UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended:			~~September~~March 3031, ~~2025~~2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from __________ to __________

Commission file number: 1-10026


ALBANY INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)

Delaware


(State or other jurisdiction of incorporation or organization)

325 Corporate Drive, Portsmouth, New Hampshire


(Address of principal executive offices)

14-0462060


(IRS Employer Identification No.)

03801


(Zip Code)

603-330-5800


(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value per share	AIN	The New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The registrant had 28.74 million shares of Class A Common Stock outstanding as of ~~October~~April 15, ~~2025~~2026.

ALBANY INTERNATIONAL CORP.

TABLE OF CONTENTS

		Page No.
Part I Financial information
Item 1.	Financial Statements
	Consolidated statements of income – three and nine months ended September 30, 2025 and 2024	1
	Consolidated statements of income – three months ended March 31, 2026 and 2025	1
	Consolidated statements of comprehensive income/(loss) – three and nine months ended September 30, 2025 and 2024	2
	Consolidated statements of comprehensive income – three months ended March 31, 2026 and 2025	2
	Consolidated balance sheets as of September 30, 2025 and December 31, 2024	3
	Consolidated balance sheets as of March 31, 2026 and December 31, 2025	3
	Consolidated statements of cash flows – nine months ended September 30, 2025 and 2024	4
	Consolidated statements of cash flows – three months ended March 31, 2026 and 2025	4
	Notes to consolidated financial statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2523
	Forward-looking statements	2523
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	3631
Item 4.	Controls and Procedures	3631
Part II Other Information
Item 1.	Legal Proceedings	3732
Item 1A.	Risk Factors	3732
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3732
Item 3.	Defaults upon Senior Securities	3732
Item 4.	Mine Safety Disclosures	3732
Item 5.	Other Information	3833
Item 6.	Exhibits	3934

Index

ITEM 1. FINANCIAL STATEMENTS

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME~~/(LOSS)~~

(in thousands, except per share amounts)

(unaudited)

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
			Three Months EndedMarch 31,
	2025		2024		2025		2024
					2026		2025
Net revenues	$	~~261,434~~	$	~~298,386~~	$	~~861~~311,~~607~~333	$	~~943~~288,~~710~~774
Cost of goods sold	~~311,372~~		~~208,002~~		~~717~~211,~~552~~539		~~632~~192,~~257~~288
Gross profit/(loss)	(49,938)		90,384		144,055		311,453
Gross profit					99,794		96,486
Selling, general, and administrative expenses	~~51,905~~		~~52,097~~		~~164~~58,~~219~~299		~~162~~53,~~447~~812
Technical and research expenses	~~11,467~~		~~10,844~~		3512,~~915~~957		3511,~~369~~896
Restructuring expenses, net	~~3,197~~		~~2,272~~		93,~~895~~165		62,~~584~~515
Operating income/(loss)	(116,507)		25,171		(65,974)		107,053
Operating income					25,373		28,263
Interest expense/(income), net	~~5,897~~		~~2,411~~		145,~~702~~467		83,~~680~~655
Other expense/(income), net	~~(347)~~		~~3,257~~		4(3,~~170~~193)		~~5,932~~983
Income (loss) before income taxes	(122,057)		19,503		(84,846)		92,441
Income before income taxes					23,099		23,625
Income tax expense/(benefit)	(24,419)		1,282		(13,889)		22,131
Income tax expense					7,650		6,276
Net income/(loss)	(97,638)		18,221		(70,957)		70,310
Net income					15,449		17,349
Net income/(loss) attributable to the noncontrolling interest	~~122~~		~~192~~		~~265~~168		~~366~~(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	$	~~(3.37)~~	$	~~0.58~~	$	(20.~~38)~~54	$	20.2456
Earnings per share attributable to Company shareholders - Diluted	$	~~(3.37)~~	$	~~0.57~~	$	(20.~~38)~~54	$	20.2356
Shares of the Company used in computing earnings per share:
Basic	~~29,012~~		~~31,251~~		2928,~~914~~321		3130,~~234~~823
Diluted	~~29,012~~		~~31,367~~		2928,~~914~~550		3130,~~333~~984
Dividends declared per Class A share	$	~~0.27~~	$	~~0.26~~	$	0.8128	$	0.7827

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

Index

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME~~/(LOSS)~~

(in thousands)

(unaudited)

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
			Three Months EndedMarch 31,
	2025		2024		2025		2024
					2026		2025
Net income/(loss)	$	(97,638)	$	18,221	$	(70,957)	$	70,310
Net income					$	15,449	$	17,349
Other comprehensive income/(loss), before tax:
Other comprehensive income, before tax:
Foreign currency translation and other adjustments	~~2,676~~		~~16,211~~		55(4,~~948~~847)		~~(12~~13,~~757)~~123
Pension settlement/curtailment	—		—		~~(1,600)~~—		—1,600
Amortization of pension liability adjustments:
Prior service credit	~~(38)~~		~~(37)~~		(~~112~~39)		(~~113~~37)
Net actuarial loss	~~315~~		~~176~~		~~908~~368		~~530~~287
Payments and amortization related to interest rate swaps included in earnings	~~(53)~~		~~(2,675)~~		(~~324~~133)		(~~10,893~~192)
Derivative valuation adjustment	~~169~~		~~(1,238)~~		~~(425)~~657		~~395~~(493)
Income taxes related to items of other comprehensive income/(loss):
Income taxes related to items of other comprehensive income:
Pension settlement/curtailment	—		—		~~422~~—		—(422)
Amortization of prior service credit	11		13		3412		3511
Amortization of net actuarial loss	~~(97)~~		~~(55)~~		(~~278~~116)		(~~162~~88)
Payments and amortization related to interest rate swaps included in earnings	17		~~658~~		5150		~~2,681~~14
Derivative valuation adjustment	~~(7)~~		~~305~~		67(248)		~~(97)~~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	~~212~~		~~(127)~~		~~300~~121		(~~273~~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

Index

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

	(unaudited)
	September 30, 2025		December 31, 2024
	March 31, 2026		December 31, 2025
Assets
Cash and cash equivalents	$	~~108~~122,~~310~~557	$	~~115~~112,~~283~~350
Accounts receivable, net	~~258~~241,~~503~~639		~~246~~235,~~688~~084
Contract assets, net	~~140~~80,~~259~~847		~~166~~87,~~557~~102
Inventories	~~159~~139,~~664~~833		~~145~~121,~~845~~589
Income taxes prepaid and receivable	3343,~~037~~877		1943,~~187~~937
Prepaid expenses and other current assets	40,~~758~~480		3734,~~132~~990
Total current assets	740,531		730,692
Assets held for sale	294,020		293,783
Property, plant and equipment, net	573,233		563,431
Total current assets	963,253		928,835
Intangibles, net	36,098		38,127
Property, plant and equipment, net	471,966		482,568
Goodwill	184,291		176,261
Intangibles, net	20,443		21,428
Deferred income taxes	57,236		28,757
Goodwill	161,119		162,507
Other assets	110,205		111,428
Deferred income taxes	64,473		68,499
Total assets	$	1,701,594	$	1,648,696
Other assets	55,533		54,872
Total assets	$	1,736,787	$	1,718,709
Liabilities and Shareholders' Equity
Accounts payable	$	8575,~~994~~170	$	6664,~~095~~499
Accrued liabilities	~~222~~143,~~434~~557		~~141~~139,~~904~~385
Income taxes payable	722,~~964~~819		1835,~~367~~090
Total current liabilities	316,392		226,366
Liabilities held for sale	197,068		203,323
Long-term debt	480,631		318,531
Total current liabilities	438,614		442,297
Other noncurrent liabilities	140,764		138,830
Long-term debt	476,541		455,663
Deferred taxes and other liabilities	18,800		16,022
Other noncurrent liabilities	83,871		86,850
Total liabilities	956,587		699,749
Deferred income taxes	2,346		1,797
Total liabilities	1,001,372		986,607
Commitments and Contingencies (Note 17)
Shareholders' Equity:
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued	—		—
Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 40,989,106 issued in 2025 and 40,917,539 in 2024	41		41
Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 41,040,745 issued in 2026 and 40,989,106 in 2025	41		41
Additional paid in capital	460,~~294~~629		~~452~~460,~~933~~472
Retained earnings	~~970~~983,~~435~~704		1976,~~065,763~~373
Accumulated items of other comprehensive income:
Translation adjustments	(~~123~~124,~~189~~214)		(~~181~~119,~~555~~008)
Pension and postretirement liability adjustments	(1723,~~372~~327)		(1423,~~328~~911)
Derivative valuation adjustment	(~~737~~293)		(~~106~~619)
Treasury stock (Class A), at cost; 12,325,515 shares in 2025 and 9,844,746 in 2024	(550,174)		(379,210)
Treasury stock (Class A), at cost; 12,685,782 shares in 2026 and 12,685,782 in 2025	(567,139)		(567,139)
Total shareholders' equity	~~739~~729,~~298~~401		~~943~~726,~~538~~209
Noncontrolling interest	56,~~709~~014		5,~~409~~893
Total equity	~~745~~735,~~007~~415		~~948~~732,~~947~~102
Total liabilities and shareholders' equity	$	1,~~701~~736,~~594~~787	$	1,~~648~~718,~~696~~709

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

Index

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
		2025		2024
		2026		2025
Cash flows from operating activities:
Net income/(loss)		$	(70,957)	$	70,310
Net income		$	15,449	$	17,349
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		6116,~~577~~478		6119,~~813~~585
Amortization		~~3,903~~651		51,~~190~~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		~~(390)~~127		~~1,425~~473
Non-cash interest expense		~~777~~258		~~769~~256
Contract loss provision		139,665		—
Compensation and benefits paid or payable in Class A Common Stock		1,460		2,651
Compensation and benefits paid or payable in Class A Common Stock		9,882		4,438
Provision/(recovery) for credit losses from uncollected receivables and contract assets		(207)		269
Provision/(recovery) for credit losses from uncollected receivables and contract assets		553		40
Foreign currency remeasurement loss/(gain) on intercompany loans		(1,865)		2,886
Foreign currency remeasurement loss/(gain) on intercompany loans		7,587		2,263
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:
Accounts receivable		2(6,~~152~~831)		17(20,~~980~~713)
Contract assets		(75,~~952)~~722		~~(15~~11,~~194)~~421
Inventories		(518,~~105~~466)		5(12,~~918~~873)
Prepaid expenses and other current assets		(35,~~286~~398)		(2,~~768~~624)
Income taxes prepaid and receivable		(~~13,825~~64)		~~2,602~~(70)
Accounts payable		1810,~~684~~893		717,~~316~~482
Accrued liabilities		(222,~~887~~103)		(821,~~320~~164)
Income taxes payable		(1312,~~022~~659)		(1117,~~995~~080)
Other noncurrent liabilities		(4,307)		(17)
Noncurrent receivables		—		(200)
Other, net		(847)		(359)
Other noncurrent liabilities		(1,594)		(1,046)
Net cash provided by operating activities		78,772		139,985
Other, net		(233)		233
Net cash provided by operating activities		5,643		2,119
Cash flows from investing activities:
Purchases of property, plant and equipment		(479,~~559~~290)		(6115,~~985~~597)
Purchased software		(1,250)		(101)
Net cash used in investing activities		(9,290)		(15,597)
Proceeds received from sale of assets		3,243		1,033
Net cash used in investing activities		(45,566)		(61,053)
Cash flows from financing activities:
Proceeds from borrowings		~~231~~65,~~999~~000		4896,~~106~~998
Repayment of borrowings		(8242,~~044~~000)		(~~142~~3,~~691~~007)
Purchase of Treasury shares		~~(170,964)~~—		—(69,153)
Taxes paid in lieu of share issuance		(21,~~521~~303)		(21,~~832~~316)
Dividends paid		(247,~~738~~928)		(248,~~356~~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		~~8,089~~85		(32,~~357)~~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		~~115~~112,~~283~~350		~~173~~115,~~420~~283
Cash and cash equivalents at end of period		$	~~108~~122,~~310~~557	$	~~127~~119,~~222~~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

Index

ALBANY INTERNATIONAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Significant Accounting Policies

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 normally required byfor 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. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2024~~2025.

Estimates

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~~credit ~~accounts~~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. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. 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 Not Yet Adopted

In ~~September~~December 2025, the ~~Financial Accounting Standards Board (~~FASB) issued ~~guidance~~ASU toNo. ~~improve~~2025-11, ~~the~~Interim ~~accounting~~Reporting ~~for~~(Topic ~~costs~~270): ~~related~~Narrow toScope ~~internal-use software~~Improvements. The ~~new~~ASU ~~guidance~~clarifies ~~eliminates~~the ~~project~~applicability ~~stages~~of Topic 270 and ~~requires~~the ~~capitalizing~~form ~~software~~and ~~costs~~content toof ~~begin~~interim ~~when~~financial ~~(1)~~statements. ~~management~~In ~~has~~addition, ~~authorized~~it ~~and~~requires ~~committed~~entities to ~~funding~~disclose ~~the~~material ~~software~~events ~~project~~occurring ~~and~~since ~~(2) it is probable that~~ the ~~project~~last ~~will~~annual bereporting ~~completed~~period. ~~and~~The ~~the~~guidance ~~software~~ will be ~~used~~effective tofor ~~perform~~interim ~~the~~periods ~~function~~beginning ~~intended.~~January ~~Additionally~~1, ~~disclosures~~2028 ~~for property, plant~~ and ~~equipment~~can ~~will~~ be ~~required~~applied ~~for~~on ~~all~~a ~~capitalized~~prospective ~~software~~or ~~costs~~retrospective basis. ~~The~~We ~~guidance~~are isevaluating ~~effective in~~ the ~~first~~disclosure ~~quarter~~impact of ~~2028~~this ~~with~~guidance; ~~early~~however, ~~adoption~~the ~~permitted~~standard aswill ofnot ~~the~~have ~~beginning of~~ an ~~annual~~impact ~~reporting~~on ~~period. Upon adoption,~~ the ~~guidance~~company’s ~~may~~consolidated befinancial ~~applied prospectively~~position, ~~retrospectively~~results ~~or using a modified transition approach. We are evaluating the impact~~ of ~~this~~operations ~~guidance~~or oncash ~~our consolidated financial statements~~flows.

In November ~~2024~~2025, the FASB issued ~~guidance~~ASU ~~to improve the disclosure of expenses in commonly presented expense captions~~No. ~~The new guidance requires a public entity to provide tabular disclosure~~2025‑09, onDerivatives ~~an annual~~ and ~~interim~~Hedging ~~basis, of amounts for the following expense categories:~~ (1)Topic ~~purchases of inventory, (2~~815): ~~employee~~Hedge ~~compensation,~~Accounting ~~(3) depreciation and (4) intangible asset amortization, as included in each relevant expense caption~~Improvements. ~~Additionally,~~The onASU anmakes ~~annual~~targeted ~~and~~amendments ~~interim~~to ~~basis,~~hedge aaccounting 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. The guidance ~~also~~intended ~~requires certain amounts that are currently required~~ to bebetter ~~disclosed~~align tohedge beaccounting ~~included~~results inwith ~~the same tabular disclosure as these disaggregation requirements. Furthermore, on~~ an ~~annual~~entity’s ~~and~~risk ~~interim~~management ~~basis~~activities, aincluding ~~public~~changes ~~entity~~related ~~is required~~ to ~~separately~~cash ~~disclose~~flow ~~selling~~hedges, ~~expenses~~forecasted ~~and annually~~transactions, ~~disclose~~and acertain ~~description~~debt‑related ofhedging ~~the selling expenses~~strategies. The guidance is effective for ~~2027 annual reporting, and in~~ the ~~first~~Company ~~quarter of 2028~~ for ~~interim~~fiscal ~~reporting,~~years ~~with~~beginning ~~early~~after ~~adoption~~December ~~permitted~~15, to2026, beand ~~applied~~interim onperiods awithin ~~prospective~~those ~~basis,~~fiscal ~~with~~years. ~~retrospective~~Early ~~application~~adoption is permitted. WeThe ~~are~~Company is currently evaluating the impact of this guidance on ~~our~~its consolidated financial statements and related disclosures.

In ~~December~~September ~~2023~~2025, the FASB issued ~~guidance~~ASU toNo. ~~enhance~~2025-06 ~~transparency~~to ofimprove ~~income~~the ~~tax~~accounting ~~disclosures.~~for Oncosts anrelated ~~annual~~to ~~basis,~~internal-use ~~the~~software. The new guidance eliminates project stages and requires acapitalizing ~~public~~software ~~entity~~costs to ~~disclose:~~begin when (1) ~~specific~~management ~~categories~~has inauthorized and committed to funding the ~~rate~~software ~~reconciliation,~~project and (2) ~~additional~~it ~~information~~is ~~for~~probable ~~reconciling~~that ~~items~~the ~~that~~project ~~are~~will ~~equal~~be tocompleted orand ~~greater~~the ~~than~~software 5%will ofbe ~~the~~used ~~amount~~to ~~computed~~perform bythe ~~multiplying~~function ~~income~~intended. ~~(or~~Additionally, ~~loss)~~disclosures ~~from~~for ~~continuing~~property, ~~operations~~plant ~~before~~and ~~income~~equipment ~~tax~~will ~~expense~~be ~~(or~~required ~~benefit)~~for byall ~~the~~capitalized ~~applicable~~software ~~statutory~~costs. ~~income~~The ~~tax~~guidance ~~rate,~~is ~~(3)~~effective ~~income~~in ~~taxes~~the ~~paid~~first ~~(net~~quarter of ~~refunds~~2028 ~~received)~~with ~~disaggregated~~early byadoption ~~federal~~permitted ~~(national),~~as ~~state,~~of ~~and~~the ~~foreign~~beginning ~~taxes,~~of ~~with~~an ~~foreign~~annual ~~taxes~~reporting ~~disaggregated~~period. byUpon ~~individual~~adoption, ~~jurisdictions~~the inguidance ~~which~~may ~~income~~be ~~taxes~~applied ~~paid~~prospectively, isretrospectively ~~equal to~~ or ~~greater~~using ~~than~~a 5%modified oftransition ~~total~~approach. ~~income~~We ~~taxes~~are ~~paid,~~evaluating ~~(4)~~the ~~income~~impact ~~(or~~of ~~loss)~~this ~~from~~guidance ~~continuing~~on ~~operations~~our ~~before~~consolidated ~~income~~financial ~~tax expense (or benefit)~~ statements.

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

Index

annual and interim basis, a qualitative description is required for amounts remaining in relevant expense captions that are not separately disaggregated ~~between~~quantitatively. ~~domestic~~A ~~and~~relevant ~~foreign,~~expense ~~and~~caption ~~(5)~~is an expense caption presented on the face of the income ~~tax~~statement that contains any of the expense ~~(or~~categories ~~benefit)~~noted. ~~from~~The ~~continuing~~guidance ~~operations~~also ~~disaggregated~~requires ~~between~~certain ~~federal~~amounts ~~(national)~~that are currently required to be disclosed to be included in the same tabular disclosure as these disaggregation requirements. Furthermore, ~~state~~on an annual and ~~foreign~~interim basis, a public entity is required to separately disclose selling expenses and annually, disclose a description of the selling expenses. The guidance is effective for ~~fiscal~~2027 ~~year~~annual ~~2025~~reporting, ~~annual~~and in the first quarter of 2028 for interim reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We are evaluating the impact of this guidance on our consolidated financial statements.

2. Reportable Segments

The Company is organized based on the nature of its products and is composed of two reportable segments, Machine Clothing ("MC") and Albany Engineered Composites ("AEC"), each overseen by a segment president. 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. 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. We sell our MC products directly to customer end-users in countries across the globe. 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 are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure.

Albany Engineered Composites:

The Albany Engineered Composites segment provides highly engineered, advanced composite ~~structures~~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. 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.

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, ~~2024~~2025, approximately 3635% ~~percent~~ of AEC's revenues were related to U.S. government contracts or programs.

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

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)

Index

	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

Reconciliation of Net Revenues to Operating Income(loss):

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

(in thousands)

AEC

Corporate

Total

Net revenues

~~530~~165,~~573~~952

~~331~~145,~~034~~381

—

~~861~~311,~~607~~333

Cost of goods sold

~~284~~90,~~842~~890

~~432~~120,~~710~~649

—

~~717~~211,~~552~~539

Gross profit

~~245~~75,~~731~~062

~~(101~~24,~~676)~~732

—

~~144~~99,~~055~~794

Selling, general and administrative expenses

9833,~~841~~249

3411,~~121~~586

3113,~~257~~464

~~164~~58,~~219~~299

Technical and research expenses

217,~~332~~185

114,~~472~~548

31,~~111~~224

3512,~~915~~957

Restructuring expenses, net

62,~~322~~676

~~1,801~~—

~~1,772~~489

93,~~895~~165

Operating income/(loss)

~~119~~31,~~236~~952

~~(149~~8,~~070)~~598

(3615,~~140~~177)

~~(65~~25,~~974)~~373

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

(in thousands)

AEC

Corporate

Total

Net revenues

~~561~~174,~~828~~697

~~381~~114,~~882~~077

—

~~943~~288,~~710~~774

Cost of goods sold

~~299~~94,~~379~~795

~~332~~97,~~878~~493

—

~~632~~192,~~257~~288

Gross profit

~~262~~79,~~449~~902

4916,~~004~~584

—

~~311~~96,~~453~~486

Selling, general and administrative expenses

9532,~~384~~881

3610,~~249~~126

3010,~~814~~805

~~162~~53,~~447~~812

Technical and research expenses

227,~~066~~243

133,~~303~~674

—979

3511,~~369~~896

Restructuring expenses, net

31,~~294~~347

31,~~144~~168

~~146~~—

62,~~584~~515

Operating income/(loss)

~~141~~38,~~705~~431

(31,~~692)~~616

(3011,~~960~~784)

~~107~~28,~~053~~263

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~~2026

~~2024~~2025

Depreciation and amortization

Machine Clothing

~~8,604~~

~~8,429~~

248,~~283~~302

257,~~438~~706

Albany Engineered Composites

~~13,479~~

~~13,596~~

408,~~229~~787

4013,~~700~~295

Corporate

~~355~~

~~285~~

~~968~~40

~~865~~290

Consolidated depreciation and amortization

~~22,438~~

~~22,310~~

6517,~~480~~129

6721,~~003~~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 March 31,
(in thousands)		2026		2025




Consolidated Operating income/(loss)		$	25,373	$	28,263
Reconciling items:
Interest income		(882)		(1,638)
Interest expense		6,349		5,293


Other (income)/expense, net		(3,193)		983
Income before income taxes		$	23,099	$	23,625

Index

	Three months ended September 30,				Nine months ended September 30,
(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)	$	(116,507)	$	25,171	$	(65,974)	$	107,053
Reconciling items:
Interest income/(loss)	(1,114)		(1,019)		(4,157)		(3,101)
Interest expense	7,011		3,430		18,859		11,781
Other (income)/expense, net	(347)		3,257		4,170		5,932
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. For 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. For 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.

The following table presents assets by reportable segment:

(in thousands)	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Segment assets
Machine Clothing	$	~~625~~674,~~460~~978	$	~~600~~618,~~603~~476
Albany Engineered Composites	~~726~~440,~~588~~869		~~736~~491,~~306~~802
Reconciling items:
Cash	~~108~~122,~~310~~557		~~115~~112,~~283~~350
Income taxes prepaid and receivable, and Deferred income taxes	90108,~~273~~350		47112,~~944~~436
Prepaid expenses and other current assets, and Other assets	~~150~~96,~~963~~013		~~148~~89,~~560~~862
Consolidated total assets	$	1,701,594	$	1,648,696
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)	~~2025~~2026		~~2024~~2025
Capital expenditures and purchased software
Machine Clothing	$	205,~~387~~606	$	176,~~184~~232
Albany Engineered Composites	282,~~422~~851		449,~~902~~365
Total capital expenditures and purchased software	$	48,809	$	62,086
Corporate	833		—
Total capital expenditures and purchased software	$	9,290	$	15,597

3. Revenue Recognition:

Index

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 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.

The LEAP engine is used on the Airbus A320neo, A321neo, Boeing 737 MAX, and COMAC ~~919~~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 $4648.43 million and $4039.94 million for the three months ended ~~September~~March 3031, ~~2025~~2026 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, and Contract assets ~~and Noncurrent receivables~~ due from SAFRAN amounted to $6757.61 million and $7860.58 million as of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~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~~increased revenue by $~~49.~~1.2 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.~~1.8 million ~~for~~during the first ~~nine~~quarter ~~months~~ of ~~2025~~2026. The decrease in profitability during the ~~third~~first quarter of ~~2025~~2026 was primarily driven by a few large complex programs, including adjustments of $~~147.~~3.1 million for various CH-53K programs, primarily based on changes to ~~material input costs, labor hours, and~~ future overhead rates over the remainder of the contract. ~~Additionally,~~These ~~we recorded~~ negative ~~cumulative~~impacts ~~changes~~to in profitability ofwere ~~$0.2~~offset ~~million~~by onpositive ~~our~~cumulative ~~F-35~~adjustments ~~program,~~of $01.~~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.

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:~~8

	Three months ended September 30, 2025
(in thousands)	Point in Time RevenueRecognition		Over Time RevenueRecognition		Total
Machine Clothing	$	173,929	$	1,021	$	174,950
Albany Engineered Composites:
ASC	—		44,873		44,873
Other AEC	3,084		38,527		41,611
Total Albany Engineered Composites	$	3,084	$	83,400	$	86,484
Total revenues	$	177,013	$	84,421	$	261,434

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

Index

	Three months ended September 30, 2024
(in thousands)	Point in Time RevenueRecognition		Over Time RevenueRecognition		Total
Machine Clothing	$	182,050	$	983	$	183,033
Albany Engineered Composites:
ASC	—		40,115		40,115
Other AEC	4,142		71,096		75,238
Total Albany Engineered Composites	$	4,142	$	111,211	$	115,353
Total revenues	$	186,192	$	112,194	$	298,386

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

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


	Three months ended March 31, 2026
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	164,900	$	1,052	$	165,952

Albany Engineered Composites:
ASC	—		47,109		47,109
Other AEC	3,009		95,263		98,272
Total Albany Engineered Composites	$	3,009	$	142,372	$	145,381

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

	Nine months ended September 30, 2025
(in thousands)	Point in Time RevenueRecognition		Over Time RevenueRecognition		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 three months ended March 31, 2025:

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


	Three months ended March 31, 2025
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	173,676	$	1,021	$	174,697

Albany Engineered Composites:
ASC	—		38,920		38,920
Other AEC	4,077		71,080		75,157
Total Albany Engineered Composites	$	4,077	$	110,000	$	114,077

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

	Nine months ended September 30, 2024
(in thousands)	Point in Time RevenueRecognition		Over Time RevenueRecognition		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 March 31,
(in thousands)		2026		2025
Americas PMC		$	76,109	$	82,846
Eurasia PMC		69,756		68,197
Engineered Fabrics		20,087		23,654
Total Machine Clothing Net revenues		$	165,952	$	174,697

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. 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 $1.0 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.

Index

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2025		2024		2025		2024
Americas PMC	$	92,171	$	86,408	$	262,505	$	258,442
Eurasia PMC	67,128		70,083		206,486		224,792
Engineered Fabrics	15,651		26,542		61,582		78,594
Total Machine Clothing Net revenues	$	174,950	$	183,033	$	530,573	$	561,828

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. 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.

4. Pensions and Other Postretirement Benefit Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. 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~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	~~2025~~2026		~~2024~~2025		~~2025~~2026		~~2024~~2025
Components of net periodic benefit cost/(income):
Service cost	$	~~836~~238	$	~~1,473~~371	$	309	$	3510
Interest cost	41,~~505~~527		41,~~545~~450		~~1,060~~332		~~1,063~~353
Expected return on assets	(~~3,427~~705)		(41,~~030~~232)		—		—
Curtailment cost/(income)	~~(3,770)~~0		—(3,770)		—		—
Settlement cost/(income)	~~2,170~~0		—2,170		—		—
Amortization of prior service cost/(income)	(208)		(206)		(9231)		(9331)
Amortization of net actuarial loss	~~932~~364		~~556~~295		~~(24)~~4		(268)
Net periodic benefit cost/(credit)	$	1,~~226~~416	$	~~2,524~~(722)	$	~~974~~314	$	~~979~~324

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

Service cost for defined benefit pension and postretirement plans are reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net periodic benefit cost are included in the line item Other (income)/expense, net in the Consolidated Statements of Income.

5. Restructuring

At MC, restructuring actions were taken in ~~2025~~2026 and ~~2024~~2025 to ~~cease~~consolidate ~~operations~~production atactivities ~~five~~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.

~~For~~At AEC, restructuring activities for the three months ended ~~September~~March 3031, 2025, ~~these~~were ~~actions~~ related to reorganizational and workforce ~~reductions~~reduction ofcosts, ~~$2.0 million.~~which ~~For~~resulted ~~the~~in ~~three~~restructuring ~~month~~expenses ~~ended~~of ~~September~~$1.2 ~~30,~~million. ~~2024,~~AEC ~~these~~did ~~actions~~not ~~related~~incur toany ~~workforce~~restructuring ~~reductions~~costs ~~and~~for ~~inventory~~the ~~write-off~~three ~~costs~~months ~~totaling~~ended ~~$2.2~~March ~~million~~31, 2026.

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

Index

gain. 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.

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~~

~~2025~~2026

~~2024~~2025

Machine Clothing

~~1,960~~

~~2,207~~

62,~~322~~676

31,~~294~~347

Albany Engineered Composites

~~113~~

~~1,801~~—

31,~~144~~168

Corporate expenses

1,124

1,772

146

Corporate

489

—

Total

~~3,197~~

~~2,272~~

93,~~895~~165

62,~~584~~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":~~10

Nine months ended September 30, 2025	Totalrestructuringcosts incurred		Terminationand othercosts		Impairment of assets		Pension Curtailment (Gain)/Loss
(in thousands)
Machine Clothing	$	6,322	$	7,359	$	723	$	(1,760)
Albany Engineered Composites	1,801		1,801		—		—
Corporate expenses	1,772		1,772		—		—
Total	$	9,895	$	10,932	$	723	$	(1,760)

Nine months ended September 30, 2024	Totalrestructuringcosts incurred		Terminationand othercosts		Impairment of assets		Pension Curtailment (Gain)/Loss
(in thousands)
Machine Clothing	$	4,581	$	3,294	$	1,287	$	—
Albany Engineered Composites	3,144		3,144		—		—
Corporate expenses	146		146		—		—
Total	$	7,871	$	6,584	$	1,287	$	—

The table below presents the year-to-date changes in restructuring liabilities for 2025 and 2024:

(in thousands)			December 31, 2024			Restructuringcharges accrued			Payments and other			September 30, 2025
Total restructuring and other liabilities			$	4,996		$	10,932		$	(12,622)		$	3,306

(in thousands)			December 31, 2023			Restructuringcharges accrued			Payments and other			September 30, 2024
Total restructuring and other liabilities			$	—		$	7,871		$	(3,974)		$	3,897

Index

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, 2026	Total restructuring costs incurred		Termination and other costs		Asset Transfer Costs
(in thousands)
Machine Clothing	$	2,676	$	1,998	$	678
Albany Engineered Composites	—		—		—
Corporate	489		489		—
Total	$	3,165	$	2,487	$	678


Three months ended March 31, 2025	Total restructuring costs incurred		Termination and other costs		Impairment of assets		Pension Curtailment (Gain)/Loss
(in thousands)
Machine Clothing	$	1,603	$	2,640	$	723	$	(1,760)
Albany Engineered Composites	1,168		1,168		—		—
Corporate	—		—		—		—
Total	$	2,771	$	3,808	$	723	$	(1,760)

The table below presents the year-to-date changes in restructuring liabilities for 2026 and 2025:


(in thousands)	December 31, 2025		Restructuring 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		March 31, 2025
Total restructuring and other liabilities	$	4,996	$	3,808	$	(4,136)	$	4,668

6. Other (Income)/Expense, net

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~~2026

~~2024~~2025

Currency transaction losses/(gains)

~~(1,054)~~

~~1,834~~

7(2,~~751~~152)

~~692~~3,152

Derivative instruments losses/(gains)

~~(95)~~

~~(485)~~

(31,~~357)~~216

3(2,~~788~~526)

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

~~1,011~~

~~663~~

1,~~334~~483

~~1,995~~821

Other losses/(gains)

~~(209)~~

~~1,245~~

(13,~~558~~740)

(~~543~~464)

Total other (income)/expense, net

~~(347)~~

~~3,257~~

4(3,~~170~~193)

~~5,932~~983

Currency transaction losses/(gains), included within other (income)/expense, net were primarily the result of both realized and unrealized losses/(gains) on intercompany loans. 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.

Index

7. Income Taxes

The Company's effective income tax rate for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025, is as follows:

	Three months ended September 30,				Nine months ended September 30,
			Three months ended March 31,
	2025		2024		2025		2024
					2026		2025
Effective income tax rate	~~20.0~~	%	~~6.6~~	%	1633.41	%	2326.96	%

Income tax expense for the quarter was computed in accordance with ASC 740-270, Income Taxes – Interim Reporting. Under this method, loss jurisdictions subject to valuation allowances cannot recognize a tax benefit with regard to their generated losses and are excluded from the annual effective tax rate calculation as their taxes will be recorded discretely in each quarter.

Our ~~2025~~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 2033.01% and 626.6% for the three months ended ~~September~~March 3031, ~~2025~~2026 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~~March 3031, ~~2025~~2026 ~~included~~was ahigher ~~net~~than ~~discrete~~the ~~tax~~effective ~~benefit of $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~~March 3031, 2025 ~~was higher than the three months ended September 30~~, ~~2024~~largely ~~mainly~~ due to athe ~~significant~~absence of favorable discrete tax ~~adjustment~~items in the ~~quarter ended September 30, 2024 related to the decrease in the valuation allowance as compared to the~~ current ~~period~~year.

The ~~effective~~Company ~~tax~~is ~~rate~~subject ~~for~~to ~~the~~audit ~~nine~~in ~~months~~the ~~ended September 30, 2025 included a net discrete tax benefit of $2~~U.~~3 million~~S. ~~The~~and ~~discrete~~various ~~tax~~foreign ~~benefit~~jurisdictions. ~~recognized~~Our ~~primarily~~open ~~reflects adjustments to prior year estimated~~ tax ~~provisions~~years tofor ~~actual~~major ~~filings,~~jurisdictions agenerally ~~net~~range ~~reduction~~from in2013-2025. ~~valuation~~We ~~allowances,~~believe ~~and~~appropriate aprovisions ~~net~~for ~~decrease~~all inoutstanding ~~uncertain~~ tax ~~positions.~~issues ~~The~~have ~~effective~~been ~~rate~~made for ~~the~~all ~~nine~~jurisdictions ~~months~~and ~~ended~~all ~~September 30,~~open ~~2025~~years. ~~was~~Audit ~~lower~~outcomes ~~than~~and the ~~nine~~timing ~~months~~of ~~ended~~audit ~~September 30,~~settlements ~~2024,~~are ~~largely~~subject ~~due~~ to ~~the~~significant ~~favorable impact of discrete tax items, including the release of valuation allowances in the current period~~uncertainty.

The Company is subject to audit in the U.S. and various foreign jurisdictions. Our open tax years for major jurisdictions generally range from 2013-2024. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. 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.

Index

8. 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)	~~2025~~		~~2024~~		~~2025~~2026		~~2024~~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	—		~~116~~		—229		99161
Weighted average number of shares used in calculating diluted net income/(loss) per share	29,012		31,367		29,914		31,333
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

~~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.~~12

9. 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:

(in thousands)	Translationadjustments		Pension andpostretirementliabilityadjustments		Derivativevaluationadjustment		Total Accumulated OtherComprehensiveIncome/(Loss)
December 31, 2024	$	(181,555)	$	(14,328)	$	(106)	$	(195,989)
Foreign currency translation and other adjustments	58,366		(2,418)		(358)		55,590
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	—		—		(273)		(273)
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income/(Loss), net of tax	—		552		—		552
Net current period other comprehensive income/(loss)	58,366		(3,044)		(631)		54,691
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:

(in thousands)	Translationadjustments		Pension andpostretirementliabilityadjustments		Derivativevaluationadjustment		Total Accumulated OtherComprehensiveIncome/(Loss)
December 31, 2023	$	(124,901)	$	(17,346)	$	9,079	$	(133,168)
Foreign currency translation and other adjustments	(12,472)		(285)		298		(12,459)
Interest (expense)/income related to swaps reclassified to the Consolidated Statements of Income/(Loss), net of tax	—		—		(8,212)		(8,212)
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income/(Loss), net of tax	—		290		—		290
Net current period other comprehensive income/(loss)	(12,472)		5		(7,914)		(20,381)
September 30, 2024	$	(137,373)	$	(17,341)	$	1,165	$	(153,549)

Index

9. Accumulated Other Comprehensive Income ("AOCI")

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


(in thousands)	Translation adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment		Total Accumulated Other Comprehensive Income/(Loss)
December 31, 2025	$	(119,008)	$	(23,911)	$	(619)	$	(143,538)
Foreign currency translation and other adjustments	(5,206)		359		409		(4,438)
Pension settlement/curtailment, net of tax	—		—		—		—
Interest (expense)/income related to swaps reclassified to the Consolidated Statements of Income/(Loss), net of tax	—		—		(83)		(83)
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income/(Loss), net of tax	—		225		—		225
Net current period other comprehensive income/(loss)	(5,206)		584		326		(4,296)
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 adjustments		Pension and postretirement liability adjustments		Derivative valuation adjustment		Total Accumulated Other Comprehensive Income/(Loss)
December 31, 2024	$	(181,555)	$	(14,328)	$	(106)	$	(195,989)
Foreign currency translation and other adjustments	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)
Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income/(Loss), net of tax	—		173		—		173
Net current period other comprehensive income/(loss)	17,136		(2,662)		(635)		13,839
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~~March 3031, ~~2025~~2026, and the Consolidated Statements of Income/(Loss) for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025:

	Three months ended September 30,				Nine months ended September 30,
(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)
Income tax effect	17		658		51		2,681
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income/(Loss)	$	(36)	$	(2,017)	$	(273)	$	(8,212)
Pre-tax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Pension settlement/curtailment	$	—	$	—	$	(1,600)	$	0
Amortization of prior service credit	$	(38)	$	(37)	$	(112)	$	(113)
Amortization of net actuarial loss	315		176		908		530
Total pre-tax amount reclassified	277		139		(804)		417
Income tax effect	(86)		(42)		178		(127)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income	$	191	$	97	$	(626)	$	290

~~10. Noncontrolling Interests~~Index


	Three months ended March 31,
(in thousands)		2026		2025
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(a)		$	(133)	$	(192)
Income tax effect		50		14
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income/(Loss)		$	(83)	$	(178)

Pre-tax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:
Pension settlement/curtailment		$	0	$	1,600
Amortization of prior service credit		$	(39)	$	(37)
Amortization of net actuarial loss		368		287
Total pre-tax amount reclassified(b)		329		1,850
Income tax effect		(104)		(499)
Effect on net income due to items reclassified from Accumulated Other Comprehensive Income		$	225	$	1,351

(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).

10. Noncontrolling Interest

Effective October 31, 2013, Safran S.A. (Safran) acquired a 10 percent equity interest in Albany Safran Composites, LLC ("ASC").

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. In July 2021, Heimbach acquired 85% of Arcari, SRL (“Arcari”). Arcari is a manufacturer of textile and plastic industrial technical products and conveyor belts.

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~~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 ~~third~~first quarter of ~~2025~~2026.

~~The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the Company’s subsidiaries:~~14

Index

ASC Noncontrolling Interest	Nine months ended September 30,
(in thousands, except percentages)	2025			2024
Net income of Albany Safran Composites (ASC)	$	4,857		$	3,754
Less: Return attributable to the Company's preferred holding	1,352			850
Net income of ASC available for common ownership	$	3,505		$	2,904
Ownership percentage of noncontrolling shareholder	10		%	10		%
Net income attributable to the noncontrolling interest	$	351		$	290
Noncontrolling interest, beginning of year	$	4,983		$	5,423
Net income attributable to noncontrolling interest	351			290
Changes in other comprehensive income attributable to the noncontrolling interest	376			(481)
ASC Noncontrolling interest, end of interim period	$	5,709		$	5,232
Arcari Noncontrolling interest, end of interim period	$	0		$	447
Total Noncontrolling interest, end of interim period	$	5,709		$	5,679

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


ASC Noncontrolling Interest	Three months ended March 31,
(in thousands, except percentages)	2026			2025
Net income of Albany Safran Composites (ASC)	$	2,110		$	940
Less: Return attributable to the Company's preferred holding	427			441
Net income of ASC available for common ownership	$	1,683		$	499
Ownership percentage of noncontrolling shareholder	10		%	10		%
Net income attributable to the noncontrolling interest	$	168		$	50

Noncontrolling interest, beginning of year	$	5,893		$	4,983
Net income attributable to noncontrolling interest	168			50
Changes in other comprehensive income attributable to the noncontrolling interest	(47)			(136)
ASC Noncontrolling interest, end of interim period	$	6,014		$	4,897












Arcari Noncontrolling interest, end of interim period	$	0		$	296


Total Noncontrolling interest, end of interim period	$	6,014		$	5,193

11. Accounts Receivable

Accounts receivable, net includes trade and other accounts receivable and bank promissory notes, net of allowance for expected credit losses. In connection with certain revenues in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. As of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, Accounts receivable consisted of the following:

(in thousands)	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Trade and other accounts receivable	$	~~243~~230,~~303~~447	$	~~231~~221,~~136~~592
Bank promissory notes	2015,~~218~~052		1917,~~637~~844
Allowance for expected credit losses	(53,~~018~~860)		(4,~~085~~352)
Accounts receivable, net	$	~~258~~241,~~503~~639	$	~~246~~235,~~688~~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.

12. Contract Assets and Liabilities

Contract assets include unbilled amounts typically resulting from revenues under contracts when the over time method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to Accounts receivable, net when the entitlement to pay becomes unconditional and the customer is invoiced. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance Sheets.

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~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, Contract assets and Contract liabilities consisted of the following:

(in thousands)	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Contract assets	$	~~140~~81,~~996~~528	$	~~167~~87,~~397~~573
Allowance for expected credit losses	(~~737~~681)		(~~840~~471)
Contract assets, net	$	~~140~~80,~~259~~847	$	~~166~~87,~~557~~102
Contract liabilities	$	938,~~802~~800	$	633,~~085~~397

1615

Index

Contract assets, net decreased $266.3 million during the ~~nine~~three months ended ~~September 30~~March 31, ~~2025~~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 ~~nine~~three months ended ~~September 30~~March 31, ~~2025~~2026 and ~~September 30~~March 31, ~~2024~~2025.

Contract liabilities increased $35.74 million for the period ended ~~September~~March 3031, ~~2025~~2026 compared to December 31, ~~2024~~2025, primarily due to ~~the~~ amounts invoiced to customers for contracts that were in a contract liability position exceeding the revenue ~~recognized~~recognition from satisfied performance obligations. Revenue recognized for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025 that was included in the Contract liability balance at the beginning of the year was $516.61 million and $34.7 2 million, respectively.

13. Inventories

~~Costs~~As ~~included~~of ~~in inventories are raw materials~~March 31, ~~labor,~~2026 ~~supplies~~ and ~~allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost~~December 31, ~~using the first-in~~2025, ~~first-out~~Inventories ~~method.~~consisted ~~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.~~following:

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


(in thousands)	March 31, 2026		December 31, 2025
Raw materials	$	67,769	$	60,311
Work in process	54,423		46,952
Finished goods	17,641		14,326
Total inventories	$	139,833	$	121,589

(in thousands)	September 30, 2025		December 31, 2024
Raw materials	$	85,364	$	76,559
Work in process	58,313		54,917
Finished goods	15,987		14,369
Total inventories	$	159,664	$	145,845

14. 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~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025:

September 30, 2025

March 31, 2026

(in thousands)

Amortization life in years

Gross carrying amount

Accumulated amortization and other

Net carrying amount

Finite-lived assets:

AEC Trademarks and trade names

6-15

208

(~~205~~208)

3—

AEC Technology

10-15

6,~~528~~406

(34,~~962~~193)

2,~~566~~213

AEC Intellectual property

1,250

(~~485~~527)

~~765~~723

AEC Customer relationships

8-15

69,~~559~~492

(5064,~~069~~532)

194,~~490~~960

Heimbach Developed technology

98,~~281~~813

(2,~~461~~592)

6,~~820~~221

Total Finite-lived intangible assets

86,~~826~~169

(5772,~~182~~052)

2914,~~644~~117

Indefinite-lived intangible assets:

Heimbach Trade name

6,~~454~~326

—

6,~~454~~326

MC Goodwill

6968,~~871~~895

—

6968,~~871~~895

AEC Goodwill

114,~~420~~053

—(21,829)

~~114~~92,~~420~~224

Total Indefinite-lived intangible assets:

~~190~~189,~~745~~274

—(21,829)

~~190~~167,~~745~~445

1716

Index

December 31, 2024

December 31, 2025

(in thousands)

Amortization life in years

Gross carrying amount

Accumulated amortization and other

Net carrying amount

Finite-lived assets:

AEC Trademarks and trade names

6-15

208

(~~197~~208)

11—

AEC Technology

10-15

56,~~820~~530

(34,~~140~~114)

2,~~680~~416

AEC Intellectual property

1,250

(~~422~~505)

~~828~~745

AEC Customer relationships

8-15

69,~~175~~560

(4764,~~283~~331)

215,~~892~~229

Heimbach Developed technology

89,~~547~~291

(12,~~543~~709)

76,~~004~~582

Total Finite-lived assets

8586,~~000~~839

(5271,~~585~~867)

3214,~~415~~972

Indefinite-lived intangible assets:

Heimbach Trade name

56,~~712~~456

—

56,~~712~~456

MC Goodwill

6369,~~988~~911

—

6369,~~988~~911

AEC Goodwill

~~112~~114,~~273~~428

—(21,832)

~~112~~92,~~273~~596

Total Indefinite-lived intangible assets:

~~181~~190,~~973~~795

—(21,832)

~~181~~168,~~973~~963

The changes in intangible assets, net and goodwill from December 31, ~~2024~~2025 to ~~September~~March 3031, ~~2025~~2026, were as follows:

(in thousands)	December 31, ~~2024~~2025		OtherChanges		Amortization		CurrencyTranslation		~~September~~March 3031, ~~2025~~2026
Finite-lived intangible assets:
AEC Trademarks and trade names	$	11—	$	—	$	~~(8)~~—	$	—	$	3—
AEC Technology	2,~~680~~416		—		(~~462~~151)		~~348~~(52)		2,~~566~~213
AEC Intellectual property	~~828~~745		—		(6322)		—		~~765~~723
AEC Customer relationships	215,~~892~~229		—		(~~2,626~~236)		~~224~~(33)		194,~~490~~960
Heimbach Developed technology	76,~~004~~582		~~(315)~~—		(~~741~~242)		~~872~~(119)		6,~~820~~221
Total Finite-lived intangible assets	$	3214,~~415~~972	$	~~(315)~~—	$	(~~3,900~~651)	$	~~1,444~~(204)	$	2914,~~644~~117
Indefinite-lived intangible assets:
Heimbach Trade name	$	56,~~712~~456	$	—	$	—	$	~~742~~(130)	$	6,~~454~~326
MC Goodwill	6369,~~988~~911		—		—		5(1,~~883~~016)		6968,~~871~~895
AEC Goodwill	~~112~~92,~~273~~596		—		—		~~2,147~~(372)		~~114~~92,~~420~~224
Total Indefinite-lived assets:	$	~~181~~168,~~973~~963	$	—	$	—	$	8(1,~~772~~518)	$	~~190~~167,~~745~~445

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually.

Index

15. Financial Instruments

The following table represents the Company's outstanding debt:

(in thousands, except interest rates)	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Borrowings under the Amended Credit Agreement
USD borrowings	$	~~375~~373,000	$	~~225~~350,000
EUR borrowings	~~105~~103,~~631~~541		93105,~~485~~663
Foreign bank debt	—		46
Total bank debt	476,541		455,663
Total bank debt	480,631		318,531
Less: Current maturities of long-term debt	—		—
Long-term debt	$	~~480~~476,~~631~~541	$	~~318~~455,~~531~~663

Index

Amended Credit Agreement

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 Simple SOFR Spread
<1.00:1.00	0.275%	0.500%	1.500%
≥ 1.00:1.00 and < 2.00:1.00	0.300%	0.625%	1.625%
≥ 2.00:1.00 and < 3.00:1.00	0.325%	0.750%	1.750%
≥ 3.00:1.00	0.350%	1.000%	2.000%

As of ~~September~~March 3031, ~~2025~~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 ~~September~~March 3031, ~~2025~~2026, there was $~~480~~476.65 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $~~319~~323.45 million, based on our maximum leverage ratio and our Consolidated EBITDA (as defined in the Amended Credit Agreement).

AtAs ~~the end~~ of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, the USD interest rate in effect was 5.8450% and 5.7756%, respectively, including the effect of interest rate swaps; at the end of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, the EUR interest rate in effect was 3.7073% and 43.0973%, 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. We are also required to maintain a minimum interest coverage ratio (as defined in the Credit Agreement) of greater than 3.00 to 1.00. 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~~March 3031, ~~2025~~2026, our leverage ratio was 1.7083 to 1.00 and our interest coverage ratio was 97.1566 to 1.00. As of ~~September~~March 3031, ~~2025~~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.

The borrowings are guaranteed by certain of the Company’s subsidiaries, including all significant U.S. subsidiaries (subject to certain exceptions), as defined in the Amended Credit Agreement. Our ability to borrow additional amounts under the Amended Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Amended Credit Agreement).

Interest Rate Swaps

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.

Index

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.

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 16, Fair-Value Measurements. No cash collateral was received or pledged in relation to the swap agreements.

Index

16. Fair-Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•Level 1 - Quoted prices in active markets for identical assets or liabilities.

•Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data.

•Level 3 - Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. 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~~March 3031, ~~2025~~2026 or at December 31, ~~2024~~2025, other than certain pension assets as indicated in our December 31, ~~2024~~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:


	March 31, 2026				December 31, 2025
	Quoted prices in active markets		Significant other observable inputs		Quoted prices in active markets		Significant other observable inputs
(in thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Fair Value
Assets:
Cash equivalents	$	10,233	$	—	$	10,584	$	—
Foreign currency option contracts	—		—		—		—
Foreign currency forward contracts	—		—		—		—
Other Assets:
Common stock of unaffiliated foreign public company (a)	1,355		—		1,098		—
Interest rate swaps	—		—		—		768
Liabilities:
Foreign currency option contracts	—		249		—		—
Other noncurrent liabilities:
Foreign currency forward contracts	—		—		—		—
Interest rate swaps	—		(241)		—		—

Index

	September 30, 2025				December 31, 2024
	Quotedprices inactivemarkets		Significantotherobservableinputs		Quotedprices inactivemarkets		Significantotherobservableinputs
(in thousands)	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Fair Value
Assets:
Cash equivalents	$	15,440	$	—	$	11,273	$	—
Foreign currency option contracts	—		—		—		—
Foreign currency forward contracts	—		—		—		—
Other Assets:
Common stock of unaffiliated foreign public company (a)	799		—		631		—
Interest rate swaps	—				—		149
Liabilities:
Other Non-Current Liabilities
Foreign currency forward contracts	—		—		—		—
Interest rate swaps	—		(905)		—		(218)

(a)Original cost basis $0.5 million.

Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities.

The interest rate swaps are accounted for as hedges of future cash flows. 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. 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~~March 3031, ~~2025~~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 $(0.31) million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and $(120.32) million for the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025.

Index

We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results. 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. Changes in fair value of these instruments are recorded as gains or losses within Other (income)/expense, net.

When exercised, the foreign currency instruments are net-settled with the same financial institution that bought or sold them. For all positions, whether options or forward contracts, there is a risk from the possible inability of the financial institution to meet the terms of the contracts and the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments. We seek to mitigate risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies.

(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~~

~~2025~~2026

~~2024~~2025

Derivatives not designated as hedging instruments:

Foreign currency options (gains)/losses

~~(95)~~

~~(485)~~

(31,~~356~~083)

3(2,~~788~~526)

17. Commitments and Contingencies

Asbestos Litigation

Albany International Corp. 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~~682 claims as of ~~September~~March 3031, ~~2025~~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:

(in thousands, except number of claims)	OpeningNumber ofClaims	ClaimsDismissed,Settled, orResolved	New Claims	ClosingNumber ofClaims	Amounts Paid toSettle orResolve
For the period ended December 31, 2024	3,606	10	50	3,646	$	13
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. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims.

While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of ~~September~~March 3031, ~~2025~~2026, we had resolved, by means of settlement or dismissal, 38,~~074~~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.

The Company’s subsidiary, Brandon Drying Fabrics, Inc. (“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~~March 3031, ~~2025~~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. ~~Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights.~~

Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights.

In some of these asbestos cases, the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. 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.

18. Changes in Shareholders’ Equity

The following tables summarize changes in Shareholders’ Equity for the three ~~and nine~~ month period ended ~~September~~March 3031, ~~2025~~2026:


	Class A Common Stock			Additional paid-in capital	Retained earnings		Accumulated items of other comprehensive income		Class A Treasury Stock			Noncontrolling Interest		Total Shareholders' Equity
	Shares	Amount									Shares					Amount
December 31, 2025	40,989	$	41		$	460,472	$	976,373	$	(143,538)	12,686	$	(567,139)	$	5,893	$	732,102
Net income/(loss)	—	—			—		15,281		—		—	—		168		15,449
Stock issued under incentive compensation plans	52	—			—		—		—		—	—		—		—
Taxes paid in lieu of share issuance	—	—			(1,303)		—		—		—	—		—		(1,303)
Stock-based compensation	—	—			1,460		—		—		—	—		—		1,460




Dividends declared on Class A Common Stock, $0.28 per share	—	—			—		(7,939)		—		—	—		—		(7,939)




Cumulative translation adjustments	—	—			—		—		(5,206)		—	—		(47)		(5,253)
Pension and postretirement liability adjustments	—	—			—		—		584		—	—		—		584

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


	Class A Common Stock			Additional paid-in capital	Retained earnings		Accumulated items of other comprehensive income		Class A Treasury Stock			Noncontrolling Interest		Total Shareholders' Equity
(in thousands)	Shares	Amount									Shares					Amount
December 31, 2024	40,917	$	41		$	452,933	$	1,065,763	$	(195,989)	9,845	$	(379,210)	$	5,409	$	948,947
Net income/(loss)	—	—			—		17,355		—		—	—		(6)		17,349
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)
Dividends paid to noncontrolling interests	—	—			—		—		—		—	—		(88)		(88)


Cumulative translation adjustments	—	—			—		—		17,136		—	—		(122)		17,014
Pension and postretirement liability adjustments	—	—			—		—		(2,662)		—	—		—		(2,662)

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

19. Held for Sale

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

20. Subsequent Events

We evaluated subsequent events through the issuance date of these financial statements in Form 10-Q. No material subsequent events were identified that require disclosure.

	Class ACommon Stock			Additional paid-in capital	Retained earnings		Accumulated items of other comprehensive income		Class ATreasury Stock			Noncontrolling Interest		Total Shareholders' Equity
	Shares	Amount									Shares					Amount
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

	Class ACommon Stock			Additional paid-in capital	Retained earnings		Accumulated items of other comprehensive income		Class ATreasury Stock			Noncontrolling Interest		Total Shareholders' Equity
	Shares	Amount									Shares					Amount
December 31, 2024	40,917	$	41		$	452,933	$	1,065,763	$	(195,989)	9,845	$	(379,210)	$	5,409	$	948,947
Net income/(loss)	—	—			—		(71,222)		—		—	—		265		(70,957)
Stock issued under incentive compensation plans	61	—			(1,067)		—		—		—	—		—		(1,067)
Taxes paid in lieu of share issuance	—	—			(1,454)		—		—		—	—		—		(1,454)
Stock-based compensation	—	—			9,122		—		—		—	—		—		9,122
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, $0.81 per share	—	—			—		(24,025)		—		—	—		—		(24,025)
Dividends paid to noncontrolling interests	—	—			—		—		—		—	—		(88)		(88)
Cumulative translation adjustments	—	—			—		—		58,366		—	—		35		58,401
Pension and postretirement liability adjustments	—	—			—		—		(3,044)		—	—		—		(3,044)
Derivative valuation adjustment and other	—	—			—		(81)		(631)		—	—		88		(624)
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:

	Class ACommon Stock			Additional paid-in capital	Retained earnings		Accumulated items of other comprehensive income		Class ATreasury Stock			Noncontrolling Interest		Total Shareholders' Equity
(in thousands)	Shares	Amount									Shares					Amount
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

	Class ACommon Stock			Additional paid-in capital	Retained earnings		Accumulated items of other comprehensive income		Class ATreasury Stock			Noncontrolling Interest		Total Shareholders' Equity
(in thousands)	Shares	Amount									Shares					Amount
December 31, 2023	40,856	$	41		$	448,218	$	1,010,942	$	(133,168)	9,662	$	(364,665)	$	5,952	$	967,320
Net income/(loss)	—	—			—		69,944		—		—	—		366		70,310
Compensation and benefits paid or payable in shares	51	—			3,535		—		—		—	—		—		3,535
Shares issued to Directors'	10	—			903		0		—		—	—		—		903
Class A Common Stock, $0.78 per share	—	—			—		(24,372)		—		—	—		—		(24,372)
Inital equity related to Noncontolling interest in Arcari	—	—			—		0		—		—	—		(166)		(166)
Cumulative translation adjustments	—	—			—		—		(12,472)		—	—		(473)		(12,945)
Pension and postretirement liability adjustments	—	—			—		0		5		—	—		—		5
Derivative valuation adjustment	—	—			—		—		(7,914)		—	—		—		(7,914)
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.

19. 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.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of the Company. MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and the accompanying Notes.

Forward-looking Statements

This quarterly report and the documents incorporated or deemed to be incorporated by reference in this quarterly report contain statements concerning our future results and performance and other matters that are “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” "forecast," ”look for,” “will,” “should,” “guidance,” “guide” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties, (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or prior Quarterly Reports on Form 10-Q) actual results may differ materially from those expressed or implied by such forward-looking statements.

There are a number of risks, uncertainties, and other important factors that could cause actual results to differ materially from the forward-looking statements, including, but not limited to:

•Conditions in the industries in which our Machine Clothing and Albany Engineered Composites segments compete, along with the general risks associated with macroeconomic conditions, including higher interest rates, inflationary pressures, or the effects of another pandemic, for an extended period of time;

•Some of the Company’s competitors in the Machine Clothing segment have the capability to make and sell paper machines and papermaking equipment as well as other engineered fabrics;

•Machine Clothing and Albany Engineered Composites segments are subject to significant risks related to the potential manufacture and sale of defective or non-conforming products;

•Deterioration of global economic conditions could have an adverse impact on the Company's segments and overall business and results of operations;

•In the Albany Engineered Composites segment, new and unique risks introduced by the U.S. Government's Department of Defense ("DoD") Cybersecurity Maturity Model Certification ("CMMC") program;

•Across the entire Company, increasing labor, raw material, energy, or logistics and costs due to supply chain constraints and inflationary pressures. These challenges have only increased as a result of the ongoing Russia-Ukraine war and the conflict in the Middle East;

•We may be unable to maintain effective systems of internal controls while consolidating dispersed corporate functions to our corporate headquarters in New Hampshire;

•Our ability to attract and retain business and employees may depend on our reputation in the marketplace;

•Across both segments, potential port strikes could cause additional disruptions to our supply chain;

•Harm caused by changes in our relationships or contracts with suppliers and customers;

•In the Machine Clothing segment, greater than anticipated declines in the demand for publication grades of paper, or lower than anticipated growth in other paper grades;

•In the Albany Engineered Composites segment, longer-than-expected timeframe for the aerospace industry to utilize existing inventories, and unanticipated reductions in demand, delays, technical difficulties, ~~and~~or cancellations in aerospace programs that are expected to generate revenue and drive long-term growth;

•Inability of our Machine Clothing or Albany Engineered ~~Composite~~Composites segments to create additional production capacity in a timely manner or the occurrence of other manufacturing or supply difficulties (including as a result of geopolitical crises, natural disaster, public health crises and epidemics/pandemics, regulatory or otherwise);

•Changes in geopolitical conditions impacting countries where the Company does or intends to do business~~, including the effects of the implementation of trade tariffs on imported goods~~;

•Failure to achieve or maintain anticipated profitable growth;

•The Company's insurance coverage may be inadequate to cover significant risk exposures;

•Failure to achieve our strategic initiatives and other goals, including, but not limited to, our sustainability goals;

•In the Albany Engineered Composites segment, the estimates and expectations based on aircraft production rates provided by Airbus, Boeing and others;

•In the Albany Engineered Composites segment, risks and uncertainties associated with the successful implementation and ramp up of significant new programs, including the ability to manufacture the products to the detailed specifications required and recover start-up costs and other investments in the programs;

•In the Albany Engineered Composites segment, risks associated with changes in estimates and assumptions that could result in a decline in program gross margins or turn a profitable program into a loss program;

•Assets classified as held for sale may be sold for proceeds lower than currently estimated, or not sold within expected terms or timing;

•Adverse impacts from inflation, an economic slowdown or recession and by disruption in capital and credit markets that might impede our access to credit, increase our borrowing costs and impair the financial soundness of our customers and suppliers;

•Proposed tariffs that may significantly and adversely impact our results of operations;

•Expectations regarding our ability to attract, motivate, and retain the workforce necessary to execute our business strategy and other goals;

•Adverse impacts from fluctuations in foreign currency exchange rates;

•Harm caused by customer purchase reductions, payment defaults or contract non-renewal;

•In the Albany Engineered Composites segment, future funding and compliance risks associated with our contracts with government entities, OEM customers or prime contractors on contracts with ~~government~~governmental ~~entities~~agencies;

•Costly and disruptive legal disputes and settlements ~~and the Company's ability to provide adequate insurance coverage~~;

•Potential adverse outcomes from current or future patent infringement claims could materially affect our business operations and financial condition;

•Costs associated with defending or settling intellectual property disputes could be significant;

•Increasing operational and compliance costs associated with increasing environmental, social and governance regulatory requirements, as well as the risk of noncompliance;

•Future levels of indebtedness and capital expenditures;

•Impairment of goodwill and other intangible assets;

•Adverse impacts from changes in tax legislation or challenges to our tax positions;

•Cybersecurity incidents or significant computer system compromises or data breaches ~~to our information technology systems, processes, sites and cloud-based providers~~;

•Disruptions or challenges arising from the implementation or upgrading of new information technology systems;

•Rapid advancements in artificial intelligence may introduce unforeseen regulatory, ethical, and operational challenges;

•Integration of AI technologies may involve data privacy, security, and compliance risks;

•Evolving legal frameworks around AI and IP protection could impact our competitive position and innovation strategies;

•Significant changes in critical estimates and assumptions related to pension and other post-retirement benefit costs and liabilities;

•Significant problems with information systems or networks;

•Failure to ~~adequately~~successfully integrate ~~acquired~~the Heimbach Group companies into our business systems and processes within the expected timeframe or, failure to or delayed realization of anticipated benefits of the acquisition could adversely impact the Company’s business, financial condition and results of operations; and

•Failure to adequately protect our proprietary technology or intellectual property, which would allow competitors or others to take advantage of our research and development efforts;

•Impacts on our stock price and trading volume if securities or industry analysis do not publish research or publish inaccurate or unfavorable research about our business, or by future sales of shares by our existing stockholders and the impact of any changes in cash dividend payments;

•The impact of shareholder activism on our operations, strategy, and overall performance; and

•Other risks and uncertainties detailed in this report and other periodic reports.

•In the Albany Engineered Composites segment, our exploration and pursuit of strategic alternatives for our structures assembly business may not be successful.

Further information concerning important factors that could cause actual events or results to be materially different from the forward-looking statements can be found in the “Business Environment Overview and Trends” sections of this quarterly report, as well as in the Item 1A-“Risk Factors” section of our most recent Annual Report on Form 10-K. Although we believe the expectations reflected in our other forward-looking statements are based on reasonable assumptions, it is not possible to foresee or identify all factors that could have a material and negative impact on our future performance. The forward-looking statements included or incorporated by reference in this report are made on the basis of our assumptions and analyses, as of the time the statements are made, in light of our experience and perception of historical conditions, expected future developments, and other factors believed to be appropriate under the circumstances.

Except as otherwise required by the federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained or incorporated by reference in this report to reflect any change in our expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.

Business Environment Overview and Trends

We conduct our business under two reportable segments: Machine Clothing (“MC”) and Albany Engineered Composites (“AEC”) each rooted in similar materials sciences know-how that forms a common approach to customer value proposition in design and manufacturability. MC competes on the basis of its deep industry knowledge, customer reputation and customer service and global advanced textile manufacturing capabilities, which has enabled it to develop a robust and market leading product offering that can be tailored to customer-specific requirements. AEC competes on the basis of its innovative technology solutions, extensive composite manufacturing capabilities and capacity that enable it to offer high quality specific part and assembly solutions that achieve its customers’ application performance requirements.

~~AEC~~Also, ~~has~~please ~~long-term~~refer ~~contracts~~to ~~in which~~ the ~~selling~~Business ~~price~~Environment isOverview ~~fixed.~~and InTrends ~~accounting~~in ~~for those contracts, we estimate~~ the ~~profit~~Management's ~~margin~~Discussion ~~expected~~and atAnalysis ~~the completion~~ of ~~the~~Financial ~~contract~~Condition and ~~recognize~~Results ~~a pro-rata share~~ of ~~that~~Operations ~~profit~~in ~~during~~our ~~the~~Annual ~~course~~Report ofon ~~the~~Form ~~contract using a cost~~10-~~to-cost~~K ~~approach.~~for ~~Changes~~the inyear ~~estimated~~ended ~~contract profitability will affect revenue and gross profit when a change occurs~~December 31, ~~which~~2025. ~~could~~The ~~have~~Annual aReport ~~favorable or unfavorable effect~~ on ~~revenue~~Form ~~and~~10-K, ~~gross~~along ~~profit in any reporting period. For contracts~~ with ~~anticipated losses, a provision for~~ the ~~entire~~Company's ~~amount~~other offilings, ~~the~~can ~~estimated~~be ~~remaining~~found ~~loss~~on ~~is charged against income in~~ the ~~period~~Securities ~~in which the loss becomes known. Contract losses are determined considering all direct~~ and ~~indirect~~Exchange ~~contract~~Commission's ~~costs~~website, ~~exclusive of any selling~~www.sec.gov, ~~general~~as orwell ~~administrative cost allocations, which are treated~~ as ~~period expenses. Expected losses~~ on ~~projects~~the ~~include~~Company's ~~losses~~website: ~~on contract options that are probable of exercise, excluding profitable options that often follow~~www.albint.com.

Also, please refer to the Business Environment Overview and Trends in the Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024. The Annual Report on Form 10-K, along with the Company's other filings, can be found on the Securities and Exchange Commission's website, www.sec.gov, as well as on the Company's website: www.albint.com.General

Global, economic, and political conditions, changes in raw material and commodity prices and supply, labor availability and costs, inflation, interest rates, potential changes in U.S. government policy positions, including changes in Department of Defense policies or priorities, geopolitical conflicts and strained international relations, U.S. and non-

U.S. tax law changes, foreign currency exchange rates, sanctions, tariffs, energy costs and supply, and the impact from natural disasters and weather conditions create uncertainties that could impact our businesses.

Machine Clothing Segment

The MC segment ~~expects~~continues ~~revenues~~ to ~~continue~~deliver toresilient ~~decline~~performance, ~~for~~with ~~publication~~several ~~grade~~areas ~~paper~~performing ~~and~~well ~~continued~~despite ~~softness~~uneven inmarket dynamics. In Asia, ~~most~~softer ~~significantly~~demand—across inPaper ~~China,~~Machine inClothing ~~the~~& ~~remainder~~Engineered ofFabrics—continues ~~2025~~to contribute to regional pressure. Packaging and ~~beyond,~~Tissue ~~however~~continue to perform well, wesupported ~~see~~by angrowth ~~offsetting~~across ~~effect~~most ~~due~~regions. Looking ahead to ~~growth~~the inremainder ~~demand~~of ~~across~~2026, ~~Europe~~we ~~for~~expect ~~packaging,~~Packaging and Tissue to aremain ~~lesser~~positive ~~degree~~contributors, ~~tissue~~with ~~grade~~sales ~~products~~in Europe and the Americas holding broadly stable, while Asia’s trajectory remains uncertain. ~~The~~Publication grades remained under structural pressure, and the MC segment's ~~backlog~~expects ~~continues~~publication grade paper demand to becontinue ~~stable~~declining through ~~the~~2026 ~~third~~and ~~quarter~~beyond, ofoffset ~~2025~~by growing demand for tissue grade products.

MCWe ~~believes~~believe itthe MC segment is well-positioned in key markets, with high-quality, low-cost production in growth markets, substantially lower fixed costs in mature markets, and continued strength in new product development, technical product support, and manufacturing technology. Some of the markets in which MC's products are sold are expected to have volume trends that are in line with global GDP. Despite pricing and demand pressures on revenue growth, the MC segment is expected to improve earnings in the future through technological innovations, manufacturing productivity efficiencies and cost controls.

27The MC segment has been a significant generator of operating cash inflows for the Company. The Company seeks to maintain the cash-generating potential of this business by vigorously using our differentiated and technically superior products to reduce our customers’ total cost of operation while improving their paper quality, and by maintaining lower costs through a continued focus on cost-reduction initiatives and strategic investment.

and manufacturing technology. Some of the markets in which MC's products are sold are expected to have volume trends that are in line with global GDP. MC continues to face pricing pressures in all markets. Despite these market pressures on revenue growth, the MC segment is expected to improve earnings in the future through cost controls and manufacturing productivity efficiencies.

Albany Engineered Composites Segment

The AEC segment's ~~continues~~strategy is to ~~ramp-up~~continue ~~production~~to ~~levels~~build on ~~commercial,~~its ~~defense,~~global ~~and~~brand ~~space~~by ~~programs.~~leveraging ~~During~~its ~~the~~industry ~~third~~leading ~~quarter~~performance ofto ~~2025,~~drive wefuture ~~recognized~~growth athrough ~~$147~~technology differentiation.3 ~~million~~This ~~change~~includes incontinued ~~estimated~~investment ~~profitability~~in ~~associated~~AEC's ~~with~~proprietary ~~the performance of the CH~~3D-~~53K~~woven ~~contracts,~~technology ~~inclusive~~to ofaccelerate asolutions ~~loss~~that ~~reserve~~can ~~adjustment~~be ofoffered ~~$98.0~~across ~~million, as~~ a ~~result~~set of ~~greater~~broader ~~than~~applications; ~~planned labor content~~ and ~~higher material inputs caused~~ by ~~inflation~~leveraging ~~estimated for~~ the ~~duration~~AEC's ofnon-3D ~~the~~technology ~~contract.~~capabilities ~~This~~and ~~adjustment~~capacity, ~~represents~~on ~~the~~high-value ~~estimated~~aerospace ~~full~~(both ~~loss~~commercial ~~anticipated~~and ~~over~~defense) ~~the remaining eight year life of the program~~applications, and weother ~~are~~emerging ~~engaging~~markets ~~with~~such ~~our~~as ~~CH-53K~~space ~~customer~~and toadvanced ~~discuss~~air ~~potential~~mobility ~~solutions~~("AAM"). InThe ~~spite~~AEC ofsegment ~~these~~provides ~~ongoing~~longer-term ~~discussions,~~growth ~~subsequent~~potential tofor the ~~end~~Company ofas ~~the~~it ~~third~~ramps ~~quarter,~~current weproduction ~~announced~~programs ~~that~~and wecaptures ~~will~~new ~~commence~~commercial ~~exploration of alternatives to exit the structures assembly portion of our business, including the CH-53K contract work. In addition to these events, we also updated our labor, material input~~ and ~~scrap~~defense ~~assumptions along with estimates of certain other long-term programs that resulted in additional negative cumulative changes in estimated profitability~~opportunities.

OnThe ~~October~~AEC ~~28,~~segment ~~2025,~~(including weAlbany ~~announced~~Safran ~~that~~Composites, weLLC ~~are~~(“ASC”), ~~exploring~~in ~~strategic~~which ~~alternatives for~~ our ~~structures assembly~~customer ~~business.~~SAFRAN ~~These~~Group ~~alternatives~~owns ~~include~~ a ~~potential~~10% ~~sale~~noncontrolling ofinterest) ~~all~~supplies or a ~~part~~number of ~~the~~customers business at our Salt Lake City facility and discussions with our customer about contract modifications. Our exploration of strategic alternatives, including a sale or contract modification, may not result in the ~~identification~~aerospace orindustry. ~~consummation~~AEC’s oflargest ~~any~~aerospace ~~transaction~~customer oris ~~contract modification. In addition,~~ the ~~process~~SAFRAN ofGroup ~~exploring~~("SAFRAN") ~~strategic~~ and ~~other~~sales ~~alternatives may be disruptive~~ to ~~our~~SAFRAN, ~~operations~~through ~~and~~ASC, we(consisting ~~may~~primarily ~~incur~~of ~~substantial~~fan ~~expenses~~blades ~~associated with identifying~~ and ~~evaluating~~cases ~~potential~~for ~~strategic~~CFM orInternational’s ~~other~~LEAP ~~alternatives.~~engine) ~~Any~~accounted ~~potential~~for ~~transaction~~approximately ~~and~~15% ~~the related valuation would be dependent upon a number~~ of ~~factors~~the ~~that~~Company’s ~~may~~consolidated beNet ~~beyond~~revenues ~~our~~in ~~control,~~2025. ~~including,~~The ~~among~~AEC ~~other factors~~segment, ~~potential~~through ~~counterparties~~ASC, ~~market~~also ~~conditions~~supplies ~~and~~3D-woven ~~industry~~composite ~~trends.~~fan ~~Any~~cases ~~potential~~for ~~contract~~the ~~modifications~~GE9X ~~would~~engine. beOutside ~~dependent~~of ~~on negotiations with our customer and other factors that we cannot control. Further~~ASC, ~~speculation regarding any developments related to~~ the ~~strategic~~AEC ~~alternatives~~segment ~~process~~also ~~could~~supplies ~~cause~~3D-woven ~~our~~composite ~~stock~~vanes ~~price~~for tothe ~~fluctuate~~F-35 ~~significantly~~Liftfan. ~~Failure to identify and pursue these strategic alternatives could have a material adverse effect on our business, financial condition, and results of operations.~~

The AEC ~~believes~~segment's itcurrent ~~has~~portfolio ~~the~~of ~~ability~~non-3D toprograms ~~mitigate~~includes ~~raw~~components ~~material~~for ~~and~~the ~~supplier~~CH-53K ~~costs~~helicopter, bycomponents ~~entering~~for ~~into~~the ~~long~~F-~~term~~35, ~~supply~~missile ~~agreements.~~bodies ~~However,~~for inLockheed ~~some~~Martin’s ~~cases~~JASSM air-to-surface missiles, ~~higher~~fuselage ~~raw~~components ~~material~~for ~~and~~the ~~supplier~~Boeing ~~costs~~787 ~~adversely~~aircraft, ~~impacted~~vacuum ~~certain~~waste ~~firm-fixed~~tanks ~~price~~for ~~programs~~Boeing ~~resulting~~commercial inaircraft ~~lower~~and ~~program~~components ~~gross~~and ~~margins.~~structures ~~The~~for ~~AEC~~other ~~segment~~commercial, ~~may~~defense, ~~continue~~and tospace ~~experience~~and ~~similar~~AAM ~~issues~~programs. inIn ~~further~~2025, ~~quarters~~approximately as35% itof ~~ramps~~AEC upnet ~~production~~revenues ~~levels~~were onrelated ~~these~~to ~~key~~U.S. government contracts or programs.

28The AEC segment is dependent on global supply chains and has experienced disruptions in recent years. In addition, higher inflation levels increased material costs, higher labor rates and other supplier costs that have impacted the AEC segment’s results of operations. The AEC segment attempts to mitigate raw material and supplier costs by entering into long-term supply agreements. However, in some cases, higher raw material and supplier costs adversely impacted certain firm-fixed price programs resulting in lower program gross margins. In addition, as the AEC segment ramps-up larger complex programs, such as those associated with the CH-53 program, it continues to face challenges in staffing and training its workforce to support production rates, which has impacted operational productivity, particularly at its Salt Lake City facility, and contributed to increased labor and scrap costs.

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, we determined that the assets and liabilities of this group meet the held-for-sale criteria, and they have been classified as such within

our 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.

Consolidated Results of Operations

~~Overview~~Net ofRevenues ~~Consolidated~~and ~~Results:~~Gross Profit

The following table summarizes our ~~consolidated~~Consolidated Net revenues and Gross profit:

	Three Months Ended September 30,									Nine Months Ended September 30,
				Three Months Ended March 31,
(in thousands, except percentages)	~~2025~~			~~2024~~			~~% Change~~2026			2025			~~2024~~			~~% Change~~
Net revenues	$	~~261,434~~		$	~~298,386~~		~~(12.4)~~$	311,333	%	$	~~861~~288,~~607~~774		$	~~943,710~~		~~(8.7)~~	%
Gross profit/(loss)	(49,938)			90,384			(155.3)		%	144,055			311,453			(53.7)	%
Gross profit							99,794			96,486
Gross profit/(loss) margin	(19.1)		%	30.3		%				16.7		%	33.0		%
Gross profit margin							32.1		%	33.4		%
Operating expenses:
Selling, general and administrative expenses	51,905			52,097			(0.4)		%	164,219			162,447			1.1	%
Technical and research expenses	11,467			10,844			5.7		%	35,915			35,369			1.5	%
Restructuring expenses, net	3,197			2,272			40.7		%	9,895			6,584			50.3	%
Total operating expenses	66,569			65,213			2.1		%	210,029			204,400			2.8	%
Total operating expenses as a percentage of net revenues	25.5		%	21.9		%	361 bp			24.4		%	21.7		%	272 bp
Operating income/(loss)	(116,507)			25,171			(562.9)		%	(65,974)			107,053			(161.6)	%
Interest expense, net	5,897			2,411			144.6		%	14,702			8,680			69.4	%
Other (income)/expense, net	(347)			3,257			(110.7)		%	4,170			5,932			(29.7)	%
Income/(loss) before income taxes	(122,057)			19,503			(725.8)		%	(84,846)			92,441			(191.8)	%
Income tax expense/(benefit)	(24,419)			1,282			(2004.8)		%	(13,889)			22,131			(162.8)	%
Reported income tax rate	20.0		%	6.6		%	1,341		bp	16.4		%	23.9		%	(753)	bp
Net income/(loss)	$	(97,638)		$	18,221		(635.9)		%	$	(70,957)		$	70,310		(200.9)	%

Net ~~Revenues~~revenues for the three months ended March 31, 2026 increased 7.8% as compared to the three months ended March 31, 2025 primarily due to higher volume in the AEC segment partially offset by softness in the US region and temporary production interruptions in the MC business. Additionally, changes in currency translation rates increased comparative segment net revenues by $9.3 million as compared to the prior year.

~~Three~~The ~~Month~~increase ~~Comparison~~in gross profit for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was driven by the increased sales volume in AEC. Despite the favorable change to gross profit, increased production costs resulting from changes in the product mix within the MC business are the primary driver for the slight gross profit margin decrease to 32.1% from 33.4% for the three months ended March 31, 2026 and March 31, 2025, respectively.

~~Net~~Operating revenues for the three months ended September 30, 2025 decreased 12.4% compared to the three months ended September 30, 2024, MC's net revenues declined as a result of reduced demand in Asia, most significantly in China, while sales in all other regions remained stable. Net revenues declines in AEC were driven by revenue adjustments to the CH-53K program based on our long-term contract estimates, partially offset by higher activity levels on the LEAP program.Expenses

~~Nine~~The ~~Month~~following ~~Comparison~~table summarizes Consolidated Operating expenses by classification:

Net revenues for the nine months ended September 30, 2025 decreased 8.7% as compared to the nine months ended September 30, 2024, MC's net revenues declined as a result of reduced demand in Asia, most significantly in China, an unplanned equipment downtime in one of our production facilities. Further, full-year sales declines occurred in AEC, as a result of $54.3 million of adjustments to the CH-53K program based on our long-term contract estimates. Changes in currency translation rates decreased comparative segment net revenues by $4.0 million as compared to the prior year. AEC revenue declines are partially offset by higher activity levels on the LEAP program.


	Three Months Ended March 31,
(in thousands, except percentages)		2026			2025
Selling, general and administrative expenses		$	58,299		$	53,812
Technical and research expenses		12,957			11,896
Restructuring expenses, net		3,165			2,515
Total operating expenses		$	74,421		$	68,223
Total operating expenses as a % of net revenues		23.9		%	23.6		%

~~Gross~~Consolidated ~~Profit~~Selling, general and administrative ("SG&A") expenses increased $4.5 million or 8.3% as compared to the three months ended March 31, 2025. The overall changes are primarily the result of higher personnel costs as well as costs incurred related to the strategic review of the Amelia Earhart Drive facility.

~~Three~~Consolidated ~~Month~~Technical ~~Comparison~~and research expenses increased by $1.1 million as compared to the three months ended March 31, 2025, primarily due to new business ventures initiatives in 2026.

~~The~~Restructuring ~~decrease~~expenses, innet, ~~gross~~of ~~profit~~$3.2 ~~for~~million in the three months ended ~~September~~March 3031, ~~2025~~2026, asincreased by $0.7 million compared to $2.5 million in the three months ended ~~September~~March 3031, ~~2024,~~2025. ~~was~~The ~~driven~~change byin ~~increased~~restructuring ~~cost~~actions ~~assumptions~~for ~~that adjusted~~ the ~~expected~~three ~~profitability~~month ofperiod ~~the~~are ~~AEC~~a ~~segment's~~result ~~CH-53K~~of ~~long-term~~workforce ~~contracts~~reductions and ~~resulted~~global inproduction ~~the~~consolidation ~~recording of an expected loss provision of $147~~activities.~~3 million.~~

~~Nine~~Operating ~~Month Comparison~~Income

~~The~~See ~~decrease in gross profit for~~ the ~~nine~~Segment ~~months~~Results ~~ended~~of ~~September 30,~~Operations ~~2025,~~section asof ~~compared~~this toManagement ~~the~~Discussion ~~nine~~and ~~months~~Analysis ~~ended~~of ~~September 30,~~Financial ~~2024,~~Condition ~~was~~and ~~driven~~Results ~~by increased cost assumptions that adjusted the expected profitability~~ of ~~certain~~Operations ~~long-term~~for ~~contracts~~significant indrivers ~~the AEC segment resulted in the recording~~ of anOperating ~~expected~~ income/(loss) ~~provision~~for ofeach ~~$157.6~~business ~~million~~segment.

2926

~~Selling,~~Other ~~General,~~Earnings ~~and Administrative ("SG&A")~~Items

Three Month Comparison


	Three Months Ended March 31,
(in thousands, except percentages)		2026		2025
Interest expense/(income), net		$	5,467	$	3,655
Other (income)/expense, net		(3,193)		983
Income tax expense		7,650		6,276
Net income/(loss) attributable to the noncontrolling interest		168		(6)

Consolidated SG&A expenses decreased $0.2 million or 0.4% as compared to the three months ended September 30, 2024, primarily due to increased integration costs incurred in the prior year associated with the Heimbach acquisition.

Nine Month Comparison

Consolidated SG&A expenses increased $1.8 million or 1.1% as compared to the nine months ended September 30, 2024, primarily resulting from increases in global information services costs to improve security and employee productivity.

Technical and Research Expenses

Three and Nine Month Comparison

Consolidated Technical and research expenses increased by $0.6 million as compared to the three and nine months ended September 30, 2024, primarily due to new business ventures initiatives in 2025.

Restructuring Expense, net

Three Month Comparison

Restructuring expense of $3.2 million in the three months ended September 30, 2025 were $0.9 million higher than expenses of $2.3 million in the three months ended September 30, 2024. Restructuring actions for the three month period are primarily a result of workforce reorganizational costs.

Nine Month Comparison

Restructuring expense, net, of $9.9 million in the nine months ended September 30, 2025, increased by $3.3 million compared to $6.6 million in the nine months ended September 30, 2024. The change in restructuring actions for the nine month period are a result of workforce reductions, reorganizational costs, fixed asset impairments, and inventory write-off costs, offset by a pension curtailment gain.

Interest Expense, net

Interest expense, net, increased over the prior year primarily due to higher average debt balances, inas ~~part~~well ~~offset~~as by a ~~larger~~lower amount of interest income earned on cash equivalents during the current year.

Other (Income)/Expense, net

Other (income)/expense, net, included foreign currency related transactions which resulted in gains of $1(2.12) million ~~and losses of $7.8 million~~ in the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026, as compared to losses of $13.82 million ~~and $0.7 million~~ in the same ~~periods~~period last year. These changes were primarily the result of unrealized ~~losses~~gains and ~~gains~~losses on intercompany loans. In addition, changes in the fair value of derivative instruments included gains of $0.1 ~~million and $3~~.42 million in the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026, as compared to gains of $02.5 million ~~and losses of $3.8 million~~ for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025. Unrealized gains and losses on both derivative instruments and intercompany loans were driven by currency rate movements, most notably the Brazilian Real and Mexican Peso. See Note 6, Other (~~income~~Income)/~~expense~~Expense, net, ~~also~~in ~~included~~the aNotes ~~gain~~to ofthe ~~$1.6 million~~Consolidated ~~from~~Financial ~~the~~Statements ~~divestiture~~in ofItem ~~Arcari~~1, ~~during~~which ~~the~~is ~~nine~~incorporated ~~months~~herein ~~ended~~by ~~September 30, 2025~~reference.

Effective Income Tax Rate

	Three months ended September 30,				Nine months ended September 30,
			Three months ended March 31,
	2025		2024		2025		2024
					2026		2025
Effective income tax rate	~~20.0~~	%	~~6.6~~	%	1633.41	%	2326.96	%

The Company has operations that constitute a taxable presence in 22 countries outside of the United States. The majority of these countries had income tax rates that were above the United States federal tax rate of 21 percent during the periods reported. The jurisdictional location of earnings is a significant component of our effective tax rate each year. The rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of our total earnings. From period to period, the jurisdictional mix of earnings can vary as a result of operating fluctuations in the normal course of business, as well as the extent and location of other income and expense items, such as pension settlement and restructuring charges.

30The tax rate is affected by recurring items, such as the income tax rate in the U.S. and non-U.S. jurisdictions and the mix of pre-tax income earned in those jurisdictions. The tax rate is also affected by U.S. tax costs on foreign pre-tax earnings, and by discrete items that may occur in any given year but are not consistent from year to year. The Company’s effective tax rate for the first quarter of 2026 was 33.1%, compared to 26.6% for the same period in 2025, mainly due to favorable discrete tax adjustments in the prior period. For more information, see Note 7, Income Taxes, in the Notes to the Consolidated Financial Statements in Item 1, which is incorporated herein by reference.

~~fluctuations~~The inOrganization ~~the~~for ~~normal~~Economic ~~course~~Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of ~~business~~15 percent intended to be effective on January 1, as2024. ~~well~~While asthe U.S. has not yet adopted the ~~extent~~Pillar ~~and~~Two ~~location~~rules, ofvarious other ~~income~~governments ~~and~~around ~~expense~~the ~~items~~world are enacting legislation. As currently designed, ~~such~~Pillar Two will ultimately apply to our worldwide operations. Although we do not expect these rules to materially increase our global tax costs in 2026, there remains uncertainty as ~~pension~~to ~~settlement~~the final Pillar Two model rules. We will continue to monitor U.S. and ~~restructuring~~global ~~charges~~legislative action related to Pillar Two for potential impacts.

The tax rate is affected by recurring items, such as the income tax rate in the U.S. and non-U.S. jurisdictions and the mix of pre-tax income earned in those jurisdictions. The tax rate is also affected by U.S. tax costs on foreign pre-tax earnings, and by discrete items that may occur in any given year but are not consistent from year to year. The Company’s effective tax rate for the third quarter of 2025 was 20.0%, compared to 6.6% for the same period in 2024, mainly due to favorable discrete tax adjustments in the prior period exceeding favorable discrete tax adjustments in the current period. For more information, see Note 7, Income Taxes, in the Notes to the Consolidated Financial Statements.27

The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15 percent intended to be effective on January 1, 2024. While the U.S. has not yet adopted the Pillar Two rules, various other governments around the world are enacting legislation. As currently designed, Pillar Two will ultimately apply to our worldwide operations. Although we do not expect these rules to materially increase our global tax costs in 2025, there remains uncertainty as to the final Pillar Two model rules. We will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.

On July 4, 2025, the One Big Beautiful Bill (OBBB) Act, which includes a broad range of tax reform provisions, was signed into law in the United States and we continue to assess its impact.

Segment Results of Operations

Segment Revenues and Gross Profit:

	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except percentages)	2025			2024			% Change		2025			2024			% Change
Segment net revenues
Machine Clothing	$	174,950		$	183,033		(4.4)	%	$	530,573		$	561,828		(5.6)	%
Albany Engineered Composites	$	86,484		$	115,353		(25.0)	%	$	331,034		$	381,882		(13.3)	%
Consolidated total	$	261,434		$	298,386		(12.4)	%	$	861,607		$	943,710		(8.7)	%
Segment Gross profit
Machine Clothing	$	82,070		$	88,921		(7.7)	%	$	245,731		$	262,449		(6.4)	%
Albany Engineered Composites	$	(132,008)		$	1,463		(9123.1)	%	$	(101,676)		$	49,004		(307.5)	%
Consolidated total	$	(49,938)		$	90,384		(155.3)	%	$	144,055		$	311,453		(53.7)	%
Segment Gross profit margin
% of Segment net revenues - MC	46.9		%	48.6		%			46.3		%	46.7		%
% of Segment net revenues - AEC	(152.6)		%	1.3		%			(30.7)		%	12.8		%
% of Consolidated net revenues	(19.1)		%	30.3		%			16.7		%	33.0		%

Machine Clothing Segment

~~Three~~The ~~Month~~MC ~~Comparison~~segment accounted for 53.3% of our consolidated revenues for the three months ended March 31, 2026. A summary of MC's selected financial results is as follows:

For the three months ended September 30, 2025, MC segment net revenues decreased $8.1 million or 4.4% as compared to the three months ended September 30, 2024, driven by reduced demand in Asia, particularly in China while all other regions remained stable. In addition, changes in currency translation rates had the effect of decreasing segment net revenues $2.6 million.


	Three Months Ended March 31,
(in thousands, except percentages)		2026			2025
Net revenues		$	165,952		$	174,697

Gross profit		75,062			79,902
% of net revenues		45.2		%	45.7		%
SG&A expenses		33,249			32,881
Technical and research expenses		7,185			7,243
Restructuring expenses, net		2,676			1,347
Operating income		31,952			38,431
% of net revenues		19.3		%	22.0		%

~~For~~Net ~~the three months ended September 30, 2025, MC segment gross profit decreased by $6.9 million, primarily the result of lower~~ revenues during the third quarter of 2025 as the gross profit margin decreased to 46.9% compared to 48.6% for the three months ended September 30, 2024. Gross margin was primarily impacted by lower Asia sales volume partially offset by the benefits of ongoing footprint optimization initiatives. Going forward, we will continue to execute our plan of rationalizing production across our network of facilities in order to realize productivity movements.

~~Nine~~Net ~~Month~~revenues ~~Comparison~~for the three months ended March 31, 2026 decreased 5.0% as compared to the three months ended March 31, 2025, driven by reduced sales volume in the US region, primarily due to temporary production interruptions, including scheduled maintenance at certain plants. This decline is slightly offset by a strong performance within the European market, particularly related to the Engineered Fabrics program. Further, changes in currency translation rates had the effect of increasing Net revenues by $6.1 million for the three months ended March 31, 2026, as compared to this period in 2025.

~~For~~Gross the nine months ended September 30, 2025, MC segment net revenues decreased $31.3 million or 5.6% as compared to the nine months ended September 30, 2024, driven by reduced demand in Asia, particularly in China, Profit

Gross profit for the three months ended March 31, 2026 decreased by $4.8 million as compared to the three months ended March 31, 2025, primarily driven by the volume declines noted above; with gross profit margin also decreasing slightly from 45.7% to 45.2% in the three months ended March 31, 2025 and 2026, respectively.

~~and~~Operating an unplanned equipment downtime in one of our production facilities. In addition, changes in currency translation rates decreased comparative segment net revenues by $3.1 million as compared to the prior year.Income

~~For~~Operating income for the ~~nine~~three months ended ~~September~~March 3031, ~~2025,~~2026 MCdecreased ~~segment~~$6.5 ~~gross~~million ~~profit~~or ~~decreased by $~~16.79% ~~million~~as compared to the three months ended March 31, 2025, primarily ~~the~~as a result of ~~lower~~gross ~~revenues~~profit ~~during~~declines ~~the~~and ~~nine~~restructuring ~~months~~costs. ofIncremental ~~2025~~restructuring ~~and~~expenses ~~unplanned~~were ~~equipment~~primarily ~~downtime~~a result of manufacturing footprint optimization in ~~one~~connection ofwith ~~our~~the ~~facilities~~Heimbach acquisition.

Albany Engineered Composites ~~("AEC")~~ Segment

~~Three~~The ~~Month~~AEC ~~Comparison~~segment accounted for 46.7% of our consolidated net revenues for the three months ended March 31, 2026. AEC has contracts with certain customers, including its contract for the LEAP program, where revenue is determined by a cost-plus-fee agreement. Revenue earned under these arrangements accounted for approximately 33% and 35% of segment revenue for the three months ended March 31, 2026 and 2025, respectively.

~~For~~In addition, AEC has long-term contracts in which the ~~three~~selling ~~months~~price ~~ended~~is ~~September 30,~~fixed. ~~2025~~In accounting for those contracts, ~~segment~~we ~~net~~estimate ~~revenues~~the ~~decreased~~profit ~~$28~~margin expected at the completion of the contract and recognize a pro-rata share of that profit during the course of the contract using a cost-to-cost approach.9 ~~million~~Changes in estimated contract profitability will affect revenue and gross profit when the change occurs, which could have a significant favorable or 25unfavorable effect on revenue and gross profit in any reporting period.0% asFor ~~compared~~contracts towith anticipated losses, a provision for the ~~three~~entire ~~months~~amount ~~ended~~of ~~September 30,~~the ~~2024.~~estimated ~~This~~remaining ~~decrease~~loss is ~~primarily~~charged ~~driven~~against byincome ~~$46~~in the period in which the loss becomes known.0 ~~million~~Contract losses are determined considering all direct and indirect contract costs, exclusive of ~~revenue~~any ~~adjustments~~selling, togeneral ~~the~~or ~~CH-53K~~administrative ~~program~~cost ~~based~~allocations, onwhich ~~our~~are ~~long-term~~treated ~~contract~~as ~~estimates~~period expenses. ~~These~~Expected ~~reductions~~losses ~~are~~on ~~partially~~projects ~~offset~~include bylosses ~~higher~~on ~~activity~~contract ~~levels~~options inthat ~~the~~are ~~LEAP~~probable ~~program~~of exercise, excluding profitable options that often follow.

AEC is party to contracts with certain customers, including its contract for the LEAP program, where revenue is determined by a cost-plus-fee agreement. Revenue earned under these arrangements accounted for approximately 50 percent and 33 percent of segment revenue for the three months ended September 30, 2025 and September 30, 2024, respectively. 28

~~For~~A ~~the~~summary ~~three~~of ~~months~~AEC's ~~ended~~selected ~~September 30,~~financial ~~2025,~~results ~~segment~~is ~~gross profit decreased $133.5 million~~ as compared to the three months ended September 30, 2024. This decrease in gross profit was driven primarily by approximately $147.3 million of increased life of contract cost assumptions surrounding the estimated profitability of our CH-53K long-term contracts. For the three months ended September 30, 2024, adjustments in the estimated profitability of long-term contracts decreased segment gross profit $13.3 million. Subsequent to quarter end, the Company announced that it has initiated a strategic review of its structures assembly business, including the CH-53K program and its production site. The strategic review may include a potential sale of all or part of the site.follows:

Nine Month Comparison


	Three Months Ended March 31,
(in thousands, except percentages)		2026			2025
Net revenues		$	145,381		$	114,077

Gross profit		24,732			16,584
% of net revenues		17.0		%	14.5		%
SG&A expenses		11,586			10,126
Technical and research expenses		4,548			3,674
Restructuring expenses, net		—			1,168
Operating income		8,598			1,616
% of net revenues		5.9		%	1.4		%

~~For~~Net ~~the nine months ended September 30, 2025, segment net~~ revenues decreased $50.8 million or 13.3% as compared to the nine months ended September 30, 2024. This decrease is primarily driven by $54.3 million of revenue adjustments to the CH-53K program based on our long-term contract estimates. These reductions are partially offset by higher activity levels in the LEAP program.

~~AEC~~Net isrevenues ~~party~~for tothe ~~contracts~~three ~~with~~months ~~certain~~ended ~~customers~~March 31, ~~including~~2026 ~~its~~increased ~~contract~~27.4%, ~~for~~primarily ~~the~~driven by higher activity levels on various programs including ASC, GE LEAP ~~program~~Platforms, ~~where~~and ~~revenue~~B787 isFrames, ~~determined~~as bywell aas ~~cost~~lower unfavorable long-~~plus-fee~~term ~~agreement~~contract adjustments. ~~Revenue~~Further, ~~earned~~changes ~~under~~in ~~these~~currency ~~arrangements~~translation ~~accounted~~rates ~~for~~had ~~approximately~~the 37effect ~~percent~~of ~~and~~increasing 40Net ~~percent~~revenues ofby ~~segment~~$3.1 ~~revenue~~million for the ~~first~~three ~~nine~~ months ofended ~~2025~~March 31, ~~and 2024~~2026, ~~respectively.~~as compared to this period in 2025.

~~For~~Gross the nine months ended September 30, 2025, segment gross profit decreased $150.7 million as compared to the nine months ended September 30, 2024. This decrease in gross profit was driven primarily by changes in the estimated profitability of our CH-53K and other long-term contracts, including the recognition of an estimated loss reserve on CH-53K, which decreased gross profit by $157.6 million and $13.3 million in 2025 and 2024, respectively due to increased material, labor, and overhead cost assumptions. For the nine months ended September 30, 2024, adjustments in the estimated profitability of long-term contracts decreased segment gross profit $28.3 million.Profit

32Gross profit for the three months ended March 31, 2026 increased $8.1 million as compared to the three months ended March 31, 2025, and Gross profit margin increased from 14.5% to 17.0% in the three months ended March 31, 2025 and 2026, respectively. The change was driven primarily by increases in revenue, as well as performance improvements on various programs, resulting in lower unfavorable EAC adjustments.

~~Segment~~ Operating ~~Expenses, Segment Operating~~ Income/(~~loss~~Loss):

	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except percentages)	2025			2024			% Change		2025			2024			% Change
Segment selling, general and administrative expenses
Machine Clothing	$	30,291		$	32,048		(5.5)	%	$	98,841		$	95,384		3.6	%
% of Segment net revenues	17.3		%	17.5		%	(20)	bp	18.6		%	17.0		%	165	bp
Albany Engineered Composites	$	12,218		$	11,923		2.5	%	$	34,121		$	36,249		(5.9)	%
% of Segment net revenues	14.1		%	10.3		%	379	bp	10.3		%	9.5		%	82	bp
Corporate	$	9,396		$	8,126		15.6	%	$	31,257		$	30,814		1.4	%
% of Consolidated net revenues	3.6		%	2.7		%	87	bp	3.6		%	3.3		%	36	bp
Consolidated total selling, general and administrative expenses	$	51,905		$	52,097		(0.4)	%	$	164,219		$	162,447		1.1	%
Segment technical and research expenses
Machine Clothing	$	6,716		$	7,042		(4.6)	%	$	21,332		$	22,066		(3.3)	%
% of Segment net revenues	3.8		%	3.8		%	(1)	bp	4.0		%	3.9		%	9	bp
Albany Engineered Composites	$	3,673		$	3,802		(3.4)	%	$	11,472		$	13,303		(13.8)	%
% of Segment net revenues	4.2		%	3.3		%	95	bp	3.5		%	3.5		%	(2)	bp
Corporate	$	1,078		$	0		—	%	$	3,111		$	0		—	%
% of Consolidated net revenues	0.4		%	—		%	41	bp	0.4		%	—		%	36	bp
Consolidated total technical and research expenses	$	11,467		$	10,844		5.7	%	$	35,915		$	35,369		1.5	%
Segment restructuring expenses, net
Machine Clothing	$	1,960		$	2,207		(11.2)	%	$	6,322		$	3,294		91.9	%
% of Segment net revenues	1.1		%	1.2		%	(9)	bp	1.2		%	0.6		%	61	bp
Albany Engineered Composites	$	113		$	34		232.4	%	$	1,801		$	3,144		(42.7)	%
% of Segment net revenues	0.1		%	—		%	10	bp	0.5		%	0.8		%	(28)	bp
Corporate	$	1,124		$	31		3525.8	%	$	1,772		$	146		1113.7	%
% of Consolidated net revenues	0.4		%	—		%	42	bp	0.2		%	—		%	19	bp
Consolidated total restructuring expenses, net	$	3,197		$	2,272		40.7	%	$	9,895		$	6,584		50.3	%
Segment Operating income/(loss)
Machine Clothing	$	43,103		$	47,624		(9.5)	%	$	119,236		$	141,705		(15.9)	%
Albany Engineered Composites	$	(148,012)		$	(14,296)		935.3	%	$	(149,070)		$	(3,692)		3937.6	%
Corporate expenses	$	(11,598)		$	(8,157)		42.2	%	$	(36,140)		$	(30,960)		16.7	%
Segment Operating income	$	(116,507)		$	25,171		(562.9)	%	$	(65,974)		$	107,053		(161.6)	%

Operating income for the three months ended March 31, 2026 increased $7.0 million as compared to the three months ended March 31, 2025, principally due to favorable changes to Gross profit as noted above and the conclusion of restructuring activities from 2025. This was slightly offset by an increase in SG&A expenses of $1.5 million from the prior period, driven by personnel-related costs. Additionally, Technical and research expenses increased $0.9 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, driven by increased consulting costs to assist with continued innovation within the segment.

Machine Clothing Segment

Three Month Comparison

For the three months ended September 30, 2025, segment operating income decreased as compared to the three months ended September 30, 2024, decreasing $4.5 million or 9.5%. The weaker segment gross profit performance was offset by technical and research expenses and SG&A expenses decreasing by $2.1 million, primarily a result of cost containment and the realization of Heimbach integration synergies.

Nine Month Comparison

For the nine months ended September 30, 2025, segment operating income decreased $22.5 million as compared to the first nine months of 2024. The weaker segment operating income performance was impacted by lower gross profit in the current year, as well as general inflationary pressures. This change was slightly offset by a decrease in Heimbach integration costs that occurred in the first nine months of 2024, as this did not recur in 2025.

Albany Engineered Composites ("AEC") Segment

Three Month Comparison

For the three months ended September 30, 2025, segment operating income decreased $133.7 million, principally due to contract loss reserve charges associated with the CH-53K program.

Nine Month Comparison

For the nine months ended September 30, 2025, segment operating income/(loss) decreased $145.4 million, principally due to reduced segment gross profit as noted above, offset by a decrease in compensation and personnel-related SG&A expenses and lower restructuring charges.

Working Capital, Liquidity and Capital Structure

Cash Flow Summary

	Nine months ended September 30,
	Three months ended March 31,
(in thousands)	~~2025~~2026		~~2024~~2025
Net income/(loss)	$	~~(70~~15,~~957)~~449	$	7017,~~310~~349
Depreciation and amortization	6517,~~480~~129		6721,~~003~~291
Changes in working capital (a)	(1510,~~108~~785)		7(25,~~700~~847)
Changes in other noncurrent liabilities and deferred taxes	~~(26~~2,~~171)~~431		(72,~~569)~~532
Other operating items	~~125~~(18,~~528~~581)		2(13,~~541~~206)
Net cash provided by operating activities	785,~~772~~643		~~139~~2,~~985~~119
Net cash used in investing activities	(459,~~566~~290)		(6115,~~053~~597)
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	~~8,089~~85		(32,~~357)~~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 year	~~115~~112,~~283~~350		~~173~~115,~~420~~283
Cash and cash equivalents at end of period	$	~~108~~122,~~310~~557	$	~~127~~119,~~222~~354

(a)Includes Accounts receivable, Contract assets, Inventories, Accounts payable, and Accrued liabilities.

Net cash provided by operating activities during the nine months ended September 30, 2025 was $78.8 million, compared to $140.0 million in the nine months ended September 30, 2024. The decrease was primarily driven by a reduction in the gross profit of both segments along with an inventory build in AEC early in the year in anticipation of production ramp. Non-cash adjustments to the CH-53K programs, including loss reserves of $98.0 million, are a component of other operating items within net cash provided by operating activities.29

Net cash ~~used~~provided inby ~~investing~~operating activities ~~included~~during ~~capital~~the ~~expenditures~~three ~~totaling~~months ended March 31, 2026 was $485.86 million, ~~and~~compared to $622.1 million ~~for~~in the ~~nine~~three months ended ~~September~~March 3031, 2025. ~~and~~The ~~September 30,~~increase ~~2024,~~was ~~respectively,~~primarily ~~with~~driven ~~investments~~by ~~focused~~improved onworking ~~aerospace~~capital ~~program~~management ~~support,~~primarily ~~continued~~driven ~~maintenance~~by ~~capex~~favorable ~~and~~cash ~~capital~~collection ~~designed~~activities toat ~~improve operating efficiencies across the Company~~AEC.

Net cash used in ~~financing~~investing activities ~~was~~included capital expenditures totaling $489.3 million ~~for~~and ~~the nine months ended September 30, 2025 as compared to net cash used of~~ $~~121~~15.86 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2024. During~~2026 and March 31, 2025, werespectively, ~~had~~with ~~net~~continued ~~borrowings~~maintenance ofcapital ~~$150.0~~and ~~million~~capital asdesigned ~~compared~~ to ~~net~~improve ~~repayments~~operating ofefficiencies ~~$94.6~~across ~~million in~~ the ~~prior year. Additionally, the~~ Company ~~repurchased $171~~.~~0 million of share repurchases and paid dividends of $24.7 million in the first nine months of 2025.~~

Net cash provided by financing activities was $13.8 million for the three months ended March 31, 2026 as compared to net cash used of $15.1 million for the three months ended March 31, 2025. During 2026, we had net borrowings of $23.0 million as compared to $94.0 million of borrowings in the prior year, which were offset by share repurchases of $69.2 million. Additionally, the Company has returned cash to shareholders through dividends of $7.9 million in the first three months of 2026.

Liquidity and Capital Structure

We finance our business activities principally with cash generated from operations and borrowings, largely through our revolving credit agreement as discussed below. As of ~~September~~March 3031, ~~2025~~2026, $~~480~~476.65 million of borrowings were outstanding under our $800 million unsecured committed Amended Credit Agreement.

As of ~~September~~March 3031, ~~2025~~2026, we had cash and cash equivalents of $~~108~~122.36 million and borrowing capacity under our Amended Credit Agreement of $~~319~~323.45 million, for a total liquidity of approximately $~~427~~446.70 million. We believe cash flows from operations and the availability of funds under our Amended Credit Agreement will be adequate to fund our operations and business needs over the next twelve months.

As of ~~September~~March 3031, ~~2025~~2026, $88101.72 million of our total cash and cash equivalents were held by non-U.S. subsidiaries. The accumulated undistributed earnings of the Company’s foreign operations not targeted for repatriation to the U.S. were in excess of $158.9 million, as of March 31, 2026 and are intended to remain indefinitely invested in foreign operations. Our cash planning strategy includes repatriating current earnings in excess of working capital requirements from certain countries in which our subsidiaries operate. While we have been successful in such endeavor to date, there can be no assurance that we will be able to cost effectively repatriate funds in the future. Repatriating such cash from certain jurisdictions, which is currently considered to be indefinitely reinvested in foreign operations, may also result in additional taxes.

were in excess of $140.0 million, as of September 30, 2025 and are intended to remain indefinitely invested in foreign operations. Our cash planning strategy includes repatriating current earnings in excess of working capital requirements from certain countries in which our subsidiaries operate. While we have been successful in such endeavor to date, there can be no assurance that we will be able to cost effectively repatriate funds in the future. Repatriating such cash from certain jurisdictions, which is currently considered to be indefinitely reinvested in foreign operations, may also result in additional taxes.

We have also returned cash to shareholders through dividends and share repurchases. During the nine months ended September 30, 2025, we paid $24.7 million in dividends and repurchased 2,480,769 shares for a total cost of $171.0 million, including excise taxes and fees.

Earlier this year, the Company announced that it will be consolidating its corporate headquarters in Portsmouth, NH. This change impacts approximately 100 employees, will take place over the next year and a half, and will cost an estimated $7.0 million over that period related to retention, relocation, severance, and professional costs.

Off-Balance Sheet Arrangements

The Company is party to certain off-balance sheet arrangements, including certain guarantees. The Company provides financial assurance, such as payment guarantee and letters of credit and surety bonds, primarily to support workers’ compensation programs and customs clearance, of less than $1011 million. There were no material changes in the Company’s off-balance sheet arrangements during the ~~third~~first quarter of ~~2025~~2026.

3530

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to changes in both foreign currency exchange rates and interest rates. From time to time, the Company enters into derivative agreements to manage these risks. The market risk is the potential loss arising from adverse changes in these rates as discussed below.

Foreign Currency Exchange Rate Risk

We have manufacturing plants and sales transactions worldwide and, therefore, are subject to foreign currency risk. Our operational results can be materially impacted depending on the volatility and magnitude of foreign rate changes. This risk is composed of both potential losses from the translation of foreign currency financial statements and the remeasurement of foreign currency transactions. To manage this risk, we periodically enter into forward exchange contracts either to hedge the net assets of a foreign investment or to provide an economic hedge against future cash flows. The total net assets of non-U.S. operations and long-term intercompany loans denominated in nonfunctional currencies subject to potential loss amount to approximately $~~599~~629.95 million. The potential loss in fair value resulting from a hypothetical 10% adverse change in quoted foreign currency exchange rates amounts to $5963.90 million. Furthermore, related to foreign currency transactions, we have exposure to various nonfunctional currency balances totaling $~~170~~236.41 million. This amount includes, on an absolute basis, exposures to assets and liabilities held in currencies other than our local entities’ functional currencies. On a net basis, we had $41146.05 million of foreign currency assets as of ~~September~~March 3031, ~~2025~~2026. As currency rates change, these nonfunctional currency balances are revalued, and the corresponding adjustment is recorded in the income statement. A hypothetical change of 10% in currency rates could result in an adjustment to the income statement of approximately $414.17 million. Actual results may differ from these estimates.

Interest Rate Risk

We are exposed to interest rate fluctuations with respect to our variable rate debt, depending on general economic conditions.

On ~~September~~March 3031, ~~2025~~2026, we had the following unhedged variable rate debt:

(in thousands, except interest rates)
Long-term debt:
Credit agreement borrowings outstanding (due in 2028):
USD borrowings (end of period all-in interest rate of 6.0%)	250,000
USD borrowings (end of period all-in interest rate of 5.4%)	248,000
EUR borrowings (end of period all-in interest rate of 3.5%)	52,815
EUR borrowings (end of period all-in interest rate of 3.6%)	51,771
Foreign bank debt	0
Total	$	~~302~~299,~~815~~771

Assuming borrowings were outstanding for an entire year, an increase of one percentage point in weighted average interest rates would increase interest expense by $3.0 million. To manage interest rate risk, we may periodically enter into interest rate swap agreements to effectively fix the interest rates on variable debt to a specific rate for a period of time. ~~See Note 15. Financial Instruments in the Notes to the Consolidated Financial Statements in Item 1, which is incorporated herein by reference.~~

On April 15, 2026, the Company entered into USD and EUR forward starting interest rate swap agreements with starting dates of November 15, 2026 and November 14, 2026, respectively, and both with three-year terms. These instruments are intended to replace the Company's existing interest rate swap agreements upon their maturity on those same dates and are entered into for the purpose of managing the Company's exposure to variability in cash flows attributable to changes in benchmark interest rates. Changes in fair value during the forward period, from the trade date through the respective starting dates, will be recorded in other comprehensive income (loss).

See Note 15. Financial Instruments in the Notes to the Consolidated Financial Statements in Item 1, which is incorporated herein by reference.

Item 4. Controls and Procedures

a) Disclosure controls and procedures.

The principal executive officer and principal financial officer, based on their evaluation of disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that the Company’s disclosure controls and procedures are effective for ensuring that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in filed or submitted reports is accumulated

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for ensuring that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in filed or submitted reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting.

There was no change in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The information set forth above under Note 17. Commitments and Contingencies in Item 1, Notes to Consolidated Financial Statements is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2024~~2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities during the three months ended ~~September~~March 3031, ~~2025~~2026

Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced program	Approx. dollar value of shares that may yet be purchased under the program (in thousands)
July 1 to July 31, 2025	—	—	—	143,445
January 1 to January 31, 2026	—	—	—	76,655
August 1 to August 31, 2025	809,911	61.74	809,911	93,445
February 1 to February 17, 2026	—	—	—	76,655
September 1 to September 30, 2025	—	—	—	93,445
February 18 to February 28, 2025	—	—	—	76,655
Total	809,911	61.74	809,911	$	93,445
March 1 to March 31, 2026	—	—	—	76,655
Total	—	—	—	$	76,655

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. Share purchases may be made through open market purchases, privately negotiated transactions or otherwise. The program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company's discretion. The timing and amount of any share repurchases will be based on the Company’s liquidity, general business and market conditions, debt covenant restrictions and other factors, including alternative investment opportunities and capital structure. InThe ~~total, the~~ Company has not repurchased ~~2,480,769~~ shares in ~~2025 for a total cost including excise taxes and fees of $171~~2026.0 ~~million.~~ As of ~~September~~March 3031, ~~2025~~2026, we were authorized to repurchase shares up to $9376.47 million.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

Securities Trading Plans of Directors and Executive Officers

During the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Albany International Corp. securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

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Item 6. Exhibits


Exhibit No.			Description

31.1			Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.
31.2			Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act.
32.1			Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code).
101.INS			XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			XBRL Taxonomy Extension Schema Document.
101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF			XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB			XBRL Taxonomy Extension Label Linkbase Document.
101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document.
104			Cover page formatted as Inline XBRL and contained in Exhibit 101

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ALBANY INTERNATIONAL CORP.
		(Registrant)
Date: November 6, 2025	By	/s/ Willard C. Station
Date: April 30, 2026	By	/s/ Willard C. Station
		Willard C. StationExecutive Vice President, Chief Financial Officer(Principal Financial Officer)

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