One-glance verdict
Within fair range
$41.08 our estimate vs market $59.86
Wall Street consensus: $65.67 (59.8% higher than our fair-value estimate)
46% above our estimate
Fundamentals snapshot
Albany International Corp.
AIN · NYQ · Consumer Cyclical · Textile Manufacturing
Current price
$59.86
52-week range
$41.15 - $77.00
Market cap
$1.70B
Balance sheet
Distressed
-0.87x Concerning
Net debt $373.32M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.4% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Net debt grew 74.6% over 3 years.
- Risk Return on equity was -6.1% last year — the company lost money on shareholders' equity.
What this company does
Albany International Corp.
Albany International runs two very different businesses: it creates massive, specialized fabrics for machines that produce paper and textiles, and it also manufactures advanced, lightweight parts for airplane engines and frames. The majority of its sales come from the machine fabrics business, which provides a steady stream of recurring revenue (predictable income from customers who must regularly replace these parts as they wear out). This reliable income from the fabrics division helps fund its high-tech aerospace parts business, which offers potential for future growth.
How the company got here
Albany International started in 1895 as the Albany Felt Company, making specialized fabrics for the many paper mills in its region. For much of its history, the company grew by expanding globally and acquiring other companies in the same industry. A major turning point came in 1969 when, to avoid a hostile takeover, it merged with two other firms and became Albany International, the first company in the world to provide all the different fabrics paper machines need. More recently, it expanded into advanced materials, acquiring companies to build a second major business in high-tech composites (strong, lightweight materials) for the aerospace industry. This led to the company's current structure, which focuses on these two core businesses.
What it actually does
Albany International is a tale of two very different businesses that both grew from the same expertise in advanced fabrics. One part of the company is the world's leading producer of huge, custom-designed fabric belts that are essential for making paper, cardboard, and tissue. The other part uses its knowledge of weaving and materials to create lightweight, super-strong components for aircraft engines and frames. Think of it as one business making industrial-scale textiles for giant paper machines, and another making high-tech woven parts for jets and spacecraft.
Machine Clothing (MC)
This is the company's original and largest business, making up the majority of its sales. It produces enormous, highly engineered fabric belts that run on massive machines to manufacture paper, cardboard, tissue, and other industrial materials. These belts are mission-critical consumables (products that get used up and need to be replaced) for paper companies, which pay Albany for these custom-designed products. The performance of these fabrics directly impacts the quality and production cost of the paper, making them a vital part of the manufacturing process.
Albany Engineered Composites (AEC)
This is the newer, high-growth part of the company that serves the aerospace and defense industries. It designs and manufactures components from composite materials, which are very strong but much lighter than metal. Companies like Boeing, Lockheed Martin, and Pratt & Whitney pay Albany for parts like fan blades for jet engines and pieces of the aircraft's body for both military and commercial planes. This segment's goal is to make aircraft more fuel-efficient and better performing by reducing their weight.
What management is betting on now
Management's main focus is on growing the Albany Engineered Composites (AEC) business to become a leader in advanced materials for the aerospace industry. They aim to capitalize on the record-high demand for new aircraft and win more contracts in the defense and space sectors to reduce their reliance on a few large programs. At the same time, they plan to use the steady cash flow from the mature Machine Clothing (MC) business to fund this growth. The strategy is to transform the company into a scaled, profitable leader in high-tech materials, ensuring the fast-growing AEC segment can sustain itself for the long term.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$31.63M
FY2024 Q4
$60.19M
FY2025 Q1
$-13.48M
FY2025 Q2
$18.79M
FY2025 Q3
$25.91M
FY2025 Q4
$51.43M
FY2026 Q1
$-3.65M
FY2026 Q2
$-14.53M
Revenue
$329.48M
Net income
$17.41M
Diluted EPS
0.61
Operating cash flow
$-2.65M
Free cash flow
$-14.53M
Fetching…
Sources
Revenue
$311.33M
Net income
$15.28M
Diluted EPS
0.54
Operating cash flow
$5.64M
Free cash flow
$-3.65M
Fetching…
Sources
Revenue
$321.21M
Net income
$13.88M
Diluted EPS
0.56
Operating cash flow
$73.70M
Free cash flow
$51.43M
Fetching…
Sources
Revenue
$261.43M
Net income
$-97.76M
Diluted EPS
-3.37
Operating cash flow
$43.94M
Free cash flow
$25.91M
Fetching…
Sources
Revenue
$311.40M
Net income
$9.18M
Diluted EPS
0.31
Operating cash flow
$32.71M
Free cash flow
$18.79M
Fetching…
Sources
Revenue
$288.77M
Net income
$17.36M
Diluted EPS
0.56
Operating cash flow
$2.12M
Free cash flow
$-13.48M
Fetching…
Sources
Revenue
$286.90M
Net income
$17.68M
Diluted EPS
0.57
Operating cash flow
$78.46M
Free cash flow
$60.19M
Fetching…
Sources
Revenue
$298.39M
Net income
$18.03M
Diluted EPS
0.57
Operating cash flow
$47.00M
Free cash flow
$31.63M
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.08 vs current price $59.86
Wall Street consensus is the average analyst price target: $65.67 (59.8% higher than our fair-value estimate).
Our most-likely fair value is $41.08 a share — about 31.4% away from today's price of $59.86, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $373.3M. Interest coverage -0.9x.
Net debt
$373.32M
Interest coverage
-0.87x
Albany International Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
AIN
BASELINE
Albany International Corp.
Total debt $450.67M Interest coverage -0.87x This is the baseline the peer rows are being compared against.
Total debt $510.63M Interest coverage 10.19x This peer still has a real interest-payment cushion, while AIN does not.
Total debt $959.40M Interest coverage 4.55x This peer still has a real interest-payment cushion, while AIN does not.
Total debt $566.29M Interest coverage 4.97x This peer still has a real interest-payment cushion, while AIN does not.
Total debt $588.50M Interest coverage 4.83x This peer still has a real interest-payment cushion, while AIN does not.
Total debt $1.47B Interest coverage 4.37x This peer still has a real interest-payment cushion, while AIN does not.
What you should know
The case for and against AIN
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.4% last year.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 1.9% with 38-year payout history.
Risks
-
Net debt grew 74.6% over 3 years.
-
Return on equity was -6.1% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 17.5% to 11.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
18.87x
P/B
2.28x
P/S
1.39x
EV/EBITDA
34.66x
PEG ratio
1.44x
Profitability
How much profit each dollar creates
Gross margin
21.1%
Operating margin
11.7%
Net margin
-4.2%
ROE
-6.1%
ROA
-0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.60x
Current ratio
2.24x
Quick ratio
0.97x
Total debt
$450.67M
Total cash
$77.35M
Growth
How the business has been compounding
Revenue TTM
$1.22B
Revenue 5Y CAGR
6.2%
EPS TTM
-1.67
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$120.63M
Free CF TTM
$82.64M
FCF margin
6.8%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
53.2%
Last ex-div date
2026-09-01