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Sep 30, 2025
Albany Q3 2025 Earnings Report
Albany International reported a net loss in Q3 2025 due to significant program adjustments, despite resilient underlying performance in its segments.
Key Takeaways
Albany International experienced a challenging third quarter in 2025, reporting a net loss of $97.8 million, primarily driven by a $147.3 million pre-tax loss reserve and program adjustments on the CH-53K program. Despite this, the company's underlying performance showed resilience, with adjusted net income of $20.6 million and adjusted EBITDA of $56.2 million. Revenue declined to $261.4 million, impacted by the CH-53K adjustments and softer sales in Machine Clothing, partially offset by growth in Engineered Composites excluding the program's effects.
Albany International reported a significant net loss of $97.8 million, or $3.37 per diluted share, in Q3 2025, largely due to a $147.3 million pre-tax charge related to the CH-53K program.
Adjusted net income for Q3 2025 was $20.6 million, or $0.71 per diluted share, demonstrating underlying operational resilience when excluding the CH-53K program adjustments.
Consolidated revenue for Q3 2025 was $261.4 million, a decrease from $298.4 million in Q3 2024, primarily due to a $46.0 million unfavorable impact from the CH-53K program.
The company generated $25.7 million in free cash flow and returned $50.5 million to shareholders through stock repurchases, alongside $8.0 million in dividends, highlighting a commitment to capital allocation.
Revenue by Segment
Forward Guidance
Albany International has withdrawn its full-year guidance for 2025 due to the ongoing strategic review of its Structures business, making it difficult to provide a meaningful outlook. The company plans to reintroduce full-year 2026 guidance when it reports fourth-quarter results.
Positive Outlook
- Initiated a strategic review of the structures assembly business and concluded the Gulfstream contract to increase focus on differentiated advanced composite technologies.
- Decisive action taken to de-risk program assumptions, marking an important first step in resolving issues.
- Remaining Aerospace portfolio is becoming more strategically aligned with priorities for growth and new business.
- Investing for growth with $67.9 million in capital expenditures and $46.6 million in research and development over the past twelve months.
- New business pursuits remain rich across commercial aircraft and engine, space, defense, and advanced air mobility markets.
Challenges Ahead
- Withdrawal of full-year guidance for 2025 due to uncertainty from the strategic review of the Structures business.
- Near-term uncertainty remains regarding the outcomes and timing of the strategic review.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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