Albany International Delivers Steady Third-Quarter 2025 Results, Strengthens Strategic Focus with Business Review and Growth Investments
Albany International Corp. announced its financial and operational results for the third quarter of 2025, which ended on September 30, 2025. The company, a global leader in engineered composites and advanced textiles, reported stable performance across its core segments while reinforcing its long-term transformation strategy to enhance profitability, streamline operations, and invest in future growth.
CEO Highlights Strategic Transformation and Portfolio Review
Gunnar Kleveland, President and Chief Executive Officer of Albany International, emphasized that the company continues to execute its long-term transformation plan designed to strengthen competitiveness and improve operational focus. “As announced last week, we are continuing the transformation of Albany International and have initiated a strategic review of our structures assembly business and its associated production site in Salt Lake City, including a potential sale of all or part of the site,” said Kleveland.
This review represents a critical step in reshaping the company’s Aerospace segment, particularly in areas that have faced program-specific challenges and shifting customer demand. According to Kleveland, the review will evaluate both the short-term performance and long-term strategic fit of the structures assembly business within Albany’s evolving portfolio. “Alongside this effort, we took decisive action to de-risk our program assumptions, which marks an important first step in resolving the issue,” he added.
While management acknowledged that some near-term uncertainty remains, Kleveland underscored that the remaining Aerospace operations are better aligned with Albany’s strategic objectives. These include focusing on programs and technologies where the company has a distinct competitive advantage and where its advanced materials expertise can generate stronger, more sustainable returns. “Our Aerospace portfolio is becoming more strategically aligned with our priorities to secure growth and new business where we have a distinct competitive advantage that leverages our differentiated advanced technologies and delivers greater returns,” Kleveland noted.
Resilient Financial Performance in a Challenging Environment
Despite headwinds related to both program-specific challenges in the Aerospace division and broader macroeconomic factors, Albany International demonstrated operational resilience during the third quarter of 2025. Kleveland highlighted that the company’s disciplined approach to execution and cost control allowed it to maintain profitability and generate solid cash flow.
“In the third quarter, our underlying performance was resilient despite a challenging backdrop of program-specific and macroeconomic factors,” he said. “We delivered an adjusted EBITDA margin of 18.3% through operational discipline, coupled with strong free cash flow of $26 million.”
This performance reflects Albany’s continued focus on productivity, margin enhancement, and prudent financial management, even as the company navigates market volatility and evolving customer requirements. The ability to sustain profitability amid these challenges illustrates the strength of its diversified portfolio and the benefits of its ongoing transformation efforts.
Focus on Growth, Innovation, and Shareholder Value
While maintaining financial discipline, Albany International has also continued to invest aggressively in growth initiatives and advanced technologies that will drive its future competitiveness. Over the past twelve months, the company has deployed $67.9 million in capital expenditures and $46.6 million in research and development spending. These investments are directed toward optimizing its global manufacturing footprint, enhancing process automation, and advancing next-generation composite technologies that support future aerospace, defense, and industrial applications.
“At the same time, we are investing for growth while returning significant capital to shareholders,” Kleveland said. “Over the past twelve months, we have deployed $67.9 million in capital expenditures and $46.6 million in research and development, advancing both footprint optimization and next-generation technologies and capabilities.”
This dual approach—driving long-term innovation while maintaining shareholder returns—has been a consistent hallmark of Albany International’s management philosophy. The company continues to balance reinvestment in growth opportunities with disciplined capital allocation, ensuring sustainable value creation for investors.
Strong Shareholder Returns and Capital Management
In addition to strategic investments, Albany International has prioritized returning capital to its shareholders. Over the past year, the company has returned more than $200 million through a combination of dividends and share repurchases. This includes the buyback of roughly 8% of its outstanding shares, underscoring management’s confidence in the company’s long-term growth trajectory and intrinsic value.
Kleveland emphasized that these returns demonstrate both financial strength and a commitment to maintaining a balanced capital deployment strategy. “We have also returned more than $200 million to shareholders through dividends and buybacks, including the repurchase of roughly 8% of our shares outstanding. These actions underscore both our confidence in Albany’s long-term prospects and our commitment to disciplined capital allocation,” he stated.
By continuing to deliver consistent shareholder returns, even during a period of transformation and review, Albany International reinforces its reputation as a stable and responsible industrial leader. The company’s approach to capital allocation aims to sustain long-term profitability, maintain balance sheet flexibility, and support future innovation.
Looking ahead, Albany International’s management remains confident in the company’s ability to navigate near-term challenges while positioning for sustainable growth in its core markets. The ongoing review of the Salt Lake City structures assembly business is expected to further streamline the Aerospace segment and strengthen the company’s focus on areas that deliver higher margins and technological differentiation.
In addition, continued investment in research and development, combined with ongoing footprint optimization, positions Albany International to capitalize on emerging opportunities in both aerospace composites and industrial textiles. The company’s innovation pipeline includes advancements in lightweight materials, improved process automation, and enhanced sustainability solutions—areas expected to drive value across its business lines.
Kleveland concluded by reaffirming that Albany International’s leadership team remains committed to executing its strategic roadmap. “While we continue to face certain uncertainties, our actions are guided by long-term priorities that will enhance profitability, strengthen competitive positioning, and create enduring value for our shareholders,” he said.
Albany International’s third-quarter 2025 results illustrate a company in the midst of purposeful transformation. With a clear focus on operational efficiency, disciplined capital management, and strategic portfolio realignment, the company is navigating near-term challenges while laying the groundwork for long-term success. Its strong cash generation, commitment to shareholder returns, and ongoing investment in technology and innovation underscore a balanced and forward-looking approach to growth.
As the company proceeds with its strategic review and continues to optimize its business structure, Albany International remains well-positioned to strengthen its competitive advantage across its Aerospace and Machine Clothing segments—securing its place as a leading innovator in engineered materials for the industries of tomorrow.
