Albany International Reviews Composite Unit While Machine Clothing Delivers $204.7M EBITDA
Albany International launched a strategic review of its Salt Lake City Engineered Composites facility, fielding 10 private equity inquiries and projecting mid-to-high-teens margins on programs like LEAP and F-35. Its Machine Clothing segment generated $204.7 million adjusted EBITDA at a 28.9% margin in 2024, valuing the firm at nine times EBITDA.
1. Strategic Review of Engineered Composites
Management initiated a strategic review of the Salt Lake City Engineered Composites facility, engaging Guggenheim Securities and receiving over ten private equity inquiries. The company has guided that, upon divestiture, the remaining composites portfolio—including LEAP, F-35, JASSM, LRASM and hypersonics—should achieve mid-to-high-teens EBITDA margins.
2. Machine Clothing Financial Performance
The Machine Clothing segment posted $204.7 million in adjusted EBITDA on $708 million revenue in 2024 at a 28.9% margin, supported by gross margins above 50%. Heimbach integration added about $50 million of revenue in its first year, and full-year 2025 MC revenues remained flat at $708 million despite a 5.6% Q4 decline in China.
3. Valuation Implications and Market Reaction
With a market capitalization near $1.47 billion, net debt of $343.3 million and enterprise value of roughly $1.81 billion, the company trades at about nine times Machine Clothing EBITDA while assigning negative value to engineered composites. The share price is down approximately 38% from its 52-week high as investors weigh the composites outlook against the durable paper franchise.