NYSE:AIN
ALBANY INTERNATIONAL CORP /DE/
A leading provider of engineered materials with a diverse portfolio supporting critical industries like automotive and construction.
Key Metrics
Investment Thesis
Bull Case
Investors might consider this stock for its resilient operating cash flow which generated $152.5 million despite reported accounting losses, suggesting potential earnings quality issues or one-time charges rather than fundamental business deterioration. The company's strong balance sheet with over $900 million in current assets provides ample liquidity to fund operations and potentially return capital to shareholders if profitability recovers.
Bear Case
The sharp decline from $88.1 million profit in 2024 to a $57 million loss in 2025 raises serious concerns about the sustainability of the company's business model and competitive positioning. A massive retained earnings deficit of nearly $976 million combined with high current liabilities indicates significant leverage that could become dangerous if operating margins do not expand quickly.
About ALBANY INTERNATIONAL CORP /DE/
Albany International Corporation is a diversified manufacturer of high-performance engineered materials primarily serving the automotive, industrial, and consumer markets. The company leverages its proprietary technology to produce specialty plastics, films, and functional additives that enhance product durability and efficiency across global supply chains.
Analysis
Management Discussion
Despite a robust $1.18 billion in total revenue, the company reported a significant net loss of $57 million for the latest period, reversing previous years of profitability seen between 2022 and 2024. The cash flow from operations remains healthy at $152.5 million, yet heavy share repurchases and financing outflows indicate aggressive capital allocation strategies amidst declining earnings. Operational challenges appear to have outweighed revenue growth this year, resulting in a stark contrast to the prior four-year trend of consistent income generation.
Industry Overview
The engineered materials industry is characterized by high barriers to entry due to rigorous R&D requirements and specialized manufacturing capabilities necessary for automotive and industrial applications. Companies in this sector compete on technical performance, supply chain reliability, and the ability to innovate new material solutions that help customers reduce weight or improve durability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.03B | $1.15B | $1.23B | $1.18B |
| Cost of Revenue | $645.1M | $724.2M | $828.8M | $938.9M |
| Gross Profit | $389.8M | $423.7M | $401.8M | $243.9M |
| Operating Expenses | $208.8M | $255.8M | $270.4M | $280.0M |
| Operating Income | $181.0M | $167.9M | $131.4M | $-36.1M |
| R&D | $31.4M | $40.6M | — | — |
| G&A | $168.7M | $73.1M | $210.9M | $218.3M |
| Stock-Based Comp | — | — | — | $10.1M |
| D&A | $69.0M | $76.7M | $89.3M | $87.9M |
| Depreciation | $62.5M | $70.4M | $82.5M | $82.7M |
| Amortization | $4.8M | $4.5M | $5.1M | $5.2M |
| Other OpEx | $8.6M | $142.1M | $59.5M | $61.7M |
| Non-Operating Income | $-49.0M | $-7.4M | $-14.3M | $-25.7M |
| Interest Expense | $17.8M | $20.2M | — | — |
| Interest Income | $3.8M | $6.6M | $4.1M | $5.2M |
| Pre-Tax Income | $132.0M | $160.5M | $117.1M | $-61.8M |
| Income Tax | $35.5M | $48.8M | $29.0M | $-4.8M |
| Continuing Ops | $96.5M | $111.6M | $88.1M | $-57.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $96.5M | $111.6M | $88.1M | $-57.0M |
| Minority Interest | $746.0K | $490.0K | $432.0K | $383.0K |
| Net to Common | $95.8M | $111.1M | $87.6M | $-57.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $838.4M | $878.0M | $730.7M | $928.8M |
| Cash & Equivalents | $291.8M | $173.4M | $115.3M | $112.3M |
| Accounts Receivable | $200.0M | $287.8M | $246.7M | $235.1M |
| Inventory | $139.1M | $169.6M | $145.8M | $121.6M |
| Prepaid Expenses | $51.0M | $53.9M | $37.1M | $35.0M |
| Other Current Assets | $156.6M | $193.3M | $185.7M | $424.8M |
| Long-Term Assets | $803.8M | $957.0M | $918.0M | $789.9M |
| PP&E (Net) | — | $602.0M | $563.4M | $482.6M |
| Intangibles | $33.8M | $44.6M | $38.1M | $21.4M |
| Goodwill | $178.2M | $180.2M | $176.3M | $162.5M |
| Operating Leases | $48.5M | $50.8M | $61.7M | $11.4M |
| Other LT Assets | $543.3M | $79.4M | $78.5M | $112.0M |
| Total Assets | $1.64B | $1.84B | $1.65B | $1.72B |
| Current Liabilities | $211.3M | $248.7M | $226.4M | $442.3M |
| Accounts Payable | $69.7M | $87.1M | $66.1M | $64.5M |
| Current Debt | $0 | $4.2M | $0 | $0 |
| Current Leases | $5.9M | $7.3M | $7.6M | $4.3M |
| Deferred Revenue | $15.2M | $7.1M | $6.1M | $33.4M |
| Other Current Liab | $-13.7M | $-8.2M | $-3.8M | $192.8M |
| Long-Term Liabilities | $563.4M | $619.0M | $473.4M | $544.3M |
| Long-Term Debt | $439.0M | $452.7M | $318.5M | $455.7M |
| LT Operating Leases | $50.2M | $50.6M | $61.1M | $7.4M |
| Other LT Liab | $74.2M | $115.7M | $93.8M | $81.2M |
| Total Liabilities | $774.7M | $867.7M | $699.7M | $986.6M |
| Shareholders' Equity | $867.5M | $967.3M | $948.9M | $732.1M |
| Paid-In Capital | $441.5M | $448.2M | $452.9M | $460.5M |
| Retained Earnings | $931.3M | $1.01B | $1.07B | $976.4M |
| Treasury Stock | $364.9M | — | — | — |
| Total L&E | $1.64B | $1.84B | $1.65B | $1.72B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $96.5M | $111.6M | $88.1M | $-57.0M |
| Non-Cash Adjustments | $-59.5M | $50.5M | $191.2M | $131.2M |
| Working Capital Changes | $91.2M | $-14.0M | $-60.8M | $78.2M |
| Cash from Operations | $128.2M | $148.1M | $218.4M | $152.5M |
| Capital Expenditures | $93.7M | $83.6M | $80.2M | $69.8M |
| Cash from Investing | $-96.3M | $-217.9M | $-80.2M | $-68.3M |
| Share Buybacks | $84.8M | $0 | $14.2M | $186.0M |
| Dividends Paid | $26.5M | $31.2M | $32.5M | $32.5M |
| Cash from Financing | $-23.7M | $-52.6M | $-183.8M | $-96.1M |
| FX Effect | $-18.5M | $4.1M | $-12.6M | $8.9M |
| Net Change in Cash | $-10.3M | $-118.4M | $-58.1M | $-2.9M |
| Beginning Cash | $302.0M | $291.8M | $173.4M | $115.3M |
| Ending Cash | $291.8M | $173.4M | $115.3M | $112.3M |
Frequently Asked Questions
How does ALBANY INTERNATIONAL CORP /DE/ make money?
The company's revenue streams are driven by its manufacturing of specialty plastics, engineering resins, and functional films which cater to sectors requiring high-performance material solutions. Key segments likely include industrial packaging applications, automotive component production, and specialized additive manufacturing materials that command premium pricing due to technical complexity.
What are the main risks for AIN?
The company faces substantial liquidity risk evidenced by a negative net income and significant retained earnings deficit which could limit financial flexibility during downturns. Heavy reliance on capital expenditures suggests potential margin pressure if operational efficiencies do not improve relative to revenue growth. Exposure to volatile raw material costs and foreign exchange fluctuations impacts profitability given the global nature of its operations.
What is AIN's competitive advantage?
Albany International possesses strong intellectual property portfolios protecting its unique material formulations, creating significant barriers to entry for competitors. The company benefits from a global manufacturing footprint that allows it to serve diverse international markets efficiently while maintaining high customer stickiness through integrated supply chain solutions.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.