Albany International Reports 6.1% Revenue Growth in Q3 2024, Driven by Heimbach Acquisition and Stable AEC Performance

Albany International Corp. reported a notable increase in net revenues for the third quarter and first nine months of 2024, driven primarily by the acquisition of Heimbach GmbH and stable performance in its Albany Engineered Composites (AEC) segment. For the three months ended September 30, 2024, net revenues reached $298.4 million, a 6.1% increase from $281.1 million in the same period of 2023. Year-to-date revenues for the nine months totaled $943.7 million, up 14.5% from $824.3 million in 2023.

The Machine Clothing (MC) segment contributed significantly to this growth, with revenues of $183.0 million for Q3 2024, a 9.9% increase from $166.6 million in Q3 2023. The AEC segment also saw a slight revenue increase to $115.4 million, up 0.7% from $114.5 million in the prior year. However, the AEC segment's gross profit margin declined sharply to 1.3% from 19.7% in 2023, primarily due to changes in long-term contract profitability.

Despite the revenue growth, gross profit for the third quarter decreased to $90.4 million from $101.8 million in 2023, reflecting challenges in the AEC segment. Operating income for Q3 2024 was $25.2 million, down from $40.1 million in the same quarter of 2023. For the nine-month period, operating income also fell to $107.1 million from $126.1 million in 2023.

Net income for the third quarter was $18.2 million, compared to $27.2 million in the prior year, while year-to-date net income decreased to $70.3 million from $81.1 million. Earnings per share for Q3 2024 were $0.58, down from $0.87 in Q3 2023.

The company’s restructuring efforts included $6.6 million in expenses for the first nine months of 2024, primarily due to workforce reductions and fixed asset impairments. The integration of Heimbach into the MC segment is progressing, with the transition to the SAP platform completed in July 2024.

Financially, Albany International reported cash and cash equivalents of $127.2 million as of September 30, 2024, down from $171.5 million a year earlier. The company’s long-term debt decreased to $361.6 million from $452.7 million at the end of 2023, while total shareholders' equity increased to $991.0 million from $961.4 million.

The effective tax rate for Q3 2024 was significantly lower at 6.6%, compared to 25.3% in the same quarter of 2023, largely due to favorable discrete tax adjustments. The company continues to manage its financial risks, including foreign currency and interest rate exposures, as it navigates the complexities of its operational landscape.