Albany International Reports Fourth-Quarter 2025 Results
PORTSMOUTH, N.H.--( BUSINESS WIRE)--Albany International Corp. (NYSE:AIN) today reported operating results for its full year and for its fourth quarter of 2025, which ended December 31, 2025.
Gunnar Kleveland, Albany International’s President and Chief Executive Officer said, “We are underway with the previously announced strategic review of our structures assembly business and its associated production site in Salt Lake City, and have engaged an advisor to help guide this transaction. This action will position the remaining Aerospace portfolio to align more closely with our strategic priorities and to pursue growth opportunities where our differentiated technologies provide a clear competitive advantage and stronger returns.”
Kleveland continued, “Our strong balance sheet continues to support Albany’s culture of innovation, as we develop advanced materials with broad and expanding applications in both Machine Clothing and Engineered Composites. In Machine Clothing, where our service model, quality, and product performance differentiate us in the market, we are applying our technologies to explore new markets and applications. In Engineered Composites we have several key opportunities in negotiations that will leverage our 3D woven, braiding, and out-of-autoclave technologies across a number of strategic Commercial Aerospace, Defense, and Advanced Air Mobility (AAM) platforms. With 2026 now underway, we remain confident that our culture of innovation will drive new customer solutions and chart a strong path for future growth.”
Consolidated Results
The Company’s net revenues were $321.2 million in the fourth quarter of 2025, compared to $286.9 million in the prior year, or $314.6 million on a same currency basis. The increase was primarily driven by higher volume in the Engineered Composites business, partially offset by softness in the Asia markets of the Machine Clothing business.
Gross profit of $99.9 million in the fourth quarter of 2025 was 10.6% higher than $90.3 million reported for the same period of 2024, as a result of strong sales in the Engineered Composites business.
Selling, general, and administrative expenses were $54.1 million in the fourth quarter of 2025, compared to $48.4 million in the same period of 2024, driven primarily by increases in personnel costs as well as higher global information system investments.
Operating income was $29.9 million, compared to $24.3 million in the prior year, an increase of 22.9%, driven by increased gross profit and decreased restructuring expenses, which was partially offset by higher selling, general, and administrative expenses.
The effective tax rate for the quarter was 39.3% compared to a 28.0% effective tax rate in the fourth quarter of 2024. The increase in tax rate was due to the expiration of a foreign tax credit and a less favorable discrete tax adjustment compared to the fourth quarter of 2024.
The net income attributable to the Company was $13.9 million, or $0.49 per share, compared to $17.7 million, or $0.57 per share in the fourth quarter of 2024.
Adjusted diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.65 per share, compared to $0.58 per share for the same period of last year.
Adjusted EBITDA (a non-GAAP measure) was $57.3 million, compared to $50.0 million in the fourth quarter of 2024, an increase of 14.7% due to higher sales and improved margin performance in the AEC business. Adjusted EBITDA margin was 17.8% and 17.4% in the prior year.
Will Station, Albany International’s Chief Financial Officer, said, “Over the past 6 months, we have sharpened our strategy to focus more squarely on our core competitive advantages. In the fourth quarter, we delivered our strongest financial performance of the year, with revenue up 12.0% and Adjusted EBITDA margins improving 40 basis points year over year. That focus is guiding how we operate the business and how we allocate capital, with a clear objective of investing where we can generate attractive returns and maximize long-term value for shareholders.”
Machine Clothing
MC's net revenues decreased 7.9% after adjusting for currency translation, primarily driven by weakness in the Asia markets due to overcapacity, partially offset by continued strength in the tissue market globally.
MC’s adjusted EBITDA margin was 27.4%, compared to 28.5% in the fourth quarter of 2024. The margin decline is primarily impacted by lower volumes in Asia, partially offset by the benefits of ongoing footprint optimization initiatives. The Company continued to execute its plan of rationalizing production across its network of facilities.
Engineered Composites
AEC's net revenues increased 43.1% after adjusting for currency translation, driven by strength across commercial and defense programs, most notably on the commercial side of AEC within the LEAP program, and on the defense side under the F-35 and missile programs.
Adjusted EBITDA margin was 12.9%, compared to 6.1% in the fourth quarter of 2024. This strong improvement highlights the underlying strength and resilience of the business as AEC continues to ramp-up production across key platforms while focusing on profitable growth.
Capital Allocation Balance Sheet and Cash Flow
Albany generated free cash flow of $51.0 million in the quarter, compared to $59.3 million in the prior-year period.
The Company continued to return capital to shareholders through dividends and share repurchases. Albany repurchased 360,267 shares of its common stock during the quarter and declared a quarterly dividend of $0.28 per share in December.
Capital expenditures were $22.7 million, compared to $19.1 million in the fourth quarter of 2024, and included facility optimization and customer program investments. Research and development expenses totaled $12.1 million, compared to $10.7 million in the fourth quarter of 2024, consistent with the Company’s commitment to advancing proprietary technologies and supporting long-term growth in both Machine Clothing and Engineered Composites.
Albany ended the quarter with cash and cash equivalents of $112.4 million and total debt of $455.7 million, resulting in a net debt position of $343.3 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders.
Outlook for the First Quarter of 2026
Fourth-Quarter 2025 Results Conference Call/Webcast
The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Tuesday, February 24, 2026. Interested parties are encouraged to listen to the live webcast via the Company’s Investor Relations website at investors.albint.com or by registering via the link here. The event can also be accessed by dialing +1 (800) 715-9871 and using the access code 9655516.
An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Tuesday, February 24, 2026.
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Net revenues
$
321,206
$
286,905
$
1,182,813
$
1,230,615
Cost of goods sold
221,341
196,582
938,893
828,839
Gross profit
99,865
90,323
243,920
401,776
Selling, general, and administrative expenses
54,107
48,435
218,326
210,882
Technical and research expenses
12,100
10,728
48,015
46,097
Restructuring expenses, net
3,787
6,854
13,682
13,438
Operating income/(loss)
29,871
24,306
(36,103
)
131,359
Interest expense/(income), net
5,903
3,869
20,605
12,549
Other (income)/expense, net
909
(4,211
)
5,079
1,721
Income (loss) before income taxes
23,059
24,648
(61,787
)
117,089
Income tax expense/(benefit)
9,061
6,903
(4,828
)
29,034
Net income/(loss)
13,998
17,745
(56,959
)
88,055
Net income/(loss) attributable to the noncontrolling interest
118
66
383
432
Net income/(loss) attributable to the Company
$
13,880
$
17,679
$
(57,342
)
$
87,623
Earnings per share attributable to Company shareholders - Basic
$
0.49
$
0.57
$
(1.94
)
$
2.81
Earnings per share attributable to Company shareholders - Diluted
$
0.48
$
0.56
$
(1.94
)
$
2.80
Shares of the Company used in computing earnings per share:
Basic
28,531
31,223
29,566
31,231
Diluted
28,709
31,355
29,566
31,338
Dividends declared per share, Class A
$
0.28
$
0.27
$
1.09
$
1.05
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)
December 31,
2025
December 31,
2024
ASSETS
Cash and cash equivalents
$
112,350
$
115,283
Accounts receivable, net
235,084
246,688
Contract assets, net
87,102
166,557
Inventories
121,589
145,845
Income taxes prepaid and receivable
43,937
19,187
Prepaid expenses and other current assets
34,990
37,132
Assets held for sale
293,783
—
Total current assets
928,835
730,692
Property, plant and equipment, net
482,568
563,431
Intangibles, net
21,427
38,127
Goodwill
162,508
176,261
Deferred income taxes
68,499
28,757
Other assets
54,872
111,428
Total assets
$
1,718,709
$
1,648,696
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable
$
64,499
$
66,095
Accrued liabilities
139,385
141,904
Income taxes payable
35,090
18,367
Liabilities held for sale
203,323
—
Total current liabilities
442,297
226,366
Long-term debt
455,663
318,531
Other noncurrent liabilities
86,850
138,830
Deferred taxes and other liabilities
1,797
16,022
Total liabilities
986,607
699,749
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued
—
—
Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 40,989,106 issued in 2025 and 40,917,539 in 2024
41
41
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; none issued and outstanding in 2024 and 2023
—
—
Additional paid in capital
460,472
452,933
Retained earnings
976,373
1,065,763
Accumulated items of other comprehensive income:
Translation adjustments
(119,008
)
(181,555
)
Pension and postretirement liability adjustments
(23,911
)
(14,328
)
Derivative valuation adjustment
(619
)
(106
)
Treasury stock (Class A), at cost; 12,685,782 shares in 2025 and 9,844,746 in 2024
(567,139
)
(379,210
)
Total Company shareholders' equity
726,209
943,538
Noncontrolling interest
5,893
5,409
Total equity
732,102
948,947
Total liabilities and shareholders' equity
$
1,718,709
$
1,648,696
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Twelve Months Ended December 31,
2025
2024
OPERATING ACTIVITIES
Net income
$
(56,959
)
$
88,055
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
82,712
82,452
Amortization
5,202
6,842
Change in deferred taxes and other liabilities
(43,315
)
(15,331
)
Impairment of property, plant, equipment, and inventory
(390
)
2,038
Non-cash interest expense
1,029
1,025
Contract loss provision
139,665
—
Share-based compensation
10,060
4,715
Provision/(recovery) for credit losses from uncollected receivables and contract assets
(139
)
310
Foreign currency remeasurement (gain)/loss on intercompany loans
8,883
81
Gain on sale of assets
(1,566
)
(513
)
Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable
(724
)
31,764
Contract assets
(23,189
)
12,289
Inventories
17,627
14,627
Prepaid expenses and other current assets
1,865
4,002
Income taxes prepaid and receivable
(25,060
)
(8,574
)
Accounts payable
9,172
(3,084
)
Accrued liabilities
7,975
(1,275
)
Income taxes payable
14,507
6,918
Noncurrent receivables
—
(780
)
Other noncurrent liabilities
(2,550
)
(7,702
)
Other, net
7,669
582
Net cash provided by operating activities
152,474
218,441
INVESTING ACTIVITIES
Purchases of property, plant and equipment
(69,830
)
(80,249
)
Purchased software
(1,675
)
(958
)
Proceeds received from sale of assets
3,243
1,027
Net cash used in investing activities
(68,262
)
(80,180
)
FINANCING ACTIVITIES
Proceeds from borrowings
272,003
145,595
Principal payments on debt
(147,044
)
(279,838
)
Purchase of Treasury shares
(186,012
)
(14,175
)
Taxes paid in lieu of share issuance
(2,521
)
(2,931
)
Dividends paid
(32,477
)
(32,483
)
Net cash used in financing activities
(96,051
)
(183,832
)
Effect of exchange rate changes on cash and cash equivalents
8,906
(12,566
)
Increase/(decrease) in cash and cash equivalents
(2,933
)
(58,137
)
Cash and cash equivalents at beginning of period
115,283
173,420
Cash and cash equivalents at end of period
$
112,350
$
115,283
Financial tables and reconciliations of non-GAAP measures to comparable GAAP measures. Year-to-date information revised to include the third-quarter CH-53 contracts reserve program adjustment, now determined to represent an operational item that should be included in our full-year adjusted results.
The following tables present Net revenues and the effect of changes in currency translation rates:
(in thousands, except percentages)
Net revenues as reported, Q4 2025
(Decrease) due to changes in currency translation rates
Q4 2025 revenues on same basis as Q4 2024 currency translation rates
Net revenues as reported, Q4 2024
% Change compared to Q4 2024, excluding currency rate effects
Machine Clothing
$
177,493
$
4,311
$
173,182
$
188,079
(7.9
)%
Albany Engineered Composites
143,713
2,303
141,410
98,826
43.1
%
Consolidated total
$
321,206
$
6,614
$
314,592
$
286,905
9.7
%
(in thousands, except percentages)
Net revenues as reported, YTD 2025
(Decrease)/increase due to changes in currency translation rates
YTD 2025 revenues on same basis as 2024 currency translation rates
Net revenues as reported, YTD 2024
% Change compared to 2024, excluding currency rate effects
Machine Clothing
$
708,066
$
1,207
$
706,859
$
749,907
(5.7
)%
Albany Engineered Composites
474,747
1,444
473,303
480,708
(1.5
)%
Consolidated total
$
1,182,813
$
2,651
$
1,180,162
$
1,230,615
(4.1
)%
The following tables present Gross profit and Gross profit margin:
(in thousands, except percentages)
Gross profit,
Q4 2025
Gross profit margin, Q4 2025
Gross profit,
Q4 2024
Gross profit margin, Q4 2024
Machine Clothing
$
78,001
43.9
%
$
83,595
44.4
%
Albany Engineered Composites
21,864
15.2
%
6,728
6.8
%
Consolidated total
$
99,865
31.1
%
$
90,323
31.5
%
(in thousands, except percentages)
Gross profit,
YTD 2025
Gross profit margin, YTD 2025
Gross profit,
YTD 2024
Gross profit margin, YTD 2024
Machine Clothing
$
323,732
45.7
%
$
346,044
46.1
%
Albany Engineered Composites
(79,812
)
(16.8
)%
55,732
11.6
%
Consolidated total
$
243,920
20.6
%
$
401,776
32.6
%
Three months ended December 31, 2025
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses and other
Total Company
Net income/(loss) (GAAP)
$
36,976
$
3,935
$
(26,913
)
$
13,998
Interest expense, net
—
—
5,903
5,903
Income tax expense
—
—
9,061
9,061
Depreciation and amortization expense
8,566
13,502
366
22,434
EBITDA (non-GAAP)
45,542
17,437
(11,583
)
51,396
Restructuring expenses, net
1,933
1,458
396
3,787
Foreign currency revaluation (gains)/losses (a)
581
110
1,360
2,051
Strategic/integration costs
559
—
—
559
Other transition expenses
—
(355
)
—
(355
)
Pre-tax (income) attributable to noncontrolling interest
—
(137
)
—
(137
)
Adjusted EBITDA (non-GAAP)
$
48,615
$
18,513
$
(9,827
)
$
57,301
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)
27.4
%
12.9
%
—
17.8
%
Three months ended December 31, 2024
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
41,927
$
(7,911
)
$
(16,271
)
$
17,745
Interest expense, net
—
—
3,869
3,869
Income tax expense
—
—
6,903
6,903
Depreciation and amortization expense
8,479
13,528
284
22,291
EBITDA (non-GAAP)
50,406
5,617
(5,215
)
50,808
Restructuring expenses, net
6,584
505
183
7,272
Foreign currency revaluation (gains)/losses (a)
(3,314
)
100
(4,479
)
(7,693
)
Other transition expenses
—
(241
)
(244
)
(485
)
Strategic/integration costs
7
—
60
67
Pre-tax (income) attributable to noncontrolling interest
(14
)
7
—
(7
)
Adjusted EBITDA (non-GAAP)
$
53,669
$
5,988
$
(9,695
)
$
49,962
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)
28.5
%
6.1
%
—
17.4
%
Twelve months ended December 31, 2025
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
156,212
$
(145,135
)
$
(68,036
)
$
(56,959
)
Interest expense, net
—
—
20,605
20,605
Income tax expense
—
—
(4,828
)
(4,828
)
Depreciation and amortization expense
32,849
53,731
1,334
87,914
EBITDA (non-GAAP)
189,061
(91,404
)
(50,925
)
46,732
Restructuring expenses, net
8,510
3,259
602
12,371
Foreign currency revaluation (gains)/losses (a)
6,281
58
8,814
15,153
Strategic/integration costs
741
—
616
1,357
Other transition expenses
—
(767
)
—
(767
)
Pre-tax (income) attributable to noncontrolling interest
122
(596
)
—
(474
)
Adjusted EBITDA (non-GAAP)
$
204,715
$
(89,450
)
$
(40,893
)
$
74,372
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)
28.9
%
(18.8
)%
—
6.3
%
Twelve months ended December 31, 2024
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
183,632
$
(11,603
)
$
(83,974
)
$
88,055
Interest expense, net
—
—
12,549
12,549
Income tax expense
—
—
29,034
29,034
Depreciation and amortization expense
33,917
54,228
1,149
89,294
EBITDA (non-GAAP)
217,549
42,625
(41,242
)
218,932
Restructuring expenses, net
11,165
3,649
329
15,143
Foreign currency revaluation (gains)/losses (a)
(4,561
)
(10
)
(3,843
)
(8,414
)
Other transition expenses
—
752
740
1,492
Strategic/integration costs
1,475
182
3,469
5,126
Pre-tax (income) attributable to noncontrolling interest
(124
)
(186
)
—
(310
)
Adjusted EBITDA (non-GAAP)
$
225,504
$
47,012
$
(40,547
)
$
231,969
Adjusted EBITDA margin (Adjusted EBITDA divided by Net revenues) (non-GAAP)
30.1
%
9.8
%
—
18.8
%
Per share impact of the adjustments to earnings per share are as follows:
Three months ended December 31, 2025
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
3,787
$
788
$
2,999
$
0.10
Foreign currency revaluation (gains)/losses (a)
2,051
427
1,624
0.06
Strategic/integration costs
559
116
443
0.02
Other transition expenses
(355
)
(74
)
(281
)
(0.01
)
Three months ended December 31, 2024
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
7,272
$
1,244
$
6,028
$
0.19
Foreign currency revaluation (gains)/losses (a)
(7,693
)
(2,599
)
(5,094
)
(0.16
)
Strategic/integration costs
67
(75
)
142
0.00
Other transition expenses
(485
)
(121
)
(364
)
(0.01
)
Year ended December 31, 2025
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
12,371
$
2,573
$
9,798
$
0.33
Foreign currency revaluation (gains)/losses (a)
15,153
3,152
12,001
0.41
Strategic/integration costs
1,357
282
1,075
0.04
Other transition expenses
(767
)
(160
)
(607
)
(0.02
)
Year ended December 31, 2024
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring expenses, net
$
15,143
$
2,758
$
12,385
$
0.40
Foreign currency revaluation (gains)/losses (a)
(8,414
)
(2,839
)
(5,575
)
(0.18
)
Strategic/integration costs
5,126
1,308
3,818
0.12
Other transition expenses
1,492
373
1,119
0.04
The following table provides a reconciliation of Earnings per share to Adjusted Diluted Earnings per share:
Three months ended December 31,
Twelve months ended December 31,
Per share amounts
2025
2024
2025
2024
Earnings per share attributable to Company shareholders - Basic (GAAP)
$
0.49
$
0.57
$
(1.94
)
$
2.81
Effect of dilutive stock-based compensation plans
(0.01
)
(0.01
)
—
(0.01
)
Earnings per share attributable to Company shareholders - Diluted (GAAP)
$
0.48
$
0.56
$
(1.94
)
$
2.80
Adjustments, after tax:
Restructuring costs
0.10
0.19
0.33
0.40
Foreign currency revaluation (gains)/losses (a)
0.06
(0.16
)
0.41
(0.18
)
Strategic/integration costs
0.02
—
0.04
0.12
CEO and other transition expenses
(0.01
)
(0.01
)
(0.02
)
0.04
Adjusted Diluted Earnings per share (non-GAAP)
$
0.65
$
0.58
$
(1.18
)
$
3.18
(a) Foreign currency revaluation (gains)/losses represent unrealized gains and losses arising from the remeasurement of monetary assets and liabilities denominated in non-functional currencies on the balance sheet date.
The calculations of net debt are as follows:
(in thousands)
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024
Current maturities of long-term debt
$
—
$
—
$
—
$
—
$
—
Long-term debt
455,663
480,631
444,686
416,429
318,531
Total debt
455,663
480,631
444,686
416,429
318,531
Cash and cash equivalents
112,350
108,310
106,689
119,354
115,283
Net debt (non GAAP)
$
343,313
$
372,321
$
337,997
$
297,075
$
203,248
Free cash flow is defined as GAAP "Net cash provided by operating activities" in a period less "Purchases of property, plant and equipment" and "Purchased software" in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Net cash provided by operating activities
$
73,702
$
78,456
$
152,474
$
218,441
Purchases of property, plant and equipment
(22,271
)
(18,264
)
(69,830
)
(80,249
)
Purchased software
(425
)
(857
)
(1,675
)
(958
)
Free cash flow
$
51,006
$
59,335
$
80,969
$
137,234
About Albany International Corp.
Albany International is a leading materials science developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses.
Albany International is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, employs approximately 5,700 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.
Non-GAAP Measures
This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.
Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These amounts are then compared to the U.S. dollar amount as reported in the current period.
EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues.
The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results.
The Company’s Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EPS may not be comparable to similarly titled measures of other companies.
Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness.
Net leverage ratio informs the investors of the Company's financial leverage at the end of the reporting period, providing an indicator of the Company's ability to repay its debt.
We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Forward-Looking Statements
This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements.
Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2026 and in future years; expectations in 2026 and in future periods of revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.
Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.