expertise to support current and next-generation aero engine programs as well as a broad range of additional opportunities. Taken together, we believe Engineered Composites remains well positioned for long-term growth as we scale higher-value programs and increase new program categories and sales. As we look to the balance of 2026, our priorities remain clear. We're focused on disciplined execution, continued recovery in Machine Clothing and scaling Engineered Composites around higher-value programs where Albany has a clear differentiation. While the operating environment remains fluid, we believe the actions we have taken to strengthen the business are creating greater stability, improved visibility and a stronger foundation for profitable growth. We remain committed to driving improved cash generation, investing in innovation and returning capital to shareholders in a balanced and disciplined manner. I would like to thank our employees for their continued dedication as well as our customers, partners and shareholders for their ongoing support. With that, I'll turn the call over to Will to review the financial results in more detail. Willard Station: Thank you, Gunnar, and good morning. Before turning to the financials, I would like to remind you that a reconciliation of GAAP to non-GAAP measures discussed today can be found in this morning's press release. Second quarter revenue was $329.5 million, representing a growth of 5.8% year-over-year. This increase was driven primarily by higher activity levels in Engineered Composites as key programs continue to ramp, moderated by a modest decline in Machine Clothing. Adjusted EBITDA for the quarter was $57.8 million compared to $51.9 million in the prior year, reflecting a margin of 17.6% -- the year-over-year improvement was driven by stronger profitability in Engineered Composites and continued strong margin performance in Machine Clothing, partially offset by lower Machine Clothing volumes. In Machine Clothing, revenue was relatively in line with expectations despite additional downtime of the machine in North America. However, demand remained mixed across the geographies we serve. We saw continued stability in Europe, signs of stabilization in China and a softer demand in North and South America. In the Americas, customer consolidation and capacity rationalization actions taken by papermakers over the past year have reduced volume levels in certain markets. Adjusted EBITDA for the segment was $50 million with a margin of 28% -- while lower volume pressured revenue, the business continued to deliver strong margins, reflecting disciplined cost management, operational execution and the ongoing benefits from integration and efficiency initiatives. In Engineered Composites, segment revenue was $150.8 million, which marked a quarterly record for the segment. Performance was strong across all of our major programs, but modestly trailed our forecast range due to delayed tooling for a next-generation contract with a defense prime. Segment growth year-over-year was widespread across programs, including higher volume of LEAP, Boeing 787 and missile programs. Adjusted EBITDA for the segment was $20 million or 13.3% of sales compared to $11.1 million or 8.5% of sales last year. The year-over-year improvement was driven by higher production rates across multiple programs, including LEAP, Boeing programs, CH-53K and missile programs as well as improved operational execution. Gross profit for the quarter was $107.9 million with a margin of 32.7% compared to 31.3% in the prior year. Higher consolidated gross profit reflects strong execution and cost controls in Machine Clothing, a favorable mix of aerospace and defense programs and the lack of EAC adjustments in the current year. Operating income was $32.1 million, representing a margin of 9.8% compared to 7.2% last year. The improvement was primarily driven by stronger gross profit. Interest expense increased to $6.1 million due to higher debt balances throughout the quarter. Other income was a net expense of $39,000 in 2026 compared to a net expense of $3.5 million in the prior year, primarily driven by greater stability in the U.S. dollar. The effective tax rate for the quarter was 32% compared to 31.3% in the prior year. Free cash flow was a net use of $14.5 million compared to a net gain of $17.8 million in the prior year. The year-over-year decrease was driven by inventory growth to support a ramp-up in Engineered Composites as well as an increased inventories in Machine Clothing to support continued deliveries to customers during the seasonal shutdowns in Europe. Capital expenditures totaled $11.9 million, focused on facility optimization and investments tied to key customer programs. R&D expense was $11.7 million, reflecting our continued commitment to innovation. We ended the quarter with $77.3 million in cash and $450.7 million in total debt, resulting in a net debt of approximately $373.3 million. Including revolver availability, we have approximately $427 million of available capital providing flexibility to support ongoing investments and return capital to shareholders. Turning to our outlook and beginning with Machine Clothing. The demand environment remains fluid and mixed by geography. We continue to see stable demand in Europe, signs of stabilization in China at current levels and softer demand in North and South America. Given these trends and the impact of customer consolidation and capacity rationalization across parts of the paper industry, we now expect full year Machine Clothing revenue to be slightly down compared to 2025. In Engineered Composites, we expect continued year-over-year growth supported by ongoing program ramps across both commercial and defense platforms. We also expect the timing of certain tooling shipments that moved out of the second quarter to benefit the second half of the year. For the third quarter, we expect consolidated revenue in the range of $320 million to $330 million. We anticipate adjusted EPS in the range of $0.60 to $0.70 and an effective tax rate of approximately 31.5%. While we're taking a more cautious view of Machine Clothing revenue, we remain confident in the underlying margin profile of the business and our ability to manage costs while continuing to support our customers. Across the company, we remain focused on execution, cash generation and disciplined capital deployment. Now I'd like to open the call up for questions. Operator? Operator: [Operator Instructions] Your first question comes from Peter Arment with Baird. Peter Arment: Gunnar, could you maybe give us a little bit more of a high-level update on AEC? LEAP seems like it's synced up and performing well, but also want to try to understand some of the new defense program wins and how those ramp? And also any color on the GTF contract win, which was pretty significant. Gunnar Kleveland: Yes. The ramp-up on LEAP obviously follow the ramp-up both from Boeing and Airbus and deliveries that we are seeing of engines and you're seeing coming from Safran and GE -- the ramp-up is significant. We are this summer moving to 7 days a week, 24-hour operations across our 3 sites. And then we're improving our efficiency and output throughout the year. And we expect that program to continue to ramp and settle sometime late in 2027, depending on how the program -- right now, we're looking at 2028 as a potential for 75 aircraft a month from Airbus. So we'll assess that as well. Across the other programs, there's a continuing ramp on the commercial aircraft, the Boeing programs, whether that is tanks or the one-piece frames. So it's a good challenge to have to continue to ramp and the team is executing well. On our current programs for the defense, we've mentioned there are some new programs coming online. I can't really talk about that, but it's good business for us and new programs, both on aircraft as well as missiles. JASSM, LRASM, we're continuing to ramp up. As we mentioned last quarter, we have we have a Department of War visiting us in Salt Lake City and looking at our capacity and working through our prime there being Lockheed Martin on how we can ramp up. I think the last part of your question was on Pratt & Whitney. Very excited to have the Pratt & Whitney contract on Geared Turbofan. It is a complement of resin transfer molded parts in the inlets of the 2 engine variants. We'll be making that in Mexico. It's a significant portion or it's a significant addition to our portfolio. And we are pulling up in Mexico, and we'll be starting production early next year. Peter Arment: Just on Salt Lake, could you give us a little more of expectations on where things stand on the sale? Obviously, you're going through the process. And obviously, it's been hard to handicap from here. But how is that process going? And when do you think you'll have a resolution? Gunnar Kleveland: Yes. The process is going exactly to the plan that we are -- we had laid out. We had a multitude of IOIs received. We have down-selected to 8 final candidates that tells you the interest in the site. At the same time, I want to remind everyone that this is a strategic review of the site, and we are continuing to work with Sikorsky. In the end, we'll take -- we'll make the decision that is best for our shareholders. But clearly, we're going through the sales process, and it's moving at the rate that we expected with -- as we're finalizing the bidding in the coming weeks. Operator: Your next question comes from Andrew Steinhardt with Bank of America. Andrew Steinhardt: This is Andrew on for Ron. So we're seeing strong demand in Engineered Composites, and it sounds like that momentum was reinforced in the field based on the talks you guys had at Farnborough. I guess thinking longer term, how much growth in Engineered Composites can be supported with current capacity? Is -- if demand for critical materials composites stays elevated, is investment in production going to be necessary to support elevated demand? Gunnar Kleveland: Right now, what we're seeing in the immediate future, we can use our current facilities and equipment. But you're right, with the demand that we are seeing, there will be investment in the short to medium term to meet that demand. But I do not expect it to happen in the very short time frame. As these come to fruition, there are -- right now, there is so much demand that if we do win it all, that might change in the next year. But like I mentioned, this is a good challenge to have. We have a great team, and we have expansion opportunities within our current sites. Andrew Steinhardt: Got it. I appreciate that color. And I guess just a follow-up in a little bit of a different direction here. Can you talk a bit about the equipment failure that impacted the Machine Clothing business? I guess how long was it down? What caused it? Any color if you're able to quantify the financial impact, I would appreciate it. Willard Station: I would say it drove a modest impact for the quarter. And as we stated, the miss in revenue for the quarter was completely attributable to the machine failure. We are in the process of replacing that equipment. The team is performing well, and we're planning to catch up that lost volume by the end of the year. So a modest impact, team recovered from it. It wasn't down a long period of time, and we will catch up the volume by the end of the year. Operator: [Operator Instructions] Your next question comes from the line of Alexandra Mandery with Truist Securities. Alexandra Eleni Mandery: So in Machine Clothing, can you provide more color on the cyclical declines in Americas, including maybe what products are being impacted and when you expect demand to pick back up? Gunnar Kleveland: What we have seen in the U.S. late last year and the beginning of this year was an adjustment by the papermakers to what they saw in demand. So they took out some of the older equipment -- and we were affected by that, which is what we're seeing through this year. The result of the papermakers taking that supply out is that they are now -- if you're following several of the papermakers, they're increasing pricing. So it was a good decision by them to move to consolidate and curtail. What happens for us is that there is a lull between when these machines are down and we get new belts on the new equipment. The good part and what we see for future is that these machines need to run at very high speed where we have a competitive advantage. When they run at high speed, they -- it's more likely for the papermakers to make money. And so as we look at the outlook past the next quarter towards the end of fourth quarter and into next year, we see a pretty healthy order backlog. So that means we're getting back into these newer and more advanced machines, which is what we expected. But we're seeing that lull as these curtailments happen late last year and beginning of this year. Willard Station: And I would just add to it. So we're obviously taking a prudent view of our outlook for Q3. But we're maintaining our pricing. We're maintaining our cost discipline. The margins are still strong in that business. We're continuing to add value to our customers. And so overall, we're happy with the performance. But as Gunnar mentioned, we're just adapting to the market outlook and what's taking place in the market as you think of the Q3 guide. Alexandra Eleni Mandery: That makes sense. And then can you provide any updates on the overcapacity issue in Asia in terms of visibility? Has it increased there? Gunnar Kleveland: I think in Asia, they haven't done what was done in the Americas, where they've taken out. In fact, we've seen growth. There's some growth in tissue, which makes a lot of sense. That is a strong place where we have a strong position as well. The overcapacity is being handled, but it's being handled with lower speeds basically on the machines. If you look at the papermakers there, they're not making money or breaking even. So the lower output is going to last for a while until the demand is back. And we mentioned a little bit that's probably a little geopolitical as well, but we expect it to come back to a healthy level over the medium term. That's why we're saying we're not -- we're still uncertain about when Asia is going to come back. So it's still moderated compared to what we saw, for example, 1 year ago or 2 years ago. Operator: Your next question comes from the line of Chigusa Katoku with JPMorgan. Chigusa Katoku: I just wanted to ask about your progress on the negotiations with Lockheed. And also -- maybe you discussed it earlier, but just more color on -- I think right now, the asset has been held for sale, so you expect to divest by the end of this year, but any progress there? And are you leaning more towards divesting or renegotiating with Lockheed and keeping the asset? Gunnar Kleveland: And yes, the process is continuing. It's on track to our schedule. We have down-selected on the sales process to 8, and that progress -- that's going according to our plan. And of course, we're continuing to talk to Sikorsky as part of our assessment of the site and the viability for us to keep it. We are getting close to being able to announce something, but we are going to let the process play out, and we'll make a decision that is what's best for our shareholders and the best return. So we're doing the math or Will is doing the math and making sure that we're making a good decision here. So it's progressing to plan, Chigusa. Chigusa Katoku: Okay. Great. And then maybe you addressed it earlier, I'm sorry if I missed it, but what kind of impact is the free cash flow? I think there was an outflow this quarter versus seasonally, it should be an inflow. Willard Station: Yes. The best way to think about it is it's related to working capital timing. As we stated in Europe, we are operating in a stronger overall demand backdrop and build excess inventory in the region with their seasonal shutdown. And so we expect as we end Q3 and move into Q4, our cash flow is going to be consistent with what we've done historically in Q2, which is really working capital timing. Operator: [Operator Instructions] There are no further questions at this time. I will now turn the call back over to Gunnar Kleveland for closing remarks. Gunnar Kleveland: Thank you. And thank you, everyone, for joining us on the call today. We appreciate your continued interest in Albany International. Thank you, and have a good day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Albany International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Albany International wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $395,463!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,268,290!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 4, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Albany International (AIN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Albany International (AIN) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.50%. A quarter ago, it was expected that this textile and composite maker would post earnings of $0.55 per share when it actually produced earnings of $0.6, delivering a surprise of +9.09%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Albany International, which belongs to the Zacks Textile - Products industry, posted revenues of $329.48 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.8%. This compares to year-ago revenues of $311.4 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Albany International shares have added about 48.2% since the beginning of the year versus the S&P 500's gain of 11%. While Albany International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Albany International was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.75 on $267.51 million in revenues for the coming quarter and $2.85 on $1.2 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Products is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Unifi (UFI), another stock in the same industry, has yet to report results for the quarter ended June 2026. This polyester and nylon yarn maker is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +89.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Unifi's revenues are expected to be $139.75 million, up 0.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albany International Corporation (AIN) : Free Stock Analysis Report Unifi, Inc. (UFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Engineered Composites (AEC) achieved record quarterly revenue, driven by production ramps in LEAP, Boeing 787, and missile programs, alongside improved operational execution. Machine Clothing (MC) performance was impacted by North American machine downtime and customer facility consolidations, though margins remained resilient due to disciplined cost management. Management highlighted a shift toward a more focused operating model, prioritizing proprietary 3D woven components and high-value programs with lower inherent risk. The company is seeing stabilization in China's paper market and strength in Europe, contrasting with softer demand and capacity rationalization in the Americas. Engagement with the Department of War at the Farnborough Airshow underscored growing demand for out-of-autoclave processing and high-temperature ceramic matrix composites for defense applications. A new collaboration with Airbus on the ATI project positions AEC to develop composite wing applications for next-generation single-aisle aircraft. Full-year Machine Clothing revenue is now expected to be slightly down compared to 2025, reflecting a cautious view of North and South American demand trends. Engineered Composites growth is projected to continue through the second half of 2026, supported by the recovery of delayed defense tooling shipments and ongoing commercial ramps. Management anticipates LEAP program production will continue to scale, potentially reaching peak rates in late 2027 or 2028 depending on OEM aircraft delivery schedules. The strategic review of the Salt Lake City site is progressing as planned, with eight final candidates identified for a potential sale versus a renegotiation with Sikorsky. Q3 2026 guidance assumes consolidated revenue between $320 million and $330 million, with adjusted EPS ranging from $0.60 to $0.70. A machine failure in North America caused a modest revenue miss in the MC segment; a replacement unit from Europe is expected to be operational by year-end. Free cash flow was a net use of $14.5 million, primarily due to inventory builds to support AEC ramps and seasonal shutdowns in the European paper market. Geopolitical uncertainty and elevated energy costs remain persistent headwinds for the paper manufacturing value chain in the Americas, while Europe has remained a source of strength. The Pratt & Whitney Geared Turbofan contract represents a significant portfolio addition, with production scheduled to begin in Mexico in early 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed significant ramps in JASSM and LRASM missile programs and is working with Lockheed Martin to increase output capacity. The Pratt & Whitney GTF contract involves resin transfer molded parts for engine inlets, with production starting in Mexico early next year. The process has been down-selected to eight final candidates, indicating strong market interest in the site. Management is currently 'doing the math' to compare the value of a sale against the viability of keeping the asset and renegotiating with Sikorsky. Current facilities can support immediate needs, but short-to-medium term investment in production will likely be necessary if all pending demand is captured. Expansion opportunities exist within current sites to accommodate growth in high-temperature composites and next-gen aero engines. The 'lull' in U.S. demand is attributed to papermakers retiring older equipment; however, order backlogs for newer, high-speed machines are healthy for late 2026. Management emphasized they are maintaining pricing and cost discipline despite the volume pressure from customer consolidations.

Q2 2026 net revenue of $329.5 million, up 6% compared to $311.4 million in Q2 2025. Q2 2026 net income attributable to the Company of $17.4 million, or diluted earnings per share (EPS) of $0.61, up 90% and 97% respectively, compared to net income of $9.2 million, or diluted EPS of $0.31, in the prior year. Adjusted EBITDA of $57.8 million in Q2 2026 and Adjusted EPS per diluted share of $0.82 up 11% and 45% respectively, compared to $51.9 million and $0.57 in Q2 2025. Paid $7.9 million in dividends and invested $11.9 million in capital in the second quarter, continuing the commitment of balanced capital allocation. PORTSMOUTH, N.H., August 04, 2026--(BUSINESS WIRE)--Albany International Corp. (NYSE:AIN) today reported operating results for its second quarter of 2026, which ended June 30, 2026. Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, "Our second-quarter performance delivered the strongest Adjusted EBITDA we have achieved in the past two years and grew 11.5% year-over-year, despite modestly lower-than-expected revenue due to several discrete factors. This result reflects the progress we have made to build a more nimble company and underscores the strength of our operating model, our focus on profitable growth, and the dedication of the Albany team." Kleveland continued, "In Engineered Composites, we are seeing the benefits of a refined operating model centered on our innovative technologies, which enable lighter-weight, more durable solutions for customers across commercial aerospace, defense, and space applications. Our recent participation at the Farnborough International Airshow reinforced the value of our business, as leading OEMs and government stakeholders engaged with us to explore solutions enabled by our innovative material science. In Machine Clothing, we are applying that same focus on innovation to expand opportunities for our high-value, performance-driven products across a broader range of uses." Consolidated Results The Company’s net revenues were $329.5 million in the second quarter of 2026, compared to $311.4 million in the prior year. The increase was primarily driven by higher volume in the Engineered Composites business, offset by some end-market softness in Machine Clothing along with downtime related to an equipment failure in the Machine Clothing business. Gross profit of $107.9 million in the second quarter of 2026 was 10.7% higher than $97.5 million reported for the same period of 2025, as a result of cost controls in Machine Clothing and a favorable mix of aerospace and defense programs in the Engineered Composites business. Selling, general, and administrative expenses were $56.1 million in the second quarter of 2026, compared to $58.5 million in the same period of 2025, driven primarily by cost containment initiatives. Operating income was $32.1 million, compared to $22.3 million in the prior year, an increase of 44.3%, primarily driven by stronger gross profit and cost containment initiatives. The effective tax rate for the quarter was 32.0% compared to a 31.3% effective tax rate in the second quarter of 2025. The net income attributable to the Company was $17.4 million, or $0.61 per share on a basic and diluted basis, compared to $9.2 million, or $0.31 per share in the second quarter of 2025. Adjusted diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.82 per share, compared to $0.57 per share for the same period of last year. Adjusted EBITDA (a non-GAAP measure) was $57.8 million, compared to $51.9 million in the second quarter of 2025, an increase of 11.5%, due to stronger revenue and operating profit. Adjusted EBITDA margin was 17.6% and 16.7% in the prior year, up 90 basis points as a result of stronger contribution from Engineered Composites. Will Station, Albany International’s Chief Financial Officer, said, "We are pleased with our second-quarter performance, as disciplined execution and a more focused operating model drove meaningful year-over-year improvement in profitability. As we look to the balance of the year, we remain well positioned to maintain our growth trajectory. In Engineered Composites, we expect continued strength as multiple programs scale and we benefit from our focus on quality of earnings, while in Machine Clothing, we remain focused on execution and margin stability as we manage a fluid demand environment across the geographies we serve." Machine Clothing Machine Clothing's net revenues decreased 2.4% after adjusting for currency translation, primarily driven by cyclical declines in the Americas and machine downtime in that region. Machine Clothing’s adjusted EBITDA margin was 28.0%, compared to 28.9% in the second quarter of 2025. The margin decline is primarily impacted by foreign currency impacts related to a weaker U.S. dollar. On a constant currency basis, margins were up slightly at 29.0% despite lower volumes, driven by synergies and efficiency gains across the network. Engineered Composites Engineered Composites net revenues increased 14.2% after adjusting for currency translation, driven by strength across commercial and defense programs, most notably on the commercial side within the LEAP program, and on the defense side under the CH-53K and missile programs. Adjusted EBITDA margin was 13.3%, compared to 8.5% in the second quarter of 2025. The increase in margin was driven by the continued focus on quality of earnings and the scaling of more profitable programs. Capital Allocation Balance Sheet Capital expenditures were $11.9 million, compared to $14.9 million in the second quarter of 2025, and were driven primarily by facility optimizations. Research and development expenses totaled $11.7 million, compared to $12.6 million in the second quarter of 2025, consistent with the Company’s commitment to advancing proprietary technologies and supporting long-term growth in both Machine Clothing and Engineered Composites. Albany ended the quarter with cash and cash equivalents of $77.3 million and total debt of $450.7 million, resulting in a net debt position of $373.3 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders. Outlook for the Third Quarter of 2026 Consolidated net revenue between $320 million and $330 million Machine Clothing net revenue between $165 million and $170 million Engineered Composite net revenue between $155 million and $160 million Adjusted EPS between $0.60 and $0.70 Third-quarter effective tax rate of 31.5% Second-Quarter 2026 Results Conference Call/Webcast The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Tuesday, August 4, 2026. Interested parties are encouraged to listen to the live webcast via the Company’s Investor Relations website at investors.albint.com or by registering via the link here. The event can also be accessed by dialing +1 (833) 461-5787 and using the Meeting ID: 487 159 842. An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Tuesday, August 4, 2026. The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure: The following table presents Gross profit and Gross profit margin: Reconciliation of Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods have been calculated as follows. The following table presents the reconciliation of Machine Clothing's Adjusted EBITDA Margin to Adjusted EBITDA Margin excluding the effect of changes in currency translation rates, a non-GAAP measure: Per share impact of the adjustments to earnings per share are as follows: The following table provides a reconciliation of Earnings per share attributable to the Company shareholders - Diluted (GAAP) to Adjusted earnings per share attributable to the Company shareholders - Diluted (non-GAAP): The calculations of net debt are as follows: Free cash flow is defined as GAAP "Net cash provided by operating activities" in a period less "Purchases of property, plant and equipment" and "Purchased software" in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow: About Albany International Corp. Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, employs approximately 5,700 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com. Non-GAAP Measures This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; adjusted net revenues; Adjusted Gross profit/(loss); Adjusted Operating income/(loss);EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; Adjusted Net Income; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance. Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These current year revenues converted at prior year rates are then compared to the U.S. dollar amount as reported in the prior period. EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues. Adjusted Net Income is a supplemental measure of our performance that is not required by, or presented in accordance with U.S. GAAP. The company defines Adjusted Net Income to exclude costs related to the review of strategic alternatives for its structures assembly business, which could include a potential sale of that portion of the business. Such excluded adjustments to profitability to future contracts do not consist of items that are considered normal or recurring in the course of continued business operations. The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results. The Company’s Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted EPS may not be comparable to similarly titled measures of other companies. Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Forward-Looking Statements This press release may contain statements, estimates, guidance or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," "should," "look for," "guidance," "guide," and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2026 and in future years; expectations in 2026 and in future periods of revenues, Adjusted Net Revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Net Income, Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements. Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804510537/en/ Contacts Investor Contact Karen BlomquistDirector, Investor RelationsTel +1 603.330.2461EMAIL [email protected] Media Contact Sheri TrippSenior Manager, Corporate Communications and MarketingTel +1 603.330.8317 EMAIL [email protected]

Interested in Albany International Corporation? Here are five stocks we like better. Second-quarter results improved: Revenue rose 5.8% year over year to $329.5 million, while adjusted EBITDA increased to $57.8 million, or a 17.6% margin. Adjusted EPS exceeded the company’s forecast despite revenue falling modestly below expectations. Engineered Composites was the primary growth driver: Revenue reached a quarterly record of $150.8 million, up 16%, and adjusted EBITDA margin expanded to 13.3% as aerospace and defense production rates increased. Albany expects continued growth as LEAP, Boeing, missile and other programs ramp. Outlook remains mixed: Machine Clothing demand varied by region and was affected by equipment downtime, leading Albany to expect slightly lower full-year revenue for the segment. The company forecast third-quarter revenue of $320 million to $330 million and adjusted EPS of $0.60 to $0.70. Albany International (NYSE:AIN) reported second-quarter revenue growth and its strongest adjusted EBITDA performance in two years, driven by higher production rates in its Engineered Composites business, while Machine Clothing faced mixed regional demand and equipment-related downtime. Total second-quarter revenue rose 5.8% year over year to $329.5 million. Adjusted EBITDA increased to $57.8 million from $51.9 million a year earlier, producing a 17.6% margin. CFO Will Station said the improvement reflected stronger profitability in Engineered Composites and continued margin performance in Machine Clothing, partly offset by lower Machine Clothing volume. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control CEO Gunnar Kleveland said adjusted earnings per share exceeded the company’s forecast range despite consolidated revenue coming in modestly below expectations. He attributed the performance to improved execution, a more focused operating model and a portfolio with less program risk. Engineered Composites revenue reached a quarterly record of $150.8 million, up 16% from $130.5 million in the prior-year period. The increase was supported by higher production rates on LEAP, Boeing, CH-53K and missile programs. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Adjusted EBITDA for the segment rose to $20 million, or 13.3% of sales, from $11.1 million, or 8.5% of sales, a year earlier. Station said improved operational execution, higher production rates and favorable aerospace and defense program mix supported the margin expansion. Revenue was modestly below Albany’s expectations because tooling for a strategic next-generation contract with a defense prime shifted from the second quarter into the back half of the year. The company expects those tooling shipments to benefit second-half results. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Kleveland said the LEAP program continues to ramp alongside production at Boeing, Airbus, Safran and GE. Albany is moving to 24-hour, seven-day operations across three sites during the summer to support output. He said the company expects the program ramp to continue and potentially settle late in 2027, depending on production developments. The company also cited growing defense opportunities, including demand tied to JASSM, LRASM, solid rocket motors and hypersonic missile applications. Kleveland said Albany is working with Lockheed Martin and the Department of Defense on opportunities to increase output from existing capabilities. At the Farnborough International Airshow, the company said the Department of Defense met with Albany to discuss how its commercial capabilities, including out-of-autoclave processing technologies, could support faster manufacturing and lighter-weight defense solutions. Albany also said its AEC unit was selected as a collaboration partner in the Aerospace Technology Institute’s Advanced Wing Enabling Ultra-Efficient Propulsion 2 project alongside Airbus and other partners. Albany also announced a collaboration with A&P Technology combining braiding and resin transfer molding capabilities for current and next-generation aero-engine programs. Separately, Kleveland said the company won a Pratt & Whitney Geared Turbofan contract for resin transfer molded inlet components for two-engine variants. Production is expected to begin in Mexico early next year. Machine Clothing revenue totaled $178.7 million in the second quarter. Adjusted EBITDA was $50 million, roughly flat from the prior-year period, with a 28% margin. The segment experienced additional downtime associated with a North American machine that is being replaced. Albany relocated a machine from a closed European facility to the U.S., where reassembly is underway and expected to be completed by year-end. Station said the equipment issue had a modest quarterly impact and that the company expects to recover the lost volume by the end of the year. Demand conditions differed by region. Europe remained stable and China showed signs of stabilization, while North and South America were softer. The company cited customer facility closures, consolidations, lower inventories and weaker South American demand as factors affecting the Americas. Kleveland said U.S. paper makers removed older equipment late last year and early this year in response to demand conditions. While those actions created a temporary lull for Albany, he said newer machines tend to operate at higher speeds, where the company has a competitive advantage. He added that the company sees a “pretty healthy order backlog” heading toward the end of the fourth quarter and into next year. By paper grade, tissue and packaging demand remained favorable, especially in Asia. Those gains were partly offset by long-term declines in publication grades and softer pulp demand in South America. In Asia, Kleveland said overcapacity is being managed through lower machine speeds and output, with the timing of a broader recovery still uncertain. Gross profit was $107.9 million, with a 32.7% margin, compared with 31.3% a year earlier. Operating income rose to $32.1 million, or 9.8% of revenue, from a 7.2% margin in the prior-year quarter. Free cash flow was a use of $14.5 million, compared with a $17.8 million inflow a year earlier. Station attributed the change primarily to working-capital timing, including inventory growth to support Engineered Composites production ramps and Machine Clothing deliveries during European seasonal shutdowns. Cash at quarter-end: $77.3 million Total debt: $450.7 million Net debt: approximately $373.3 million Available capital including revolver availability: approximately $427 million Capital expenditures: $11.9 million Research and development expense: $11.7 million For the third quarter, Albany forecast consolidated revenue of $320 million to $330 million and adjusted EPS of $0.60 to $0.70, with an effective tax rate of about 31.5%. The company now expects full-year Machine Clothing revenue to be slightly lower than in 2025, reflecting customer consolidation and capacity rationalization in parts of the paper industry. Albany expects Engineered Composites to continue growing year over year as commercial and defense programs ramp. Meanwhile, Albany said its strategic review of its Salt Lake City site is proceeding on schedule. Kleveland said the company received multiple indications of interest and has narrowed the process to eight final candidates, while continuing discussions with Sikorsky. He said Albany expects to finalize bidding in the coming weeks and will select the option it believes provides the best value for shareholders. Albany International Corp. is a global advanced materials company specializing in engineered textiles and composites. Its business is organized into two primary segments: Process Media and Engineered Composites. The Process Media segment designs, manufactures and services press, forming and drying fabrics used in the production of paper and packaging materials, helping paper manufacturers improve efficiency, quality and sustainability. The Engineered Composites segment produces lightweight composite structures and components for aerospace and industrial applications, serving commercial and military aircraft programs as well as industrial markets that require high-performance, durable materials. In the Process Media segment, Albany's products include forming fabrics, press felts and dryer fabrics engineered to withstand extreme moisture and temperature conditions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Albany International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Industrial equipment and engineered products manufacturer Albany (NYSE:AIN) will be reporting results this Tuesday before market open. Here’s what to look for. Albany beat analysts’ revenue expectations last quarter, reporting revenues of $311.3 million, up 7.8% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. Is Albany a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Albany’s revenue to grow 8.9% year on year, a reversal from the 6.2% decrease it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Albany has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Albany’s peers in the general industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Columbus McKinnon delivered year-on-year revenue growth of 125%, beating analysts’ expectations by 5.9%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Columbus McKinnon traded up 31.1% following the results while GE Aerospace was down 3.2%. Read our full analysis of Columbus McKinnon’s results here and GE Aerospace’s results here. In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the general industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Albany’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $58.67 (compared to the current share price of $74.51). ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.