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Investing.com -- Shares of Albany International Corp . (NYSE:AIN) tumbled 7.5% following the company’s fourth-quarter earnings release, which fell short of Wall Street expectations. The manufacturer’s earnings per share (EPS) and revenue for the quarter were both below analyst estimates, with EPS at $0.58, missing the forecast by $0.07, and revenue reaching $286.9 million, below the consensus estimate of $299.69 million.
The company’s financial results for the quarter ending December 31, 2024, showed a significant decline compared to the same period in the previous year. Net revenue decreased by 11.3%, and gross profit dropped by 24.6% to $90.3 million from $119.9 million reported for the fourth quarter of 2023. The fall in revenue was attributed to decreased sales in packaging and publication grades within the Machine Clothing segment, as well as a 25% decrease in net revenues across commercial and defense programs in the Albany Engineered Composites segment, particularly impacting the LEAP and CH-53K programs.
Albany International also provided guidance for the full year 2025, projecting total company revenue to be between $1.165 and $1.265 billion, which is below the consensus estimate of $1.29 billion. The guidance reflects anticipated revenues of $705 to $755 million for Machine Clothing and $460 to $510 million for Albany Engineered Composites.
Truist analyst Michael Ciarmoli commented on the results, stating, "AIN announced 4Q24 results were below consensus across the board and down YOY." He highlighted that the company’s revenue and margins had both declined year-over-year (YoY), with particularly steep drops in the Albany Engineered Composites segment.
The company’s management emphasized their strong balance sheet and the re-initiation of their share repurchase program, with $15 million of shares repurchased in the fourth quarter of 2024. Despite the disappointing fourth-quarter performance, Albany International’s CEO Gunnar Kleveland pointed to the record revenues for the full year and the generation of $137 million in free cash flow as signs of the underlying strength of their businesses.
Investors will be closely monitoring the company’s progress as it enters the new fiscal year, with an emphasis on the performance of the Machine Clothing and Engineered Composites segments and the company’s ability to meet its adjusted EBITDA and EPS targets for 2025.
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