What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-04-30 compared with 2024-10-30 · 207 added, 238 removed, 569 unchanged (44% of the section changed)

4 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net revenues $ 288,774 $ 313,330

6 unchanged sentences

Interest expense/(income), net 3,655 3,319

Other (income)/expense, net 3,257 56 5,932 ( 4,910 )

Other expense/(income), net 983 ( 2,982 )

Income before income taxes 23,625 38,640

1 unchanged sentence

Net income 17,349 27,369

Net income attributable to the noncontrolling interest 192 45 366 396

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

Net income attributable to the Company $ 17,355 $ 27,291

10 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net income $ 17,349 $ 27,369

1 unchanged sentence

Foreign currency translation 13,123 ( 11,831 )

Pension settlement/curtailment 1,600 —

Amortization of pension liability adjustments:

4 unchanged sentences

Income taxes related to items of other comprehensive income/(loss):

Pension settlement/curtailment ( 422 ) —

Amortization of prior service credit 11 11

9 unchanged sentences

(in thousands, except share and per share data)

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Cash and cash equivalents $ 119,354 $ 115,283

9 unchanged sentences

Deferred income taxes 26,369 28,757

Noncurrent receivables, net — 4,392

Other assets 112,029 111,428

24 unchanged sentences

Treasury stock (Class A), at cost;

9,661,845 shares in 2024 and 2023

10,770,189 shares in 2025 and 9,844,746 in 2024

( 448,363 ) ( 379,210 )

7 unchanged sentences

(in thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

7 unchanged sentences

Compensation and benefits paid or payable in Class A Common Stock 2,651 810

Provision/(recovery) for credit losses from uncollected receivables and contract assets 40 641

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

Foreign currency remeasurement loss/(gain) on intercompany loans 2,886 ( 792 )

Fair value adjustment on foreign currency contracts — 280

Gain on sale of assets ( 515 ) —

Changes in operating assets and liabilities that provided/(used) cash, net of impact of business acquisition:

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

Accounts receivable ( 20,713 ) ( 17,061 )

11 unchanged sentences

Cash flows from investing activities:

Purchase of business, net of cash acquired — ( 133,470 )

Purchases of property, plant and equipment ( 15,597 ) ( 26,859 )

Purchased software — ( 21 )

Proceeds received from sale of assets 1,033 —

Net cash used in investing activities ( 15,597 ) ( 26,880 )

2 unchanged sentences

Principal payments on debt ( 3,007 ) ( 60,750 )

Debt acquisition costs — ( 4,108 )

Purchase of Treasury shares ( 69,153 ) —

Taxes paid in lieu of share issuance ( 1,316 ) ( 2,446 )

Dividends paid ( 8,431 ) ( 8,110 )

Net cash (used in)/provided by financing activities ( 121,773 ) ( 10,839 )

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

Effect of exchange rate changes on cash and cash equivalents 2,458 ( 2,656 )

(Decrease)/increase in cash and cash equivalents ( 46,198 ) ( 120,270 )

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

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

10 unchanged sentences

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Estimates are used in the accounting for, among others, revenue recognition, contract profitability, allowances for doubtful accounts, rebates and sales allowances, inventory allowances, financial instruments, including derivatives, pension and other postretirement benefits, goodwill and intangible assets, contingencies, income taxes, and other accruals.

Estimates are used in the accounting for, among others, revenue recognition, contract profitability, allowances for doubtful accounts, rebates and sales allowances, inventory allowances, financial instruments, including derivatives, pension and other postretirement benefits, stock-based compensation, goodwill and intangible assets, contingencies, income taxes, and other accruals.

Our estimates are based on historical experience and on various other assumptions, which are believed to be reasonable under the circumstances.

2 unchanged sentences

Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting Standards Update No.

2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The guidance is to be applied retrospectively to all prior periods presented in the financial statements.

Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption.

We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued Accounting Standards Update No.

12 unchanged sentences

ASU 2024-01 should be applied either (1) retrospectively to all prior periods presented in the financial statements or (2) prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments.

currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

The adoption of this standard on January 1, 2025 did not have any impact on our consolidated financial statements and related disclosures.

In November 2024, the FASB issued Accounting Standards Update No.

2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses" (ASU 2024-03), which requires a public business entity to disclose specific information about certain costs and expenses in the notes to the financial statements for interim and annual reporting periods.

The objective of the disclosure requirements is to provide disaggregated information of the public entity's expenses to help investors better understand the entity's performance;

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:

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

The guidance is effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027.

Early adoption is permitted.

We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

In March 2024, the U.S.

4 unchanged sentences

The disclosure requirements would apply to the Company's fiscal year beginning January 1, 2025, pending resolution of the stay.

The Company is currently evaluating the final rule to determine its impact on the Company's disclosures.

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

1 unchanged sentence

These segments are reflective of how the Company's Chief Executive Officer, who is its Chief Operating Decision Maker ("CODM"), reviews operating results for the purpose of allocating resources and assessing performance.

Our CODM evaluates each segment's performance based on metrics such as net revenues, gross profit, and other key financial data, to assess performance and allocate resources that align with company-wide goals.

Annual incentive targets are established for the segment presidents based on these metrics, in addition to cash flows, which are reviewed in summary each month, and in more depth each quarter.

The Company has not aggregated operating segments for purposes of identifying reportable segments.

Effective December 31, 2024, the Company adopted provisions of ASU 2023-07, which expanded the content and frequency of segment disclosures required under ASC 280.

Machine Clothing:

The Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel products, nonwovens, fiber cement and for several other industrial applications.

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

We manufacture belts for each section of the paper machine and for every grade of paper.

We sell our MC products directly to customer end-users in countries across the globe.

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

On August 31, 2023, the Company completed the acquisition of Heimbach GmbH (“Heimbach”), a privately-held manufacturer of paper machine clothing and technical textiles.

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

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

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.

Albany Engineered Composites:

2 unchanged sentences

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, where revenue is determined by a cost-plus-fee agreement.

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

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) accounted for approximately 16 percent of the Company's consolidated Net revenues in 2023.

AEC net sales to SAFRAN were $ 142.2 million and $ 140.8 million in the first nine months of 2024 and 2023, respectively.

The total of Accounts receivable, Contract assets and Noncurrent receivables due from SAFRAN amounted to $ 89.9 million and $ 93.8 million as of September 30, 2024 and December 31, 2023, respectively.

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

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.

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

AEC also supplies vacuum waste tanks for the Boeing commercial programs, and specialty components for the Rolls Royce lift fan on the F-35, as well as the fan case for the GE9X engine.

For the year ended December 31, 2023, approximately 39 percent of AEC revenues were related to U.S.

For the year ended December 31, 2024, approximately 36 percent of AEC's revenues were related to U.S.

government contracts or programs.

The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements:

Three months ended September 30, Nine months ended September 30,

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

(in thousands) MC AEC Corporate Total

Net revenues $ 174,697 $ 114,077 $ — $ 288,774

Cost of goods sold $ 94,795 $ 97,493 $ — $ 192,288

Gross profit $ 79,902 $ 16,584 $ — $ 96,486

Selling, general and administrative expenses $ 32,881 $ 10,126 $ 10,805 $ 53,812

Technical and research expenses $ 7,243 $ 3,674 $ 979 $ 11,896

Restructuring expenses, net $ 1,347 $ 1,168 $ — $ 2,515

Operating income/(loss) $ 38,431 $ 1,616 $ ( 11,784 ) $ 28,263

Three Months Ended March 31, 2024

(in thousands) MC AEC Corporate Total

Net revenues $ 185,217 $ 128,113 $ — $ 313,330

Cost of goods sold $ 100,562 $ 104,082 $ — $ 204,644

Gross profit $ 84,655 $ 24,031 $ — $ 108,686

Selling, general and administrative expenses $ 32,767 $ 11,540 $ 10,528 $ 54,835

Technical and research expenses $ 7,520 $ 5,145 $ — $ 12,665

Restructuring expenses, net $ 21 $ 2,188 $ — $ 2,209

Operating income/(loss) $ 44,347 $ 5,158 $ ( 10,528 ) $ 38,977

Three months ended March 31,

(in thousands)

2024 2023 2024 2023

Machine Clothing

2 unchanged sentences

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

Machine Clothing $ 7,706 $ 8,511

Albany Engineered Composites 13,295 13,503

Corporate 290 290

Consolidated depreciation and amortization $ 21,291 $ 22,304

Operating income/(loss)

2 unchanged sentences

Albany Engineered Composites 1,616 5,158

Corporate expenses ( 16,017 ) ( 20,014 ) ( 54,552 ) ( 54,747 )

Corporate ( 11,784 ) ( 10,528 )

Consolidated Operating income $ 28,263 $ 38,977

2 unchanged sentences

Interest expense

3,430 5,479 11,781 14,819

Other (income)/expense, net 983 ( 2,982 )

Income before income taxes $ 23,625 $ 38,640

Results for 2024 include Heimbach, which was acquired August 31, 2023.

Heimbach contributed $ 27.8 million and $ 105.5 million of net revenues and $( 4.3 ) million and $( 6.7 ) million of operating loss for the three and nine months ended September 30, 2024, respectively.

Heimbach contributed $ 15.6 million of Net revenues and an operating loss of $( 0.5 ) million for the three and nine months ended September 30, 2023, respectively.

Corporate expenses include global information system costs of $ 7.8 million and $ 6.3 million for the three months ended September 30, 2024 and 2023, respectively, and $ 24.2 million and $ 19.3 million for the nine months ended September 30, 2024 and 2023, respectively.

Certain prior year amounts have been reclassified in order to conform to current year presentation.

Global information system costs previously included in Corporate expenses are allocated to the segments.

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.

The following table presents assets by reportable segment:

(in thousands)

March 31, 2025 December 31, 2024

Segment assets

Machine Clothing $ 621,691 $ 600,603

Albany Engineered Composites $ 749,287 $ 736,306

Reconciling items:

Cash $ 119,354 $ 115,283

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

Prepaid and Other assets 151,983 148,560

Consolidated total assets $ 1,688,076 $ 1,648,696

The following table presents capital expenditures by reportable segment:

Three months ended March 31,

(in thousands)

Capital expenditures and purchased software

Machine Clothing $ 6,232 $ 6,357

Albany Engineered Composites 9,365 20,523

Corporate expenses — —

Total capital expenditures and purchased software $ 15,597 $ 26,880

Revenue Recognition:

Products and services provided under long-term contracts represent a significant portion of revenues in the Albany Engineered Composites segment and we account for these contracts over time, primarily using the percentage of completion (actual cost to estimated cost) method.

That method requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change.

That method requires significant judgment and estimation, which could be materially different if the underlying circumstances were to change.

When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs.

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, 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 $ 22.4 million for the third quarter of 2024 and decreased operating income by $ 28.3 million for the first nine months of 2024.

The negative change in the estimated profitability in the third quarter of 2024 was driven by a few large complex programs, including approximately $ 13.3 million for various CH-53K programs, approximately $ 6.5 million on our Gulfstream program, approximately $ 2.2 million on our F-35 program, and $ 0.4 million, net, on all other programs.

Adjustments in the estimated profitability of long-term contracts increased operating incomes by $ 0.9 million and decreased operating income by $ 4.1 million for the third quarter and first nine months of 2023, respectively.

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.

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 September 30, 2024:

Three months ended September 30, 2024

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

(in thousands)

8 unchanged sentences

Total revenues $ 177,753 $ 111,021 $ 288,774

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended September 30, 2023:

Three months ended September 30, 2023

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

(in thousands)

8 unchanged sentences

Total revenues $ 189,992 $ 123,338 $ 313,330

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

Nine months ended September 30, 2024

(in thousands)

Point in Time Revenue

Recognition Over Time Revenue

Recognition Total

Machine Clothing $ 558,881 $ 2,947 $ 561,828

Albany Engineered Composites:

ASC — 140,146 140,146

Other AEC 15,908 225,828 241,736

Total Albany Engineered Composites 15,908 365,974 381,882

Total revenues $ 574,789 $ 368,921 $ 943,710

The following table disaggregates revenue for each product group by timing of revenue recognition for the nine months ended September 30, 2023:

Nine months ended September 30, 2023

(in thousands) Point in Time Revenue

Recognition Over Time Revenue

Recognition Total

Machine Clothing $ 476,194 $ 2,833 $ 479,027

Albany Engineered Composites:

ASC — 138,603 138,603

Other AEC 14,259 192,436 206,695

Total Albany Engineered Composites 14,259 331,039 345,298

Total revenues $ 490,453 $ 333,872 $ 824,325

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 September 30, Nine months ended September 30,

Three months ended March 31,

(in thousands)

2024 2023 2024 2023

Americas PMC $ 82,846 $ 83,501

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 $ 759 million as of September 30, 2024 and 2023, respectively, and related primarily to firm fixed price contracts in the AEC segment.

Of the remaining performance obligations as of September 30, 2024, we expect to recognize as revenue approximately $ 40 million during 2024, $ 167 million during 2025, $ 147 million during 2026, and the remainder thereafter.

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.

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 nine months ended September 30, 2024 and 2023, was as follows:

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

Pension plans

7 unchanged sentences

( 1,232 ) ( 1,358 ) — —

Curtailment cost/(income)

( 3,770 ) — — —

Settlement cost/(income)

Amortization of prior service cost/(income) ( 6 ) ( 7 ) ( 31 ) ( 31 )

4 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.

There were no material curtailments or settlements during the first nine months of 2024 or 2023.

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.

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 the second and third quarters of 2024 to cease operations at the Company's MC forming fabric manufacturing facility in Chungju, South Korea, and at the Company's Heimbach engineered fabric manufacturing facility in Rochdale, UK.

The principal driver of $ 3.3 million in Restructuring expenses, net for the first nine months of 2024 related to workforce reductions, fixed asset impairments and related costs, as well as charges of $ 1.3 million in Costs of goods sold for the write-off of inventory.

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.

Restructuring expenses incurred at MC during 2023 were not significant.

At AEC, restructuring activities were related to reductions in the workforce at various AEC locations, which resulted in restructuring expenses of $ 3.1 million for the first nine months of 2024.

Restructuring expenses incurred at AEC during 2023 were not significant.

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.

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

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

(in thousands) 2025 2024

3 unchanged sentences

Total $ 2,515 $ 2,209

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

Nine months ended September 30, 2024 Total

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

restructuring

costs incurred Termination

costs Impairment of assets

costs Impairment of assets Pension Curtailment (Gain)/Loss

(in thousands)

3 unchanged sentences

Total $ 2,771 $ 3,808 $ 723 $ ( 1,760 )

Nine months ended September 30, 2023 Total

Three months ended March 31, 2024 Total

restructuring

costs incurred Termination

costs Impairment of assets

costs Impairment of assets Pension Curtailment (Gain)/Loss

(in thousands)

6 unchanged sentences

charges accrued Payments Currency

translation /other September 30, 2024

translation /other March 31, 2025

Total termination and other costs $ 4,996 $ 3,808 $ ( 4,160 ) $ 24 $ 4,668

1 unchanged sentence

charges accrued Payments Currency

translation /other September 30, 2023

translation /other March 31, 2024

Total termination and other costs $ — $ 2,209 $ ( 221 ) $ ( 1 ) $ 1,987

1 unchanged sentence

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

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

(in thousands)

Currency transaction losses/(gains)

$ 3,152 $ ( 1,292 )

Currency transaction (gains)/losses $ 1,834 $ 511 $ 692 $ ( 3,622 )

Derivative instruments losses/(gains) ( 2,526 ) ( 118 )

Bank fees and amortization of debt issuance costs

48 49 169 140

Components of net periodic pension and postretirement cost other than service cost 821 668

1 unchanged sentence

Total other (income)/expense, net $ 983 $ ( 2,982 )

Other (income)/expense, net, included foreign currency related transactions which resulted in losses of $ 1.8 million and $ 0.7 million in the three and nine months ended September 30, 2024, respectively, as compared to losses of $ 0.5 million and gains of $ 3.6 million in the same periods last year.

In addition, changes in the fair value of derivative instruments included gains of $ 0.5 million and losses of $ 3.8 million in the three and nine months ended September 30, 2024, as compared to losses of $ 0.7 million and $ 0.6 million in the same period last year, driven by currency rate movements, most notably the Brazilian Real and Mexican Peso.

Other (income)/expense, net, also included net losses of $ 0.7 million from the divestiture of assets related to Heimbach during the nine months ended September 30, 2024, as well as bank fees, amortization of debt issuance costs, and rental income.

The Company's effective income tax rate for the three and nine months ended September 30, 2024 and 2023, is as follows:

Three months ended September 30, Nine months ended September 30,

2024 2023 2024 2023

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,

Effective income tax rate 26.6 % 29.2 %

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 6.6 % and 25.3 % for the three months ended September 30, 2024 and 2023, respectively.

Our actual effective tax rates were 23.9 % and 33.0 % for the nine months ended September 30, 2024 and 2023, respectively.

The effective tax rate for the three months ended September 30, 2024 included a net discrete tax benefit of $ 8.5 million.

This discrete tax benefit is mostly attributable to the true-up of prior year estimated taxes and the release of a valuation allowance in a non-U.S.

jurisdiction due to positive evidence indicating that a full valuation allowance was no longer required.

The rate for the third quarter of 2024 was lower than the third quarter of 2023 mainly due to favorable discrete tax adjustments in the current period compared to unfavorable discrete tax adjustments in the prior period, partially offset by an unfavorable change in the jurisdictional mix of earnings compared to the prior period.

The effective tax rate for the nine months ended September 30, 2024 included a net discrete tax benefit of $ 11.0 million.

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

The rate for the nine months ended September 30, 2024 was lower than the nine months ended September 30, 2023 mainly due to favorable discrete tax adjustments in the current period compared to unfavorable discrete tax adjustments in the prior period, partially offset by an unfavorable change in the jurisdictional mix of earnings compared to the prior period.

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.

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 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 September 30, Nine months ended September 30,

Three months ended March 31,

(in thousands, except earnings per share) 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, 2023 to September 30, 2024:

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

(in thousands)

4 unchanged sentences

17,136 ( 4,013 ) ( 457 ) 12,666

Pension settlement/curtailment, net of tax

— 1,178 — 1,178

Interest (expense)/income related to swaps reclassified to the Consolidated Statements of Income, net of tax — — ( 178 ) ( 178 )

1 unchanged sentence

Net current period other comprehensive income 17,136 ( 2,662 ) ( 635 ) 13,839

September 30, 2024 $ ( 137,373 ) $ ( 17,341 ) $ 1,165 $ ( 153,549 )

The table below presents changes in the components of AOCI for the period from December 31, 2022 to September 30, 2023:

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:

(in thousands) Translation

6 unchanged sentences

Net current period other comprehensive income ( 12,116 ) 382 ( 2,124 ) ( 13,858 )

September 30, 2023 $ ( 151,177 ) $ ( 17,389 ) $ 12,957 $ ( 155,609 )

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

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 and nine ended September 30, 2024 and 2023:

Three months ended September 30, Nine months ended September 30,

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,

(in thousands)

2024 2023 2024 2023

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

Interest expense/(income), net related to interest rate swaps included in Income before taxes

Interest (income)/expense, net related to interest rate swaps included in Income before taxes

$ ( 192 ) $ ( 4,038 )

3 unchanged sentences

Pre-tax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:

Pension settlement/curtailment

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

Amortization of net actuarial loss

176 349 530 1,042

Total pre-tax amount reclassified (a)

139 ( 682 ) 417 ( 2,050 )

Income tax effect ( 499 ) ( 43 )

8 unchanged sentences

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

For the nine months ended September 30, 2024, the net income/(loss) attributable to Arcari’s noncontrolling interest was less than $ 0.1 million and the noncontrolling interest balance at September 30, 2024 was $ 0.4 million.

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.

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

ASC Noncontrolling Interest Nine months ended September 30,

ASC Noncontrolling Interest Three months ended March 31,

(in thousands, except percentages) 2025 2024

10 unchanged sentences

Arcari Noncontrolling interest, end of interim period

$ 447 $ 1,587

Total Noncontrolling interest, end of interim period $ 5,193 $ 6,076

3 unchanged sentences

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

As of September 30, 2024 and December 31, 2023, Accounts receivable consisted of the following:

(in thousands) September 30, 2024 December 31, 2023

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

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

Trade and other accounts receivable $ 256,115 $ 231,136

2 unchanged sentences

Accounts receivable, net $ 272,461 $ 246,688

The Company had Noncurrent receivables in the AEC segment that represent revenue earned, which had extended payment terms.

In 2023, the payment terms were amended and the Noncurrent receivables are now included in Trade and other accounts receivable.

As of September 30, 2024 and December 31, 2023, Noncurrent receivables consisted of the following:

(in thousands) September 30, 2024 December 31, 2023

Noncurrent receivables $ — $ 4,414

Allowance for expected credit losses

Noncurrent receivables, net $ — $ 4,392

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.

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 September 30, 2024 and December 31, 2023, Contract assets and Contract liabilities consisted of the following:

(in thousands) September 30, 2024 December 31, 2023

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

Contract assets $ 156,852 $ 167,397

3 unchanged sentences

Contract liabilities $ 7,682 $ 6,085

Contract assets, net increased $ 13.5 million during the nine months ended September 30, 2024.

The increase was primarily due to an increase in unbilled revenue, primarily related to commercial and space programs.

There were no impairment losses related to our Contract assets during the nine months ended September 30, 2024 and September 30, 2023.

Contract liabilities are essentially flat for the period ended September 30, 2024 compared to December 31, 2023, primarily due to revenue recognized from satisfied performance obligations were essentially offset by customer advance payments for commercial and defense programs.

Revenue recognized for the nine months ended September 30, 2024 and 2023 that was included in the Contract liability balance at the beginning of the year was $ 3.7 million and $ 14.4 million, respectively.

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.

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

4 unchanged sentences

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

As of September 30, 2024 and December 31, 2023, Inventories consisted of the following:

(in thousands) September 30, 2024 December 31, 2023

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

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

Raw materials $ 80,546 $ 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 September 30, 2024 and December 31, 2023:

September 30, 2024

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

(in thousands) Amortization

life in years Gross carrying amount Accumulated amortization Net carrying amount

life in years Gross carrying amount Accumulated amortization and other Net carrying amount

Finite-lived assets:

18 unchanged sentences

(in thousands) Amortization

life in years Gross carrying amount Accumulated amortization Net carrying amount

life in years Gross carrying amount Accumulated amortization and other Net carrying amount

Finite-lived assets:

16 unchanged sentences

$ 181,973 $ — $ 181,973

The changes in intangible assets, net and goodwill from December 31, 2023 to September 30, 2024, were as follows:

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

(in thousands) December 31, 2024 Other

Changes Amortization Currency

Translation September 30, 2024

Translation March 31, 2025

Finite-lived intangible assets:

11 unchanged sentences

$ 181,973 $ — $ — $ 2,815 $ 184,788

In the second quarter of 2024, management performed the quantitative assessment approach in conducting its annual evaluation of goodwill and indefinite-lived trademark intangibles and concluded that no impairment provision was required.

Our goodwill has been allocated to and is tested for impairment at a level referred to as the reporting unit, which management determined to be the business segment level.

As part of the quantitative assessment, management used the income and market approach to determine fair value by considering projected cash flows and market multiples for the Machine Clothing reporting unit and the AEC reporting unit.

Management performed the quantitative assessments and concluded that each reporting unit’s fair value continued to significantly exceed its carrying value.

In addition, there were no amounts at risk due to the estimated spread between the fair and carrying values.

Accordingly, no impairment charges were recorded.

In the third quarter, the Company revised its estimates and assumptions used in certain program estimates at completion of its AEC reporting unit.

As a result, on October 3, 2024, the Company reported a preliminary update to its full year outlook to reflect revised revenue and profitability expectations for the AEC segment.

As a result of the change in estimates of certain program revenues and profits, we performed a qualitative assessment of the AEC reporting unit’s goodwill for impairment and concluded that goodwill was not impaired.

The excess of the fair value of the AEC reporting unit over its carrying value reduced approximately 26 % from previous quarters;

and fair value continues to exceed the carrying value by more than 20 %.

Financial Instruments

1 unchanged sentence

The following table represents the Company's outstanding debt:

(in thousands, except interest rates) September 30, 2024 December 31, 2023

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

Borrowings under the Amended Credit Agreement (1)

USD borrowings $ 319,000 $ 225,000

EUR borrowings 97,390 93,485

Foreign bank debt 39 46

3 unchanged sentences

(1) The credit facility matures in August 2028.

At the end of September 30, 2024 and December 31, 2023, the interest rate in effect was 2.50 % and 3.49 %, respectively, including the effect of interest rate hedging transactions, as described below.

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.

Amended Credit Agreement

On August 16, 2023, we entered into a $ 800 million unsecured committed Five-Year Revolving Credit Facility Agreement (the “Amended Credit Agreement”), which matures in August of 2028.

The applicable interest rate for borrowings under the Amended Credit Agreement is based on Term SOFR plus a spread, which is based on our leverage ratio (as defined in the Amended Credit Agreement) at the time of a borrowing as follows:

On August 16, 2023, we entered into a $ 800 million unsecured committed Five-Year Revolving Credit Facility Agreement, amended on June 28, 2024 (collectively, the “Amended Credit Agreement”), which matures in August of 2028.

The applicable interest rate for borrowings under the Amended Credit Agreement is based on both Term SOFR and EURIBOR plus a spread, which is based on our leverage ratio (as defined in the Amended Credit Agreement) at the time of a borrowing as follows:

Leverage Ratio Commitment Fee ABR Spread Term Benchmark/ Daily

6 unchanged sentences

0.350 % 1.000 % 2.000 %

As of September 30, 2024, the applicable interest rate for borrowings under the Amended Credit Agreement was based on one-month term SOFR plus the spread, which was 1.50 %.

As of September 30, 2024, there was $ 360 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $ 440 million, based on our maximum leverage ratio and our Consolidated EBITDA (as defined in the Amended Credit Agreement).

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).

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 September 30, 2024, our leverage ratio was 0.99 to 1.00 and our interest coverage ratio was 15.39 to 1.00.

As of September 30, 2024, we were in compliance with all applicable covenants.

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.

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:

A USD interest rate swap agreement and a EUR interest rate swap agreement.

The USD interest rate swap agreement covers the period November 15, 2024 through November 15, 2026.

This transaction has the effect of fixing the SOFR portion of the interest rate (before the credit spread) on $ 125 million of the US indebtedness drawn under the Amended Credit Facility.

Under the terms of this transaction, the Company pays a fixed rate of 3.987 % and our counterparty pays a floating rate based on the one-month SOFR rate at each monthly calculation date.

The EUR interest rate swap agreement covers the period November 14, 2024 through November 15, 2026.

This transaction has the effect of fixing the EURIBOR portion of the interest rate (before the credit spread) on EUR 45 million of the EUR indebtedness drawn under the Amended Credit Facility.

Under the terms of this transaction, the Company pays a fixed rate of 2.277 % and our counterparty pays a floating rate based on the one-month EURIBOR rate at each monthly calculation date.

In 2021, we entered into interest rate swap agreements for the period of October 17, 2022 through October 27, 2024, to hedge $ 350 million of variable-interest rate indebtedness.

The interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 15, Fair-Value Measurements .

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 15, Fair-Value Measurements .

No cash collateral was received or pledged in relation to the swap agreements.

As of September 30, 2024, the all-in rate on the $ 350 million of debt was 2.38 %.

Upon the expiration of the interest rate swap on October 28, 2024, our interest cost will increase significantly.

Beginning in October 2024, our interest cost will be calculated using a floating rate based on the one-month term SOFR.

Fair-Value Measurements

7 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 September 30, 2024 or at December 31, 2023, other than certain pension assets as indicated in our December 31, 2023 Annual Report on Form 10-K.

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.

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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(in thousands)

5 unchanged sentences

Interest rate swaps — — 149

Other Non-Current Liabilities

Foreign currency forward contracts — —

— ( 1,105 ) — —

Interest rate swaps ( 662 ) — ( 218 )

(a) Original cost basis $ 0.5 million.

3 unchanged sentences

The fair value of our interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets.

Amounts determined to be due within one year are reclassified to Other current assets and/or Accrued liabilities in the Consolidated Balance Sheets.

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.

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 $( 10.9 ) million for the nine months ended September 30, 2024, and $( 10.9 ) million for the nine months ended September 30, 2023.

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.

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

Foreign currency instruments are entered into periodically and consist of foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources.

From time to time, we enter into foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources.

These instruments are measured using market foreign exchange prices and are recorded in the Consolidated Balance Sheets as Other current assets and Accrued liabilities, as applicable.

4 unchanged sentences

(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 September 30, Nine months ended September 30,

Three months ended March 31,

(in thousands) 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 3,642 claims as of September 30, 2024.

We were defending 3,653 claims as of March 31, 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 September 30, 2024 3,606 9 45 3,642 $ 13

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

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 September 30, 2024, we had resolved, by means of settlement or dismissal, 38,050 claims at a total cost of $ 10.7 million.

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.

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 7,676 claims as of September 30, 2024, 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 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.

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.

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, 2023 to September 30, 2024:

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

Additional paid-in capital

6 unchanged sentences

Compensation and benefits paid or payable in shares 56 — 2,651 — — — — — 2,651

Purchase of Treasury shares (a) — — — — — 925 ( 69,153 ) — ( 69,153 )

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

— — — ( 8,262 ) — — — — ( 8,262 )

Cumulative translation adjustments — — — — ( 12,116 ) — — 46 ( 12,070 )

Pension and postretirement liability adjustments — — — — 382 — — — 382

Derivative valuation adjustment — — — — ( 2,124 ) — — — ( 2,124 )

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

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

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

Dividends paid to noncontrolling interests

— — — — — — — ( 88 ) ( 88 )

1 unchanged sentence

Pension and postretirement liability adjustments — — — — ( 2,662 ) — — — ( 2,662 )

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

Net income — — — 18,029 — — — 192 18,221

Compensation and benefits paid or payable in shares 9 — 195 — — — — — 195

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

Derivative valuation adjustment and other

— — — 7 ( 635 ) — — — ( 628 )

Dividends paid to noncontrolling interests — — — — — — — ( 166 ) ( 166 )

Cumulative translation adjustments — — — — 16,931 — — ( 153 ) 16,778

Pension and postretirement liability adjustments — — — — ( 623 ) — — — ( 623 )

Derivative valuation adjustment — — — — ( 2,950 ) — — — ( 2,950 )

September 30, 2024 40,917 $ 41 $ 452,656 $ 1,056,514 $ ( 153,549 ) 9,662 $ ( 364,665 ) $ 5,679 $ 996,676

The following table summarizes changes in Shareholders’ Equity for the period December 31, 2022 to September 30, 2023:

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:

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 — — — 26,672 — — — 154 26,826

Compensation and benefits paid or payable in shares — — 811 — — — — — 811

Shares issued to Directors' — — 828 — — ( 12 ) 258 — 1,086

Dividends declared on Class A Common Stock, $ 0.25 per share

— — — ( 7,795 ) — — — — ( 7,795 )

Cumulative translation adjustments — — — — ( 2,568 ) — — 179 ( 2,389 )

Pension and postretirement liability adjustments — — — — ( 724 ) — — — ( 724 )

Derivative valuation adjustment — — — — 389 — — — 389

June 30, 2023 40,842 $ 41 $ 443,556 $ 969,292 $ ( 137,767 ) 9,663 $ ( 364,665 ) $ 5,262 $ 915,719

Net income — — — 27,109 — — — 45 27,154

Compensation and benefits paid or payable in shares 15 — 2,914 — — ( 1 ) — — 2,914

Dividends declared on Class A Common Stock, $ 0.25 per share

— — — ( 7,799 ) — — — — ( 7,799 )

Initial equity related to Noncontrolling interest in Arcari — — — — — — — 1,632 1,632

Cumulative translation adjustments — — — — ( 15,639 ) — — ( 145 ) ( 15,784 )

Pension and postretirement liability adjustments — — — — 34 — — — 34

Derivative valuation adjustment — — — — ( 2,237 ) — — — ( 2,237 )

September 30, 2023 40,857 $ 41 $ 446,470 $ 988,602 $ ( 155,609 ) 9,662 $ ( 364,665 ) $ 6,794 $ 921,633

Business Combination

On August 31, 2023, the Company acquired all the outstanding shares of Heimbach, a privately-held manufacturer of paper machine clothing with headquarters in Düren, Germany.

For the three and nine months ended September 30, 2024, there were no material adjustments to the assets acquired and liabilities assumed.

As of September 30, 2024, management’s review of the purchase price allocation has been completed.

(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.

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