Latest news with #GunnarKleveland
Yahoo
30-07-2025
- Business
- Yahoo
Albany's (NYSE:AIN) Q2 Sales Beat Estimates
Industrial equipment and engineered products manufacturer Albany (NYSE:AIN) announced better-than-expected revenue in Q2 CY2025, but sales fell by 6.2% year on year to $311.4 million. The company expects the full year's revenue to be around $1.22 billion, close to analysts' estimates. Its non-GAAP profit of $0.57 per share was 22.4% below analysts' consensus estimates. Is now the time to buy Albany? Find out in our full research report. Albany (AIN) Q2 CY2025 Highlights: Revenue: $311.4 million vs analyst estimates of $303.6 million (6.2% year-on-year decline, 2.6% beat) Adjusted EPS: $0.57 vs analyst expectations of $0.73 (22.4% miss) Adjusted EBITDA: $51.88 million vs analyst estimates of $60 million (16.7% margin, 13.5% miss) The company reconfirmed its revenue guidance for the full year of $1.22 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $3.20 at the midpoint EBITDA guidance for the full year is $250 million at the midpoint, above analyst estimates of $247.8 million Operating Margin: 7.2%, down from 12.9% in the same quarter last year Free Cash Flow Margin: 6%, down from 19.2% in the same quarter last year Market Capitalization: $2.16 billion "Overall, I am encouraged with our progress this year. Our business segment leaders are performing well as they restructure, invest and strengthen their operations. Our second quarter financial results lagged our expectations, but the performance was largely impacted by certain timing and operational issues and we are confident in our recovery," said President and CEO, Gunnar Kleveland. Company Overview Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Albany's sales grew at a sluggish 3.7% compounded annual growth rate over the last five years. This was below our standard for the industrials sector and is a rough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Albany's annualized revenue growth of 5.1% over the last two years is above its five-year trend, but we were still disappointed by the results. We can dig further into the company's revenue dynamics by analyzing its most important segments, Machine Clothing and Engineered Composites, which are 58.1% and 41.9% of revenue. Over the last two years, Albany's Machine Clothing revenue (paper manufacturing belts) averaged 9.3% year-on-year growth while its Engineered Composites revenue (aerospace components) averaged 1% growth. This quarter, Albany's revenue fell by 6.2% year on year to $311.4 million but beat Wall Street's estimates by 2.6%. Looking ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and suggests its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Albany has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 14.5%. This result isn't surprising as its high gross margin gives it a favorable starting point. Looking at the trend in its profitability, Albany's operating margin decreased by 10 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Albany generated an operating margin profit margin of 7.2%, down 5.8 percentage points year on year. Since Albany's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Albany, its EPS declined by 7.7% annually over the last five years while its revenue grew by 3.7%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. Diving into the nuances of Albany's earnings can give us a better understanding of its performance. As we mentioned earlier, Albany's operating margin declined by 10 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Albany, its two-year annual EPS declines of 15% show it's continued to underperform. These results were bad no matter how you slice the data. In Q2, Albany reported adjusted EPS at $0.57, down from $0.89 in the same quarter last year. This print missed analysts' estimates. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from Albany's Q2 Results We enjoyed seeing Albany beat analysts' revenue expectations this quarter. We were also glad its full-year EBITDA guidance slightly exceeded Wall Street's estimates. On the other hand, its EBITDA missed and its EPS fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 3.1% to $68.83 immediately after reporting. Albany may have had a tough quarter, but does that actually create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
26-06-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Albany's Q1 Earnings Call
Albany's first quarter results were met with a negative market reaction, as the company's sales declined amid ongoing operational shifts. Management attributed the revenue shortfall to reduced volumes in its Engineered Composites segment and lower sales within Machine Clothing, driven by targeted divestitures and customer-specific softness. CEO Gunnar Kleveland noted, 'Machine Clothing continues to deliver consistent strong results and the integration of Heimbach is proceeding to plan,' but cautioned that certain program-specific adjustments and restructuring actions weighed on performance. Is now the time to buy AIN? Find out in our full research report (it's free). Revenue: $288.8 million vs analyst estimates of $294.1 million (7.8% year-on-year decline, 1.8% miss) Adjusted EPS: $0.73 vs analyst estimates of $0.62 (17.4% beat) Adjusted EBITDA: $55.72 million vs analyst estimates of $54.09 million (19.3% margin, 3% beat) The company reconfirmed its revenue guidance for the full year of $1.22 billion at the midpoint Adjusted EPS guidance for the full year is $3.20 at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for the full year is $250 million at the midpoint, below analyst estimates of $252.4 million Operating Margin: 9.8%, down from 12.4% in the same quarter last year Market Capitalization: $2.07 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Peter Arment (Baird) asked about Albany's readiness to meet higher production rates for LEAP engines. CEO Gunnar Kleveland explained that while inventory is being utilized in the first half, capacity is in place to respond to demand increases later in the year. Peter Arment (Baird) inquired about new business opportunities in the aerospace backlog, including classified programs. Kleveland highlighted growth potential in space, missile programs, and both Boeing and Airbus engine platforms, stating that technology differentiation guides the company's pursuit of new contracts. Michael Ciarmoli (Truist Securities) pressed for details on the risk profile and margin expectations for the Bell 525 contract. Kleveland emphasized selective program participation and projected high-teen margins for the Engineered Composites segment. Michael Ciarmoli (Truist Securities) queried about the outlook for LEAP revenues and potential upside. Management maintained a cautious stance but acknowledged the possibility for incremental growth if aircraft production ramps up during the year. Chigusa Katoku (JPMorgan) questioned the organic growth outlook for Machine Clothing amid macro uncertainty. Kleveland clarified that divestitures and discontinued product lines contributed to short-term weakness, but order backlog and current trends support a stronger second and third quarter. In the coming quarters, the StockStory team will be watching (1) the pace and scale of cost synergies realized from the Heimbach integration, (2) evidence of improving sales volumes and operational leverage in the Engineered Composites segment as aerospace markets recover, and (3) the company's ability to manage input cost pressures and potential tariff or supply chain disruptions. Sustained backlog strength and successful execution of new program wins will also be key indicators of future performance. Albany currently trades at $68.43, up from $65.61 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
09-06-2025
- Business
- Business Wire
Albany International to Present at the Wells Fargo 2025 Industrials & Materials Conference
ROCHESTER, N.H.--(BUSINESS WIRE)--Albany International Corp. (NYSE:AIN) President and Chief Executive Officer, Gunnar Kleveland, will speak at the Wells Fargo 2025 Industrials & Materials Conference on Wednesday, June 11, 2025 at 4:45 p.m. ET. Interested parties are invited to listen to the webcast via the Company's Investor Relations website at A replay of the webcast will be available on the website following the event. About Albany International Corp. Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world's leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials‑based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Rochester, New Hampshire, operates 30 facilities in 13 countries, employs approximately 5,400 people worldwide, and is listed on the New York Stock Exchange (Symbol: AIN). Additional information about the Company and its products and services can be found at
Yahoo
09-06-2025
- Business
- Yahoo
Albany International to Present at the Wells Fargo 2025 Industrials & Materials Conference
ROCHESTER, N.H., June 09, 2025--(BUSINESS WIRE)--Albany International Corp. (NYSE:AIN) President and Chief Executive Officer, Gunnar Kleveland, will speak at the Wells Fargo 2025 Industrials & Materials Conference on Wednesday, June 11, 2025 at 4:45 p.m. ET. Interested parties are invited to listen to the webcast via the Company's Investor Relations website at A replay of the webcast will be available on the website following the event. About Albany International Corp. Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world's leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials‑based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Rochester, New Hampshire, operates 30 facilities in 13 countries, employs approximately 5,400 people worldwide, and is listed on the New York Stock Exchange (Symbol: AIN). Additional information about the Company and its products and services can be found at View source version on Contacts Investor / Media Contact: JC Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
AIN Q1 Earnings Call: Declining Revenues Offset by Profit Outperformance and Operational Adjustments
Industrial equipment and engineered products manufacturer Albany (NYSE:AIN) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 7.8% year on year to $288.8 million. The company's full-year revenue guidance of $1.22 billion at the midpoint came in 1.4% below analysts' estimates. Its non-GAAP profit of $0.73 per share was 17.4% above analysts' consensus estimates. Is now the time to buy AIN? Find out in our full research report (it's free). Revenue: $288.8 million vs analyst estimates of $294.1 million (7.8% year-on-year decline, 1.8% miss) Adjusted EPS: $0.73 vs analyst estimates of $0.62 (17.4% beat) Adjusted EBITDA: $55.72 million vs analyst estimates of $54.09 million (19.3% margin, 3% beat) The company reconfirmed its revenue guidance for the full year of $1.22 billion at the midpoint Adjusted EPS guidance for the full year is $3.20 at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for the full year is $250 million at the midpoint, below analyst estimates of $252.4 million Operating Margin: 9.8%, down from 12.4% in the same quarter last year Free Cash Flow was -$13.48 million compared to -$17.26 million in the same quarter last year Market Capitalization: $2.06 billion Albany's Q1 results reflected lower revenues across both core segments, with management attributing the decline to targeted product line divestitures and project-related volume fluctuations. CEO Gunnar Kleveland emphasized operational streamlining and the ongoing integration of the Heimbach acquisition, noting that North American deliveries were slightly down, while European orders showed improvement. The company also cited a stable tariff environment in the quarter, with regional supply chains mitigating exposure to global trade disruptions. Looking ahead, management reaffirmed full-year revenue guidance and pointed to a stronger second half, anticipating benefits from recent operational actions and the Heimbach integration. CFO Robert Starr stated, 'We remain on track to deliver another strong cash flow performance this year,' while Kleveland highlighted the company's strong order backlog and improvements in program execution in the Engineered Composites segment as key factors supporting the outlook. Management focused on operational execution and business realignment to address the quarter's revenue decline, while highlighting progress on major integration and efficiency initiatives. Heimbach integration accelerating: The integration of Heimbach is proceeding as planned, with facility closures and restructuring expected to drive operational efficiencies and cost savings, particularly in the second half of the year. Machine Clothing stability: The Machine Clothing segment remained resilient, supported by stable demand in tissue, pulp, and engineered fabrics, and a strong order backlog, although North American deliveries were slightly lower and China showed some weakness. Engineered Composites improvements: The Engineered Composites business reported progress on key programs, including the CH-53K and Gulfstream, with fewer negative cost adjustments (EACs) than in prior periods and new contract wins such as the long-term agreement with Bell on the 525 program. Tariff exposure limited: Management stated that the company's regional supply and production networks, particularly under the USMCA and European trade treaties, largely insulated Albany from direct tariff impacts in the quarter; ongoing monitoring for potential second-order effects continues. Technology-driven opportunities: Ongoing titanium shortages in the aerospace industry are steering customers toward Albany's 3D woven composite parts, which management believes offer advantages in lead times and cost, positioning the company for incremental long-term growth. Management expects the second half of the year to benefit from operational improvements, synergy realization, and potential demand recovery in key end markets. Synergy realization from Heimbach: The company anticipates that ongoing integration and facility rationalization will yield stronger cost savings and efficiency gains, particularly as actions ramp up later in the year. Aerospace ramp potential: Albany is positioned to respond if demand from customers like Boeing, Airbus, and Safran increases, with the Engineered Composites segment maintaining capacity to support production upswings. Macro and supply chain risks: Management flagged ongoing uncertainties in macroeconomic conditions and supply chains, including potential second-order tariff impacts and titanium shortages, as areas that could influence future results. Peter Arment (Baird): Asked about Albany's readiness to meet potential increases in LEAP engine program demand; management responded that capacity is available and sees upside in the second half if demand materializes. Michael Ciarmoli (Truist Securities): Sought details on the risk and margin profile of the new Bell 525 contract; CEO Kleveland stressed selectivity in new work and expects returns in the high teens for the Engineered Composites business. Chigusa Katoku (JPMorgan): Questioned the confidence behind maintaining full-year guidance despite weak organic Machine Clothing growth; management cited strong order backlog and expected acceleration in coming quarters. Jordan Lyonnais (Bank of America): Inquired about the delivery outlook for 787 and 777-X aerospace programs; management indicated a slow ramp for 787 this year and ongoing parts support for 777-X certification. Chigusa Katoku (JPMorgan): Asked about potential pull-forward orders in the Machine Clothing segment; management reported no evidence of such activity and described order volume as steady. In the coming quarters, the StockStory team will monitor (1) the realization of Heimbach integration synergies and their effect on margins, (2) the pace of demand recovery in the Engineered Composites segment, particularly for aerospace programs, and (3) the company's ability to mitigate supply chain risks, including titanium shortages and potential indirect tariff impacts. Progress on these milestones will be central to evaluating Albany's operational trajectory. Albany currently trades at a forward EV-to-EBITDA ratio of 10.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
