Albany International Corp.

Second-quarter revenue was $329.5 million, up 5.8% year over year. Adjusted EBITDA was $57.8 million versus $51.9 million last year, with margin of 17.6%. Gross profit was $107.9 million with gross margin of 32.7% versus 31.3% a year ago, and operating income was $32.1 million with margin of 9.8% versus 7.2% last year. Engineered Composites revenue was $150.8 million, up from $130.5 million, and segment adjusted EBITDA was $20 million or 13.3% of sales versus $11.1 million or 8.5% last year. Machine Clothing revenue was $178.7 million and segment adjusted EBITDA was $50 million, roughly flat year over year. Free cash flow was a net use of $14.5 million, and the company ended the quarter with $77.3 million in cash, $450.7 million in total debt, and about $427 million of available capital including revolver availability. For Q3, Albany expects consolidated revenue of $320 million to $330 million, adjusted EPS of $0.60 to $0.70, and an effective tax rate of approximately 31.5%. For the full year, Machine Clothing revenue is expected to be slightly down versus 2025.

Gunnar Kleveland framed the quarter as evidence that Albany’s more focused operating model is working, saying the company is seeing benefits from reduced program risk, stronger execution, and a shift toward higher-return growth areas. He highlighted strong aerospace and defense demand, including interest from the Department of War, an Airbus-related wing collaboration, and continued work in high-temperature ceramic matrix composites. His tone was constructive and optimistic, but still measured, with repeated emphasis on discipline, improved visibility, and longer-term value creation.

Willard Station emphasized that profitability improved meaningfully, citing adjusted EBITDA of $57.8 million, gross margin of 32.7%, and operating margin of 9.8%. He said Engineered Composites’ stronger production rates and mix helped offset lower Machine Clothing volume, while Machine Clothing still delivered a 28% adjusted EBITDA margin despite equipment downtime. On cash, he pointed to free cash flow use of $14.5 million, attributing it mainly to working capital timing, inventory build for Engineered Composites ramp-up, and higher inventories in Machine Clothing; capex was $11.9 million and R&D was $11.7 million. He also noted $77.3 million of cash, $450.7 million of debt, and roughly $427 million of available capital.

Analysts focused on three areas: the pace of Engineered Composites growth and whether capacity would need to expand, the significance and ramp of new aerospace and defense wins including Pratt & Whitney’s GTF contract, and the status of the Salt Lake/Sikorsky strategic review. Management said current facilities can support near-term demand, but investment may be needed in the short-to-medium term if demand stays elevated, and that the GTF contract is significant and will begin production early next year in Mexico. On the strategic review, management said the process is on plan, has been down-selected to 8 final candidates, and is moving toward a decision that maximizes shareholder value.