Albany International Reports 10.9% Revenue Growth

Albany International Corporation operates in two segments, Machine Clothing (MC) and Albany Engineered Composites (AEC). The MC segment focuses on designing, manufacturing, and marketing paper machine clothing for various applications, while the AEC segment specializes in providing 3D-woven and injected composite components for aircraft engines and airframes, serving both commercial and defense markets.

In 2023, Albany International reported total net revenues of $1.15 billion, representing a 10.9% increase compared to 2022. The Machine Clothing segment contributed $670.8 million in net revenues, up 10.5% from the previous year, driven by the acquisition of Heimbach, a manufacturer of paper machine clothing. The Albany Engineered Composites segment recorded net revenues of $477.1 million, marking an 11.7% increase, primarily due to revenue growth across its portfolio of commercial programs.

The company's backlog, representing the value of all firm, open orders from customers, stood at $256 million for the MC segment and $494 million for the AEC segment at the end of 2023, indicating potential future revenue streams.

Albany International reported a consolidated gross profit of $423.7 million in 2023, with a gross profit margin of 36.9% of net revenues. The Machine Clothing segment contributed $331.6 million in gross profit, while the Albany Engineered Composites segment reported $92.2 million.

Selling, general, and administrative (SG&A) expenses totaled $214.9 million in 2023, representing 18.7% of net revenues. The company's consolidated operating income for the year was $167.9 million, with the Machine Clothing segment contributing $199.4 million and the Albany Engineered Composites segment contributing $41.6 million.

Albany International also reported other earnings items, including interest expense, net income tax expense, and pension settlement expenses, which significantly impacted the company's overall financial performance.

The effective tax rate for the year was 30.4%, reflecting the combined federal, state, and foreign tax effects attributable to pretax earnings. The company highlighted potential impacts from the introduction of new global minimum tax rules and ongoing legislative developments related to income tax regulations.

For more information, read the company's full 10-K submission here.

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