Albany Intl (NYSE:AIN) reported first-quarter financial results on Thursday. The transcript from the company’s first-quarter earnings call has been provided below.
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Summary
Albany Intl reported first quarter 2026 revenue of $311 million, a 7.8% increase year over year, with adjusted EBITDA of $48 million.
Strategic focus includes operational excellence and safety, with increased demand in weapons programs and new contracts in engineered composites.
Future outlook shows stable demand across segments, with revenue guidance for Q2 2026 between $335 million and $345 million, and anticipated EPS of $0.7 to $0.8.
Full Transcript
Gunnar Cleveland (President and CEO)
Gunnar thank you Karen Good morning and welcome everyone. Thank you for joining our first quarter earnings call. We entered 2026 as a more focused and disciplined organization with a clear strategy centered on our core strengths. Our culture begins with caring for our people and it was an honor to recently have our engineered composites segment recognized as one of America’s safest companies. Safety is a priority at Albany and is embedded in how we design processes and operate each day. And a strong safety culture translates to a strong quality culture. This operational philosophy is also manifested in our outstanding on time delivery performance. Our focus on safety, quality and operational excellence creates a solid foundation for our reliable operations, while our value proposition remains grounded in our shared expertise in industrial weaving and material science which connects our two businesses and differentiates us in the markets we serve. I’d like to take a minute to address the conflict in the Middle East. We’re continuously monitoring and working closely with our suppliers and customers and to date we have not seen any impact and have made only slight adjustments to delivery routes. Raw materials are generally protected by either long term contracts or customer directed contracts. We will continue to monitor and work to minimize any supply chain risk. At the same time, we’re seeing increased demand on our weapons programs and are maximizing production on key programs. In machine clothing. The team did an outstanding job taking corrective actions to make up the downtime of a machine malfunction and we expect debt recovery to be completed in the back half of the year. More broadly, demand conditions across our end markets stabilized in the first quarter in engineered composites. Our focus remains on refining our operating model and prioritizing higher value add applications, particularly within our advanced weaving technologies including 3D weaving, braiding, winding and resin transfer molding that serve end markets such as commercial and defense propulsion systems, missile production and space exploration. We’re seeing volume increase across key programs reflecting both higher production rates and the benefit of the actions we have taken over the past 12 months. Importantly, we’re winning new business with new and existing customers and demand remains strong across defense platforms and the lead production continues to increase. Our current pipeline of new business opportunities remains robust and and continues to expand as we focus on new applications where our expertise and products offer greater strengths and lighter weight solutions. We believe the actions we have taken and the trends we see across both segments position us well to drive strong free cash generation and build on the baseline we established exiting 2025. This provides us with the flexibility to continue allocating capital in a balanced and disciplined manner including reinvesting and in the business to support long term growth while also returning cash to shareholders. Turning to the quarter, we’re off to a Solid start to 2026 with revenue of $311 million up 7.8% year over year, which translated to adjusted EBITDA of $48 million in machine clothing. Revenue for the quarter was $166 million and came in ahead of our expectations across all regions including North America, Europe and China. Despite the recent stabilization in China and improved order rates which are positive developments, visibility beyond the near term remains limited. As we previously disclosed, at the start of the first quarter we experienced an equipment failure at one of our facilities and I’m pleased to report that we were able to recover more of the lost production related to the unplanned downtime that than we initially anticipated in the first quarter. Assuming the equipment continues to operate as expected, we believe we are well positioned to recover the remaining lost volume by the end of the year we’re actively managing this situation and are relocating a machine from a coast facility to have a long term solution in place. By year end, adjusted EBITDA margin for MC was 25.9% on a constant currency. …
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