What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-26 compared with 2024-02-26 · 167 added, 137 removed, 126 unchanged (71% of the section changed)

Albany International Corp.

(the Registrant, the Company, Albany, we, us, or our) and its subsidiaries are engaged in two business segments.

The Machine Clothing (“MC”) segment supplies consumable permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, pulp, nonwovens, fiber cement and several other industrial applications.

Within the pulp and paper industry these belts are referred to as “machine clothing” or “paper machine clothing.” In other industries we serve the products we produce are generally referred to as “processing belts.”

Founded in 1895, Albany International Corp.

is a global leader in advanced textiles and materials processing specializing in designing and manufacturing high-performance engineered fabrics and composite components and assemblies that serve industries such as paper, industrial manufacturing, and aerospace.

The terms the Registrant, the Company, Albany, we, us, or our mean Albany International Corp.

and its subsidiaries, unless the context indicates another meaning.

The following description of our business should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within Item 7 of this Annual Report on Form 10-K, including the information contained therein under the heading “Business Environment Overview and Trends.”

Business Segments

The Company operates under two business segments:

Machine Clothing and Albany Engineered Composites.

Following is a table of Net revenues by segment for years ended December 31, 2024, 2023, and 2022.

(in thousands) 2024

Machine Clothing $ 749,907 $ 670,768 $ 609,461

Albany Engineered Composites 480,708 477,141 425,426

Total net revenues $ 1,230,615 $ 1,147,909 $ 1,034,887

The table that sets forth certain segment financial performance metrics and selected balance sheet data appears in Note 3, Reportable Segments and Geographic Data, of the Notes to the Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

Machine Clothing

The Machine Clothing (“MC”) segment is the world’s leading producer of custom-designed fabrics and high-speed process belts critical in the manufacture of all grades of paper products characterized primarily as Paper Machine Clothing (“PMC”).

MC supplies highly engineered consumable permeable, and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp, referred to in the industry as “machine clothing” or “paper machine clothing.” The MC segment also supplies Engineered Fabric (“EF”) products that provide solutions for nonwovens, fiber cement and several other industrial applications.

PMC Products:

We design, manufacture, and market paper machine clothing for each section of the paper machine and for every grade of paper.

We manufacture and sell approximately twice as much paper machine clothing worldwide than any other company.

Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure.

2 unchanged sentences

A forming fabric assists in paper sheet formation and conveys the very wet sheet through the forming section.

Pressing fabrics are designed to carry the sheet through the press section, where water is pressed from the sheet as it passes through the press nip.

In the drying section, drying fabrics manage air movement and hold the sheet against heated cylinders to enhance drying to a final moisture content between 4 percent to 9 percent, depending on the grade.

Pressing fabrics are designed to carry the sheet through the press section, where water is mechanically pressed from the sheet as it passes through the press nip.

In the drying section, drying fabrics manage air movement and hold the sheet against heated cylinders to enhance drying and help control tight tolerances of final moisture content depending on the grade.

Process belts are used in the press section to increase dryness and enhance sheet properties, as well as in other sections of the machine to improve runnability and enhance sheet qualities.

The MC segment also supplies engineered processing belts used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and textile industries.

PMC product revenues accounted for more than 80% of MC’s segment Net revenues.

EF products are solution-focused, custom-designed fabrics and belts.

These products are also utilized in process industries outside of papermaking such as nonwovens, corrugators, building products, tannery and textile industries and designed to improve production rates and lower the overall cost of operation.

EF product revenue accounted for less than 20% of the MC segment’s Net revenues.

The MC segment sells its products directly to customer end-users in countries across the globe.

MC products, manufacturing processes, and distribution channels are substantially the same in each region of the world in which we operate.

The sales of paper machine clothing forming, pressing, and drying fabrics, individually and in the aggregate, accounted for more than 10 percent of our consolidated Net revenues during one or more of the last three years.

No individual customer accounted for as much as 10 percent of MC segment Net revenues in any of the periods presented.

A majority of MC segment Net revenues in the year ended December 31, 2023 were for use in the production of the growing grades of tissue, containerboard, other paper categories, and other engineered fabrics, while less than 20 percent of MC segment Net revenues were for the production of the declining newsprint and printing and writing papers categories.

On August 31, 2023, the Company completed the acquisition of Heimbach GmbH ("Heimbach"), a privately-held manufacturer of paper machine clothing and technical textiles, as further described in Note 24, Business Combination, of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K .

MC products, manufacturing processes, and distribution channels are substantially similar in each region of the world in which we

No individual customer accounted for as much as 10% of MC segment Net revenues in any of the periods presented.

In August 2023, the Company completed the acquisition of Heimbach GmbH ("Heimbach"), a privately-held manufacturer of paper machine clothing and technical textiles.

For additional information, see Note 24, Business Combination, of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of our 2023 Annual Report on Form 10-K .

The financial results of the acquired company are included in the MC reportable segment.

The Albany Engineered Composites (“AEC”) segment, provides highly engineered, advanced composite structures to customers in the commercial and defense aerospace industries.

The segment includes Albany Safran Composites, LLC (“ASC”), in which our customer, SAFRAN Group ("SAFRAN"), owns a 10 percent noncontrolling interest.

Albany Engineered Composites

The Albany Engineered Composites (“AEC”) segment is a leader in innovative composite technology solutions and manufacturer of engineered components, structures and assemblies for demanding aerospace and defense applications.

AEC provides highly engineered, advanced composite structures and assembly solutions to customers and platforms in the commercial and defense markets, as well as for space-launch vehicles and the emerging advanced air mobility market (“AAM”).

The segment includes Albany Safran Composites, LLC (“ASC”), in which our customer, SAFRAN Group ("SAFRAN"), owns a 10% noncontrolling interest.

AEC, through ASC, is the exclusive supplier to the LEAP program of advanced composite fan blades and fan cases under a long-term supply contract.

The LEAP engine is used on the Airbus A320neo, Boeing 737 MAX, and COMAC 919 aircrafts.

AEC’s largest aerospace customer is SAFRAN and sales to SAFRAN (consisting primarily of fan blades and cases for CFM’s LEAP engine) accounted for approximately 16 percent of the Company’s consolidated Net revenues in 2023.

Other significant AEC programs include the production of structures, parts and sub-assemblies for the Sikorsky CH-53K helicopter, F-35 fighter jet, Joint Air-to-Surface Standoff Missile ("JASSM"), and Boeing 787 aircraft.

AEC also supplies vacuum waste tanks for most Boeing commercial aircraft, as well as the fan case for the GE9X engine.

In 2023, approximately 39 percent of the AEC segment’s revenues were related to U.S.

The LEAP engine is used on the Airbus A320neo and A321neo, Boeing 737 MAX, and COMAC 919 aircrafts.

AEC’s largest aerospace customer is SAFRAN and sales to SAFRAN (consisting primarily of fan blades and cases for CFM’s LEAP engine) accounted for approximately 14% of the Company’s consolidated Net revenues in 2024.

AEC also supplies vacuum waste tanks for most Boeing commercial aircraft, as well as the fan case for the GE9X engine used on the Boeing 777 aircraft.

In 2024, approximately 36% of the AEC segment’s revenues were related to U.S.

government contracts or programs.

See “Business Environment Overview and Trends” under Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for a discussion of general segment developments in recent years.

Following is a table of Net revenues by segment for years ended December 31, 2023, 2022, and 2021.

(in thousands)

Machine Clothing

$ 670,768 $ 609,461 $ 619,015

Albany Engineered Composites

477,141 425,426 310,225

Total net revenues

$ 1,147,909 $ 1,034,887 $ 929,240

The table that sets forth certain Net revenues, operating income, and balance sheet data appears in Note 3, Reportable Segments and Geographic Data, of the Notes to the Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

International Operations

Our MC business segment maintains manufacturing facilities in Belgium, Brazil, Canada, China, France, Germany, Italy, Mexico, South Korea, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

Our MC business segment maintains manufacturing facilities in Belgium, Brazil, Canada, China, France, Germany, Italy, Mexico, Spain, Sweden, the United Kingdom, and the United States.

MC's global manufacturing footprint is designed to most efficiently meet regional customer requirements.

Our AEC business segment maintains manufacturing facilities in the United States, France, Mexico, and Germany to meet customer demand in those regions.

Our global presence subjects us to certain risks, including tariffs and other restrictions on trade, and controls on foreign exchange and the repatriation of funds.

While the direct impact of recent developments in global trade and tariff policy has not been significant, there is risk that the impact of such developments on companies in our supply chain will be reflected in higher costs from affected suppliers.

We have a cash repatriation strategy that targets a certain amount of foreign current year earnings that are not indefinitely reinvested.

Changes in the trade or regulatory compliance in any country that we have significant cash balances could make it difficult to repatriate foreign earnings cost-effectively in the future.

Research and Development and Technology

Our global presence subjects us to certain risks, including tariffs and other restrictions on trade, foreign exchange exposure and our ability to repatriate funds from foreign jurisdictions.

While global trade and tariff policies have not had a material impact to our past results of operations, there is risk that the impact of recent developments on companies in our supply chain could cause higher costs from affected suppliers.

With the change in the United States Presidential Administration, proposed tariffs by the new Administration may significantly adversely impact our results of operations.

We have a cash repatriation strategy that manages a certain amount of foreign current year earnings that are not indefinitely reinvested.

Changes in the trade or regulatory compliance in any country that we have significant cash balances could make it more difficult to repatriate foreign earnings cost-effectively in the future.

Research, Development and Technology

We invest in research, new product development, and technical analysis with the objective of maintaining our technological leadership in each business segment.

4 unchanged sentences

As a result, many employees in sales and technical functions have engineering degrees, paper mill experience, or other manufacturing experience in the markets in which we operate.

Our market leadership position reflects our commitment to technology innovation.

Our market leadership position reflects our

commitment to technology innovation.

This innovation has resulted in new products and enhancements across all of our product lines.

AEC designs, develops and manufactures advanced composite parts and sub-assemblies for complex aerospace applications, using a range of core technologies, including its proprietary 3D-woven reinforced composites technology, traditional 2D laminated composite structures, automated fiber placement for both thermoplastics and thermoset composites as well as rigid installation for through-thickness reinforcements, and braided structures.

AEC develops innovative solutions and manufactures advanced composite parts and assemblies for complex aerospace applications, using a range of core technologies, including its proprietary 3D-woven reinforced composites technology, traditional 2D laminated composite structures, automated fiber placement for both thermoplastics and thermoset composites as well as rigid installation for through-thickness reinforcements, and braided structures.

In addition, AEC continues to leverage its 3D woven technology to develop differentiated processing solutions for high-temperature applications, including hypersonic flight components.

AEC is working closely with its customers to develop high performance alternatives to traditional thermal protection and energy absorption requirements.

These preforms serve as the building blocks for an array of critical applications, ranging from thermal protection to energy absorption.

In addition to continuous significant investment in core research and development activities in pursuit of new proprietary products and manufacturing processes, experienced research and development employees in each business segment also work collaboratively with customers, OEMs and suppliers on targeted development efforts to introduce new products and applications in their respective markets.

Technical and research expenses totaled $46.1 million in 2024, $40.6 million in 2023, and $39.9 million in 2022.

In 2023, these costs were 3.5 percent of total Company Net revenues, including $16.0 million, or 3.3 percent of Net revenues, in our AEC segment.

In 2024, these costs were 3.7% of total Company Net revenues, including $16.3 million, or 3.4% of Net revenues, in our AEC segment.

Research and development in the AEC segment include both Company-sponsored and customer-funded activities.

Some customer funded research and development may be on a cost sharing basis, in

which case, amounts charged to the collaborating entity are credited against research and development costs.

Some customer funded research and development may be on a cost sharing basis, in which case, amounts charged to the collaborating entity are credited against research and development costs.

For customer-funded research and development in which we anticipate funding to exceed expenses, we include amounts charged to the customer in Net revenues.

Cost of goods sold associated with customer-funded research was $5.6 million in 2024, $6.4 million in 2023, and $5.2 million in 2022.

We have developed, and continue to develop, proprietary intellectual property germane to the industries we serve.

Our intellectual property takes many forms, including patents, trademarks, trade names and domains, and trade secrets.

Our trade secrets include, among other things, manufacturing know-how and unique processes and equipment.

Because intellectual property in the form of patents is published, we often forgo patent protection and preserve the intellectual property as trade secrets.

We aggressively protect our proprietary intellectual property, pursuing patent protection when appropriate.

Our active portfolio currently contains over 2,300 patents, and approximately 100 new patents are typically granted each year.

While we consider our total portfolio of intellectual property, including our patents, to be an important competitive advantage, we do not believe that any single patent is critical to the continuation of our business.

All brand names and product names are trade names of Albany International Corp.

or its subsidiaries.

New Business Ventures

In 2024, the Company launched a New Business Ventures team dedicated to developing innovative products and business opportunities that address high growth opportunities which are adjacent to our current business portfolio utilizing our existing developed technologies, materials science and extensive expertise across our MC and AEC segments.

The strategy is to unlock further potential in focus areas, such as 3D weaving, resin transfer molding, large scale flat weaving, and the application of technically diverse composite materials and coatings, to create and certify groundbreaking products.

For instance, we are currently exploring the use of our 3D weaving expertise in combination with our resin and coatings capabilities to enhance the effectiveness of products that can be used in various defense and space applications.

In coordination with raw material providers and equipment OEMs, we are developing an enhanced value proposition for the market that further reduces weight and improves overall performance of identified products in applications across various industries.

Our goal is to leverage our existing subject matter experts across our Research, Development and Technology teams to drive future profitable growth of new products addressing an expanded range of applications and end-markets.

Although we do not expect meaningful revenue growth from New Business Ventures until 2027, the investments we are making today will be a pillar for new innovative product opportunities.

Intellectual Property

We continue to generate and develop proprietary intellectual property germane to the industries we serve.

Our intellectual property includes patents and trademarks across multiple jurisdictions worldwide.

We also develop and own other intellectual property including copyrights, trade secrets, research and development, and engineering and manufacturing know-how, which make important contributions to our business.

In addition, we have licensed intellectual property to and from third parties.

While we consider our intellectual property portfolio to be an important competitive advantage, in general, we do not believe that any single patent, trademark, license or other intellectual property right or group of related intellectual property rights is of such importance that its loss or termination would have a material adverse effect on our business taken as a whole.

Raw Materials

Primary raw materials for our MC products are polymer monofilaments and fibers, which have generally been available from a number of suppliers.

In addition, we manufacture polymer monofilaments, a basic raw material for all types of machine clothing, at our facility in Homer, New York, which supplies approximately 25 percent of our worldwide monofilament requirements.

In addition, we manufacture polymer monofilaments, a basic raw material for all types of machine clothing, at our facility in Homer, New York, which supplies approximately 20% of our worldwide monofilament requirements.

In our AEC segment, the primary raw materials are carbon fiber and resin.

2 unchanged sentences

Currently, the primary raw materials used in each segment are derived from petroleum, and are therefore sensitive to changes in the price of petroleum and petroleum intermediates.

Machine Clothing

Price and technology are the primary means of competitive differentiation in the industry.

Our MC product portfolio is broad and deep, with products for every part of the machine and a wide range of machine types and paper grades.

The Company’s research and development team works closely with the sales and technical organization to develop new products to meet changes in customer needs, and also pursues targeted joint development activities with customers and equipment manufacturers to create new products.

MC's research and development team works closely with the sales and technical organization to develop new products to meet changes in customer needs, and also pursues targeted joint development activities with customers and equipment manufacturers to create new products.

Albany’s experienced sales and technical team members – many of whom have worked in the industries that we serve – work closely with each customer to acquire deep understanding of the customer’s combination of raw materials, manufacturing equipment, manufacturing processes, and paper, pulp, nonwovens or other product being produced – a combination that is unique to each customer, plant and machine.

This experience and knowledge, combined with knowledge of and experience with the Company’s own extensive product portfolio, allows the sales and technical teams to ensure that the appropriate machine clothing products are being supplied for each part of the machine, to customize those products as needed for best performance, and to continuously propose new products that offer each customer the possibility of even better performance and increased savings.

Our paper machine clothing solutions enable our customers to reduce energy consumption, improve resource efficiency, and help maintain and improve water quality.

These efforts – which effectively integrate the Company’s experience and technological expertise into each product we sell – are reflected in the Company’s strong competitive position in the marketplace.

Some of the Company’s paper machine clothing competitors also supply paper machines, papermaking equipment, and aftermarket parts and services, and often bundle machine clothing products with original or rebuilt machines and/or aftermarket services.

This experience and knowledge, combined with knowledge of and experience with MC’s own extensive product portfolio, allows the sales and technical teams to ensure that the appropriate machine clothing products are being supplied for each part of the machine, to customize those products as needed for best performance, and to continuously propose new products that offer each customer the possibility of even better performance and increased savings.

MC's machine clothing solutions enable our customers to reduce energy and water consumption, improve resource efficiency, and help maintain and improve water quality.

These efforts – which effectively integrate MC’s experience and technological expertise into each product we sell – are reflected in MC’s strong competitive position in the marketplace.

Some of the MC’s paper machine clothing competitors also supply paper machines, papermaking equipment, and aftermarket parts and services, and often bundle machine clothing products with original or rebuilt machines and/or aftermarket services.

Albany Engineered Composites

The primary competitive factors in the markets in which our AEC segment competes are product performance, delivery performance, quality, and price.

Achieving lower weight without sacrificing strength is the key to improving fuel efficiency, which helps reduce the carbon emissions footprint of global aviation, and is a critical performance requirement in the aerospace industry.

Our broad array of capabilities in composites enables us to offer customers the opportunity to displace metal components and, in some cases, conventional composites with lower-weight, high-strength, and potentially high-temperature resistant composites.

The dominant competitive factor is the relative

importance the customer places on these performance benefits, which include fuel savings/emissions reductions due to lower weight, against the possible cost advantage of more traditional metal and composite components.

Our broad array of capabilities in composites enables us to offer customers the opportunity to displace metal components and, in some cases, conventional composites with lower-weight, higher-strength, and higher-temperature and corrosion resistant composites.

The dominant competitive factor is the relative importance the customer places on these performance benefits, which include fuel savings/emissions reductions due to lower weight, against the possible cost advantage of more traditional metal and composite components.

Human Capital Resources

The health and safety of our employees is our highest priority, and drives the successful execution of our business.

Our objective is always zero injuries at work, and our entire workforce from the Board of Directors to our teams on the shop floor work together towards this goal.

We track and review safety metrics throughout the year, including Total Recordable Incident Rate ("TRIR") and proactive safety actions taken.

Our Board of Directors further reinforces our culture of safety by tying a portion of each Executive Officer's compensation to the achievement of TRIR goals across the entire company.

Our talented and innovative people are truly our greatest advantage.

We are unwavering in our commitment to nurture a thriving people-first and high-engagement workplace culture defined by mutual respect.

We strive to foster an inclusive and equitable culture where diversity of experiences, backgrounds, and skills are valued, respected, and celebrated.

We believe that an inclusion-based culture has the power to enhance innovation, nurture an environment where our people can reach their highest potential, and deliver the best solutions to our customers.

We believe in the power of open and transparent communication throughout the organization and endeavor to ensure our employees’ voices are heard.

We currently employ approximately 5,600 people, with significant global operations in North America, South America, Europe and Asia.

Our Employee Value Proposition enables us to provide an outstanding Albany employee experience and strengthen our high-performance organization.

We ensure that our global employees receive inclusive and competitive compensation, benefits, and total rewards for their critical contributions at Albany.

For employees in the U.S.

this includes 401(k) match and profit sharing contribution, paid time off, personal days off, health and dental insurance, pet insurance, reward and recognition programs, and strong commitment to employee well-being and work/life balance.

Our talent management strategy focuses on a three-pronged approach:

developing and growing our internal talent, hiring the best talent from the market, and leveraging our internship program to identify and build the next generation of talent.

To develop internal talent, our talent management process focuses on identifying opportunities for career growth and development within the organization.

We are committed to enhancing the employee experience, which includes consistent learning and development to support our employees as they enhance their knowledge, unleash their full potential and reach their career aspirations.

We have defined curriculum by disciplines and functions.

We also provide a variety of continuous learning opportunities through on-the-job training, virtual training, instructor-led training, and external learning opportunities.

Our learning management system provides our employees with over 8,000 courses to choose from, in a flexible format, allowing employees to participate in regular training programs appropriate for their responsibility, and extensive optional training programs have been developed for those who seek professional and personal growth opportunities.

All employees are required to participate in safety, ethics and compliance training on a regular basis.

Our Chief Human Resources Officer meets regularly with the Chief Executive Officer and the Senior Leadership Team to align People strategy, plan and initiatives with business strategy and goals.

Our People Resources plan ensures that we provide a rewarding employee experience across the Company.

We continuously review leading and lagging People metrics.

To further our Diversity, Equity and Inclusion (DE&I) impact, our DE&I Council develops a holistic and actionable DE&I strategy that seeks diversity, nurtures inclusion, amplifies innovation and empowers champions.

Our hiring strategy recruits candidates from a broad range of hiring sources that target diverse backgrounds, skills and competencies to fill our open positions with the most qualified candidate.

Approximately 27 percent of our global workforce were women in 2023 and 30 percent of our U.S.

workforce identified as a ‘U.S.

minority’, as defined by the Equal Employment Opportunity Commission.

Our Empowering Women Leaders Network aims to continue increasing representation of women at all levels to contribute to the Company’s business success through relationships and partnerships.

As part of our DE&I strategy, employees attend an annual DE&I training session to create awareness of the importance of DE&I as part of Albany’s culture.

Further, we ensure DE&I training is fully integrated into our continuous learning culture.

Our journey on DE&I continues with the establishment of Employee Resource Groups to champion DE&I and foster a diverse and inclusive environment.

We fully support global human rights and have aligned our policies and procedures with the United Nations Global Compact and the Universal Declaration of Human Rights, among others.

In 2023 we issued a standalone Human Rights Policy to further affirm our commitment to human rights throughout our value chain.

At our company, we are proud to employ approximately 5,400 people across North America, South America, Europe, and Asia.

Our team’s talent and creativity are our biggest strengths, and we are deeply committed to fostering a workplace culture that values respect, engagement, and well-being.

We focus on our employees’ physical, mental, and social health, offer career development opportunities, and provide competitive pay and benefits.

In addition, our People strategy is closely aligned with our business goals.

Our top priority is keeping our employees safe.

We aim for zero workplace injuries and track safety metrics throughout the year, such as Total Recordable Incident Rate (TRIR), Serious Injuries and Fatalities (SIFs), safety behaviors, and proactive safety actions taken.

Our safety culture is reinforced by linking a portion of each Executive Officer's incentive compensation to achieving company-wide TRIR goals.

We work hard to create an inclusive and fair environment where a broad range of experiences, backgrounds, and skills are celebrated and respected.

We believe that this culture boosts innovation and helps our people reach their full potential.

Our hiring strategy draws from diverse backgrounds to find the most qualified candidates.

As of December 31, 2024, our total workforce is 27.6% female.

In the U.S., our headcount is approximately 2,000 employees, with 33% self-identifying as a minority.

Our talent management strategy includes developing our internal talent for promotion, hiring the best people from outside the company when no internal candidate is available, and using our internship program to identify future talent and build the talent pipeline.

We believe in continuous learning and development and offer various training opportunities, including on-the-job training, virtual courses, and external learning programs.

All employees regularly participate in safety, ethics, and compliance training.

Our four Leadership Training Programs are targeted at different segments of our employee population with programs for new and potential managers, more experienced leaders, and executives.

Our employees around the world enjoy competitive compensation and benefits.

In the U.S., this includes 401(k) matching, profit sharing, paid time off, health and dental insurance, and recognition programs, among others.

We also emphasize work-life balance and well-being.

We support global human rights, aligning our policies with the United Nations Global Compact and the Universal Declaration of Human Rights.

Our strategy is to focus on the advantages inherent in our diverse workforce and promote an inclusive company culture.

In 2024, we launched an updated set of Albany Values focused on actions our employees can take to set the foundation for our future growth and success.

The Albany Values are as follows:

• Albany wins together (Teamwork)

– We combine our individual strengths for collective success

– We share knowledge to grow it

– We embrace the advantage of our diversity

• Count on each other (Trust & Respect)

– We empower each other

– We welcome input and value differences

– We treat each other fairly and equitably

• Own your actions (Accountability)

– We do what we say and say what we do

– We act with integrity

– We pursue ever better solutions

• Care about each other (Safety)

– We are all responsible for a safe and sustainable environment

– We make safe choices

– We value well-being (mental, physical, and social)

• Share your enthusiasm (Passion)

– We are excited to be part of Albany

– We put our hearts into every task

– We lift each other up

We live these values every day at Albany.

Sustainability

2 unchanged sentences

Our products are designed for performance and consistency, while enabling our customers to improve their environmental footprint through more sustainable and efficient processes and end products.

As described above, our paper machine clothing products enable our paper-making customers to reduce their own environmental footprint by reducing their energy consumption, improving resource efficiency, and helping maintain and improve water quality.

As described above, our paper machine clothing products enable our paper-making customers to reduce their own environmental footprint by reducing their energy consumption, and improving both resource and operating efficiency.

Energy is one of the top three cost components in the paper making process.

1 unchanged sentence

We continue to innovate and remain focused on developing and bringing to market proprietary products aimed at improving the energy and resource efficiency needed for our customers’ products and their production processes.

This includes further exploration into increasing both the use of recycled materials in our products, and improving the recyclability of our products at the end of their useful life.

In aerospace, weight savings that drive fuel efficiency are essential for aircraft producers, if the industry is to achieve its goals for sustainable aviation.

10 unchanged sentences

And we are committed to going beyond regulatory requirements, implementing responsible and intentional strategies to continually minimize our environmental impact.

In 2022, we completed efforts to gather, aggregate, and report comprehensive and comparable information on the energy use and emissions across the 23 Albany facilities in the 11 countries where we have historically operated, in accordance with the Greenhouse Gas ("GHG") Protocol for Scope 1 and Scope 2.

In 2023, we partnered with an independent third-party enterprise climate platform to enhance measurement, reporting, and reduction of our carbon emissions.

This work sets the foundation for calculating Scope 3 emissions and, importantly, developing a climate transition plan to address both our products and services as well as our company operations and manufacturing footprint.

We are proud to partner with an independent third-party enterprise climate platform to enhance measurement, reporting, and reduction of our carbon emissions.

We have enhanced our carbon accounting to include full disclosure of Scope 1, Scope 2 and Scope 3 emissions, which we report to CDP and in our annual Taskforce on Climate-related Financial Disclosures ("TCFD") Report.

This work has set the foundation for developing a climate transition plan to address both our products and services as well as our company operations and manufacturing footprint.

In 2023, we signed a commitment letter with the Science Based Targets Initiative ("SBTi") that commits us to establishing near-term Science-Based Targets.

Once committed to SBTi, we have a maximum of 24 months to set formal emissions reduction targets and goals aligned with the Paris Agreement’s ambition of maintaining global temperature rise to 1.5°C.

This commitment has the full support of our Board of Directors and Senior Leadership Team, and we look forward to developing these science-based targets along with a comprehensive emissions

reduction strategy, tracking and reporting progress at least annually, while continuing to accelerate progress on our energy initiatives across our global portfolio.

We continue to focus on the impact of our own operations by evaluating our risks and identifying actionable opportunities to drive meaningful improvement in our energy and GHG emissions intensity, as well as our products’ environmental impact.

We are also focused on increased transparency with our first global response to CDP and our first Taskforce on Climate-related Financial Disclosures ("TCFD") Report in 2023.

In 2024, we agreed on a goal of reducing Scope 1 and Scope 2 emissions by 50% by 2030.

In support of this goal, we have signed a U.S.

virtual power purchase agreement ("VPPA"), which will reduce our Scope 2 emissions by about 25%.

This agreement gives us a strong head start on reaching our emissions reduction goal while we progress with additional on-site initiatives.

We continue to focus on the impact of our own operations by evaluating our risks and identifying actionable opportunities to drive meaningful improvement in our energy and emissions intensity, as well as our products’ environmental impact.

Water and Waste

As a global company, Albany operates in 14 countries with varying options available for waste and recycling.

We are committed to reducing waste, both from our own operations as well as our customers’, and we continue to look for opportunities to reduce waste generated across our operations and our products.

As a first step we strive to separate our waste streams across our operations including general waste, hazardous waste, electronic waste, and carbon fiber/raw material waste.

We are also committed to reducing waste, both from our own operations as well as our customers’, and we have a goal of zero waste to landfill by 2030 for our operations in the Americas and Europe.

We continue to look for opportunities to reduce waste generated across our operations and our products.

As a first step we strive to separate our waste streams across our operations including general waste, hazardous waste, electronic waste, carbon fiber/raw material waste, and compostable material.

Waste streams are collected via appropriate third parties, with the objective of optimizing reuse and minimizing waste to landfill.

For example, at one of our facilities we have achieved zero waste to landfill since 2022, primarily through recycling and converting waste to energy sources.

Innovation and partnerships are key to our core business and our sustainability objectives.

20 unchanged sentences

The following table sets forth certain information with respect to the executive officers of the Company as of February 26, 2025:

Gunnar Kleveland, 54, President and Chief Executive Officer , joined the Company in 2023.

He has served the Company as President and Chief Executive Officer since September 2023.

Gunnar Kleveland, 55, President and Chief Executive Officer , joined the Company in 2023 and serves the Company as President and Chief Executive Officer.

Prior to joining the Company, Mr.

Kleveland served as President and Chief Executive Officer of Textron Specialized Vehicles Inc.

He also served as the President of TRU Simulation + Training Inc.

He has also served as the President of TRU Simulation + Training Inc.

and Executive Vice President of Integrated Operations for Bell Helicopter Textron Inc.

Prior to joining Textron in 2004, Mr.

Kleveland was a fighter pilot in the Royal Norwegian Air Force (RNoAF) and finished his 15-year career in the air force as the Chief of Flight Safety.

Kleveland was a fighter pilot in the Royal Norwegian Air Force (RNoAF).

Starr, 57, Executive Vice President and Chief Financial Officer, joined the Company in 2023.

Prior to joining the Company, he served for 18 months as Chief Financial Officer of Fairbanks Morse Defense, a privately-held supplier of naval power and propulsion systems.

He previously spent 12 years at Kaman Corporation where he served as Chief Financial Officer for 8 years and VP, Treasurer for 4 years.

He previously spent 12 years at Kaman Corporation where he served as Chief Financial Officer for eight years and VP, Treasurer for four years.

Before joining Kaman, Mr.

Starr held increasingly senior treasury roles at large publicly listed companies including Crane Co., Aetna and Fisher Scientific International.

Starr held increasingly senior treasury roles at large publicly listed companies including Crane Co., Aetna and Fisher Scientific

International.

Early in his career he worked in investment banking both domestically and internationally across a broad range of industries.

Halftermeyer, 62, President – Machine Clothing, joined the Company in 1987.

Halftermeyer has served the Company as President – Machine Clothing since February 2012.

He previously served the Company as President – Paper Machine Clothing and Engineered Fabrics from August 2011 to February 2012, as President – Paper Machine Clothing from January 2010 until August 2011, Group Vice President – Paper Machine Clothing Europe from 2005 to August 2008, Vice President and General Manager – North American Dryer Fabrics from 1997 to March 2005, and Technical Director – Dryer Fabrics from 1993 to 1997.

He held various technical and management positions in St.

Stephen, South Carolina, and Sélestat, France, from 1987 to 1993.

Greg Harwell, 60, President – Albany Engineered Composites, joined the Company in 2019.

Harwell has served the Company as President – Albany Engineered Composites since November 2019.

Prior to joining the Company, he served as President of Aerostructures for Precision Castparts (PCC) managing all aspects of the organization for the Aerostructures division.

He also served as Vice President and General Manager in charge of Global Operations Strategy at Alcoa Fastening Systems and Rings, and before November 2014 was responsible for multiple operations within Alcoa Fastening Systems.

From June 2019 until he joined Albany International, Mr.

Harwell was a consultant to Arlington Capital Partners, providing M&A advisory services.

Alice McCarvill, 59, Executive Vice President – Human Resources and Chief Human Resources Officer, joined the Company in 2018.

McCarvill has served the Company as Executive Vice President – Human Resources and Chief Human Resources Officer since February 2019 .

She joined the Company in March 2018 as Executive Vice President- Human Resources.

Prior to 2018 she was Group VP Human Resources for Arconic Engineered Products and Solutions.

Gaug, 60, Vice President – General Counsel and Secretary, joined the Company in 2004.

Gaug has served the Company as Vice President – General Counsel and Secretary since May 2020.

Merle Stein, 48, President – Machine Clothing , joined the company in 2011.

He has considerable experience in the paper and pulp industries and significant knowledge of the Machine Clothing business and a strategic understanding of the markets it serves.

He comes to the role with considerably broad leadership experiences, particularly in operational and customer-facing operations.

From 2024 until becoming president, he had served as Division Chief Operating Officer for the business segment where he oversaw all operational aspects of the business and led the Sales & Marketing, Operations, Procurement and Human Resources functions.

Prior to that, he was the Vice President Sales & Marketing/Applications for Americas, after having served in various other sales and marketing leadership roles since joining the Company, including Vice President Sales MC - North America, Regional Business Director and Sales & Service Engineer.

Prior to joining the Company, Mr.

Stein managed papermaking operations at Essity’s green field papermill in Alabama where he had risen to the position of Papermill Manager.

Chris Stone, 52, President – Albany Engineered Composites , joined the company in 2024.

He brings a deep knowledge of the A&D industry, and considerable broad experiences to his new role.

He has held a wide range of leadership positions at public companies, with a focus in manufacturing and supply chain management, business operations, production control, logistics and organizational transformation.

Most recently he served as Vice President & Chief Supply Chain Officer at Lockheed Martin Corporation from 2021 to 2024.

Prior to joining Lockheed Martin, he was Vice President – Supply Chain & Material Management at Aerojet Rocketdyne from 2018 to 2021, and previously held various management positions at Textron companies, including Textron Marine & Land System and Bell Helicopter from 2005 to 2018.

He is a former Aviation Officer with the United States.

Suzanne Purdum, 56, Chief Human Resources Officer , joined the company in 2024.

Purdum brings more than 25 years of experience in a number of HR disciplines including development and execution of HR strategy, organization design and effectiveness, learning and development, talent management, employee and labor relations, change management, and compensation and benefits.

She is an experienced HR leader and business professional who has held executive level positions in Business Partnering, Total Rewards, and Talent Acquisition at a global level for large US multinational companies.

Most recently, Ms.

Purdum served as the Senior Executive Director for Boeing Global Human Resources – Europe, Israel and Ukraine.

Prior to this role, Ms.

Purdum held multiple leadership roles of increasing responsibility at Boeing, TRU Simulation + Training, Bell Helicopter, and Textron.

Gaug, 61, Senior Vice President – General Counsel and Secretary, joined the Company in 2004.

Gaug is responsible for the Company's global legal, compliance, sustainability, risk management, and intellectual property functions, overseeing a team of lawyers, paralegals and other professionals.

He has served as General Counsel and Secretary since 2020.

He previously served as Associate General Counsel from 2004 and as Associate General Counsel and Assistant Secretary from 2006 to May 2020.

Prior to 2004 he was a principal at McNamee, Lochner, Titus & Williams, PC.

Prior to 2004 he was a principal at the law firm of McNamee, Lochner, Titus & Williams, PC, where, among other clients, he had represented the Company in various matters as outside counsel.

Hansen, 67, Senior Vice President and Chief Technology Officer, joined the Company in 1981.

8 unchanged sentences

Tedone served as Vice President, Finance and Chief Accounting Officer of Lydall, Inc.

He previously spent 16 years at Kaman Corporation where he served as the

Vice President, Finance and Chief Accounting Officer from 2007 to 2020.

He previously spent 16 years at Kaman Corporation where he served as the Vice President, Finance and Chief Accounting Officer from 2007 to 2020.

Earlier in his career he held finance and accounting roles of increasing responsibility at Diageo NA, United Technologies Corp., and KPMG.

We are incorporated under the laws of the State of Delaware and are the successor to a New York corporation originally incorporated in 1895, which was merged into the Company in August 1987 solely for the purpose of changing the domicile of the corporation.

changing the domicile of the corporation.

References to the Company that relate to any time prior to the August 1987 merger should be understood to refer to the predecessor New York corporation.

6 unchanged sentences

Our Data Security strategy is overseen by the Audit Committee of our Board of Directors, regularly reviewed at the executive level, directed by our Chief Information Officer, and managed by our Enterprise Cyber Security (ECS) team.

For information on our approach, see Item 1C, Cybersecurity in this Part I and the Sustainability section of our website at www.albint.com.

For information on our approach, see Item 1C, Cybersecurity in this Part I and the Sustainability section of our website at https://www.albint.com/sustainability/.

Regulatory Matters

11 unchanged sentences

Our principal executive offices are located at 216 Airport Drive, Rochester, New Hampshire 03867.

Our telephone number is 603-330-5800 and our website address www.albint.com.

Our telephone number is 603-330-5850 and our website is www.albint.com.

Our current reports on Form 8-K, quarterly reports on Form 10-Q, and annual reports on Form 10-K, proxy statements for our annual stockholders' meetings and amendments to those reports are electronically filed with the Securities and Exchange Commission (the “SEC”), and all such reports and amendments to such reports filed subsequent to November 15, 2002, have been and will be made available, free of charge, through our website at www.albint.com as soon as reasonably practicable after such filing.

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business