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AIN NYSE· Albany International Corporation
Earnings report Q4 2023

Albany International Corp. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Albany International Corp. (AIN) reported net revenues of $1.15 billion. The company's revenue is divided into two segments: Machine Clothing (MC) and Albany Engineered Composites (AEC). MC generated net revenues of $609.5 million, representing a 10.5% increase compared to the previous year. This growth was primarily driven by the acquisition of the Heimbach business, which contributed $51.2 million in net revenues. Additionally, MC benefited from improved performance in tissue and packaging grades. AEC, on the other hand, reported net revenues of $425.4 million, reflecting an 11.7% increase. This growth was mainly attributed to revenue growth across AEC's portfolio of commercial programs, including LEAP, Boeing 787 Frames, GE9X, and other commercial programs.

Strengths

Albany International Corp. demonstrated strong revenue growth in the latest quarter, with consolidated net revenues increasing by 11%. The company's Machine Clothing segment experienced a significant boost in revenue, driven by the acquisition of Heimbach and improved performance in tissue and packaging grades. Albany Engineered Composites also contributed to the revenue growth, benefiting from increased revenue across its commercial programs. The company's ability to expand its business through strategic acquisitions and capitalize on growth opportunities in its segments showcases its strength in the market.

Challenges

Despite the overall revenue growth, Albany International Corp. faced challenges in its Albany Engineered Composites segment. While recurring production revenues for defense programs grew year-over-year, the growth was offset by lower non-recurring revenues associated with the start-up of the CH-53K aft transition program. This indicates a potential dependency on non-recurring revenues, which may pose challenges in sustaining consistent growth in the segment.

Noteworthy

The acquisition of the Heimbach business played a significant role in driving the revenue growth in Albany International Corp.'s Machine Clothing segment. This strategic move expanded the company's market presence and contributed $51.2 million in net revenues. Additionally, the company's Albany Engineered Composites segment experienced revenue growth across its portfolio of commercial programs, indicating a strong demand for its products in the aerospace industry.

Summary

Albany International Corp. delivered a strong performance in the latest quarter, with consolidated net revenues increasing by 11%. The company's Machine Clothing segment benefited from the acquisition of Heimbach and improved performance in tissue and packaging grades. Albany Engineered Composites demonstrated revenue growth across its commercial programs, despite challenges related to non-recurring revenues. The company's strategic acquisitions and market presence position it well for future growth opportunities.

Source documents

Form 10-K  filed on Feb 26, 2024
129 pages scanned

Reference data

Company financials Q4 revenue 324M
Analyst estimates Q4 EPS beat by 32.13%
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