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Albany International Corp . (NYSE:AIN), a $2.47 billion market cap company with a "GOOD" financial health rating according to InvestingPro, has announced the approval of stock-based compensation for its executives, including Performance Stock Unit Awards and Restricted Stock Unit Awards, as part of its 2023 Incentive Plan. The Compensation Committee of the company’s Board of Directors made the decision on February 21, 2025, with the aim of incentivizing performance and retaining key personnel.
The Performance Stock Unit Awards offer executives the chance to earn shares based on the achievement of predetermined company-wide performance goals over a three-year period from January 1, 2025, to December 31, 2027. These goals are focused on adjusted EBITDA (currently at $256.4 million), Return on Invested Capital (currently at 9%), and relative Total (EPA:TTEF) Shareholder Return (rTSR). With the stock currently trading at $73.77, analysts have set price targets ranging from $74 to $104, suggesting potential upside. The executives could receive anywhere from 0% to 200% of their target share amounts, depending on the level of goal attainment. The Committee will evaluate the performance in early 2028, with bonuses scheduled for payment in March 2028.
Gunnar Kleveland, among other named executive officers, has a target share amount of 16,349 shares under this award. Other executives, including Robert D. Starr, Merle Stein, Chris Stone, and Joseph M. Gaug, have also been granted target share amounts ranging from 3,201 to 5,632 shares.
In addition to the Performance Stock Unit Awards, the executives were granted Restricted Stock Unit Awards, which consist of a fixed number of shares that vest over a three-year period. These shares will be settled in Class A common stock upon vesting, with one-third of the awarded units vesting on each anniversary of the grant date, provided the recipient remains employed by Albany International or its subsidiaries.
The target share amounts for the Restricted Stock Unit Awards match those of the Performance Stock Unit Awards for each named executive officer. There is no exercise price for these awards, and no dividends are paid until the shares vest.
This strategic move by Albany International is designed to align the interests of its executives with those of its shareholders, promoting long-term value creation. The full details of the award agreements have been filed with the SEC and are included as exhibits in the company’s latest 8-K report. This information is based on a press release statement.
In other recent news, Albany International reported its fourth-quarter 2024 earnings, revealing results that fell short of Wall Street expectations. The company’s earnings per share (EPS) was $0.58, missing the forecast by $0.07, while revenue reached $286.9 million, below the consensus estimate of $299.69 million. This performance marked a notable decline compared to the same period in the previous year, with net revenue decreasing by 11.3% and gross profit dropping by 24.6%. Albany International also provided guidance for 2025, projecting total company revenue to be between $1.165 and $1.265 billion, which is below the consensus estimate of $1.29 billion. Despite the disappointing quarterly results, the company achieved record full-year revenues of $1.25 billion for 2024. Analyst Michael Ciarmoli from Truist noted the decline in revenue and margins, particularly in the Albany Engineered Composites segment. The company has initiated a share repurchase program, repurchasing $15 million of shares in the fourth quarter. Looking ahead, Albany International projects an EPS range of $3.00 to $3.40 for 2025, with expectations of modest growth in its AEC segment.
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