Albany International Corp. posted third‑quarter 2025 revenue of $261.4 million, a 12.2% decline from $298.4 million a year earlier, falling short of the $299.8 million consensus estimate and missing revenue expectations by roughly 12.8%. The company’s GAAP net loss widened to $97.8 million, while adjusted net income rose to $20.6 million, giving an adjusted earnings per share of $0.71—an $0.01, or 1.4%, beat over the $0.70 consensus.
The decline in revenue was driven by a 4.4% drop in the Machine Clothing segment, which generated $175.0 million, and a $86.5 million loss in the Engineered Composites segment, largely attributable to a $147 million loss reserve related to the CH‑53K program. The reserve, far larger than the $46 million figure previously reported, reflects the company’s recognition that the CH‑53K contract, as originally bid, cannot achieve profitability without contract modifications. The Engineered Composites segment also benefited from higher volume on the LEAP program, partially offsetting the CH‑53K impact.
Margin compression is evident in the adjusted EBITDA margin, which fell to 18.3% from 21.5% a year earlier. The drop is driven by the CH‑53K loss reserve and softer sales volume in Machine Clothing, which lowered gross margin from 33.3% to 31.7%. Adjusted EBITDA itself declined to $56.2 million, reflecting the combined effect of the reserve and volume pressures.
Management withdrew its full‑year 2025 guidance amid a strategic review of the structures‑assembly business, including the CH‑53K program, and the closure of the Gulfstream program at year‑end. The company cited uncertainty about the outcome of the review and the financial impact of the CH‑53K reserve as reasons for the guidance withdrawal. Capital allocation continues with a $50.5 million share repurchase and a $0.27 quarterly dividend, and cash and cash equivalents stood at $108.3 million.
CEO Gunnar Kleveland emphasized that the company is “continuing the transformation of Albany International” and that “all other remaining programs are performing well.” He highlighted the AEC segment’s 100% on‑time delivery record and new contract wins, underscoring a strategic shift toward higher‑margin advanced composite technologies.
The results illustrate a mixed outlook: while the EPS beat signals disciplined cost management and a favorable mix in the AEC segment, the revenue miss, significant CH‑53K loss reserve, and guidance withdrawal point to ongoing operational challenges and a need for restructuring. The company’s focus on exiting underperforming legacy programs and concentrating on core high‑margin opportunities signals a long‑term strategy aimed at improving profitability.
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