Albany International Corp. Q1 FY2026 earnings call

Gunnar Cleveland mentioned the company's focus on safety and quality culture, operational excellence, and on-time delivery. Addressed Middle East conflict with no significant impact yet. Machine clothing team took corrective actions for equipment malfunction, expecting recovery by year end. Engineered composites saw growth across programs, new contract with Pratt & Whitney, increased production for missiles. Progress on strategic review of Amelia Earhart facility.

Machine clothing: Revenue for the quarter was $166 million, adjusted EBITDA was $43 million with a margin of 25.9%. Engineered composites: Revenue was $145.4 million, segment-adjusted EBITDA was $16.9 million, or 11.7% of sales.

Current trends support stable outlook. Second quarter consolidated revenue expected $335 million to $345 million. Adjusted EPS expected 70 cents to 80 cents, effective tax rate ~31.5%. Machine clothing expects modest sequential volume improvement in Q2, engineering composites continued growth. Full year machine clothing sees stable demand in Americas and Europe, engineering composites growth with margin normalization.

Supply chain risks due to Middle East conflict, limited visibility in China for machine clothing beyond near term.

Q: Update on Salt Lake and CH53K discussions.

A: Strategic review progressing on schedule, staying connected with customer.

Q: Overcapacity in Asia for MC business.

A: High investment in paper machines in China leading to overproduction, uncertainty on duration and extent, but stabilization in tissue and some process belts.