What changed in this filing

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Item 1. Financial Statements

2026-04-30 compared with 2025-11-06 · 189 added, 275 removed, 584 unchanged (44% of the section changed)

1 unchanged sentence

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME/(LOSS)

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net revenues $ 311,333 $ 288,774

Cost of goods sold 211,539 192,288

Gross profit/(loss) ( 49,938 ) 90,384 144,055 311,453

Gross profit 99,794 96,486

Selling, general, and administrative expenses 58,299 53,812

1 unchanged sentence

Restructuring expenses, net 3,165 2,515

Operating income/(loss) ( 116,507 ) 25,171 ( 65,974 ) 107,053

Operating income 25,373 28,263

Interest expense/(income), net 5,467 3,655

Other expense/(income), net ( 3,193 ) 983

Income (loss) before income taxes ( 122,057 ) 19,503 ( 84,846 ) 92,441

Income tax expense/(benefit) ( 24,419 ) 1,282 ( 13,889 ) 22,131

Net income/(loss) ( 97,638 ) 18,221 ( 70,957 ) 70,310

Income before income taxes 23,099 23,625

Income tax expense 7,650 6,276

Net income 15,449 17,349

Net income/(loss) attributable to the noncontrolling interest 168 ( 6 )

Net income/(loss) attributable to the Company $ ( 97,760 ) $ 18,029 $ ( 71,222 ) $ 69,944

Net income attributable to the Company $ 15,281 $ 17,355

Earnings per share attributable to Company shareholders - Basic $ 0.54 $ 0.56

6 unchanged sentences

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income/(loss) $ ( 97,638 ) $ 18,221 $ ( 70,957 ) $ 70,310

Other comprehensive income/(loss), before tax:

Net income $ 15,449 $ 17,349

Other comprehensive income, before tax:

Foreign currency translation and other adjustments ( 4,847 ) 13,123

5 unchanged sentences

Derivative valuation adjustment 657 ( 493 )

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

Income taxes related to items of other comprehensive income:

Pension settlement/curtailment — ( 422 )

3 unchanged sentences

Derivative valuation adjustment ( 248 ) 36

Comprehensive income/(loss) ( 94,645 ) 31,579 ( 16,266 ) 49,929

Comprehensive income 11,153 31,188

Comprehensive income/(loss) attributable to the noncontrolling interest 121 ( 216 )

Comprehensive income/(loss) attributable to the Company $ ( 94,857 ) $ 31,706 $ ( 16,566 ) $ 50,202

Comprehensive income attributable to the Company $ 11,032 $ 31,404

The accompanying notes are an integral part of the consolidated financial statements

2 unchanged sentences

(in thousands, except share and per share data)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Cash and cash equivalents $ 122,557 $ 112,350

4 unchanged sentences

Prepaid expenses and other current assets 40,480 34,990

Assets held for sale 294,020 293,783

Total current assets 963,253 928,835

9 unchanged sentences

Income taxes payable 22,819 35,090

Liabilities held for sale 197,068 203,323

Total current liabilities 438,614 442,297

1 unchanged sentence

Other noncurrent liabilities 83,871 86,850

Deferred taxes and other liabilities 18,800 16,022

Deferred income taxes 2,346 1,797

Total liabilities 1,001,372 986,607

23 unchanged sentences

(in thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

Net income/(loss) $ ( 70,957 ) $ 70,310

Adjustments to reconcile net income/(loss) to net cash provided by operating activities:

Net income $ 15,449 $ 17,349

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 16,478 19,585

Amortization 651 1,706

Change in deferred taxes and other liabilities ( 21,864 ) ( 7,552 )

Change in deferred taxes 4,025 3,578

Impairment of property, plant and equipment 127 473

Non-cash interest expense 258 256

Contract loss provision 139,665 —

Compensation and benefits paid or payable in Class A Common Stock 1,460 2,651

1 unchanged sentence

Foreign currency remeasurement loss/(gain) on intercompany loans ( 1,865 ) 2,886

Fair value adjustment on foreign currency contracts — 1,105

Gain on sale of assets ( 1,566 ) ( 515 )

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

7 unchanged sentences

Income taxes payable ( 12,659 ) ( 17,080 )

Noncurrent receivables — ( 200 )

Other noncurrent liabilities ( 1,594 ) ( 1,046 )

3 unchanged sentences

Purchases of property, plant and equipment ( 9,290 ) ( 15,597 )

Purchased software ( 1,250 ) ( 101 )

Proceeds received from sale of assets 3,243 1,033

Net cash used in investing activities ( 9,290 ) ( 15,597 )

5 unchanged sentences

Dividends paid ( 7,928 ) ( 8,431 )

Net cash used in financing activities ( 48,268 ) ( 121,773 )

Net cash provided by financing activities 13,769 15,091

Effect of exchange rate changes on cash and cash equivalents 85 2,458

Decrease in cash and cash equivalents ( 6,973 ) ( 46,198 )

Increase in cash and cash equivalents 10,207 4,071

Cash and cash equivalents at beginning of period 112,350 115,283

Cash and cash equivalents at end of period $ 122,557 $ 119,354

Supplemental disclosure of cash flow information:

Cash paid for interest, net $ 5,779 $ 3,857

Cash paid for income taxes $ 15,904 $ 16,609

The accompanying notes are an integral part of the consolidated financial statements

3 unchanged sentences

Basis of Presentation

In the opinion of management, the accompanying consolidated financial information reflects all adjustments necessary for a fair presentation of Albany International Corp.'s ("Albany", the "Registrant", the "Company", "we", "us", or "our") financial position, results of operations and cash flows for the interim periods presented, but does not include all disclosures required by the accounting principles generally accepted in the United States ("GAAP").

In the opinion of management, the accompanying consolidated financial information reflects all adjustments necessary for a fair presentation of Albany International Corp.'s ("Albany", the "Registrant", the "Company", "we", "us", or "our") financial position, results of operations and cash flows for the interim periods presented, but does not include all disclosures normally required for the annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP").

All such adjustments are of a normal recurring nature, unless otherwise disclosed in this report.

2 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, stock-based compensation, 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 credit losses, rebates and sales allowances, inventory allowances, financial instruments, including derivatives, pension and other postretirement benefits, stock-based compensation, assets and liabilities held-for-sale, 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.

1 unchanged sentence

Estimates and assumptions are reviewed periodically, and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary.

Recent Accounting Pronouncements

In September 2025, the Financial Accounting Standards Board (FASB) issued guidance to improve the accounting for costs related to internal-use software.

Recent Accounting Pronouncements Not Yet Adopted

In December 2025, the FASB issued ASU No.

2025-11, Interim Reporting (Topic 270):

Narrow Scope Improvements.

The ASU clarifies the applicability of Topic 270 and the form and content of interim financial statements.

In addition, it requires entities to disclose material events occurring since the last annual reporting period.

The guidance will be effective for interim periods beginning January 1, 2028 and can be applied on a prospective or retrospective basis.

We are evaluating the disclosure impact of this guidance;

however, the standard will not have an impact on the company’s consolidated financial position, results of operations or cash flows.

In November 2025, the FASB issued ASU No.

2025‑09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

The ASU makes targeted amendments to hedge accounting guidance intended to better align hedge accounting results with an entity’s risk management activities, including changes related to cash flow hedges, forecasted transactions, and certain debt‑related hedging strategies.

The guidance is effective for the Company for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years.

Early adoption is permitted.

The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU No.

2025-06 to improve the accounting for costs related to internal-use software.

The new guidance eliminates project stages and requires capitalizing software costs to begin when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended.

3 unchanged sentences

We are evaluating the impact of this guidance on our consolidated financial statements.

In November 2024, the FASB issued guidance to improve the disclosure of expenses in commonly presented expense captions.

In November 2024, the FASB issued ASU No.

2024-03 to improve the disclosure of expenses in commonly presented expense captions.

The new guidance requires a public entity to provide tabular disclosure, on an annual and interim basis, of amounts for the following expense categories:

(1) purchases of inventory, (2) employee compensation, (3) depreciation and (4) intangible asset amortization, as included in each relevant expense caption.

Additionally, on an annual and interim basis, a qualitative description is required for amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

Additionally, on an

annual and interim basis, a qualitative description is required for amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

A relevant expense caption is an expense caption presented on the face of the income statement that contains any of the expense categories noted.

3 unchanged sentences

We are evaluating the impact of this guidance on our consolidated financial statements.

In December 2023, the FASB issued guidance to enhance transparency of income tax disclosures.

On an annual basis, the new guidance requires a public entity to disclose:

(1) specific categories in the rate reconciliation, (2) additional information for reconciling items that are equal to or greater than 5% of the amount computed by multiplying income (or loss) from continuing operations before income tax expense (or benefit) by the applicable statutory income tax rate, (3) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, with foreign taxes disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5% of total income taxes paid, (4) income (or loss) from continuing operations before income tax expense (or benefit)

disaggregated between domestic and foreign, and (5) income tax expense (or benefit) from continuing operations disaggregated between federal (national), state and foreign.

The guidance is effective for fiscal year 2025 annual reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted.

Reportable Segments

3 unchanged sentences

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:

5 unchanged sentences

Albany Engineered Composites:

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

The Albany Engineered Composites segment provides highly engineered, advanced composite solutions to customers in the commercial and defense aerospace industries.

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

2 unchanged sentences

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, 2024, approximately 36 percent of AEC's revenues were related to U.S.

For the year ended December 31, 2025, approximately 35 % of AEC's revenues were related to U.S.

government contracts or programs.

1 unchanged sentence

Reconciliation of Net Revenues to Operating Income(loss):

Three Months Ended September 30, 2025

(in thousands) MC AEC Corporate Total

Net revenues $ 174,950 $ 86,484 $ — $ 261,434

Cost of goods sold 92,880 218,492 — 311,372

Gross profit 82,070 ( 132,008 ) — ( 49,938 )

Selling, general and administrative expenses 30,291 12,218 9,396 51,905

Technical and research expenses 6,716 3,673 1,078 11,467

Restructuring expenses, net 1,960 113 1,124 3,197

Operating income/(loss) $ 43,103 $ ( 148,012 ) $ ( 11,598 ) $ ( 116,507 )

Three Months Ended September 30, 2024

(in thousands) MC AEC Corporate Total

Net revenues $ 183,033 $ 115,353 $ — $ 298,386

Cost of goods sold 94,112 113,890 — 208,002

Gross profit 88,921 1,463 — 90,384

Selling, general and administrative expenses 32,048 11,923 8,126 52,097

Technical and research expenses 7,042 3,802 — 10,844

Restructuring expenses, net 2,207 34 31 2,272

Operating income/(loss) $ 47,624 $ ( 14,296 ) $ ( 8,157 ) $ 25,171

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

(in thousands) MC AEC Corporate Total

6 unchanged sentences

Operating income/(loss) $ 31,952 $ 8,598 $ ( 15,177 ) $ 25,373

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

(in thousands) MC AEC Corporate Total

7 unchanged sentences

Schedule of Depreciation and Amortization Expenses:

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

Three months ended March 31,

(in thousands)

2025 2024 2025 2024

Depreciation and amortization

3 unchanged sentences

Consolidated depreciation and amortization $ 17,129 $ 21,291

As a result of the Amelia Earhart Drive facility meeting the held-for-sale accounting criteria, the facility's assets and liabilities were classified as held-for-sale in the consolidated balance sheets as of December 31, 2025 and March 31, 2026.

Upon classification as held for sale, the Company ceased depreciation and amortization of the related long-lived assets in accordance with applicable accounting guidance.

Reconciliation of Operating Income/(loss) to Income before income taxes:

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

Three months ended March 31,

(in thousands)

2025 2024 2025 2024

Operating income/(loss)

Machine Clothing $ 43,103 $ 47,624 $ 119,236 $ 141,705

Albany Engineered Composites ( 148,012 ) ( 14,296 ) ( 149,070 ) ( 3,692 )

Corporate ( 11,598 ) ( 8,157 ) ( 36,140 ) ( 30,960 )

Consolidated Operating income/(loss) $ 25,373 $ 28,263

Reconciling items:

Interest income/(loss) ( 1,114 ) ( 1,019 ) ( 4,157 ) ( 3,101 )

Interest income ( 882 ) ( 1,638 )

Interest expense

7,011 3,430 18,859 11,781

Other (income)/expense, net ( 3,193 ) 983

Income/(loss) before income taxes $ ( 122,057 ) $ 19,503 $ ( 84,846 ) $ 92,441

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 September 30, 2025, Selling, general and administrative expenses include global information system costs of $ 4.9 million and $ 5.2 million for MC and AEC, respectively.

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

F or the nine months ended September 30, 2025, Selling, general and administrative expenses include global information system costs of $ 12.8 million and $ 13.0 million for MC and AEC, respectively.

For the nine months ended September 30, 2024, Selling, general and administrative expenses include global information system costs of $ 11.6 million and $ 12.0 million for MC and AEC, respectively.

Income before income taxes $ 23,099 $ 23,625

The following table presents assets by reportable segment:

(in thousands)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Segment assets

5 unchanged sentences

Prepaid expenses and other current assets, and Other assets 96,013 89,862

Assets held for sale $ 294,020 $ 293,783

Consolidated total assets 1,736,787 1,718,709

The following table presents capital expenditures by reportable segment:

Nine months ended September 30,

Three months ended March 31,

(in thousands)

2 unchanged sentences

Albany Engineered Composites 2,851 9,365

Corporate 833 —

Total capital expenditures and purchased software $ 9,290 $ 15,597

3 unchanged sentences

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.

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) were $ 46.4 million and $ 40.9 million for the three months ended September 30, 2025 and 2024, respectively and $ 130.2 million and $ 142.2 million in the first nine months of 2025 and 2024, respectively.

The total of Accounts receivable, Contract assets and Noncurrent receivables due from SAFRAN amounted to $ 67.6 million and $ 78.5 million as of September 30, 2025 and December 31, 2024, respectively.

The LEAP engine is used on the Airbus A320neo, A321neo, Boeing 737 MAX, and COMAC C919 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) were $ 48.3 million and $ 39.4 million for the three months ended March 31, 2026 and 2025, respectively.

The total of Accounts receivable and Contract assets due from SAFRAN amounted to $ 57.1 million and $ 60.8 million as of March 31, 2026 and December 31, 2025, 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 projections, 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 revenue by $ 49.1 million and operating income by $ 150.9 million during the third quarter of 2025.

Adjustments to the estimated profitability of long-term contracts decreased revenue by $ 67.6 million and operating income by $ 165.1 million for the first nine months of 2025.

The decrease in profitability during the third quarter of 2025 was primarily driven by a few large complex programs, including adjustments of $ 147.3 million for various CH-53K programs, based on changes to material input costs, labor hours, and future overhead rates over the remainder of the contract.

Additionally, we recorded negative cumulative changes in profitability of $ 0.2 million on our F-35 program, $ 0.9 million on our Gulfstream program and $ 2.6 million, net on all other programs.

The negative cumulative change in profitability during the nine months ended September 30, 2025 was driven by $ 157.4 million for various CH-53K programs, $ 2.3 million on our F-35 program, and $ 5.5 million, net on all other programs.

Adjustments in the estimated profitability of long-term contracts decreased operating income by $ 22.4 million during the third quarter of 2024 and $ 28.3 million for the first nine months of 2024.

The cumulative changes in the estimated profitability of long-term contracts increased revenue by $ 1.2 million and decreased operating income by $ 1.8 million during the first quarter of 2026.

The decrease in profitability during the first quarter of 2026 was primarily driven by a few large complex programs, including adjustments of $ 3.1 million for various CH-53K programs, primarily based on changes to future overhead rates over the remainder of the contract.

These negative impacts to profitability were offset by positive cumulative adjustments of $ 1.6 million on our F-35 program.

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, 2025:

Three months ended September 30, 2025

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended March 31, 2026:

Three months ended March 31, 2026

(in thousands)

8 unchanged sentences

Total revenues $ 167,909 $ 143,424 $ 311,333

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 nine months ended September 30, 2025

Nine months ended September 30, 2025

(in thousands)

Point in Time Revenue

Recognition Over Time Revenue

Recognition Total

Machine Clothing $ 527,509 $ 3,064 $ 530,573

Albany Engineered Composites:

ASC — 128,639 128,639

Other AEC 10,221 192,174 202,395

Total Albany Engineered Composites $ 10,221 $ 320,813 $ 331,034

Total revenues $ 537,730 $ 323,877 $ 861,607

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 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)

2025 2024 2025 2024

Americas PMC $ 76,109 $ 82,846

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 $ 1.1 billion as of September 30, 2025 and 2024, respectively, and related primarily to firm fixed price contracts in the AEC segment.

Of the remaining performance obligations as of September 30, 2025, we expect to recognize as revenue approximately $ 51.0 million during 2025, $ 182.1 million during 2026, $ 165.5 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 March 31, 2026 and 2025, respectively, and related primarily to firm fixed price contracts in the AEC segment.

Of the remaining performance obligations as of March 31, 2026, we expect to recognize as revenue approximately $ 120.9 million during 2026, $ 182.6 million during 2027, $ 153.4 million during 2028, 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, 2025 and 2024, was as follows:

The composition of the net periodic benefit cost/(income) for the three months ended March 31, 2026 and 2025, was as follows:

Pension plans

15 unchanged sentences

$ 1,416 $ ( 722 ) $ 314 $ 324

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 nine months of 2025, we took action to settle certain pension plan liabilities related to an MC pension plan in Switzerland, resulting in a net gain totaling $ 1.6 million related to curtailments and settlements.

There were no material curtailments or settlements during the nine months ended September 30, 2024.

The amount of net periodic 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 three months ended March 31, 2026.

In the first three months of 2025, we took action to settle certain pension plan liabilities related to an MC pension plan in Switzerland, resulting in a net gain totaling $ 1.6 million.

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 2025 and 2024 to cease operations at five facilities.

For the three months ended September 30, 2025, these actions related to workforce reductions of $ 2.0 million.

For the three month ended September 30, 2024, these actions related to workforce reductions and inventory write-off costs totaling $ 2.2 million.

For the nine months ended September 30, 2025, these actions related to workforce reductions, fixed asset impairments and related costs and inventory write-off costs of $ 8.1 million offset by a $ 1.8 million pension curtailment

For the nine months ended September 30, 2024 these actions related to workforce reductions of $ 3.3 million, as well as charges of $ 1.3 million in costs of goods sold for the write-off of inventory.

At AEC, restructuring activities were related to reorganizational and workforce reduction costs, which resulted in restructuring expenses of $ 0.1 million for the three months ended September 30, 2025 and $ 0.0 million for the three months ended September 30, 2024.

For the nine months ended September 30, 2025 and September 30, 2024, restructuring expenses were related to reductions in workforce and totaled $ 1.8 million and $ 3.1 million, respectively.

At MC, restructuring actions were taken in 2026 and 2025 to consolidate production activities across multiple facilities.

For the three months ended March 31, 2026, these actions related to workforce reductions, manufacturing expenses related to ceased production and transfers of fixed assets to other locations.

For the three months ended March 31, 2025, restructuring charges incurred included $ 3.1 million 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.

At AEC, restructuring activities for the three months ended March 31, 2025 were related to reorganizational and workforce reduction costs, which resulted in restructuring expenses of $ 1.2 million.

AEC did not incur any restructuring costs for the three months ended March 31, 2026.

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) 2026 2025

1 unchanged sentence

Albany Engineered Composites — 1,168

Corporate expenses 1,124 31 1,772 146

Corporate 489 —

Total $ 3,165 $ 2,515

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":

Nine months ended September 30, 2025 Total

Three months ended March 31, 2026 Total

restructuring

costs incurred Termination

costs Impairment of assets Pension Curtailment (Gain)/Loss

costs Asset Transfer Costs

(in thousands)

1 unchanged sentence

Albany Engineered Composites — — —

Corporate expenses 1,772 1,772 — —

Corporate 489 489 —

Total $ 3,165 $ 2,487 $ 678

Nine months ended September 30, 2024 Total

Three months ended March 31, 2025 Total

restructuring

4 unchanged sentences

Albany Engineered Composites 1,168 1,168 — —

Corporate expenses 146 146 — —

Corporate — — — —

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

1 unchanged sentence

(in thousands) December 31, 2025 Restructuring

charges accrued Payments and other September 30, 2025

charges accrued Payments and other March 31, 2026

Total restructuring and other liabilities $ 2,766 $ 3,165 $ ( 4,871 ) $ 1,060

(in thousands) December 31, 2024 Restructuring

charges accrued Payments and other September 30, 2024

charges accrued Payments and other March 31, 2025

Total restructuring and other liabilities $ 4,996 $ 3,808 $ ( 4,136 ) $ 4,668

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)

2025 2024 2025 2024

Currency transaction losses/(gains)

6 unchanged sentences

In addition, changes in the fair value of derivative instruments included gains driven by currency rate movements, most notably the Brazilian Real and Mexican Peso.

The Company divested its Arcari business during the quarter ended June 30, 2025, resulting in a net gain of $ 1.6 million, which is included within other (income)/expense, net for the nine months ended September 30, 2025.

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

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

2025 2024 2025 2024

The Company's effective income tax rate for the three months ended March 31, 2026 and 2025, is as follows:

Three months ended March 31,

Effective income tax rate 33.1 % 26.6 %

2 unchanged sentences

Our 2026 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 20.0 % and 6.6 % for the three months ended September 30, 2025 and 2024, respectively.

Our actual effective tax rates were 16.4 % and 23.9 % for the nine months ended September 30, 2025 and 2024, respectively.

The effective tax rate for the three months ended September 30, 2025 included a net discrete tax benefit o f $ 0.7 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 September 30, 2025 was higher than the three months ended September 30, 2024 mainly due to a significant favorable discrete tax adjustment in the quarter ended September 30, 2024 related to the decrease in the valuation allowance as compared to the current period.

The effective tax rate for the nine months ended September 30, 2025 included a net discrete tax benefit of $ 2.3 million .

The discrete tax benefit recognized primarily reflects adjustments to prior year estimated tax provisions to actual filings, a net reduction in valuation allowances, and a net decrease in uncertain tax positions.

The effective rate for the nine months ended September 30, 2025 was lower than the nine months ended September 30, 2024, largely due to the favorable impact of discrete tax items, including the release of valuation allowances in the current period.

Our actual effective tax rates were 33.1 % and 26.6 % for the three months ended March 31, 2026 and 2025, respectively.

The effective rate for the three months ended March 31, 2026 was higher than the effective tax rate for the three months ended March 31, 2025, largely due to the absence of favorable discrete tax items in the current year.

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

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Audit outcomes and the timing of audit settlements are subject to significant uncertainty.

It is reasonably possible that within the next 12 months, unrecognized tax benefits could decrease by up to $ 2.1 million based on current estimates.

Earnings Per Share

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) 2026 2025

Net income/(loss) attributable to the Company $ ( 97,760 ) $ 18,029 $ ( 71,222 ) $ 69,944

Net income attributable to the Company $ 15,281 $ 17,355

Weighted average number of shares:

Weighted average number of shares used in calculating basic net income/(loss) per share 29,012 31,251 29,914 31,234

Weighted average number of shares used in calculating basic net income per share 28,321 30,823

Effect of dilutive stock-based compensation plans:

Restricted stock units and multi-year awards 229 161

Weighted average number of shares used in calculating diluted net income/(loss) per share 29,012 31,367 29,914 31,333

For the three and nine months ended September 30, 2025, basic and diluted shares outstanding are equal as a result of the Company's net loss and potentially dilutive shares being anti-dilutive.

Weighted average number of shares used in calculating diluted net income per share 28,550 30,984

Net income attributable to the Company per share:

Basic $ 0.54 $ 0.56

Diluted $ 0.54 $ 0.56

Accumulated Other Comprehensive Income ("AOCI")

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

The table below presents changes in the components of AOCI for the period from December 31, 2025 to March 31, 2026:

(in thousands)

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Pension settlement/curtailment, net of tax

— ( 1,178 ) — ( 1,178 )

Interest (expense)/income related to swaps reclassified to the Consolidated Statements of Income/(Loss), net of tax — — ( 83 ) ( 83 )

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Net current period other comprehensive income/(loss) ( 5,206 ) 584 326 ( 4,296 )

September 30, 2025 $ ( 123,189 ) $ ( 17,372 ) $ ( 737 ) $ ( 141,298 )

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

March 31, 2026 $ ( 124,214 ) $ ( 23,327 ) $ ( 293 ) $ ( 147,834 )

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

(in thousands) Translation

6 unchanged sentences

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

Pension settlement expense, net of tax — 1,178 — 1,178

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

1 unchanged sentence

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

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

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

The components of AOCI that are reclassified to the Consolidated Statements of Income/(Loss) 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/(Loss) that were affected for the three and nine months ended September 30, 2025, and the Consolidated Statements of Income/(Loss) for the three and nine months ended September 30, 2024:

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/(Loss) that were affected for the three months ended March 31, 2026, and the Consolidated Statements of Income/(Loss) for the three months ended March 31, 2025:

Three months ended March 31,

(in thousands)

2025 2024 2025 2024

Pre-tax Derivative valuation reclassified from Accumulated Other Comprehensive Income/(Loss):

Interest (income)/expense, net related to interest rate swaps included in Income/(loss) before taxes $ ( 53 ) $ ( 2,675 ) $ ( 324 ) $ ( 10,893 )

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

$ ( 133 ) $ ( 192 )

Income tax effect 50 14

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Pension settlement/curtailment

$ — $ — $ ( 1,600 ) $ 0

Amortization of prior service credit $ ( 39 ) $ ( 37 )

Amortization of net actuarial loss

315 176 908 530

Total pre-tax amount reclassified 277 139 ( 804 ) 417

Total pre-tax amount reclassified (b)

Income tax effect ( 104 ) ( 499 )

Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 225 $ 1,351

Noncontrolling Interests

(a) Reported as Interest expense, net in our Consolidated Statements of Income, are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 15, Financial Instruments , and Note 16, Fair-Value Measurements , of the Notes to the Consolidated Financial Statements).

(b) Reported as Other (income)/expense, net in our Consolidated Statements of Income, the accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4, Pension, Postretirement, and Other Benefit Plans , of the Notes to the Consolidated Financial Statements).

Noncontrolling Interest

Effective October 31, 2013, Safran S.A.

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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 third quarter of 2025.

In connection with the sale, the corresponding value of the noncontrolling 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 first quarter of 2026.

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) 2026 2025

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

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

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

As of March 31, 2026 and December 31, 2025, Accounts receivable consisted of the following:

(in thousands) March 31, 2026 December 31, 2025

Trade and other accounts receivable $ 230,447 $ 221,592

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Accounts receivable, net $ 241,639 $ 235,084

As of September 30, 2025 and December 31, 2024, the Company had trade accounts receivable from SAFRAN of $ 67.1 million and $ 77.7 million, respectively.

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

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

As of March 31, 2026 and December 31, 2025, Contract assets and Contract liabilities consisted of the following:

(in thousands) March 31, 2026 December 31, 2025

Contract assets $ 81,528 $ 87,573

3 unchanged sentences

Contract liabilities $ 38,800 $ 33,397

Contract assets, net decreased $ 26.3 million during the nine months ended September 30, 2025, primarily due to a decrease in unbilled revenue related to commercial and defense programs.

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

Contract liabilities increased $ 3.7 million for the period ended September 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 nine months ended September 30, 2025 and 2024 that was included in the Contract liability balance at the beginning of the year was $ 5.6 million and $ 3.7 million, respectively.

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

Raw material inventories are valued on an average cost basis.

Other inventory cost elements are valued at cost, using the first-in, first-out method.

The Company writes down the inventories for estimated obsolescence and to lower of cost or net realizable value based upon assumptions about future demand and market conditions.

If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required.

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

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

Contract assets, net decreased $ 6.3 million during the three months ended March 31, 2026, primarily due to a decrease in unbilled revenue related to commercial and defense programs.

There were no impairment losses related to our Contract assets during the three months ended March 31, 2026 and March 31, 2025.

Contract liabilities increased $ 5.4 million for the period ended March 31, 2026 compared to December 31, 2025, primarily due to amounts invoiced to customers for contracts that were in a contract liability position exceeding the revenue recognition from satisfied performance obligations.

Revenue recognized for the three months ended March 31, 2026 and 2025 that was included in the Contract liability balance at the beginning of the year was $ 16.1 million and $ 4.2 million, respectively.

As of March 31, 2026 and December 31, 2025, Inventories consisted of the following:

(in thousands) March 31, 2026 December 31, 2025

Raw materials $ 67,769 $ 60,311

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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, 2025 and December 31, 2024:

September 30, 2025

The following table sets forth the gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of March 31, 2026 and December 31, 2025:

March 31, 2026

(in thousands) Amortization

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$ 190,795 $ ( 21,832 ) $ 168,963

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

The changes in intangible assets, net and goodwill from December 31, 2025 to March 31, 2026, were as follows:

(in thousands) December 31, 2025 Other

Changes Amortization Currency

Translation September 30, 2025

Translation March 31, 2026

Finite-lived intangible assets:

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The following table represents the Company's outstanding debt:

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

(in thousands, except interest rates) March 31, 2026 December 31, 2025

Borrowings under the Amended Credit Agreement

1 unchanged sentence

EUR borrowings 103,541 105,663

Foreign bank debt — 46

Total bank debt 476,541 455,663

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0.350 % 1.000 % 2.000 %

As of September 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 September 30, 2025, there was $ 480.6 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $ 319.4 million, based on our maximum leverage ratio and our Consolidated EBITDA (as defined in the Amended Credit Agreement).

At the end of September 30, 2025 and December 31, 2024, the USD interest rate in effect was 5.84 % and 5.77 %, respectively, including the effect of interest rate swaps;

at the end of September 30, 2025 and December 31, 2024, the EUR interest rate in effect was 3.70 % and 4.09 %, respectively, including the effect of interest rate swaps.

As of March 31, 2026, 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 March 31, 2026, there was $ 476.5 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $ 323.5 million, based on our maximum leverage ratio and our Consolidated EBITDA (as defined in the Amended Credit Agreement).

As of March 31, 2026 and December 31, 2025, the USD interest rate in effect was 5.50 % and 5.56 %, respectively, including the effect of interest rate swaps;

at the end of March 31, 2026 and December 31, 2025, the EUR interest rate in effect was 3.73 % and 3.73 %, respectively, including the effect of interest rate swaps.

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.

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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, 2025, our leverage ratio wa s 1.70 to 1.00 and our interest coverage ratio was 9.15 to 1.00.

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

As of March 31, 2026, our leverage ratio wa s 1.83 to 1.00 and our interest coverage ratio was 7.66 to 1.00.

As of March 31, 2026, 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.

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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:

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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.

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 16, Fair-Value Measurements .

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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, 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 March 31, 2026 or at December 31, 2025, other than certain pension assets as indicated in our December 31, 2025 Annual Report on Form 10-K.

Debt is carried at cost, which approximates fair value.

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, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(in thousands)

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Interest rate swaps — — — 768

Other Non-Current Liabilities

Foreign currency option contracts — 249 — —

Other noncurrent liabilities:

Foreign currency forward contracts — — — —

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Unrealized gains and losses on the interest rate swaps are recorded as a component of Derivative valuation adjustment in the Shareholders’ equity section of the Consolidated Balance Sheets.

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

As of March 31, 2026, 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 $( 0.3 ) million for the nine months ended September 30, 2025 and $( 12.3 ) million for the nine months ended September 30, 2024.

Interest expense/(income) related to payments under the active swap agreements totaled $( 0.1 ) million for the three months ended March 31, 2026 and $( 0.2 ) million for the three months ended March 31, 2025.

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

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(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) 2026 2025

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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 3,669 claims as of September 30, 2025.

We were defending 3,682 claims as of March 31, 2026.

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, 2025 3,646 28 59 3,677 $ 173

For the period ended September 30, 2025 3,646 23 46 3,669 $ 165

For the period ended March 31, 2026 3,677 8 13 3,682 $ 10

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.

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

As of September 30, 2025, we had resolved, by means of settlement or dismissal, 38,074 claims at a total cost of $ 10.9 million.

As of March 31, 2026, we had resolved, by means of settlement or dismissal, 38,087 claims at a total cost of $ 10.9 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.

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(“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 September 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.

While Brandon was defending against 7,675 claims as of March 31, 2026, 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.

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Changes in Shareholders’ Equity

The following tables summarize changes in Shareholders’ Equity for the three and nine month period ended September 30, 2025:

Additional paid-in capital

Accumulated items of other comprehensive income

Treasury Stock

Noncontrolling Interest

Total Shareholders' Equity

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

Net income/(loss) — — — ( 97,760 ) — — — 122 ( 97,638 )

Stock issued under incentive compensation plans 5 — — — — — — — —

Taxes paid in lieu of share issuance — — ( 137 ) — — — — — ( 137 )

Stock-based compensation — — 3,844 3,844

Purchase of Treasury shares (a) — — — — — 810 ( 50,516 ) — ( 50,516 )

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

— — — ( 7,739 ) — — — — ( 7,739 )

Cumulative translation adjustments — — — — 2,395 — — 90 2,485

Pension and postretirement liability adjustments — — — — 473 — — — 473

Derivative valuation adjustment and other — — — — 126 — — — 126

September 30, 2025 40,989 $ 41 $ 460,294 $ 970,435 $ ( 141,298 ) 12,326 $ ( 550,174 ) $ 5,709 $ 745,007

The following tables summarize changes in Shareholders’ Equity for the three month period ended March 31, 2026:

Common Stock Additional paid-in capital Retained

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Stock-based compensation — — 1,460 — — — — — 1,460

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

Purchase of Treasury shares (a) — — — — — 2,481 ( 170,964 ) — ( 170,964 )

Dividends declared on Class A Common Stock, $ 0.28 per share

— — — ( 7,939 ) — — — — ( 7,939 )

Dividends paid to noncontrolling interests — — — — — — — ( 88 ) ( 88 )

Cumulative translation adjustments — — — — ( 5,206 ) — — ( 47 ) ( 5,253 )

1 unchanged sentence

Derivative valuation adjustment and other — — — ( 11 ) 326 — — — 315

September 30, 2025 40,989 $ 41 $ 460,294 $ 970,435 $ ( 141,298 ) 12,326 $ ( 550,174 ) $ 5,709 $ 745,007

The following table summarizes changes in Shareholders’ Equity for the three and nine month period ended September 30, 2024:

Additional paid-in capital

Accumulated items of other comprehensive income Class A

Treasury Stock

Noncontrolling Interest

Shareholders' Equity

(in thousands)

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

Net income/(loss) — — — 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

— — — ( 8,127 ) — — — — ( 8,127 )

Initial equity related to Noncontrolling interest in Arcari — — — — — — — ( 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

March 31, 2026 41,041 $ 41 $ 460,629 $ 983,704 $ ( 147,834 ) 12,686 $ ( 567,139 ) $ 6,014 $ 735,415

The following table summarizes changes in Shareholders’ Equity for the three month period ended March 31, 2025:

Additional paid-in capital

7 unchanged sentences

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

Shares issued to Directors' 10 — 903 0 — — — — 903

Class A Common Stock, $ 0.78 per share

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 )

Inital equity related to Noncontolling interest in Arcari — — — 0 — — — ( 166 ) ( 166 )

Dividends paid to noncontrolling interests — — — — — — — ( 88 ) ( 88 )

Cumulative translation adjustments — — — — 17,136 — — ( 122 ) 17,014

1 unchanged sentence

Derivative valuation adjustment — — — 7 ( 635 ) — — — ( 628 )

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

(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 2,480,769 shares totaling $ 171.0 million including excise taxes and fees.

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

(a) 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 replaces the 2021 authorization.

Held for Sale

During the fourth quarter of 2025, we announced that we will commence a strategic review of the Amelia Earhart Drive facility in Salt Lake City.

This review is expected to be completed by the end of 2026, and management expects the review to result in a sale of the facility, including the CH-53K contract work.

As of December 31, 2025, the Company determined that the Amelia Earhart Drive facility met held-for-sale accounting criteria.

Accordingly, the facility's assets and liabilities were classified as held-for-sale in the consolidated balance sheets for all periods presented.

Upon classification as held for sale, the Company ceased depreciation and amortization of the related long-lived assets in accordance with applicable accounting guidance.

The following table presents the assets and liabilities classified as held-for-sale at March 31, 2026 and December 31, 2025:

(in thousands) March 31, 2026 December 31, 2025

Accounts receivable, net $ 22,311 $ 27,159

Contract assets, net 76,930 68,550

Inventories 13,190 16,422

Prepaid expenses and other current assets 647 697

Property, plant and equipment, net 94,147 93,525

Intangibles, net 13,384 13,384

Goodwill 21,829 21,829

Other assets 51,582 52,217

Total assets held for sale $ 294,020 $ 293,783

Accounts payable $ 17,991 $ 16,408

Accrued liabilities 108,398 115,448

Other noncurrent liabilities 58,936 59,724

Deferred income taxes 11,743 11,743

Total liabilities held for sale $ 197,068 $ 203,323

Subsequent Events

We evaluated subsequent events through the issuance date of these financial statements in Form 10-Q.

On October 28th, 2025, the Company announced that it is exploring strategic alternatives for its structures assembly business, including a potential sale of all or a part of the business at the Amelia Earhart Drive Facility in Salt Lake City.

As part of the strategic alternatives, Albany is in ongoing discussions with its customer about potential contract modifications to offset these cost increases.

No other material subsequent events were identified that require disclosure.

No material subsequent events were identified that require disclosure.

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