Albany International shares fall more than 4% after Investing.com revised its full-year outlook

ROCHESTER, NH – Albany International Corp . (NYSE: NYSE: ), a global advanced materials processing company, adjusted its full-year financial outlook for 2024, primarily due to revised guidance in its aerospace business in the Engineered Composites segment.

The company announced the changes following a periodic quarterly review of program costs and estimates for certain large aerospace contracts.

AIN shares traded down 4.5% in the pre-market session on Thursday after the announcement.

The company expects a negative estimated completion adjustment (EAC) of approximately $24 million in the third quarter of 2024, which reflects increased labor, material input and legacy cost assumptions over the life of certain long-term contracts . In addition, suspended production at a major customer due to union negotiations will further reduce pre-tax earnings by $8 million in the second half of the year.

Despite these adjustments, Albany International CEO Gunnar Kleveland expressed confidence in the company’s momentum in both its automotive apparel and engineered composites segments. Kleveland highlighted Heimbach’s on-track integration and robust demand driven by Albany’s innovation. He also highlighted the high-teens EBITDA margins of the Engineered Composites segment, which are above peer averages, and the leadership of Chris Stone, newly named AEC president, in capitalizing on opportunities in the aerospace business.

The company’s updated full-year 2024 guidance includes guidance for total revenue of $1.22 billion to $1.26 billion, an effective income tax rate of approximately 27% and capital expenditures of between $90 million and $95 million dollars. Adjusted diluted EPS is forecast between $2.90 and $3.40, with second-half EPS weighted toward the fourth quarter. Adjusted EBITDA is expected to be between $230 million and $250 million, with the Machine Clothing and Albany Engineered Composites segments contributing to this outlook.

This article is based on a press release from Albany International Corp.

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