Albany International (AIN) Q2 2026 earnings summary

Executive summary

• Q2 2026 consolidated revenue rose 5.8% year-over-year to $329.5 million, driven by strong growth in Engineered Composites and partially offset by softness and downtime in Machine Clothing.

• Adjusted EBITDA increased 11.5% to $57.8 million, with adjusted EPS up 45% to $0.82 per diluted share and net income attributable to shareholders at $17.4 million, up 90% year-over-year.

• Machine Clothing segment faced modest revenue decline due to equipment downtime and softer demand in the Americas, but margins remained robust.

• Engineered Composites delivered record results, driven by ramping aerospace and defense programs, new contract wins, and participation in advanced technology collaborations.

• Free cash flow was negative $14.5 million, reflecting higher working capital and investment needs.

Financial highlights

• Q2 2026 revenue: $329.5 million, up from $311.4 million in Q2 2025; Adjusted EBITDA: $57.8 million (17.6% margin); Adjusted EPS: $0.82; net income: $17.4 million.

• Gross profit was $107.9 million (32.7% margin), up from 31.3% last year.

• Operating income was $32.1 million (9.8% margin), up from $22.3 million in Q2 2025.

• Free cash flow was a net use of $14.5 million, down from a net gain of $17.8 million last year.

• Net debt at quarter-end was $373.3 million; available capital/liquidity: $427 million.

Outlook and guidance

• Q3 2026 consolidated revenue guidance: $320–$330 million; Machine Clothing: $165–$170 million; Engineered Composites: $155–$160 million.

• Adjusted EPS for Q3: $0.60–$0.70; effective tax rate: 31.5%.

• Full-year Machine Clothing revenue expected to be slightly down versus 2025 due to customer consolidation and capacity rationalization.

• Engineered Composites anticipated to deliver continued year-over-year growth, with program ramps and delayed tooling shipments benefiting H2.

• Management expects to maintain adequate liquidity and compliance with debt covenants over the next twelve months.