Albany International updates expectations for aerospace business

Albany International Corp. (NYSE: AIN) announced today that it is providing a preliminary update to its full year outlook largely to reflect revised revenue and profitability expectations for the aerospace business within its Engineered Composites (AEC) segment. Following its regular quarterly review of program costs and estimates relative to certain large complex aerospace contracts the Company has updated its labor, material input and scrap cost assumptions over the duration of certain long-term contracts. These increased cost assumptions as well as the impact of suspended production at a key customer pending their union negotiations will result in an approximate $24 million negative Estimate-at-Completion adjustment in the third quarter of 2024. Changes in other forecast assumptions are projected to lower second-half pre-tax earnings by an additional $8 million. “We continue to see momentum in both Machine Clothing and Engineered Composites. The Heimbach integration remains on track, and Albany’s differentiated innovation is translating into robust demand across both segments,” said President and CEO, Gunnar Kleveland. “At the same time, growth in our aerospace programs is resulting in more complex projects, where the manufacturing learning curve and labor ramp are steeper. Notwithstanding these changes, we expect AEC will maintain high-teen EBITDA margins that are well above peer averages. With Chris Stone’s recent appointment as President of AEC, I am also confident that we will successfully execute on the opportunities in our growing aerospace business, which are being created by Albany’s advanced technology and deep customer relationships. Combined with the Company’s continued strong cash flows and financial strength, Albany has a solid foundation for success and value creation. Significant new orders to date this year and our substantial backlog reinforce the financial upside available to the Company.”