10-Q · April 30, 2026
Albany International reported solid Q1 2026 results with revenues of $311.3 million and diluted EPS of $0.54, exceeding consensus estimates of $281.2 million and $0.52, respectively. While revenue showed a…
Earnings analysis · 10-Q
AIN earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Albany International delivered Q2 revenue of $329.482 million, up 5.8% year over year, with GAAP diluted EPS of $0.61 versus $0.31 last year, but both figures were below the supplied consensus estimates of $339.152…
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Albany International delivered Q2 revenue of $329.482 million, up 5.8% year over year, with GAAP diluted EPS of $0.61 versus $0.31 last year, but both figures were below the supplied consensus estimates of $339.152 million and $0.71. AEC was the principal growth and earnings driver, with revenue up 15.6% and operating income improving to $11.429 million from a $2.674 million loss, while MC revenue and margins declined. Cash conversion was the key offset: six-month operating cash flow fell to $2.992 million and calculated free cash flow was negative $18.208 million following inventory-driven working-capital investment and $21.200 million of capex.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.61
What stood out
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Revenue grew 5.8% year over year
Q2 net revenue rose $18.083 million, or 5.8%, to $329.482 million from $311.399 million a year earlier. Revenue increased from approximately $311 million in Q1 2026, although the reported Q2 figure was below the $339.152 million consensus estimate provided.
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Margins and operating income improved
Gross profit increased $10.394 million to $107.901 million, lifting gross margin 140 basis points to 32.7% from 31.3%. Consolidated operating income increased 44.3% to $32.138 million from $22.270 million, producing a 9.8% operating margin versus 7.2%.
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EPS improved year over year and sequentially
GAAP diluted EPS was $0.61, up from $0.31 in Q2 2025 and $0.54 in Q1 2026. The result was $0.10 below the supplied $0.71 consensus EPS estimate.
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AEC returned to segment profitability
AEC revenue grew $20.299 million to $150.772 million, while gross margin expanded to 17.9% from 10.5%. The segment turned a $2.674 million operating loss into $11.429 million of operating income, driven by LEAP, B787 Frames and Boeing Tanks activity, lower unfavorable contract adjustments, and lower held-for-sale depreciation.
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Liquidity remains adequate
Liquidity totaled approximately $426.7 million at June 30, comprising $77.349 million of cash and $349.3 million of revolver availability. Management states these resources should adequately fund operations and business needs over the next 12 months.
What to watch
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Machine Clothing demand and margins weakened
Machine Clothing revenue declined 1.2% to $178.710 million and operating income fell 7.9% to $34.705 million. Its operating margin contracted to 19.4% from 20.8%, reflecting Americas demand weakness, temporary production interruptions, volume declines, and higher restructuring costs.
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Working capital sharply reduced cash flow
Six-month operating cash flow fell to $2.992 million from $34.833 million as working-capital use widened to $53.360 million from $24.434 million, principally from inventory growth tied to MC seasonality and AEC customer demand. After $21.200 million of capex, calculated six-month free cash flow was negative $18.208 million.
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Debt and variable-rate exposure raised interest cost
Borrowings outstanding under the credit agreement were $450.700 million at June 30, 2026, while quarterly net interest expense rose to $6.068 million from $5.150 million. A 1-percentage-point increase in rates on $274.335 million of unhedged variable-rate debt would raise annual interest expense by approximately $2.7 million.
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No risk-factor update; FX sensitivity remains
Item 1A reports no material changes from risk factors disclosed in the December 31, 2025 10-K. Nonetheless, foreign-currency sensitivity remains material: a hypothetical 10% adverse exchange-rate movement could cause an approximately $18.7 million income-statement adjustment on net foreign-currency assets of $186.6 million.
Management's outlook
The 10-Q contains qualitative outlook commentary but no quantitative revenue or EPS guidance. MC expects Packaging and Tissue to remain positive contributors through the remainder of 2026, while publication-grade demand is expected to continue declining through 2026 and beyond.
Earlier filings 4
10-K · February 27, 2026
Albany International reports FY2025 net revenues of $1,182,813,000, driven by two segments: Machine Clothing ($708,066,000) and Albany Engineered Composites ($474,747,000). The company is investing in R&D ($48.0 million…
10-Q · November 6, 2025
Albany International reported a sharp Q3 2025 operating loss driven by large contract profitability adjustments in its Albany Engineered Composites (AEC) segment, producing net revenues of $261,434,000 and a net loss…
10-Q · April 30, 2025
Albany reported Q1 net revenues of $288.8M, down from $313.3M in Q1 2024, with gross profit of $96.5M and operating income of $28.3M. Diluted EPS fell to $0.56 from $0.87 a year ago; operating cash flow was weak at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.