What changed in this filing

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Item 1. Financial Statements

2025-07-30 compared with 2025-04-30 · 213 added, 120 removed, 656 unchanged (34% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Net revenues $ 311,399 $ 331,994 $ 600,173 $ 645,324

10 unchanged sentences

Net income 9,332 24,720 26,681 52,089

Net (loss)/income attributable to the noncontrolling interest ( 6 ) 78

Net income attributable to the noncontrolling interest 149 96 143 174

Net income attributable to the Company $ 9,183 $ 24,624 $ 26,538 $ 51,915

10 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Net income $ 9,332 $ 24,720 $ 26,681 $ 52,089

Other comprehensive income/(loss), before tax:

Foreign currency translation 13,123 ( 11,831 )

Foreign currency translation and other adjustments 40,149 ( 17,137 ) 53,272 ( 28,968 )

Pension settlement/curtailment ( 3,200 ) — ( 1,600 ) —

17 unchanged sentences

(in thousands, except share and per share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Cash and cash equivalents $ 106,689 $ 115,283

45 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

7 unchanged sentences

Compensation and benefits paid or payable in Class A Common Stock 3,654 4,243

Provision for credit losses from uncollected receivables and contract assets 269 365

Provision/(recovery) for credit losses from uncollected receivables and contract assets 1,021 ( 174 )

Foreign currency remeasurement loss/(gain) on intercompany loans 7,171 ( 2,580 )

Fair value adjustment on foreign currency contracts — 3,109

Gain on sale of assets ( 1,566 ) ( 512 )

Changes in operating assets and liabilities that provided/(used) cash:

14 unchanged sentences

Purchased software ( 1,005 ) ( 40 )

Proceeds received from sale of assets 3,243 1,029

Net cash used in investing activities ( 27,288 ) ( 45,627 )

5 unchanged sentences

Dividends paid ( 16,693 ) ( 16,233 )

Net cash provided by/(used in) financing activities 15,091 ( 28,069 )

Net cash used in financing activities ( 24,508 ) ( 98,225 )

Effect of exchange rate changes on cash and cash equivalents 8,369 ( 6,118 )

Increase/(decrease) in cash and cash equivalents 4,071 ( 48,008 )

Decrease in cash and cash equivalents ( 8,594 ) ( 56,981 )

Cash and cash equivalents at beginning of period 115,283 173,420

20 unchanged sentences

The guidance is effective for annual periods beginning after December 15, 2024.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted.

12 unchanged sentences

better assess the entity's prospects for future cash flows;

compare an entity's performance over time and with that of other entities.

The disaggregation of relevant expense captions presented on the face of the income statement may include but is not limited to the following natural expenses:

and compare an entity's performance over time and with that of other entities.

The disaggregation of relevant expense

captions presented on the face of the income statement may include but is not limited to the following natural expenses:

(1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization.

9 unchanged sentences

While there has been no resolution of the stay, the Company is currently evaluating the final rule to determine its impact on the Company's disclosures.

Reportable Segments and Revenue Recognition

Reportable Segments

The Company is organized based on the nature of its products and is composed of two reportable segments, Machine Clothing ("MC") and Albany Engineered Composites ("AEC"), each overseen by a segment president.

9 unchanged sentences

We design, manufacture, and market paper machine clothing (used in the manufacture of paper, paperboard, tissue and towel) for each section of the paper machine and for every grade of paper.

Paper machine clothing products and technical textiles.

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

Albany Engineered Composites:

4 unchanged sentences

AEC's largest aerospace customer is the SAFRAN Group and sales to SAFRAN (consisting primarily of fan blades and cases for CFM International's LEAP engine).

AEC net sales to SAFRAN were $ 39.4 million and $ 50.1 million in the first three months of 2025 and 2024, respectively.

The total of Accounts receivable, Contract assets and Noncurrent receivables due from SAFRAN amounted to $ 74.0 million and $ 78.5 million as of March 31, 2025 and December 31, 2024, respectively.

AEC net sales to SAFRAN were $ 44.4 million and $ 51.2 million for the three months ended June 30, 2025 and 2024, respectively and $ 83.8 million and $ 101.3 million in the first six months of 2025 and 2024, respectively.

The total of Accounts receivable, Contract assets and Noncurrent receivables due from SAFRAN amounted to $ 67.5 million and $ 85.8 million as of June 30, 2025 and December 31, 2024, respectively.

Other significant programs for AEC include the Sikorsky CH-53K, F-35, JASSM, and Boeing 787 programs.

2 unchanged sentences

government contracts or programs.

The following tables show data by reportable segment that is regularly provided to the CODM, reconciled to consolidated totals included in the financial statements:

Three Months Ended March 31, 2025

The following tables show data by reportable segment that is regularly provided to the CODM, reconciled to consolidated totals included in the financial statements along with other segment data:

Reconciliation of Net Revenues to Operating Income(loss):

Three Months Ended June 30, 2025

(in thousands) MC AEC Corporate Total

6 unchanged sentences

Operating income/(loss) $ 37,702 $ ( 2,674 ) $ ( 12,758 ) $ 22,270

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

(in thousands) MC AEC Corporate Total

6 unchanged sentences

Operating income/(loss) $ 49,734 $ 5,446 $ ( 12,275 ) $ 42,905

Three months ended March 31,

Six Months Ended June 30, 2025

(in thousands) MC AEC Corporate Total

Net revenues $ 355,623 $ 244,550 $ — $ 600,173

Cost of goods sold $ 191,962 $ 214,218 $ — $ 406,180

Gross profit $ 163,661 $ 30,332 $ — $ 193,993

Selling, general and administrative expenses $ 68,550 $ 21,903 $ 21,861 $ 112,314

Technical and research expenses $ 14,616 $ 7,799 $ 2,033 $ 24,448

Restructuring expenses, net $ 4,362 $ 1,688 $ 648 $ 6,698

Operating income/(loss) $ 76,133 $ ( 1,058 ) $ ( 24,542 ) $ 50,533

Six Months Ended June 30, 2024

(in thousands) MC AEC Corporate Total

Net revenues $ 378,795 $ 266,529 $ — $ 645,324

Cost of goods sold $ 205,267 $ 218,988 $ — $ 424,255

Gross profit $ 173,528 $ 47,541 $ — $ 221,069

Selling, general and administrative expenses $ 63,336 $ 24,326 $ 22,688 $ 110,350

Technical and research expenses $ 15,024 $ 9,501 $ — $ 24,525

Restructuring expenses, net $ 1,087 $ 3,110 $ 115 $ 4,312

Operating income/(loss) $ 94,081 $ 10,604 $ ( 22,803 ) $ 81,882

Schedule of Depreciation and Amortization Expenses:

Three months ended June 30, Six months ended June 30,

(in thousands)

Machine Clothing

2025 2024 2025 2024

Albany Engineered Composites 114,077 128,113

Consolidated revenues $ 288,774 $ 313,330

Machine Clothing $ 79,902 $ 84,655

Albany Engineered Composites 16,584 24,031

Consolidated gross profit $ 96,486 $ 108,686

Depreciation and amortization

3 unchanged sentences

Consolidated depreciation and amortization $ 21,751 $ 22,389 $ 43,042 $ 44,693

Operating income/(loss)

Machine Clothing

Reconciliation of Operating Income to Income before income taxes:

Three months ended June 30, Six months ended June 30,

(in thousands)

2025 2024 2025 2024

Operating income

Machine Clothing $ 37,702 $ 49,734 $ 76,133 $ 94,081

Albany Engineered Composites ( 2,674 ) 5,446 ( 1,058 ) 10,604

4 unchanged sentences

Interest expense

6,555 3,909 11,848 8,351

Other (income)/expense, net 3,534 5,657 4,517 2,675

3 unchanged sentences

Management believes this presentation better reflects the performance of the segments and is how management will review segment performance on a going forward basis.

F or the three months ended March 31, 2025, Selling, general and administrative expenses include global information system costs of $ 4.0 million, $ 3.9 million, and $ 0.5 million for MC, AEC and Corporate, respectively.

For the three months ended March 31, 2024, Selling, general and administrative expenses include global information system costs of $ 3.8 million, $ 4.0 million, and $ 0.5 million for MC, AEC and Corporate, respectively.

F or the three months ended June 30, 2025, Selling, general and administrative expenses include global information system costs of $ 3.9 million, $ 3.8 million, and $ 0.9 million for MC, AEC and Corporate, respectively.

For the three months ended June 30, 2024, Selling, general and administrative expenses include global information system costs of $ 3.9 million, $ 4.0 million, and $ 0.2 million for MC, AEC and Corporate, respectively.

F or the six months ended June 30, 2025, Selling, general and administrative expenses include global information system costs of $ 7.9 million, $ 7.7 million, and $ 1.3 million for MC, AEC and Corporate, respectively.

For the six months ended June 30, 2024, Selling, general and administrative expenses include global information system costs of $ 7.7 million, $ 8.0 million, and $ 0.6 million for MC, AEC and Corporate, respectively.

The following table presents assets by reportable segment:

(in thousands)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Segment assets

3 unchanged sentences

Cash $ 106,689 $ 115,283

Income taxes prepaid, receivable and deferred 45,761 47,944

Prepaid and Other assets 151,983 148,560

Income taxes prepaid and receivable, and Deferred income taxes 53,981 47,944

Prepaid expenses and other current assets, and Other assets 152,515 148,560

Consolidated total assets $ 1,723,453 $ 1,648,696

The following table presents capital expenditures by reportable segment:

Three months ended March 31,

Six months ended June 30,

(in thousands)

2 unchanged sentences

Albany Engineered Composites 17,521 34,564

Corporate expenses — —

Total capital expenditures and purchased software $ 30,531 $ 46,656

4 unchanged sentences

Changes in the estimated profitability of long-term contracts could be caused by increases or decreases in the contract value, revisions to customer delivery requirements, updated labor or overhead rates, material costs, factors affecting the supply chain, changes in the evaluation of contract risks and opportunities, or other factors.

The cumulative changes in the estimated profitability of long-term contracts decreased operating income by $ 7.0 million for the first three months of 2025.

The negative change in the estimated profitability in the first quarter of 2025 was driven by a few large complex programs, including approximately $ 2.0 million for various CH-53K programs, approximately $ 1.7 million on our Gulfstream program, approximately $ 0.9 million on our F-35 program, and $ 2.4 million, net, on all other programs.

Adjustments in the estimated profitability of long-term contracts decreased operating income by $ 0.9 million for the first three months of 2024.

The cumulative changes in the estimated profitability of long-term contracts decreased operating income by $ 7.2 million during the second quarter of 2025 and $ 14.2 million for the first six months of 2025.

The negative cumulative change in profitability during the second quarter of 2025 was primarily driven by a few large complex programs, including $ 8.1 million for various CH-53K programs, $ 0.8 million on our F-35 program, offset by a gain of $ 1.6 million on our Gulfstream program and a $ 0.1 million, net gain on all other programs.

The negative cumulative change in profitability during the six months ended June 2025 was driven by $ 10.1 million for various CH-53K programs, $ 2.1 million on our F-35 program, and $ 2.0 million, net on all other programs.

Adjustments in the estimated profitability of long-term contracts decreased operating income by $ 5.0 million during the second quarter of 2024 and $ 7.6 million for the first six months of 2024.

We disaggregate revenue earned from contracts with customers for each of our business segments and product groups based on the timing of revenue recognition, and groupings used for internal review purposes.

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended March 31, 2025:

Three months ended March 31, 2025

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended June 30, 2025:

Three months ended June 30, 2025

(in thousands)

8 unchanged sentences

Total revenues $ 182,964 $ 128,435 $ 311,399

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended March 31, 2024:

Three months ended March 31, 2024

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended June 30, 2024:

Three months ended June 30, 2024

(in thousands)

8 unchanged sentences

Total revenues $ 198,604 $ 133,390 $ 331,994

The following table disaggregates revenue for each product group by timing of revenue recognition for the six months ended June 30, 2025

Six months ended June 30, 2025

(in thousands)

Point in Time Revenue

Recognition Over Time Revenue

Recognition Total

Machine Clothing $ 353,580 $ 2,043 $ 355,623

Albany Engineered Composites:

ASC — 83,766 83,766

Other AEC 7,137 153,647 160,784

Total Albany Engineered Composites 7,137 237,413 244,550

Total revenues $ 360,717 $ 239,456 $ 600,173

The following table disaggregates revenue for each product group by timing of revenue recognition for the six months ended June 30, 2024

Six months ended June 30, 2024

(in thousands) Point in Time Revenue

Recognition Over Time Revenue

Recognition Total

Machine Clothing $ 376,831 $ 1,964 $ 378,795

Albany Engineered Composites:

ASC — 100,031 100,031

Other AEC 11,766 154,732 166,498

Total Albany Engineered Composites 11,766 254,763 266,529

Total revenues $ 388,597 $ 256,727 $ 645,324

The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing ("PMC") and engineered fabrics);

and for PMC, the geographical region to which the paper machine clothing was sold:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

(in thousands)

2025 2024 2025 2024

Americas PMC $ 87,488 $ 88,533 $ 170,334 $ 172,034

4 unchanged sentences

Contracts in the MC segment are generally for periods of less than a year and certain contracts in the AEC segment are relatively short duration firm-fixed-price orders.

Remaining performance obligations on contracts that had an original duration of greater than one year totaled $ 1.1 billion and $ 752 million as of March 31, 2025 and 2024, respectively, and related primarily to firm fixed price contracts in the AEC segment.

Of the remaining performance obligations as of March 31, 2025, we expect to recognize as revenue approximately $ 117 million during 2025, $ 150 million during 2026, $ 142 million during 2027, and the remainder thereafter.

Remaining performance obligations on contracts that had an original duration of greater than one year totaled $ 1.0 billion and $ 1.1 billion as of June 30, 2025 and 2024, respectively, and related primarily to firm fixed price contracts in the AEC segment.

Of the remaining performance obligations as of June 30, 2025, we expect to recognize as revenue approximately $ 84.6 million during 2025, $ 153.7 million during 2026, $ 142.1 million during 2027, and the remainder thereafter.

Pensions and Other Postretirement Benefit Plans

2 unchanged sentences

The Company accrues the cost of providing these benefits during the active service period of the employees.

The composition of the net periodic benefit cost/(income) for the three months ended March 31, 2025 and 2024, was as follows:

The composition of the net periodic benefit cost/(income) for the six months ended June 30, 2025 and 2024, was as follows:

Pension plans

16 unchanged sentences

The amount of net benefit cost/(credit) is determined at the beginning of each year and generally only varies from quarter to quarter when a significant event occurs, such as a curtailment or a settlement.

In the first three months of 2025, we took action to settle certain pension plan liabilities related to an MC pension plan in Switzerland.

This resulted in a net gain totaling $ 1.6 million related to curtailments and settlements.There were no material curtailments or settlements during the first three months of 2024.

In the first six months of 2025, we took action to settle certain pension plan liabilities related to an MC pension plan in Switzerland.

This resulted in a net gain totaling $ 1.6 million related to curtailments and settlements.

There were no material curtailments or settlements during the six months ended June 30, 2024.

Service cost for defined benefit pension and postretirement plans are reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period.

1 unchanged sentence

Restructuring

At MC, restructuring actions were taken in 2024 and 2025 to cease operations at several facilities, including at the Company's MC forming fabric manufacturing facility in Chungju, South Korea, at the Company's Heimbach engineered fabric manufacturing facility in Rochdale, UK, at the Company's Heimbach paper machine clothing facility in Olten, Switzerland and at the Company's MC manufacturing facility in Ballo, Italy.

These actions drove $ 3.3 million of restructuring charges during the first three months of 2025, of which $ 3.1 million in restructuring expenses related to workforce reductions, fixed asset impairments and related costs, as well as charges of $ 0.2 million in Cost of goods sold for the write-off of inventory, offset by a $ 1.8 million pension curtailment gain.

We expect to incur additional restructuring expenses related to these actions throughout the remainder of the year.

At AEC, restructuring activities were related to reorganizational costs as well as a reduction in the workforce within AEC, which resulted in restructuring expenses of $ 1.2 million for the first three months of 2025 and $ 2.2 million for the first three months of 2024.

At MC, restructuring actions were taken in 2025 and 2024 to cease operations at five facilities.

For the three month ended June 30, 2025, these actions related to workforce reductions of $ 3.0 million.

For the three month ended June 30, 2024, these actions related to workforce reductions and inventory write-off costs totaling $ 1.1 million.

For the six month ended June 30, 2025, these actions related to workforce reductions, fixed asset impairments and related costs and inventory write-off costs of $ 6.1 million offset by a $ 1.8 million pension curtailment gain, For the six month ended June 30, 2024 these actions related to workforce reductions and write-off of inventory of $ 1.1 million.

At AEC, restructuring activities were related to reorganizational and workforce reduction costs, which resulted in restructuring expenses of $ 0.5 million for the three months ended June 30, 2025 and $ 0.9 million for the three months ended June 30, 2024.

For the six months ended June 30, 2025 and June 30, 2024, restructuring expenses were related to reductions in workforce and totaled $ 1.7 million and $ 3.1 million, respectively.

The following table summarizes charges reported in the Consolidated Statements of Income under "Restructuring expenses, net":

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

(in thousands) 2025 2024 2025 2024

4 unchanged sentences

The following tables summarize charges by type of expense reported in the Consolidated Statements of Income under "Restructuring expenses, net" and "Cost of goods sold":

Three months ended March 31, 2025 Total

Six months ended June 30, 2025 Total

restructuring

6 unchanged sentences

Total $ 6,698 $ 7,735 $ 723 $ ( 1,760 )

Three months ended March 31, 2024 Total

Six months ended June 30, 2024 Total

restructuring

8 unchanged sentences

(in thousands) December 31, 2024 Restructuring

charges accrued Payments Currency

translation /other March 31, 2025

charges accrued Payments and other June 30, 2025

Total termination and other costs $ 4,996 $ 7,735 $ ( 8,185 ) $ 4,546

(in thousands) December 31, 2023 Restructuring

charges accrued Payments Currency

translation /other March 31, 2024

charges accrued Payments and other June 30, 2024

Total termination and other costs $ — $ 4,312 $ ( 1,388 ) $ 2,924

1 unchanged sentence

The components of Other (income)/expense, net are:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

(in thousands)

2025 2024 2025 2024

Currency transaction losses/(gains)

1 unchanged sentence

Derivative instruments losses/(gains) ( 735 ) 4,391 ( 3,261 ) 4,273

Bank fees and amortization of debt issuance costs

Components of net periodic pension and postretirement cost other than service cost ( 498 ) 664 323 1,332

1 unchanged sentence

Total other (income)/expense, net $ 3,534 $ 5,657 $ 4,517 $ 2,675

Other (income)/expense, net, included foreign currency related transactions which resulted in losses of $ 3.2 million in the three months ended March 31, 2025, as compared to gains of $ 1.3 million in the same periods last year.

In addition, changes in the fair value of derivative instruments included gains of $ 2.5 million in the three months ended March 31, 2025, as compared to gains of $ 0.1 million in the same period last year, driven by currency rate movements, most notably the Brazilian Real and Mexican Peso.

The Company's effective income tax rate for the three months ended March 31, 2025 and 2024, is as follows:

Three months ended March 31,

Other (income)/expense, net, included foreign currency related transactions which resulted in losses of $ 5.7 million and $ 8.8 million in the three and six months ended June 30, 2025, as compared to losses of $ 0.2 million and gains of $ 1.1 million in the same periods last year.

These changes were the result of unrealized losses on intercompany loans.

In addition, changes in the fair value of derivative instruments included gains of $ 0.7 million and $ 3.3 million in the three and six months ended June 30, 2025, as compared to losses of $ 4.4 million and $ 4.3 million for the three and six months ended June 30, 2024, driven by currency rate movements, most notably the Brazilian Real and Mexican Peso.

Other also included net gains of $ 1.6 million from the divestiture of Arcari during the three and six months ended June 30, 2025, offset by amortization of debt issuance costs and other non-operating expenses.

The Company's effective income tax rate for the three and six months ended June 30, 2025 and 2024, is as follows:

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Effective income tax rate 31.3 % 27.9 % 28.3 % 28.6 %

2 unchanged sentences

Our 2025 estimated annual effective tax rate primarily reflects the 21% federal tax rate, the impact of state and local taxation, the impact of taxation upon foreign operations, and forecasted permanent differences.

Our actual effective tax rates were 26.6 % and 29.2 % for the three months ended March 31, 2025 and 2024, respectively.

The effective tax rate for the three months ended March 31, 2025 included a net discrete tax benefit of $ 1.3 million.

Our actual effective tax rates were 31.3 % and 27.9 % for the three months ended June 30, 2025 and 2024, respectively.

Our actual effective tax rates were 28.3 % and 28.6 % for the six months ended June 30, 2025 and 2024, respectively.

The effective tax rate for the three months ended June 30, 2025 included a net discrete tax benefit o f $ 0.3 million.

This discrete tax benefit is mostly attributable to the true-up for prior year's estimated taxes.

The rate for the three months ended June 30, 2025 was higher than the three months ended June 30, 2024 mainly due to a significant favorable discrete tax adjustment in the quarter ended June 30, 2024 related to the release of uncertain tax positions as compared to the current period.

The effective tax rate for the six months ended June 30, 2025 included a net discrete tax benefit of $ 1.6 million.

This discrete tax benefit is mostly attributable to the true-up for prior year's estimated taxes, a net decrease in valuation allowances and a net decrease in uncertain tax positions.

The rate for the three months ended March 31, 2025 was lower than the three months ended March 31, 2024 mainly due to the favorable discrete tax adjustment related to a decrease in valuation allowance in the current period.

The rate for the six months ended June 30, 2025 was lower than the six months ended June 30, 2024 mainly due to the favorable discrete tax adjustment related to a decrease in valuation allowance in the current period.

The Company is subject to audit in the U.S.

6 unchanged sentences

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

(in thousands, except earnings per share) 2025 2024 2025 2024

10 unchanged sentences

Accumulated Other Comprehensive Income ("AOCI")

The table below presents changes in the components of AOCI for the period from December 31, 2024 to March 31, 2025:

The table below presents changes in the components of AOCI for the period from December 31, 2024 to June 30, 2025:

(in thousands)

postretirement

Total Accumulated Other

Comprehensive

December 31, 2024 $ ( 181,555 ) $ ( 14,328 ) $ ( 106 ) $ ( 195,989 )

Other comprehensive income/(loss) before reclassifications, net of tax

Foreign currency translation and other adjustments

55,971 ( 2,699 ) ( 520 ) 52,752

4 unchanged sentences

Net current period other comprehensive income 55,971 ( 3,517 ) ( 757 ) 51,697

March 31, 2025 $ ( 164,419 ) $ ( 16,990 ) $ ( 741 ) $ ( 182,150 )

The table below presents changes in the components of AOCI for the period from December 31, 2023 to March 31, 2024:

June 30, 2025 $ ( 125,584 ) $ ( 17,845 ) $ ( 863 ) $ ( 144,292 )

The table below presents changes in the components of AOCI for the period from December 31, 2023 to June 30, 2024:

(in thousands) Translation

postretirement

Total Accumulated Other

Comprehensive

December 31, 2023 $ ( 124,901 ) $ ( 17,346 ) $ 9,079 $ ( 133,168 )

Other comprehensive income/(loss) before reclassifications, net of tax ( 12,116 ) 285 892 ( 10,939 )

Foreign currency translation and other adjustments

( 29,403 ) 435 1,231 ( 27,737 )

Interest (expense)/income related to swaps reclassified to the Consolidated Statements of Income, net of tax — — ( 6,195 ) ( 6,195 )

1 unchanged sentence

Net current period other comprehensive income ( 29,403 ) 628 ( 4,964 ) ( 33,739 )

March 31, 2024 $ ( 137,017 ) $ ( 16,964 ) $ 6,955 $ ( 147,026 )

June 30, 2024 $ ( 154,304 ) $ ( 16,718 ) $ 4,115 $ ( 166,907 )

The components of AOCI that are reclassified to the Consolidated Statements of Income relate to our pension and postretirement plans and interest rate swaps.

The table below presents the expense/(income) amounts reclassified from AOCI, and the line items of the Consolidated Statements of Income that were affected for the three months ended March 31, 2025 and 2024:

Three months ended March 31,

The table below presents the expense/(income) amounts reclassified from AOCI, and the line items of the Consolidated Statements of Income that were affected for the three and six months ended June 30, 2025 and 2024:

Three months ended June 30, Six months ended June 30,

(in thousands)

2025 2024 2025 2024

Pre-tax Derivative valuation reclassified from Accumulated Other Comprehensive Income:

6 unchanged sentences

Pension settlement/curtailment

$ ( 3,200 ) $ — $ ( 1,600 ) $ 0

Amortization of prior service credit $ ( 37 ) $ ( 38 ) $ ( 74 ) $ ( 76 )

Amortization of net actuarial loss

306 176 593 354

Total pre-tax amount reclassified (a)

( 2,931 ) 138 ( 1,081 ) 278

Income tax effect 763 ( 42 ) 264 ( 85 )

8 unchanged sentences

Arcari is a manufacturer of textile and plastic industrial technical products and conveyor belts.

For the three months ended March 31, 2025, the net income/(loss) attributable to Arcari’s noncontrolling interest was less than $ 0.1 million and the noncontrolling interest balance as of March 31, 2025 was $ 0.3 million.

On April 1, 2025, Heimbach sold its 85 % controlling interest in Arcari to the minority shareholder and recorded a gain of $ 1.6 million included in Other (Income) expense on the sale.

In connection with the sale, the corresponding value of

the non-controlling interest was reduced to zero .

The Company did not retain any ownership in Arcari as a result of the sale and accordingly there was no impact on operating results during the second quarter of 2025.

The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiaries:

ASC Noncontrolling Interest Three months ended March 31,

ASC Noncontrolling Interest Six months ended June 30,

(in thousands, except percentages) 2025 2024

15 unchanged sentences

The notes may be presented for payment at maturity, which is less than one year.

As of March 31, 2025 and December 31, 2024, Accounts receivable consisted of the following:

(in thousands) March 31, 2025 December 31, 2024

As of June 30, 2025 and December 31, 2024, Accounts receivable consisted of the following:

(in thousands) June 30, 2025 December 31, 2024

Trade and other accounts receivable $ 248,700 $ 231,136

2 unchanged sentences

Accounts receivable, net $ 263,132 $ 246,688

As of March 31, 2025 and December 31, 2024, the Company had trade accounts receivable from SAFRAN of $ 73.2 million and $ 77.7 million, respectively.

As of March 31, 2025 and December 31, 2024, the Company did not have any Noncurrent receivables and related Allowance for expected credit losses.

As of June 30, 2025 and December 31, 2024, the Company had trade accounts receivable from SAFRAN of $ 68.0 million and $ 77.7 million, respectively.

As of June 30, 2025 and December 31, 2024, the Company did not have any Noncurrent receivables and related Allowance for expected credit losses.

Contract Assets and Liabilities

4 unchanged sentences

Contract assets and Contract liabilities are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting period.

As of March 31, 2025 and December 31, 2024, Contract assets and Contract liabilities consisted of the following:

(in thousands) March 31, 2025 December 31, 2024

As of June 30, 2025 and December 31, 2024, Contract assets and Contract liabilities consisted of the following:

(in thousands) June 30, 2025 December 31, 2024

Contract assets $ 185,884 $ 167,397

3 unchanged sentences

Contract liabilities $ 8,458 $ 6,085

Contract assets, net decreased $ 10.5 million during the three months ended March 31, 2025.

The decrease was

primarily due to invoicing to customers for satisfied performance obligations for contracts that were in a contract asset

position, primarily related to commercial and space programs.

There were no impairment losses related to our Contract assets during the three months ended March 31, 2025 and March 31, 2024.

Contract liabilities increased $ 1.6 million for the period ended March 31, 2025 compared to December 31, 2024, primarily due to the amounts invoiced to customers for contracts that were in a contract liability position exceeding the revenue recognized from satisfied performance obligations.

Revenue recognized for the three months ended March 31, 2025 and 2024 that was included in the Contract liability balance at the beginning of the year was $ 4.2 million and $ 3.5 million, respectively.

Contract assets, net increased $ 18.4 million during the six months ended June 30, 2025.

The increase was

primarily due to an increase in unbilled revenue, primarily related to commercial and defense programs.

There were no impairment losses related to our Contract assets during the six months ended June 30, 2025 and June 30, 2024.

Contract liabilities increased $ 2.4 million for the period ended June 30, 2025 compared to December 31, 2024, primarily due to the amounts invoiced to customers for contracts that were in a contract liability position exceeding the revenue recognized from satisfied performance obligations.

Revenue recognized for the six months ended June 30, 2025 and 2024 that was included in the Contract liability balance at the beginning of the year was $ 4.8 million and $ 3.8 million, respectively.

Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead.

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Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories.

As of March 31, 2025 and December 31, 2024, Inventories consisted of the following:

(in thousands) March 31, 2025 December 31, 2024

As of June 30, 2025 and December 31, 2024, Inventories consisted of the following:

(in thousands) June 30, 2025 December 31, 2024

Raw materials $ 82,480 $ 76,559

5 unchanged sentences

Goodwill and Other Intangible Assets

The following table sets forth the gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of March 31, 2025 and December 31, 2024:

March 31, 2025

The following table sets forth the gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of June 30, 2025 and December 31, 2024:

June 30, 2025

(in thousands) Amortization

39 unchanged sentences

$ 181,973 $ — $ 181,973

The changes in intangible assets, net and goodwill from December 31, 2024 to March 31, 2025, were as follows:

The changes in intangible assets, net and goodwill from December 31, 2024 to June 30, 2025, were as follows:

(in thousands) December 31, 2024 Other

Changes Amortization Currency

Translation March 31, 2025

Translation June 30, 2025

Finite-lived intangible assets:

11 unchanged sentences

$ 181,973 $ — $ — $ 8,818 $ 190,791

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination.

Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually.

In the second quarter of 2025, management applied the qualitative assessment approach in performing its annual evaluation of goodwill for the Company's Machine Clothing reporting unit and AEC reporting unit and concluded that each reporting unit’s fair value continued to exceed its carrying value.

Accordingly, no impairment charges were recorded.

Financial Instruments

Debt principally consists of a revolving credit agreement and foreign bank debt assumed in the 2023 acquisition of Heimbach.

The following table represents the Company's outstanding debt:

(in thousands, except interest rates) March 31, 2025 December 31, 2024

(in thousands, except interest rates) June 30, 2025 December 31, 2024

Borrowings under the Amended Credit Agreement (1)

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(1) The credit facility matures in August 2028.

At the end of March 31, 2025 and December 31, 2024, the USD interest rate in effect was 5.79 % and 5.77 %, respectively, including the effect of interest rate swaps;

at the end of March 31, 2025 and December 31, 2024, the EUR interest rate in effect was 3.83 % and 4.09 %, respectively, including the effect of interest rate swaps.

At the end of June 30, 2025 and December 31, 2024, the USD interest rate in effect was 5.92 % and 5.77 %, respectively, including the effect of interest rate swaps;

at the end of June 30, 2025 and December 31, 2024, the EUR interest rate in effect was 3.72 % and 4.09 %, respectively, including the effect of interest rate swaps.

Amended Credit Agreement

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0.350 % 1.000 % 2.000 %

As of March 31, 2025, the applicable interest rate for borrowings under the Amended Credit Agreement was based on one-month term SOFR and one-month EURIBOR plus the spread, which was 1.50 %.

As of March 31, 2025, there was $ 416.4 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $ 383.6 million, based on our maximum leverage ratio and our Consolidated EBITDA (as defined in the Amended Credit Agreement).

As of June 30, 2025, the applicable interest rate for borrowings under the Amended Credit Agreement was based on one-month term SOFR and one-month EURIBOR plus the spread, which was 1.625 %.

As of June 30, 2025, there was $ 444.7 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $ 355.3 million, based on our maximum leverage ratio and our Consolidated EBITDA (as defined in the Amended Credit Agreement).

Under the Amended Credit Agreement, we are required to maintain a leverage ratio (as defined in the Credit Agreement) of not greater than 3.75 to 1.00, or 4.25 to 1.00 after a significant acquisition.

1 unchanged sentence

If our leverage ratio exceeds 3.50 to 1.00, we will be restricted in paying dividends to a maximum amount of $ 40 million in a calendar year.

As of March 31, 2025, our leverage ratio was 1.35 to 1.00 and our interest coverage ratio was 13.39 to 1.00.

As of March 31, 2025, we were in compliance with all applicable covenants.

As of June 30, 2025, our leverage ratio wa s 1.63 to 1.00 and our interest coverage ratio was 10.51 to 1.00.

As of June 30, 2025, we were in compliance with all applicable covenants.

We anticipate continued compliance in each of the next four quarters while continuing to monitor future compliance based on current and future economic conditions.

4 unchanged sentences

From time to time, the Company enters into interest rate swap contracts to manage the interest rate risk associated with its outstanding variable-interest rate borrowings.

Such contracts are intended to economically hedge the

reference rate component of future interest payments associated with outstanding borrowings under the Company’s Amended Credit Agreement.

Such contracts are intended to economically hedge the reference rate component of future interest payments associated with outstanding borrowings under the Company’s Amended Credit Agreement.

In November, 2024, we entered into two interest rate swap agreements:

18 unchanged sentences

This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

We had no Level 3 financial assets or liabilities at March 31, 2025 or at December 31, 2024, other than certain pension assets as indicated in our December 31, 2024 Annual Report on Form 10-K.

We had no Level 3 financial assets or liabilities at June 30, 2025 or at December 31, 2024, other than certain pension assets as indicated in our December 31, 2024 Annual Report on Form 10-K.

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(in thousands)

14 unchanged sentences

Unrealized gains and losses on the interest rate swaps flow through the caption Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets.

as of March 31, 2025, these interest rate swaps were determined to be highly effective hedges of interest rate cashflow risk.

As of June 30, 2025, these interest rate swaps were determined to be highly effective hedges of interest rate cashflow risk.

Amounts accumulated in Other comprehensive income are reclassified as interest expense/(income), net when the related interest payments (that is, the hedged forecasted transactions), affect earnings.

Interest expense/(income) related to payments under the active swap agreements totaled $( 0.2 ) million for the three months ended March 31, 2025 and $( 4.0 ) million for the three months ended March 31, 2024.

Interest expense/(income) related to payments under the active swap agreements totaled $( 0.3 ) million for the six months ended June 30, 2025 and $( 8.2 ) million for the six months ended June 30, 2024.

We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results.

4 unchanged sentences

For all positions, whether options or forward contracts, there is a risk from the possible inability of the financial institution to meet the terms of the contracts and the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments.

We seek to mitigate risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies.

We seek to mitigate risk by evaluating the creditworthiness of counterparties

and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies.

(Gains)/losses related to changes in fair value of derivative instruments that were recognized in Other (income)/expense, net in the Consolidated Statements of Income were as follows:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

(in thousands) 2025 2024 2025 2024

5 unchanged sentences

is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills.

We were defending 3,653 claims as of March 31, 2025.

We were defending 3,660 claims as of June 30, 2025.

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

3 unchanged sentences

For the period ended December 31, 2024 3,606 10 50 3,646 $ 13

For the period ended March 31, 2025 3,646 11 18 3,653 $ 30

For the period ended June 30, 2025 3,646 19 33 3,660 $ 105

We anticipate that additional claims will be filed against the Company and related companies in the future but are unable to predict the number and timing of such future claims.

2 unchanged sentences

Our insurance carrier has defended each case and funded settlements under a standard reservation of rights.

As of March 31, 2025, we had resolved, by means of settlement or dismissal, 38,062 claims at a total cost of $ 10.6 million.

As of June 30, 2025, we had resolved, by means of settlement or dismissal, 38,070 claims at a total cost of $ 10.8 million.

Of this amount, almost 100 % was paid by our insurance carrier, who has confirmed that we have approximately $ 140 million of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.

1 unchanged sentence

(“Brandon”), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos.

While Brandon was defending against 7,675 claims as of March 31, 2025, only twelve claims have been filed against Brandon since January 1, 2012, and only $ 15,000 in settlement costs have been incurred since 2001.

While Brandon was defending against 7,675 claims as of June 30, 2025, only twelve claims have been filed against Brandon since January 1, 2012, and only $ 15,000 in settlement costs have been incurred since 2001.

Brandon was acquired by the Company in 1999 and has its own insurance policies covering periods prior to 1999.

7 unchanged sentences

On this basis, we have successfully moved for dismissal in a number of actions.

We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company.

We currently do not anticipate, based on currently available information, that the ultimate resolution of the

aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company.

Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows.

Changes in Shareholders’ Equity

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2024 to March 31, 2025:

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2024 to June 30, 2025:

Additional paid-in capital

16 unchanged sentences

March 31, 2025 40,973 $ 41 $ 455,584 $ 1,074,863 $ ( 182,150 ) 10,770 $ ( 448,363 ) $ 5,193 $ 905,168

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2023 to March 31, 2024:

Net income — — — 9,183 — — — 149 9,332

Compensation and benefits paid or payable in shares — — 243 — — — — — 243

Shares issued to Directors' 11 — 760 — — — — — 760

Purchase of Treasury shares (a) — — — — — 746 ( 51,295 ) — ( 51,295 )

Dividends declared on Class A Common Stock, $ 0.27 per share

— — — ( 8,024 ) — — — — ( 8,024 )

Cumulative translation adjustments — — — — 38,835 — — 67 38,902

Pension and postretirement liability adjustments — — — — ( 855 ) — — — ( 855 )

Derivative valuation adjustment and other

— — — ( 88 ) ( 122 ) — — 88 ( 122 )

June 30, 2025 40,984 $ 41 $ 456,587 $ 1,075,934 $ ( 144,292 ) 11,516 $ ( 499,658 ) $ 5,497 $ 894,109

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2023 to June 30, 2024:

Additional paid-in capital

13 unchanged sentences

March 31, 2024 40,898 $ 41 $ 449,028 $ 1,030,111 $ ( 147,026 ) 9,662 $ ( 364,665 ) $ 6,076 $ 973,565

Net income — — — 24,624 — — — 96 24,720

Compensation and benefits paid or payable in shares — — 2,530 — — — — — 2,530

Options exercised — — — — — — — — —

Shares issued to Directors' 10 — 903 — — — — — 903

Dividends declared on Class A Common Stock, $ 0.26 per share

— — — ( 8,123 ) — — — — ( 8,123 )

Cumulative translation adjustments — — — — ( 17,287 ) — — ( 366 ) ( 17,653 )

Pension and postretirement liability adjustments — — — — 246 — — — 246

Derivative valuation adjustment — — — — ( 2,840 ) — — — ( 2,840 )

June 30, 2024 40,908 $ 41 $ 452,461 $ 1,046,612 $ ( 166,907 ) 9,662 $ ( 364,665 ) $ 5,806 $ 973,348

(a) In 2021, the Company's Board of Directors authorized the Company to repurchase shares of up to $ 200 million through open market purchases, privately negotiated transactions or otherwise, and to determine the prices, times and amounts.

On February 21, 2025, the Company's Board of Directors authorized the Company to repurchase shares up to $ 250 million (excluding any fees, commissions, taxes or other expenses related to such purchases), which replaced the 2021 authorization.

In 2025, the Company repurchased 925,443 shares totaling $ 69.2 million.

In 2025, the Company repurchased 1,670,858 shares totaling $ 120.4 million including excise taxes and fees.

Subsequent Events

2 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-Q

Item 1. Financial Statements