Albany International (AIN) Q4 2023 earnings summary

Executive summary

• FY 2023 record revenue of $1.148B, up 11% YoY; GAAP diluted EPS was $3.55 vs. $3.04, and Adjusted EPS was $4.06, up 4.9%.

• Free cash flow reached $64M, up from $32M in 2022; Q4 results benefited from Heimbach and growth in Engineered Composites.

Financial highlights

• Q4 revenue was $323.6M, up 20.4% reported and 19.6% excluding currency translation; Heimbach and Engineered Composites growth were key drivers.

• Q4 gross profit was $119.9M, up 23.5% YoY; operating income was $41.8M vs. $37.9M.

• Q4 net income attributable to shareholders was $30.5M, or $0.97 diluted EPS, vs. $18.1M, or $0.58; Adjusted EPS was $1.22 vs. $0.75.

• Q4 Adjusted EBITDA was $75.0M, up 28.5% YoY; FY net income attributable to shareholders was $111.1M vs. $95.8M.

Outlook and guidance

• FY 2024 revenue guidance is $1.26B–$1.33B; diluted EPS $3.55–$4.05; effective tax rate 29%–31%; capex $90M–$95M.

• FY 2024 Adjusted EBITDA guidance is $260M–$290M; Machine Clothing revenue $760M–$790M and Adjusted EBITDA $230M–$250M.

• Engineered Composites FY 2024 revenue guidance is $500M–$540M and Adjusted EBITDA $97M–$107M.

• EPS guidance reflects higher pension expense (~$0.09/share), Heimbach acquired-asset D&A (~$0.08/share), and higher interest expense (~$0.06/share, assuming current rates).