Latest news with #Kleveland
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
Associated Press
30-04-2025
- Business
- Associated Press
Albany International Reports First-Quarter 2025 Results
ROCHESTER, N.H.--(BUSINESS WIRE)--Apr 30, 2025-- Albany International Corp. (NYSE:AIN) today reported operating results for its first quarter of 2025, which ended March 31, 2025. 'Overall, I am pleased to report that our businesses are executing to the plan that we laid out at the start of this transition year. Our new business segment leaders are performing well as they restructure and strengthen their respective operations. Machine Clothing continues to deliver consistent strong results, and the integration of Heimbach is proceeding to plan. We expect to see the benefits of the Heimbach integration efforts accelerate into the second half of this year as our actions take effect. AEC is executing well on its current portfolio of programs, and the segment continues to win new business. The team is making progress on process improvements on our CH-53K and Gulfstream programs, and we had lower EAC adjustments in the quarter,' said President and CEO, Gunnar Kleveland. 'While we see uncertainty in the markets, we were not affected by tariffs or other disruptions in the first quarter. Due to our mostly regional set up for both suppliers and customers, the overall direct impact of tariffs, as they currently stand, is not expected to materially impact our financial or operational performance,' concluded Kleveland. For the first quarter ended March 31, 2025: Please see the tables below for a reconciliation of non-GAAP measures to their comparable GAAP measures. Outlook for Full-Year 2025: The company has re-affirmed guidance for the full year of 2025 as follows: The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure: The following table presents Gross profit and Gross profit margin: A reconciliation from Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods has been calculated as follows: Per share impact of the adjustments to earnings per share are as follows: The following table provides a reconciliation of Diluted Earnings per share to Adjusted Diluted Earnings per share: The calculations of net debt are as follows: Free cash flow is defined as GAAP 'Net cash provided by operating activities' in a period less 'Purchases of property, plant and equipment' and 'Purchased software' in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow: The calculation of net leverage ratio as of March 31, 2025 is as follows: The tables below provide a reconciliation of forecasted full-year 2025 Adjusted EBITDA and Adjusted Diluted EPS (non-GAAP measures) to the comparable GAAP measures. 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. 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 Basis of Presentation Certain amounts in prior year financial statements have been reclassified to conform to current year presentation. Non-GAAP Measures This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company's operational performance. Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These current year revenues converted at prior year rates are then compared to the U.S. dollar amount as reported in the prior period. EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company's continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company's ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues. The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company's ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results. The Company's Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EPS may not be comparable to similarly titled measures of other companies. Net debt aids investors in understanding the Company's debt position if all available cash were applied to pay down indebtedness. Net leverage ratio informs the investors of the Company's financial leverage at the end of the reporting period, providing an indicator of the Company's ability to repay its debt. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Forward-Looking Statements This press release may contain statements, estimates, guidance or projections that constitute 'forward-looking statements' as defined under U.S. federal securities laws. Generally, the words 'believe,' 'expect,' 'intend,' 'estimate,' 'anticipate,' 'project,' 'will,' 'should,' 'look for,' 'guidance,' 'guide,' and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2025 and in future years; expectations in 2025 and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company's businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company's AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company's financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements. Statements expressing management's assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers' products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases. View source version on CONTACT: Investor / Media Contact: JC Chetnani VP-Investor Relations and Treasurer [email protected] KEYWORD: UNITED STATES NORTH AMERICA NEW HAMPSHIRE INDUSTRY KEYWORD: AIR TRANSPORT AEROSPACE MANUFACTURING SOURCE: Albany International Corp. Copyright Business Wire 2025. PUB: 04/30/2025 04:20 PM/DISC: 04/30/2025 04:21 PM
