ALBANY INTERNATIONAL CORP /DE/ (AIN): Results of Operations and Financial Condition
ALBANY INTERNATIONAL CORP /DE/ (AIN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Item 2.02. Results of Operations and Financial Condition. On August 4, 2026 Albany International issued a news release reporting second-quarter 2026 financial results. The Company will host a webcast to discuss earnings at 8:30 a.m. Eastern Time on Tuesday August 4, 2026. The new
How this was made
The 30-second read
Why it matters
This is a primary earnings release with quantified profitability improvement (net income, EPS, adjusted EBITDA) and management guidance framing for the balance of the year by segment.
Market read
Traders can update valuation and near-term expectations based on the reported Q2 revenue, EPS, adjusted EBITDA, and management’s segment-specific execution narrative.
What to watch
Machine Clothing included downtime related to an equipment failure and end-market softness, which could pressure future quarters even if Engineered Composites remains strong.
Q2 2026 net revenue of $329.5 million, up 6% compared to $311.4 million in Q2 2025, while diluted EPS rose to $0.61 from $0.31 and Adjusted EBITDA increased to $57.8 million from $51.9 million.
Revenue growth, substantially higher GAAP earnings, improved Adjusted EBITDA, and stronger Engineered Composites profitability outweighed Machine Clothing volume weakness, regional equipment downtime, and a lower Machine Clothing adjusted EBITDA margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | $329.5 million | – | up 6% |
| Gross profitGAAP | $107.9 million | – | 10.7% higher |
| Selling, general, and administrative expensesGAAP | $56.1 million | – | – |
| Technical and research expensesGAAP | $11.7 million | – | – |
| Restructuring expenses, netGAAP | $ 7,973 (in thousands) | – | – |
| Operating incomeGAAP | $32.1 million | – | 44.3% |
| Interest expense, netGAAP | $ 6,068 (in thousands) | – | – |
| Other expense/(income), netGAAP | $ 39 (in thousands) | – | – |
| Income before income taxesGAAP | $ 26,031 (in thousands) | – | – |
| Income tax expenseGAAP | $ 8,327 (in thousands) | – | – |
| Effective tax rateGAAP | 32.0% | – | – |
| Net incomeGAAP | $ 17,704 (in thousands) | – | – |
| Net income attributable to the CompanyGAAP | $17.4 million | – | up 90% |
| Basic earnings per share attributable to Company shareholdersGAAP | $0.61 per share | – | – |
| Diluted earnings per share attributable to Company shareholdersGAAP | $0.61 per share | – | up 97% |
| Adjusted diluted earnings per sharenon-GAAP | $0.82 per share | – | up 45% |
| Adjusted EBITDAnon-GAAP | $57.8 million | – | 11.5% |
| Adjusted EBITDA marginnon-GAAP | 17.6% | – | up 90 basis points |
| Capital expendituresother | $11.9 million | – | – |
| Research and development expensesGAAP | $11.7 million | – | – |
| Dividends declared per Class A shareGAAP | $ 0.28 | – | – |
| Six-month net revenuesGAAP | $ 640,815 (in thousands) | – | – |
| Six-month operating incomeGAAP | $ 57,511 (in thousands) | – | – |
| Six-month net income attributable to the CompanyGAAP | $ 32,695 (in thousands) | – | – |
| Six-month diluted earnings per share attributable to Company shareholdersGAAP | $ 1.14 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Machine ClothingCyclical declines in the Americas and machine downtime in that region. Adjusted EBITDA margin was 28.0%, compared to 28.9% in the second quarter of 2025; foreign currency impacts related to a weaker U.S. dollar affected the margin. On a constant currency basis, margins were up slightly at 29.0%, driven by synergies and efficiency gains across the network. | Not reported | – | decreased 2.4% after adjusting for currency translation |
| Engineered CompositesStrength across commercial and defense programs, most notably the LEAP program, CH-53K, and missile programs. Adjusted EBITDA margin was 13.3%, compared to 8.5% in the second quarter of 2025, driven by the scaling of more profitable programs and focus on quality of earnings. | Not reported | – | increased 14.2% after adjusting for currency translation |
Third quarter of 2026 outlook
- RevenueConsolidated net revenue between $320 million and $330 million
- Tax rateThird-quarter effective tax rate of 31.5%
- NoteMachine Clothing net revenue between $165 million and $170 million
- NoteEngineered Composite net revenue between $155 million and $160 million
- NoteAdjusted EPS between $0.60 and $0.70
Capital returns
- Paid $7.9 million in dividends in the second quarter.
- Dividends declared per Class A share were $ 0.28, compared to $ 0.27 in the second quarter of 2025.
- Invested $11.9 million in capital in the second quarter.
What drove it
- Consolidated revenue growth was primarily driven by higher volume in Engineered Composites.
- Gross-profit growth reflected cost controls in Machine Clothing and a favorable mix of aerospace and defense programs in Engineered Composites.
- Selling, general, and administrative expenses declined primarily because of cost containment initiatives.
- Engineered Composites benefited from commercial aerospace, defense, and space applications, including the LEAP, CH-53K, and missile programs.
- Machine Clothing constant-currency margins benefited from synergies and efficiency gains across the network.
Concerns
- Machine Clothing experienced end-market softness.
- Machine Clothing revenue was affected by cyclical declines in the Americas and equipment-failure downtime in that region.
- Machine Clothing adjusted EBITDA margin declined to 28.0% from 28.9%, primarily due to foreign currency impacts related to a weaker U.S. dollar.
- Restructuring expenses, net increased to $ 7,973 (in thousands) from $ 4,183 (in thousands).
- Interest expense, net increased to $ 6,068 (in thousands) from $ 5,150 (in thousands).
What to watch
- Whether Engineered Composites continues to scale the LEAP, CH-53K, and missile programs and sustain its 13.3% adjusted EBITDA margin.
- Machine Clothing execution and margin stability amid what the CFO described as a fluid demand environment across the geographies served.
- The effect of Americas demand conditions, machine downtime, and foreign currency on Machine Clothing results.
- Delivery against third-quarter consolidated net revenue guidance of between $320 million and $330 million and Adjusted EPS guidance of between $0.60 and $0.70.
- Capital spending for facility optimizations and the quarter-end debt position of $450.7 million.
Balance sheet and cash flow
- Capital expenditures were $11.9 million, compared to $14.9 million in the second quarter of 2025.
- Cash and cash equivalents were $77.3 million at quarter end, compared to $ 112,350 (in thousands) at December 31, 2025.
- Total debt was $450.7 million at quarter end.
- Net debt position was $373.3 million.
- Accounts receivable, net were $ 252,133 (in thousands) at June 30, 2026, compared to $ 235,084 (in thousands) at December 31, 2025.
Analysis
Albany International reported a solid second quarter, with net revenue of $329.5 million versus $311.4 million in the prior-year period. Higher Engineered Composites volume drove the consolidated increase, while Machine Clothing faced end-market softness and equipment-failure downtime in the Americas. The company characterized revenue as modestly lower than expected because of several discrete factors, but still delivered its strongest Adjusted EBITDA in the past two years.
Profitability improved materially. Gross profit increased to $107.9 million from $97.5 million, operating income rose to $32.1 million from $22.3 million, and net income attributable to the Company increased to $17.4 million from $9.2 million. Diluted EPS was $0.61 versus $0.31, while non-GAAP Adjusted EPS rose to $0.82 from $0.57. Adjusted EBITDA increased to $57.8 million from $51.9 million, and Adjusted EBITDA margin improved to 17.6% from 16.7%, supported by Engineered Composites contribution, cost controls, favorable aerospace and defense mix, and lower selling, general, and administrative expenses.
The segment mix was central to the quarter. Engineered Composites revenue increased 14.2% after adjusting for currency translation, supported by commercial and defense activity, especially LEAP, CH-53K, and missile programs. Its adjusted EBITDA margin expanded to 13.3% from 8.5% as more profitable programs scaled. Machine Clothing revenue decreased 2.4% after adjusting for currency translation. Its adjusted EBITDA margin declined to 28.0% from 28.9% because of foreign currency effects, although constant-currency margin was stated to be up slightly at 29.0% through synergies and network efficiency gains.
Capital allocation included $7.9 million of dividends paid and $11.9 million of capital expenditures, primarily for facility optimizations. Cash and cash equivalents were $77.3 million, total debt was $450.7 million, and net debt was $373.3 million. The company also reported research and development expenses of $11.7 million, consistent with continued investment in proprietary technologies and long-term growth.
For the third quarter, Albany guided consolidated net revenue to between $320 million and $330 million, comprising Machine Clothing net revenue of between $165 million and $170 million and Engineered Composite net revenue of between $155 million and $160 million. Adjusted EPS is guided to between $0.60 and $0.70, with a 31.5% effective tax rate. The principal reported variables are continued Engineered Composites program scaling and Machine Clothing execution in a fluid demand environment.
Management, verbatim
Our second-quarter performance delivered the strongest Adjusted EBITDA we have achieved in the past two years and grew 11.5% year-over-year, despite modestly lower-than-expected revenue due to several discrete factors. This result reflects the progress we have made to build a more nimble company and underscores the strength of our operating model, our focus on profitable growth, and the dedication of the Albany team.
Gunnar Kleveland, President and Chief Executive Officer
In Engineered Composites, we are seeing the benefits of a refined operating model centered on our innovative technologies, which enable lighter-weight, more durable solutions for customers across commercial aerospace, defense, and space applications.
Gunnar Kleveland, President and Chief Executive Officer
We are pleased with our second-quarter performance, as disciplined execution and a more focused operating model drove meaningful year-over-year improvement in profitability. As we look to the balance of the year, we remain well positioned to maintain our growth trajectory.
Will Station, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-period outlook was not provided; therefore, comparison of actual results with prior guidance is unavailable.
- Actual second-quarter revenue by Machine Clothing and Engineered Composites was not included in the provided filing text.
- GAAP gross margin was not reported.
- Operating cash flow was not included in the provided filing text.
- Free cash flow was not included in the provided filing text.
- Share repurchases were not included in the provided filing text.
- Complete June 30, 2026 balance sheet and cash flow statement were not included because the supplied filing text ends during the balance sheet.
- Third-quarter guidance for gross margin and operating expenses was not reported.
- Third-quarter Adjusted EBITDA guidance was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The 8-K furnishes a news release reporting Albany International’s second-quarter 2026 operating results and includes segment commentary and capital allocation/dividend information.
Ticker impact
Albany International reported Q2 2026 results in an 8-K, including net revenue of $329.5M and diluted EPS of $0.61.
Near-term bias upward as traders reprice earnings power versus the prior-year quarter, though revenue was described as modestly below expectations.
The filing is a primary earnings disclosure with multiple quantified metrics (revenue, net income, adjusted EBITDA, adjusted EPS) and management commentary on segment drivers and margin/cost actions.
Market effects
Provides a read-through on demand and margin execution in engineered composites and machine clothing manufacturing supply chains.
Limited, company-specific impact; no broader regional macro signal in the text.
Defense and aerospace exposure could be a modest read-through for global aerospace/defense component demand, but the article is primarily company-specific.
Counterpoint
Revenue is described as modestly lower-than-expected due to discrete factors, so the stock reaction may fade if investors focus on top-line softness and equipment downtime.
Key entities
- companyAlbany International Corp. (DE)
NYSE-listed manufacturer reporting Q2 2026 results via SEC Form 8-K, including revenue, EPS, adjusted EBITDA, and segment drivers.
- executiveGunnar Kleveland
President and CEO quoted on Q2 performance and segment outlook.
- executiveWill Station
CFO quoted on profitability drivers and balance-of-year positioning.
