Albany International Corp.

ANNUAL REPORT 
AND 10-K
2025

2025 ANNUAL REPORT AND 10-K  | 2
A Proprietary Materials Science  
Platform Powering Critical Applications
Albany International is a global company built 
on proprietary industrial weaving technology 
and material science. The Company operates 
two complementary businesses; Machine 
Clothing and Engineered Composites, that 
apply advanced materials, process engineering, 
and deep customer collaboration to mission 
critical industrial and aerospace applications 
worldwide. With a long history of innovation and 
disciplined execution, Albany generates strong 
cash flow while investing to support long-term 
growth and stakeholder returns.
Machine Clothing 
Machine Clothing is Albany’s foundation business and a global leader in paper machine clothing 
and engineered fabrics. Serving every major paper grade and a range of adjacent industrial 
markets, the segment’s products are essential to customers’ operational efficiency, product quality, 
and sustainability goals. The business is supported by decades of technical expertise, a global 
manufacturing and service footprint, and deep, long-standing customer relationships.
Engineered Composites 
Engineered Composites is Albany’s growth platform, extending the Company’s weaving expertise 
into advanced aerospace and defense applications. The segment is a leading supplier of proprietary 
3D woven composite components for next-generation aircraft that include commercial, defense and 
emerging platforms like engine, missile, space and ceramic matrix composites. Through continued 
investment in differentiated materials and processes, Engineered Composites supports lighter, 
stronger, and more efficient solutions for customers operating in highly demanding environments and 
serves as a replacement for critical resource constrained materials like titanium. 
Machine Clothing Revenue
Engineered Composites Revenue
$474.7  
Million
$708.1 
Million
REVENUE  
MIX

2025 ANNUAL REPORT AND 10-K  | 3
Letter From CEO
We exited 2025 with a strong foundation, a world-
class team and industry leading products that solve 
complex, mission-critical problems for our customers. 
Across our businesses, we combine proprietary 
technologies, deep process expertise, and close 
customer collaboration to deliver unique solutions 
in demanding environments when performance and 
reliability matter most. This strong value proposition 
has translated into consistent cash generation, the 
ability to invest through cycles, and has supported a 
long track record of disciplined capital stewardship 
and meaningful returns to shareholders.
Amid a complex operating environment and in 
response to discrete challenges, 2025 was a year 
of important transition for Albany. We took decisive 
actions to simplify our portfolio, further sharpen our 
strategic focus, and strengthen the foundation of the 
Company for long-term value creation. In Engineered 
Composites, this included a heightened focus on 
our innovative 3D woven components, alongside 
a strategic reassessment of less differentiated 
assembly activities. In Machine Clothing, we 
continued to drive innovation while optimizing our 
operating footprint and advancing integration efforts. 
While these actions carried near-term impacts, we 
believe they position Albany to emerge as a more 
focused, integrated, and resilient enterprise aligned 
squarely around our core competencies in industrial 
weaving technology and material science.
Strong  
Value  
Proposition
Invest 
Through 
Cycles
Consistent 
Cash 
Generation
Disciplined Capital 
Stewardship 
with Returns to 
Shareholders

2025 ANNUAL REPORT AND 10-K  | 4
In 2025, we focused on execution  
to drive underlying performance,  
while also taking decisive actions  
to address portfolio complexity  
and areas of elevated risk.  
On a reported basis, Albany  
generated approximately  
$1.2 Billion 
in consolidated revenue  
that translated into strong  
free cash flow for the year of  
$81.0 Million.
Year in Review
SOLID EXECUTION AND DECISIVE PORTFOLIO ACTIONS

2025 ANNUAL REPORT AND 10-K  | 5
Engineered Composites executed on its role 
as Albany’s long-term growth platform in 2025, 
delivering underlying performance across its 
core technology portfolio while the Company 
took decisive actions to address legacy program 
risk. For the full year, segment revenues totaled 
approximately $475 million including an unfavorable 
revenue adjustment of $46 million related to  
CH-53K, driven by higher production volumes  
on key commercial aerospace programs and 
continued strength across defense applications.
Underlying demand remained healthy throughout 
the year, supported by ongoing ramp activity on the 
LEAP engine program, where Albany’s proprietary 
3D woven composite components play a critical role 
in the next-generation propulsion system. In defense 
markets, the segment maintained strong positions 
across multiple platforms, benefiting from increased 
customer focus on performance, reliability, and 
domestic supply-chain resilience.
Operationally, we are positioning the Company to 
be more lean, more focused, and more disciplined 
by directing our efforts toward areas of the 
business where we have a distinct proprietary 
and competitive advantage. This focus led to the 
decision to initiate a strategic review of our Amelia 
Earhart facility in Salt Lake City, which houses the 
CH-53K program. Structural assembly work of 
this nature does not align with Albany’s long-term 
strategy centered on industrial weaving technology 
and material science, and is characterized by lower 
value add, higher supply chain complexity, lower 
margins, and increased execution risk relative to our 
core businesses.
Following decisive portfolio actions taken, 
Engineered Composites is now fully aligned around 
proprietary technologies and end markets where 
we hold a durable competitive advantage and see 
sustained long-term growth.
CORE PROPRIETARY 
TECHNOLOGIES 
Weaving – Advanced 3D woven 
composite architectures 
Braiding – Automated fiber 
placement for complex  
structural applications 
Winding – Precision filament 
winding for high-performance 
cylindrical structures 
Resin Transfer Molding (RTM) – 
Closed-mold composite processing 
enabling repeatability and scale
TARGET HIGH-GROWTH  
END MARKETS 
Engine – Commercial and  
defense propulsion systems 
Missile – Tactical and strategic  
defense platforms 
Space – Launch and  
satellite applications 
Ceramic Matrix Composites (CMC) –  
High-temperature next-generation 
propulsion systems

2025 ANNUAL REPORT AND 10-K  | 6
Our Machine Clothing segment demonstrated the 
resilience and consistency that define its role as 
the foundation of the Company. For the year, the 
segment generated approximately $708 million in 
revenue, with adjusted EBITDA margins of 28.9%, 
despite challenging market conditions in Asia 
that pressured volume. Outside of Asia, global 
performance was stable, supported by the essential 
nature of our products, the strength of our service 
model, and continued demand in tissue and other 
critical end markets. Through disciplined cost 
management, footprint optimization and a focus 
on value-added applications, Machine Clothing 
generated strong cash flow and supported ongoing 
investment and returns to shareholders.
Throughout the year, we continued to strengthen 
the segment’s structural performance by 
rationalizing production across our global network, 
exiting lower-return and non-core activities, and 
aligning capacity more closely with end-market 
demand. These actions helped mitigate weaker 
volumes in Asia while preserving cash generation.
Machine Clothing’s competitive position remains 
anchored in proprietary product designs, deep 
application expertise, and a global service model 
that is tightly integrated with customer operations. 
Across grades and geographies, our solutions help 
customers improve efficiency, reduce energy and 
material usage, and meet increasingly demanding 
quality and sustainability objectives.
Looking ahead, while some regional market 
conditions remain challenging, we believe the 
actions taken during 2025 have further strengthened 
the segment’s cost structure and positioning. As 
regional demand normalizes, Machine Clothing is well 
positioned to capture operating leverage, expand on 
its strong cash generation, and support investment 
and shareholder returns.

2025 ANNUAL REPORT AND 10-K  | 7
Albany’s capital allocation philosophy  
remains grounded in discipline, balance,  
and long-term value creation. Our ability  
to execute this philosophy is driven by our  
strong and consistent cash generation,  
combined with the maintenance of a prudent 
balance sheet that preserves financial flexibility  
to navigate near-term uncertainty. This enables 
Albany to invest through cycles, pursue  
high-return opportunities aligned with our 
strategy, and continue delivering attractive  
shareholder returns.
Throughout 2025, we continued to prioritize 
investments that strengthen our core  
businesses while returning significant capital  
to shareholders, supported by the consistent  
cash generation of our business.
For the full year, we invested approximately $72 
million in capital expenditures and $48 million in 
research and development, focused on targeted 
capacity investments, footprint optimization, and 
advancing differentiated technologies across both 
Machine Clothing and Engineered Composites. 
These investments are designed to enhance 
operational efficiency, support program ramps, 
and reinforce Albany’s competitive advantages in 
proprietary materials and processes.
We also continued our history of returning capital 
to shareholders. During 2025, Albany returned 
approximately $218 million through a combination 
of dividends and share repurchases, including 
the repurchase of approximately 10% of shares 
outstanding. These actions reflect our confidence 
in the long-term outlook for the business and our 
disciplined approach to deploying excess capital.
Looking ahead, we remain committed to a 
balanced capital allocation framework that 
prioritizes investment to support sustainable 
growth, maintains a strong balance sheet, 
and returns excess cash to shareholders in a 
disciplined and consistent manner.
Rewarding Shareholders Through  
Disciplined Capital Allocation
1.66x
NET LEVERAGE
$218M
CASH RETURNED  
TO SHAREHOLDERS
10%
OF SHARES O/S 
REPURCHASED
$1.09
ANNUAL DIVIDEND

2025 ANNUAL REPORT AND 10-K  | 8
A Culture of Innovation
Albany’s performance and long-term success are grounded in the talent, dedication, and 
ingenuity of our global workforce. In 2025, we employed approximately 5,700 people globally, 
united by a shared commitment to operational excellence, innovation, and strong customer 
partnerships. Our People strategy is closely aligned with our business priorities and reflects 
our belief that engaged and empowered teams are essential to delivering sustainable  
long-term value.
Safety remains our highest priority. We strive to maintain a workplace with zero injuries and 
reinforce this commitment through robust safety programs, consistent measurement, and 
accountability at every level of the organization. We track key safety indicators throughout the 
year, including Total Recordable Incident Rate and proactive safety actions. We also directly 
link a portion of executive incentive compensation to company-wide safety performance. This 
approach reinforces a culture in which safety, well-being, and responsibility are shared values.
We are also relentlessly focused on innovation and efficiency, and believe it is the cornerstone 
of our long-term growth and success. 
In 2025, we introduced company-wide 
Innovation Awards to recognize excellence 
in technical innovation, operational 
improvement, and customer service. 
With 86 submissions from teams across the organization, the program highlighted the 
depth of creativity and problem solving that exists throughout Albany. We are proud of all 
participants and award recipients who exemplify our culture of innovation improvement.
Our values of teamwork, trust, accountability, safety, and passion guide how we work 
together every day. By investing in our people and fostering a culture rooted in respect, 
safety, and innovation, we continue to strengthen Albany’s foundation for long-term growth 
and success.

2025 ANNUAL REPORT AND 10-K  | 9
On behalf of the Board of Directors and the entire 
Albany team, we thank our shareholders for their 
continued trust and support, and our team of more 
than 5,700 employees for their hard work and 
dedication. We remain committed to delivering 
high-quality products and solutions for our 
customers while building long-term value through 
disciplined strategy, operational excellence, and 
responsible stewardship of capital.
Looking Ahead with Strategic  
Clarity and Discipline
As we move forward, Albany enters the next 
phase of its evolution with a clearer strategic 
focus and a stronger foundation. The actions 
taken during 2025 simplified our portfolio, 
reduced risk, and sharpened our alignment 
around the Company’s core competencies in 
industrial weaving and material science.  
We enter the new year with an optimized 
structure with greater focus, supported by a 
vast portfolio of compelling and proprietary 
technologies in a rich bidding environment  
for next generation products. 
Machine Clothing remains a durable, cash-
generating foundation, supported by essential 
products, deep customer relationships, and 
a more efficient cost structure. Engineered 
Composites enters the next stage of growth 
with a more focused portfolio, differentiated 
technologies, and increasing exposure to 
attractive end markets in commercial aerospace 
and defense. Together, these businesses provide 
a balanced model that combines stability, cash 
generation, and long-term growth potential.
Gunnar Kleveland
PRESIDENT & CHIEF EXECUTIVE OFFICER
Sincerely,

2025 ANNUAL REPORT AND 10-K  | 10
Sustainability Business  
Impact & Value Creation
Our sustainability strategy is centered on helping 
customers improve performance, efficiency, and 
environmental outcomes. In Machine Clothing, 
our technologies enhance energy, resource, 
and operating efficiency in the paper making 
process by reducing the amount of heat energy 
required for paper production. Our ability to 
improve customers’ energy efficiency and 
lower their operating costs not only reduces 
their environmental footprint, it also deepens 
customer stickiness and strengthens our 
recurring revenue profile.
In AEC, our proprietary 3D woven composite 
technology enables significant weight savings 
and strength for structurally demanding 
applications, driving fuel efficiency and cost 
savings without compromising strength, thus 
supporting industry goals for more efficient 
and sustainable aviation.

2025 ANNUAL REPORT AND 10-K  | 11
Creating Customer Value 
Through Innovation
Across our portfolio, we continue to innovate with solutions that 
enhance circularity, reduce waste, and lower product carbon 
footprints. Many of our customers have waste reduction and 
circularity goals, so providing cutting-edge solutions for product 
end of life has been an increasing focus for Albany International. 
As many customers pursue waste and Scope 3 emissions 
reduction goals, our focus on operational efficiency and product 
design directly supports their sustainability commitments.
Driving Operational 
Efficiency and  
Emissions Reduction
Operational efficiency is fundamental  
to our strategy. 
We are also working toward zero waste to landfill in the 
Americas and Europe by 2030 and continue to explore new 
recycling technologies through external partnerships and 
university collaborations. Our global EHS and sustainability 
programs ensure alignment with evolving regulations, 
support risk management, and guide our double materiality 
assessments that inform priorities and long-term value creation.
We are targeting a 50% reduction in Scope 1 and 2 emissions 
by 2030 through on site solar projects, renewable energy 
contracts, and a virtual power purchase agreement 
supporting U.S. operations. 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
______________________________________________________________
FORM 10-K 
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2025 
OR
☐
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)
Registrant’s telephone number, including area code 603-330-5800 
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)
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒
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 ☐
1

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 has filed a report on and attestation to its management’s assessment of the 
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by 
the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the 
registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to 
§240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The aggregate market value of the Common Stock held by non-affiliates of the registrant on June 30, 2025, the last business day 
of the registrant’s most recently completed second quarter, computed by reference to the price at which Common Stock was last 
sold on such a date, was $2.1 billion.
The registrant had 28.3 million shares of Class A Common Stock outstanding as of February 19, 2026.
DOCUMENTS INCORPORATED BY REFERENCE
PART
Portions of the Registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held on May 15, 2026.
III
2

TABLE OF CONTENTS
Item 1.
Business
6
Item 1A. Risk Factors
15
Item 1B. Unresolved Staff Comments
30
Item 1C. Cybersecurity
30
Item 2.
Properties
32
Item 3.
Legal Proceedings
32
Item 4.
Mine Safety Disclosures
32
PART II
Item 5.
Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of 
Equity Securities
33
Item 6.
[Reserved]
35
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
35
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
47
Item 8.
Financial Statements and Supplementary Data
49
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
107
Item 9A. Controls and Procedures
107
Item 9B. Other Information
108
PART III
Item 10.
Directors, Executive Officers and Corporate Governance
109
Item 11.
Executive Compensation
109
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
110
Item 13.
Certain Relationships, Related Transactions and Director Independence
111
Item 14.
Principal Accountant Fees and Services
111
PART IV
Item 15.
Exhibits and Financial Statement Schedules
112
PART I
3

Forward-Looking Statements
This annual report and the documents incorporated or deemed to be incorporated by reference therein contain 
statements concerning our future results and performance and other matters that are “forward-looking” within the 
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These 
forward-looking statements are intended to provide management's current expectations or plans for our future 
operating and financial performance, based on assumptions currently believed to be valid. Forward-looking 
statements may be identified by the use of terminology such as “believe,” “expect,” “anticipate,” “intend,” "seek," 
"target," "approximately," “estimate,” “plan,” “project,” “may,” “will,” "would," “should,” "could," or the negative of such 
words or other comparable terminology in connection with a discussion of future operating or financial performance. 
The discussion of financial outlook, trends, strategy, plans, assumptions, or intentions may also include forward-
looking statements. Readers should not place undue reliance on forward-looking statements, such as financial 
performance forecasts, which speak only as of the date they are first made. Because forward-looking statements are 
subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-
looking statements. There are a number of risks, uncertainties, and other important factors that could cause actual 
results to differ materially from those projected, anticipated, or implied, 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;
•
Across the entire Company, increasing labor, raw material, energy, and logistic 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;
•
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 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 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;
•
Failure to achieve or maintain anticipated profitable growth;
•
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;
•
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;
Index
4

•
With the change in the United States Presidential Administration, proposed tariffs by the new Administration 
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;
•
Adverse impacts from fluctuations in foreign currency exchange rates;
•
Harm caused by large 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 governmental 
agencies;
•
Costly and disruptive legal disputes and settlements;
•
Future levels of indebtedness and capital expenditures;
•
Adverse impacts from changes in tax legislation or challenges to our tax positions;
•
Cybersecurity incidents or significant computer system compromises or data breaches;
•
Significant problems with information systems or networks;
•
Failure to successfully integrate 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
•
Other risks and uncertainties detailed in this report and other periodic reports.
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 “Business Environment Overview and Trends” in Item 7, 
Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as in Item 1A, Risk 
Factors. Although we believe the expectations reflected in our 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 annual 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 law. We undertake no obligation to publicly 
update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, 
except as required by applicable law.
Index
5

PART I
Item 1. 
BUSINESS
General
Founded in 1895, Albany International Corp. is a global leader in advanced textiles and materials processing 
specializing in designing and manufacturing high-performance engineered fabrics and composite components and 
assemblies that serve industries such as paper, industrial manufacturing, and aerospace. The terms the Registrant, 
the Company, Albany, we, us, or our mean Albany International Corp. and its subsidiaries, unless the context indicates 
another meaning.
The following description of our business should be read in conjunction with “Management’s Discussion and Analysis 
of Financial Condition and Results of Operations” within Item 7 of this Annual Report on Form 10-K, including the 
information contained therein under the heading “Business Environment Overview and Trends.” 
Business Segments
The Company operates under two business segments: Machine Clothing and Albany Engineered Composites. 
Following is a table of Net revenues by segment for years ended December 31, 2025, 2024, and 2023.
(in thousands)
2025
2024
2023
Machine Clothing
$ 
708,066 $ 
749,907 $ 
670,768 
Albany Engineered Composites
 
474,747  
480,708  
477,141 
Total net revenues
$ 1,182,813 $ 1,230,615 $ 1,147,909 
The table that sets forth certain segment financial performance metrics and selected balance sheet data appears in 
Note 3, Reportable Segments and Geographic Data, of the Notes to the Consolidated Financial Statements, in Item 8, 
Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.
Machine Clothing
The Machine Clothing (“MC”) segment is the world’s leading producer of custom-designed fabrics and high-speed 
process belts critical in the manufacture of all grades of paper products characterized primarily as Paper Machine 
Clothing (“PMC”). MC supplies highly engineered consumable permeable, and impermeable belts used in the 
manufacture of paper, paperboard, tissue and towel, and pulp, referred to in the industry as “machine clothing” or 
“paper machine clothing.” The MC segment also supplies Engineered Fabric (“EF”) products that provide solutions for 
nonwovens, fiber cement and several other industrial applications.
PMC Products:  We design, manufacture, and market paper machine clothing for each section of the paper machine 
and for every grade of paper. Paper machine clothing products are customized, consumable products of 
technologically sophisticated design that utilize polymeric materials in a complex structure. The design and material 
composition of paper machine clothing can have a considerable effect on the quality of paper products produced and 
a meaningful effect on the energy and resource efficiency of the paper machines on which it is used. Principal paper 
machine clothing products include forming, pressing, and drying fabrics, and process belts. PMC product revenues 
accounted for more than 80% of MC’s segment Net revenues.
EF products: EF products are solution-focused, custom-designed fabrics and belts. These products are also utilized in 
process industries outside of papermaking such as nonwovens, corrugators, building products, tannery and textile 
industries and designed to improve production rates and lower the overall cost of operation. EF product revenue 
accounted for less than 20% of the MC segment’s Net revenues. 
The MC segment sells its products directly to customer end-users in countries across the globe. MC products, 
manufacturing processes, and distribution channels are substantially similar in each region of the world in which we 
operate. No individual customer accounted for as much as 10% of MC segment Net revenues in any of the periods 
presented. 
Index
6

Albany Engineered Composites
The Albany Engineered Composites (“AEC”) segment is a leader in innovative composite technology solutions and 
manufacturer of engineered components for demanding aerospace and defense applications. AEC provides highly 
engineered, advanced composite solutions to customers and platforms in the commercial and defense markets, as 
well as for space-launch vehicles and the emerging advanced air mobility market (“AAM”). The segment includes 
Albany Safran Composites, LLC (“ASC”), in which our customer, SAFRAN Group ("SAFRAN"), owns a 10% 
noncontrolling interest. AEC, through ASC, is the exclusive supplier to the LEAP program of advanced composite fan 
blades and fan cases under a long-term supply contract. The LEAP engine is used on the Airbus A320neo and 
A321neo, Boeing 737 MAX, and COMAC 919 aircrafts. AEC’s largest aerospace customer is SAFRAN and sales to 
SAFRAN (consisting primarily of fan blades and cases for CFM’s LEAP engine) accounted for approximately 15%  of 
the Company’s consolidated net revenues in 2025. Other significant AEC programs include the CH-53K helicopter, 
F-35 fighter jet, Joint Air-to-Surface Standoff Missile ("JASSM"), Boeing 787 aircraft, Beta Alia, and other commercial, 
defense, space and AAM programs. AEC also supplies vacuum waste tanks for most Boeing commercial aircraft, as 
well as the fan case for the GE9X engine used on the Boeing 777 aircraft. In 2025, approximately 35% of the AEC 
segment’s revenues were related to U.S. government contracts or programs.
During the fourth quarter of 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. 
International Operations
Our MC business segment maintains manufacturing facilities in Belgium, Brazil, Canada, China, France, Germany, 
Italy, Mexico, Spain, Sweden, the United Kingdom, and the United States. MC's global manufacturing footprint is 
designed to most efficiently meet regional customer requirements. Our AEC business segment maintains 
manufacturing facilities in the United States, France, Mexico, and Germany to meet customer demand in those 
regions.
Our global presence subjects us to certain risks, including tariffs and other restrictions on trade, foreign exchange 
exposure and our ability to repatriate funds from foreign jurisdictions. While global trade and tariff policies have not 
had a material impact to our past results of operations, there is risk that the impact of recent developments on 
companies in our supply chain could cause higher costs from affected suppliers.
We have a cash repatriation strategy that returns a certain amount of foreign current year earnings that are not 
indefinitely reinvested. Changes in the trade or regulatory compliance in any country that we have significant cash 
balances could make it more difficult to repatriate foreign earnings cost-effectively in the future.
Research, Development and Technology
We invest in research, new product development, and technical analysis with the objective of maintaining our 
technological leadership in each business segment. While much of our research activity supports existing products, 
we also engage in significant research and development activities for new technology platforms, products and product 
enhancements.
Our MC segment products are custom-designed for each user, depending on the type, size, and speed of the 
machine, and the products being produced. Products are specifically designed for each section and position on a 
machine, the grade of product being produced, and the quality of the stock used. Technical expertise, judgment, and 
experience are critical in designing the appropriate clothing for each machine, position, and application. As a result, 
many employees in sales and technical functions have engineering degrees, paper mill experience, or other 
manufacturing experience in the markets in which we operate. Our market leadership position reflects our 
commitment to technology innovation. This innovation has resulted in new products and enhancements across all of 
our product lines.
AEC develops innovative solutions and manufactures advanced composite parts for complex aerospace applications, 
using a range of core technologies, including its proprietary 3D-woven reinforced composites technology, traditional 
2D laminated composite structures, automated fiber placement for both thermoplastics and thermoset composites as 
well as rigid installation for through-thickness reinforcements, and braided structures. As critical materials are 
constraining the US industrial base, 3D-woven components are a critical replacement for titanium structures for 
commercial and defense applications with compression strengths far exceeding traditional titanium properties. In 
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addition, AEC continues to leverage its 3D-woven technology to develop differentiated processing solutions for high-
temperature applications, including hypersonic flight components. AEC is working closely with its customers to 
develop high performance alternatives to traditional thermal protection and energy absorption requirements. These 
preforms serve as the building blocks for an array of critical applications, ranging from thermal protection to energy 
absorption.
In addition to continuous significant investment in core research and development activities in pursuit of new 
proprietary products and manufacturing processes, experienced research and development employees in each 
business segment also work collaboratively with customers, OEMs and suppliers on targeted development efforts to 
introduce new products and applications in their respective markets.
Technical and research expenses totaled $48.0 million in 2025, $46.1 million in 2024, and $40.6 million in 2023. In 
2025, these costs were 4.1% of total Company Net revenues. Research and development in the AEC segment 
include both Company-sponsored and customer-funded activities. Some customer funded research and development 
may be on a cost sharing basis, in which case, amounts charged to the collaborating entity are credited against 
research and development costs. For customer-funded research and development in which we anticipate funding to 
exceed expenses, we include amounts charged to the customer in Net revenues. Cost of goods sold associated with 
customer-funded research was $6.4 million in 2025, $5.6 million in 2024, and $6.4 million in 2023.
New Business Ventures
The Company maintains a New Business Ventures team dedicated to developing innovative products and business 
opportunities that address high growth opportunities which are adjacent to our current business portfolio utilizing our 
existing developed technologies, materials science and extensive expertise across our MC and AEC segments. The 
team's strategy is to unlock further potential in focus areas, such as 3D weaving, resin transfer molding, large scale 
flat weaving, and the application of technically diverse composite materials and coatings, to create and certify 
groundbreaking products.
For instance, we are currently exploring the use of our 3D weaving expertise in combination with our resin and 
coatings capabilities to enhance the effectiveness of products that can be used in various defense and space 
applications. In coordination with raw material providers and equipment OEMs, we are developing an enhanced value 
proposition for the market that further reduces weight and improves overall performance of identified products in 
applications across various industries.
We are also innovating within our MC segment, with our material science focus on constantly improving our work 
within the polymer business. Our innovation allows us to produce new, hybrid polymer systems that not only increase 
our performance in the field, but accomplish this in a sustainable manner. Our expertise in materials extends into 
many of our core technologies, such as weaving, coatings, and extrusions, for example. This allows us to create new 
systems, improving resilience and temperature resistance.
Our goal is to leverage our existing subject matter experts across our Research, Development and Technology teams 
to drive future profitable growth of new products addressing an expanded range of applications and end-markets. 
Although we do not expect meaningful revenue growth from New Business Ventures until 2027, the investments we 
are making today will be a pillar for new innovative product opportunities.
Intellectual Property
We continue to develop proprietary intellectual property that supports the industries we serve. Our portfolio includes 
patents and trademarks registered worldwide, as well as, copyrights, trade secrets, research and development 
outputs, and engineering and manufacturing know-how. We also license intellectual property to and from third parties. 
While our portfolio provides meaningful competitive advantages, in general, we do not believe that any single patent, 
trademark, license or other intellectual property right or group of related intellectual property rights is of such 
importance that its loss or termination would have a material adverse effect on our business taken as a whole.
Raw Materials
Primary raw materials for our MC products are polymer monofilaments and fibers, which have generally been 
available from a number of suppliers. In addition, we manufacture polymer monofilaments, a basic raw material for all 
types of machine clothing, at our facility in Homer, New York, which supplies approximately 20% of our worldwide 
monofilament requirements. 
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In our AEC segment, the primary raw materials are carbon fiber and resin. While there are a number of potential 
suppliers of carbon fiber and other raw materials used by AEC, the use of certain suppliers may be mandated by 
customer agreements, and alternative suppliers would be subject to material qualification or other requirements that 
may preclude or delay their availability. In the case of mandated suppliers, AEC endeavors to enter into long-term 
supply agreements to help mitigate cost and availability risks. 
Currently, the primary raw materials used in each segment are derived from petroleum, and are therefore sensitive to 
changes in the cost of petroleum and petroleum intermediates.
Competition
Machine Clothing
Price and technology are the primary means of competitive differentiation in the industry. Our MC product portfolio is 
broad and deep, with products for every part of the machine and a wide range of machine types and paper grades. 
MC's research and development team works closely with the sales and technical organization to develop new 
products to meet changes in customer needs, and also pursues targeted joint development activities with customers 
and equipment manufacturers to create new products. Albany’s experienced sales and technical team members – 
many of whom have worked in the industries that we serve – work closely with each customer to acquire deep 
understanding of the customer’s combination of raw materials, manufacturing equipment, manufacturing processes, 
and paper, pulp, nonwovens or other product being produced – a combination that is unique to each customer, plant 
and machine. This experience and knowledge, combined with knowledge of and experience with MC’s own extensive 
product portfolio, allows the sales and technical teams to ensure that the appropriate machine clothing products are 
being supplied for each part of the machine, to customize those products as needed for best performance, and to 
continuously propose new products that offer each customer the possibility of even better performance and increased 
savings. MC's machine clothing solutions enable our customers to reduce energy and water consumption, improve 
resource efficiency, and help maintain and improve water quality. These efforts – which effectively integrate MC’s 
experience and technological expertise into each product we sell – are reflected in MC’s strong competitive position in 
the marketplace. Some of the MC’s paper machine clothing competitors also supply paper machines, papermaking 
equipment, and aftermarket parts and services, and often bundle machine clothing products with original or rebuilt 
machines and/or aftermarket services.
Albany Engineered Composites
Competitive factors in the markets in which our AEC segment competes are product performance, delivery 
performance, quality, and price. Achieving lower weight without sacrificing strength is the key to improving fuel 
efficiency, which helps reduce the carbon emissions footprint of global aviation, and is a critical performance 
requirement in the aerospace industry. Our broad array of capabilities in composites enables us to offer customers the 
opportunity to displace metal components and, in some cases, conventional composites with lower-weight, higher-
strength, and higher-temperature and corrosion resistant composites. The dominant competitive factor is the relative 
importance the customer places on these performance benefits, which include fuel savings/emissions reductions due 
to lower weight, against the possible cost advantage of more traditional metal and composite components.
Human Capital Resources
At our company, we are proud to employ approximately 5,700 people across North America, South America, Europe, 
and Asia. Our team’s talent and creativity are our biggest strengths, and we are deeply committed to fostering a 
workplace culture that values respect, engagement, and well-being. We focus on our employees’ physical, mental, 
and social health, offer career development opportunities, and provide competitive pay and benefits. In addition, our 
people strategy is closely aligned with our business goals.
Our top priority is keeping our employees safe. We aim for zero workplace injuries and track safety metrics throughout 
the year, such as Total Recordable Incident Rate (TRIR), Serious Injuries and Fatalities (SIFs), safety behaviors, and 
proactive safety actions taken. Our safety culture is reinforced by linking a portion of each Executive Officer's 
incentive compensation to achieving company-wide TRIR goals.
We work hard to create an inclusive and fair environment where a broad range of experiences, backgrounds, and 
skills are celebrated and respected. We believe that this culture boosts innovation and helps our people reach their full 
potential. Our hiring strategy seeks out people with varying backgrounds, knowledge, and experiences and results in 
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the most qualified candidates. As of December 31, 2025, our total workforce is 28.0% female. In the U.S., our 
headcount is approximately 2,400 employees, with 34.1% self-identifying as a minority.
Our talent management strategy focuses on developing our internal talent for promotion, hiring the best people from 
outside the company when no internal candidate is available, and using our internship program to identify future talent 
and build the talent pipeline. We believe in continuous learning and development and offer various training 
opportunities, including on-the-job training, virtual courses, and external learning programs. All employees regularly 
participate in safety, ethics, and compliance training.
Our Leadership Training Programs are targeted at different segments of our employee population with programs for 
new and potential managers, more experienced leaders, and executives.
Our employees around the world enjoy competitive compensation and benefits. In the U.S., this includes 401(k) 
matching, profit sharing, generous vacation time, health and dental insurance, and recognition programs, among 
others. We also emphasize work-life balance and well-being.
We support global human rights, aligning our policies with the United Nations Global Compact and the Universal 
Declaration of Human Rights. Our strategy is to focus on the advantages inherent in combining our individual 
strengths for collective success and promoting an inclusive company culture.
Our Albany Values focus on actions our employees can take to set the foundation for our future growth and success. 
The Albany Values are as follows:
•  Albany wins together (Teamwork)
–
We combine our individual strengths for collective success
–
We share knowledge to grow it
–
We embrace the advantage of our diversity
•  Count on each other (Trust & Respect)
–
We empower each other
–
We welcome input and value differences
–
We treat each other fairly and equitably
•  Own your actions (Accountability)
–
We do what we say and say what we do
–
We act with integrity
–
We pursue ever better solutions
•  Care about each other (Safety)
–
We are all responsible for a safe and sustainable environment
–
We make safe choices
–
We value well-being (mental, physical, and social)
•  Share your enthusiasm (Passion)
–
We are excited to be part of Albany
–
We put our hearts into every task
–
We lift each other up
We live these values every day at Albany.
Sustainability Business Impact and Value Creation
Our business is centered around driving success for our customers. Our products are designed for performance and 
consistency, while enabling our customers to meet their organizational goals around product performance, process 
efficiency, and product sustainability.
As described above, our paper machine clothing products enable our paper-making customers to reduce their own 
environmental footprint by reducing their energy consumption, and improving both resource and operating efficiency. 
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For example, energy is one of the top three cost components in the paper making process; our machine clothing 
solutions use innovative technologies to reduce the amount of heat energy required for paper production. 
In aerospace, weight savings that drive fuel efficiency are essential for the industry to achieve its goals for sustainable 
aviation. This fundamental design goal has driven the increased use of lightweight composite structures in an ever-
broadening sphere of aerospace applications. We have applied learnings from our 130 years of experience 
manufacturing machine clothing to pioneer 3D weaving technologies to manufacture our composite material. The 
process involves layering and interweaving fibers in a precise process to create complex, high-strength parts that 
allows for the production of lightweight and strong composite parts with high-performance properties, well-suited for 
use in aerospace, defense and industrial applications.
These structurally demanding applications have historically been served by heavier, metallic structures, and traditional 
laminated composites do not possess the required structural characteristics that 3D woven can offer. As such, our 
proprietary 3D woven technology expands the role that lightweight composites can serve as the next generation of 
aircraft is designed and built. 
Supporting customers through innovation and performance
We continue to innovate and remain focused on developing and bringing to market proprietary products aimed at 
improving the energy and resource efficiency needed for our customers’ products and their production processes.
This includes working with our partner on Product Carbon Footprints, leveraging AI to accelerate insights. To support 
our customers we can design for circularity and product recycling at the end of life, and we can also design for lower 
Product Carbon Footprints. Our customer objectives guide us in raw material and supplier selection as well as 
specialized partnerships for product recycling and reuse. Since many of our customers have waste reduction and 
circularity goals, providing cutting edge solutions for product end of life has been an increasing focus for Albany 
International. Additionally, many of our customers have Scope 3 emissions reduction goals, therefore we focus on our 
own operational efficiency and emissions reduction as an integral part of our customers’ value chain.
Driving business value for Albany International
As a global manufacturer, energy is a significant expense for Albany International, and therefore we have a goal of 
reducing our energy consumption and our associated Scope 1 and 2 emissions by 50% by 2030. Energy consumption 
reductions are critical both in supporting our customers in their organizational sustainability goals, and to advance our 
own business strategy and operational resilience. We have been progressing a number of global on-site solar 
initiatives where there is a compelling business case, which provides operational cost savings to our facilities as well 
as securing a portion of our energy supply, in addition to reducing our emissions. We have invested in a virtual power 
purchase agreement (“VPPA”) related to our U.S. operations, and where appropriate we have also been entering into 
renewable energy contracts, demonstrating our commitment to supporting our customers’ Scope 3 emissions 
reduction goals. 
We are also committed to reducing waste, both from our own operations as well as our customers’, and we have a 
goal of zero waste to landfill by 2030 for our operations in the Americas and Europe. We continue to look for 
opportunities to reduce waste generated across our operations and our products, and where waste materials have 
market value, to ensure they are repurposed appropriately. 
In addition to partnering with several third parties who recycle and reuse our scrap materials in other applications such 
as plastic furniture, textile yarn, and reinforced concrete, we have engaged in several pilot programs through 
universities and start-ups to test new technologies to increase circularity and recycling for our products at the end of 
life. We believe further developing this capability provides a significant benefit for our customers and partners. 
Innovation has been integral to our story for over 130 years and continues to be a focus for Albany International. As 
described above, we have a New Business Ventures group focused on broader applications of our proprietary 
technology, in consideration of broader macroeconomic trends and sustainability evolution.
Aligning with global frameworks for compliance and transparency
Compliance with global and local environmental regulation throughout our operations is a clear imperative both for our 
customers and for meeting our own organizational values and expectations. We have a robust global and local EHS 
and sustainability program to ensure we continue to evolve our operations in line with regulatory and customer 
requirements, managing risk and opportunity. This continuous evolution drives new insights for our business, and 
increasing reporting transparency provides the opportunity for greater comparability and collaboration across 
companies and industries. 
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A key element of our EHS and sustainability program is to identify material topics, through assessment of double 
materiality, to identify areas for improvement, discover new opportunities, and drive value creation. This process also 
facilitates compliance and helps to articulate our unique stories of innovation and our value proposition.
Executive Officers
The following table sets forth certain information with respect to the executive officers of the Company:
Gunnar Kleveland, 56, President and Chief Executive Officer, joined the Company in 2023 and serves the Company 
as President and Chief Executive Officer. Prior to joining the Company, Mr. Kleveland served as President and Chief 
Executive Officer of Textron Specialized Vehicles Inc. He has also served as the President of TRU Simulation + 
Training Inc. and Executive Vice President of Integrated Operations for Bell Helicopter Textron Inc. Prior to joining 
Textron in 2004, Mr. Kleveland was a fighter pilot in the Royal Norwegian Air Force (RNoAF).
Willard Station, 50, Executive Vice President and Chief Financial Officer, joined the Company in 2025. Prior to joining 
the Company, Will served as Senior Vice President of Primary Care Sales for McKesson Medical-Surgical, a 
McKesson Corporation subsidiary, leading a team of more than 1,200 account executives and specialists supporting 
primary care physicians, ambulatory surgery centers, as well as community hospitals and laboratories. Prior to that, 
he was the subsidiary’s Chief Financial Officer and Senior Vice President of Finance. Will’s career also includes 16 
years at The Boeing Company, where he held a number of increasingly senior finance roles, notably Vice President 
and Chief Financial Officer of Commercial Derivatives Airplanes and Director of Financial Operations for Boeing 
Commercial Airplanes (BCA).
Merle Stein, 49, President – Machine Clothing, joined the company in 2011. He brings deep experience in the pulp 
and paper industry, extensive knowledge of the Machine Clothing business, and a strong strategic understanding of 
its markets. His background includes broad leadership roles with a particular focus on operational excellence and 
customer-facing functions. Before becoming President, he served as Division Chief Operating Officer beginning in 
2024, overseeing all operational aspects of the segment and leading the Sales & Marketing, Operations, 
Procurement, R&D and Human Resources functions. Earlier roles included Vice President Sales & Marketing/
Applications for the Americas, as well as several other sales and marketing leadership positions such as Vice 
President Sales MC – North America, Regional Business Director. Prior to joining the company, Mr. Stein managed 
papermaking operations at Essity’s greenfield mill in Alabama, ultimately rising to the role of Papermill Manager. He 
earned a Bachelor’s degree in Chemical Engineering as well as an Executive MBA degree from Auburn University in 
Auburn, AL.
Chris Stone, 53, President – Albany Engineered Composites, joined the company in 2024. He brings a deep 
knowledge of the A&D industry, and considerable broad experiences to his new role. He has held a wide range of 
leadership positions at public companies, with a focus in manufacturing and supply chain management, business 
operations, production control, logistics and organizational transformation. Most recently he served as Vice President 
& Chief Supply Chain Officer at Lockheed Martin Corporation from 2021 to 2024. Prior to joining Lockheed Martin, he 
was Vice President – Supply Chain & Material Management at Aerojet Rocketdyne from 2018 to 2021, and previously 
held various management positions at Textron companies, including Textron Marine & Land System and Bell 
Helicopter from 2005 to 2018. He is a former Aviation Officer with the United States.
Suzanne Purdum, 57, Chief Human Resources Officer, joined the company in 2024. Ms. Purdum brings more than 25 
years of experience in a number of HR disciplines including development and execution of HR strategy, organization 
design and effectiveness, learning and development, talent management, employee and labor relations, change 
management, and compensation and benefits. She is an experienced HR leader and business professional who has 
held executive level positions in Business Partnering, Total Rewards, and Talent Acquisition at a global level for large 
US multinational companies. Most recently, Ms. Purdum served as the Senior Executive Director for Boeing Global 
Human Resources – Europe, Israel and Ukraine. Prior to this role, Ms. Purdum held multiple leadership roles of 
increasing responsibility at Boeing, TRU Simulation + Training, Bell Helicopter, and Textron.
Joseph M. Gaug, 62, Senior Vice President – General Counsel and Secretary, joined the Company in 2004. Mr. Gaug 
is responsible for the Company's global legal, compliance, sustainability, risk management, and intellectual property 
functions, overseeing a team of lawyers, paralegals and other professionals. He has served as General Counsel and 
Secretary since 2020. He previously served as Associate General Counsel from 2004 and as Associate General 
Counsel and Assistant Secretary from 2006 to May 2020. Prior to 2004 he was a principal at the law firm of 
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McNamee, Lochner, Titus & Williams, PC, where, among other clients, he had represented the Company in various 
matters as outside counsel.
Robert A. Hansen, 68, Senior Vice President and Chief Technology Officer, joined the Company in 1981. Mr. Hansen 
has served the Company as Senior Vice President and Chief Technology Officer since January 2010. He previously 
served as Vice President – Corporate Research and Development from April 2006 to January 2010, and Director of 
Technical and Marketing – Europe Press Fabrics from 2004 to April 2006. From 2000 to 2004, he served as Technical 
Director – Göppingen, Germany. Before 2000, he served the Company in a number of technical management and 
research and development positions in Europe and the U.S.
Sean Valashinas, 54, Vice President – Controller and Chief Accounting Officer, joined the Company in 2025. Prior to 
joining the Company, Mr. Valashinas served as Vice President of Accounting, Treasury, and Tax at Resonetics. 
Previously, he spent 17 years at Standex International Corporation, where he held roles of Chief Accounting Officer, 
Assistant Treasurer, and Vice President of Finance for the Standex Engineering Technologies Group. Mr. Valashinas 
began his career at PricewaterhouseCoopers and later held management roles at The Hershey Company.
Governance
We are incorporated under the laws of the State of Delaware and are the successor to a New York corporation 
originally incorporated in 1895, which was merged into the Company in August 1987 solely for the purpose of 
changing the domicile of the corporation. References to the Company that relate to any time prior to the August 1987 
merger should be understood to refer to the predecessor New York corporation.
We embrace uncompromising honesty and behave ethically and fairly. We are committed to following the laws, 
regulations, standards, and ethical practices everywhere we do business. Ethics and compliance play an integral part 
in our decision making and business operations. Our Corporate Governance Guidelines, Business Ethics Policy, and 
Code of Ethics for the Chief Executive Officer, Chief Financial Officer, and Controller, and the charters of the Audit, 
Compensation, and Governance Committees of the Board of Directors are available at the Corporate Governance 
section of our website (www.albint.com).
Data security is a top priority at the Company. To protect our Company and customer data, we employ industry best 
practices and adhere to the Center for Internet Security ("CIS") 20 and National Institute of Standards and Technology 
("NIST") SP 800-171 cyber security frameworks. Our Data Security strategy is overseen by the Audit Committee of 
our Board of Directors, regularly reviewed at the executive level, directed by our Chief Information Officer, and 
managed by our Enterprise Cyber Security (ECS) team. For information on our approach, see Item 1C, Cybersecurity 
in this Part I and the Sustainability section of our website at https://www.albint.com/sustainability/.
Regulatory Matters
Our AEC segment business is heavily regulated. We may contract with U.S. Government agencies and entities, or we 
are a subcontractor to an OEM who contracts directly with U.S. Government agencies and entities. We must comply 
with, and are affected by, laws and regulations relating to the formation, administration and performance of U.S. 
Government contracts and contracts with foreign governments. The U.S. Government, and other foreign 
governments, may terminate any government contract at their convenience or for default, if we fail to meet specified 
performance measurements. If such contracts were to be terminated for convenience, we would generally be entitled 
to receive payment for work completed and allowable termination and cancellation costs. If the U.S. Government, and 
other foreign governments, terminate a contract due to our default, generally, we would only be paid for work that has 
been accepted by our customer and our customer can require us to pay the differential between the original contract 
price and cost to re-procure the contract items, net of work accepted from the original contract. In addition, we can be 
held liable for damages resulting from our default and may be responsible to provide transition services to another 
supplier or the customer.
Available Information
Our principal executive offices are located at 325 Corporate Drive, Portsmouth, New Hampshire 03801. Our telephone 
number is 603-330-5800 and our website is www.albint.com.
Our current reports on Form 8-K, quarterly reports on Form 10-Q, and annual reports on Form 10-K, proxy statements 
for our annual stockholders' meetings and amendments to those reports are electronically filed with the Securities and 
Exchange Commission (the “SEC”), and all such reports and amendments to such reports have been and will be 
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made available, free of charge, through our website at www.albint.com as soon as reasonably practicable after such 
filing. In addition, copies of our Annual Report on Form 10-K will be made available, free of charge, upon written 
request.
We make our website content available for information purposes only. It should not be relied upon for investment 
purposes, nor is it incorporated by reference into this Annual Report on Form 10-K. 
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Item 1A. 
RISK FACTORS
The risks and uncertainties described below are those that we have identified as material, but are not the only risks 
and uncertainties facing the Company. This list is not all-inclusive or necessarily in order of importance. If any of the 
events contemplated by the following risks occur, our business, financial condition, or results of operations could be 
materially adversely affected. Some of these risks are described below and in the documents incorporated by 
reference, and investors should take these risks into account when evaluating any investment decision involving the 
Company. 
Risks related to our business and operations
A number of industry factors have had, and in future periods could have, an adverse impact on net 
revenues, profitability and cash flow in the Company’s MC and AEC segments.
Significant consolidation and rationalization in the paper industry in recent years have reduced global consumption of 
paper machine clothing in certain markets and for certain grades. Developments in digital media have adversely 
affected demand for newsprint and for printing and writing grades of paper, which has had, and is likely to continue to 
have, an adverse effect on demand for paper machine clothing in those markets. In addition, changes in shipping, 
fulfillment, and consumer packaging practices—including a shift from traditional corrugated boxes to alternative 
packaging formats such as bags, lighter-weight materials, and smaller boxes—have reduced demand growth for 
certain packaging paper grades, which may further negatively affect demand for paper machine clothing used in those 
applications. At the same time, technological advances in papermaking, including in paper machine clothing, while 
contributing to the papermaking efficiency of customers, have in some cases lengthened the useful life of our products 
and reduced the number of pieces required to produce the same volume of paper. These factors have had, and in the 
future are likely to have, an adverse effect on paper machine clothing net revenues.
The market for paper machine clothing in recent years has been characterized by continuous pressure to provide 
more favorable commercial terms, which has in turn placed pressure on our operating results. We expect such 
pressure to remain intense in all paper machine clothing markets, especially during periods of customer consolidation, 
plant closures, or when major contracts are being renegotiated. The increasing changes within our Asian competitors, 
particularly in China, heightens the challenge of maintaining sales in that region. This challenge is further intensified 
by a preference among Chinese customers and government entities to source products from domestic manufacturers, 
which can adversely impact our ability to compete effectively in the Chinese market.
Similar pressures in the markets in which AEC serves are highly competitive and price sensitive. AEC competes with 
domestic and international companies that have substantially greater manufacturing, purchasing, marketing, and 
financial resources than the Company. Some of AEC's facilities also compete for labor with other industrial and 
commercial businesses. If we are unable to successfully compete for new business, our net revenues, growth, and 
operating margins may decline. 
Net revenues from the LEAP contract peaked at over $210 million in 2019 but dropped sharply in subsequent years 
due to factors beyond the Company's control, such as Boeing production issues and the COVID-19 pandemic. 
Although conditions have improved, similar disruptions could occur again and impact AEC's performance
Additionally, many of AEC’s customers, as well as the companies supplied by our customers, are under pressure to 
improve returns on their substantial investments made in recent years in new technologies, new programs and new 
product introductions. This has contributed to a relentless focus on capital investments to reduce costs, resulting in 
continuous pressure for cost reductions and customer pricing improvement throughout the supply chain. Future 
consolidation in the aerospace industry could intensify these pressures.
Some of the Company’s competitors in the MC segment have the capability to make and sell paper machines 
and papermaking equipment as well as other engineered fabrics.
Although customers historically have tended to view the purchase of paper machine clothing and the purchase of 
paper machines as separate purchasing decisions, the ability to bundle fabrics with new machines and after-market 
services could provide an advantage to our competitors. This underscores the importance of our ability to maintain the 
technological competitiveness and value of our products, and a failure to do so could have a material adverse effect 
on our business, financial condition, and results of operations. Moreover, we cannot predict how the nature of 
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competition in this segment may continue to evolve as a result of future consolidation among our competitors, or 
consolidation involving our competitors and other suppliers to our customers.
AEC is subject to significant risks related to the potential manufacture and sale of defective or non-
conforming products.
AEC manufactures and sells products that are incorporated into commercial and military aircraft. If AEC were to 
supply products with manufacturing defects, or products that failed to conform to contractual requirements, we could 
be required to recall and/or replace them, and we could also be subject to substantial contractual damages or 
warranty claims from our customers, including claims to pay the differential between the original contract price and 
cost to re-procure defective contract items, net of work accepted from the original contract, or claims to provide 
transition services to another supplier or the customer. AEC could also be subject to product liability claims if such 
failures were to cause death, injury or losses to third parties, or damage claims resulting from the grounding of aircraft 
into which such defective or non-conforming products are incorporated. We are required to meet, and maintain 
continuous independent certification to, certain international industry standards including AS/EN9100 quality 
management system standards and Nadcap Special Processes certifications that are designed to assure rigorous 
quality standards are maintained throughout the aerospace industry supply chain. Additionally, although we maintain 
product liability insurance at levels we believe to be prudent and consistent with industry practice to help mitigate 
these risks, these coverages may not be sufficient to fully cover AEC’s exposure for such risks, which could have a 
material adverse effect on AEC’s results of operations and cash flows.
The long-term organic growth prospects of AEC are subject to a number of risks.
The prospect of future successful organic growth in AEC depends in large part on its ability to maintain and grow a 
healthy pipeline of potential new products and applications for its technologies, to transform a sufficient number of 
those potential opportunities into commercial supply agreements, and to then execute its obligations under such 
agreements. In addition, existing and future supply agreements, especially for commercial and defense aerospace, 
are subject to the same curtailment or cancellation risks as the programs they support.
AEC is currently working on potential new product applications in the aerospace industry. These development projects 
may or may not result in commercial supply opportunities. In the event that AEC succeeds in developing products and 
securing contracts to manufacture and supply them, it will face the same industrialization and manufacturing ramp-up 
risks that it currently faces on its existing contracts, and AEC may or may not be successful in meeting its obligations 
under these contracts. Failure to manage these development, commercialization and execution risks could have a 
material adverse impact on AEC’s prospects for revenue growth.
In addition to these development and manufacturing execution risks, future AEC growth will likely require additional 
cash to fund the investments in equipment, capital, and development efforts needed to achieve this growth. Until AEC 
is able to consistently generate cash flows sufficient to fund its existing operations and any future investments needed 
to support its growth, it will remain dependent on the MC segment’s ability to generate cash. A significant decline in 
MC net revenues, operating income or cash flows could therefore have a material adverse impact on AEC’s ability to 
invest and deliver on future growth.
Deterioration of global economic conditions could have an adverse impact on the Company’s business and 
results of operations.
The Company identifies in this section a number of risks, the effects of which may be exacerbated by an unfavorable 
economic climate. For example, a recession could lead to lower consumption in all paper grades including tissue and 
packaging, which would not only reduce consumption of paper machine clothing, but could also increase price 
competition in the machine clothing industry.
Similarly, in the Company’s AEC segment, a decline in global or regional economic conditions could result in reduced 
orders for aircraft or aircraft engines, or the cancellation of existing orders, which would in turn result in reduced 
demand for the AEC components utilized on such aircraft or engines. Customer demand for AEC’s lightweight 
composite aircraft components is driven by market demand for the lighter, more fuel-efficient aircraft engine and other 
applications into which they are incorporated, such as the CFM International LEAP engine. Fuel costs are a significant 
part of operating costs for airlines and, in many cases, may constitute a carrier’s single largest operating expense. A 
sustained drop in oil prices, and related decline in the price of jet fuel, could prompt airlines to defer orders or delivery 
dates for such newer, more fuel-efficient airframes and aircraft engines, as the urgency to reduce fuel consumption 
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may be lessened. In addition, any economic conditions that led to sustained high interest rates could affect the 
airline’s ability to finance new aircraft and engine orders.
Weak or unstable economic conditions also increase the risk that one or more of our customers might be unable to 
pay outstanding accounts receivable, whether as the result of bankruptcy or an inability to obtain working capital 
financing from banks or other lenders. Furthermore, both the MC and AEC business segments manufacture products 
that are custom-designed for a specific customer application. In the event of a customer liquidity issue, the Company 
could be required to write off amounts that are included in Contract assets or Inventories. In the case of AEC, such 
write-offs could also include investments in equipment, tooling, and non-recurring engineering costs, some of which 
could be significant depending on the program.
The U.S. Government’s Department of Defense (“DoD”) Cybersecurity Maturity Model Certification (“CMMC”) 
program introduces new and unique risks for DoD contractors. 
Under the applicable federal regulations for DoD contractors, AEC is required to comply with the agency's current 
cybersecurity regulations. In addition to these current regulations, AEC will be required to comply with the new CMMC 
program requirements on future contracts as they are flowed down from our DoD prime customers in the coming 
years. Given the current and planned future portfolio of U.S. Government-related business and based on the CMMC 
Proposed Rule released by the DoD in December 2023, AEC announced in December 2025 that it had achieved the 
U.S. Department of War (DoW) Cybersecurity Maturity Model Certification (CMMC) Level 2 certification through an 
accredited CMMC Third-Party Assessment Organization (C3PAO). AEC expects to be required to comply fully with 
CMMC Level 3 for certain programs as those requirements are further defined. This will require a DCMA Defense 
Industrial Base Cybersecurity Assessment Center (DIBCAC) assessment for any required Level 3 certification. The 
CMMC compliance requirements are complex, the costs are significant, and the DoD timelines for certifications are 
aggressive. To the extent that AEC is unable to achieve the required CMMC certifications within the timeframes 
required by the DoD, AEC may be unable to maintain or grow its business with the DoD and its prime customers.
The Company continues to experience increasing raw material, energy, logistics, and labor costs due to 
supply chain constraints and inflationary pressures.
The Company is a significant user of raw materials that are based on petroleum or petroleum derivatives. Increases in 
the prices of petroleum or petroleum derivatives, particularly in regions that are experiencing higher levels of inflation, 
could increase our costs, and we may not be able to fully offset the effects through price increases, productivity 
improvements, or cost-reduction programs.
There is a limited number of suppliers of polymer fiber and monofilaments, key raw materials used in the manufacture 
of machine clothing, and of carbon fiber and carbon resin, key raw materials used by AEC. In addition, there are a 
limited number of suppliers of some of the equipment used in each of the MC and AEC segments. The risks 
associated with limited suppliers increased as a result of the COVID-19 pandemic, which has put pressure on the 
supply chain in general, and on transportation companies that deliver raw materials to us and our products to 
customers. While we have been able to meet our raw material and equipment needs, the limited number of suppliers 
of these items creates the potential for disruptions in supply. AEC currently relies on single suppliers under contracts 
we have with SAFRAN to meet the carbon fiber and carbon resin requirements for the LEAP program. Lack of supply, 
delivery delays, or quality issues relating to supplied raw materials or for our key manufacturing equipment could harm 
our production capacity. Such issues could require the Company to attempt to qualify one or more additional 
suppliers, which could be a lengthy, expensive and uncertain process. These disruptions could make it difficult to 
supply our customers with products on time or at all, which could have a negative impact on our business, financial 
condition, and results of operations.
The Company also relies on the labor market to meet our operational requirements, advance our technology and 
differentiate our products. Low rates of unemployment in key geographic areas in which the Company operates can 
lead to high rates of turnover and loss of critical talent, which could in turn lead to higher labor costs.
We may be unable to maintain effective systems of internal controls while consolidating dispersed corporate 
functions to our corporate headquarters in New Hampshire.
The Company is relocating corporate staff working remotely or working in offices outside of New Hampshire to the 
Company's corporate headquarters in New Hampshire. If we lose critical personnel before transferring roles and 
responsibilities and fail to maintain an effective system of internal controls, we may be unable to accurately report our 
results of operations and meet our reporting obligations.
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Our ability to attract and retain business and employees may depend on our reputation in the marketplace.
We believe our brand names and reputation are important corporate assets that help distinguish our products and 
services from those of our competitors and also contribute to our efforts to recruit and retain talented employees. 
However, our reputation is susceptible to material damage by events such as disputes with customers, suppliers, or 
competitors, cybersecurity incidents or service outages, internal control deficiencies, delivery failures, regulatory 
compliance violations, government investigations or legal proceedings. We may also experience reputational damage 
from employees, advocacy groups, regulators, investors or other stakeholders that disagree with the way we conduct 
our business. Similarly, our reputation could be damaged by actions or statements by current or former customers, 
suppliers, employees, competitors, joint venture partners, adversaries in legal proceedings, legislators or government 
regulators, as well as members of the investment community or the media, including social media influencers.
Our brand and reputation are also associated with our sustainability strategy, including our public commitments 
related to climate, the environment and other matters. Increasing stakeholder environmental, social and governance 
expectations, evolving sustainability and social regulation, contractual requirements, and policy requirements may 
pose risk to our brand and reputation. Our failure to meet stakeholder expectations could harm our reputation and 
adversely affect our relationships with customers and suppliers or our talent recruitment and retention efforts, which 
may impact our ability to achieve our long-term business objectives. In addition, positions we take or do not take on 
environmental or social issues may be unpopular with some of our employees, suppliers, customers or potential 
customers, which may in the future impact our ability to attract or retain employees, suppliers or customers. We also 
may choose not to conduct business with potential customers or suppliers or discontinue or not expand business with 
existing customers or suppliers due to these positions. 
There is a risk that negative or inaccurate information about the Company, even if based on rumor or 
misunderstanding, could adversely affect our business. Damage to our reputation could be difficult, expensive and 
time-consuming to repair, could make potential or existing customers reluctant to select us for new opportunities or 
could negatively impact our relationships with existing customers and suppliers, resulting in a loss of business, and 
could adversely affect our talent recruitment and retention efforts. Damage to our reputation could also reduce 
investor confidence in the Company, materially adversely affecting our share price.
Conditions in the paper industry have required, and could further require, the Company to reorganize 
its operations, which could result in significant expense and could pose risks to the Company’s operations.
We continue to engage in significant restructuring that has included the closing of manufacturing operations. These 
restructuring activities were intended to match manufacturing capacity to shifting global demand, and also to improve 
the efficiency of manufacturing and administrative processes. Future shifting of customer demand, the need to reduce 
costs, or other factors could cause us to determine in the future that additional restructuring steps are required. 
Restructuring involves risks such as employee work stoppages, slowdowns, or strikes, which can threaten 
uninterrupted production, maintenance of high product quality, meeting of customers’ delivery deadlines, and 
maintenance of administrative processes. Increases in output in remaining manufacturing operations can likewise 
impose stress on remaining facilities as they undertake the manufacture of greater volume and, in some cases, a 
greater variety of products. Competitors can attempt to exploit these situations. Although we plan each step of the 
process carefully, and work to reassure customers who could be affected that their requirements will continue to be 
met, we could lose customers and associated revenues if we fail to execute properly on any restructuring.
Natural disasters at one or more of our facilities could make it difficult for us to meet our supply obligations 
to our customers.
AEC’s production of LEAP engine components is currently located in three facilities. A natural disaster at any of these 
locations could have a significant adverse effect on AEC’s ability to timely satisfy orders for LEAP components. 
Production of almost all of AEC’s other legacy and growth programs is located primarily in facilities in Salt Lake City, 
Utah, Boerne, Texas, or Queretaro, Mexico.
Significant consolidation of manufacturing operations in our MC segment over the past decade has reduced the 
number of facilities available to produce our products, and increased utilization significantly at remaining facilities. Not 
all product lines are produced at, or are capable of being produced at, all facilities. 
Based on our assessment of our manufacturing facilities for natural disaster risk, our three facilities in China and an 
office site in Switzerland are located in areas of high risk for flooding. Our facilities in Belgium, the U.S., and Mexico 
are at medium-high risk for flooding. Physical impacts of climate change such as increased frequency of severe and 
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extreme weather events could materially impact our facilities and production continuity. We are unable to predict these 
events with certainty; however, we perform ongoing assessments of physical risk, including climate risk, to our 
business. Weather events such as more extreme and volatile temperatures, increased storm intensity and flooding, 
and more volatile precipitation leading to changes in lake and river levels may significantly impact our business.
A significant interruption in the operation of any one or more of our plants, whether as the result of a natural disaster 
or other causes, could significantly impair our ability to timely meet our supply obligations to customers being supplied 
from an affected facility. While the occurrence of a natural disaster or other business interruption event in an area 
where we have a facility may not result in any direct damage to the facility itself, it may cause disruptions in local 
transportation and public utilities on which such locations are reliant, and may also hinder the ability of affected 
employees to report for work. Although we carry property and business interruption insurance to help mitigate the risk 
of property loss or business interruption that could result from the occurrence of such events, such coverage may not 
be adequate to compensate us for all loss or damage that we may incur.
The Company’s insurance coverage may be inadequate to cover other significant risk exposures.
The Company has been named as defendant in a large number of suits relating to the actual or alleged exposure to 
"asbestos-containing products." In addition to asbestos-related claims, the Company may be exposed to other 
liabilities related to cyber incidents and the products and services we provide. AEC is engaged in designing, 
developing, and manufacturing components for commercial jet aircraft and defense and technology systems and 
products. We expect this portion of the business to grow in future periods. Although we maintain insurance for the 
risks associated with our businesses, there can be no assurance that the amount of our insurance coverage will be 
adequate to cover all claims or liabilities. In addition, there can be no assurance that insurance coverage will continue 
to be available to us in the future at a cost that is acceptable. Any material liability not covered by insurance could 
have a material adverse effect on our business, financial condition, and results of operations. Also see "The Company 
is subject to legal proceedings and legal compliance risks".
The Company has significant manufacturing operations outside of the U.S., which could involve 
many uncertainties.
We currently have manufacturing facilities outside the U.S. which are subject to a number of risks and uncertainties, 
including: governments may impose withholding or other taxes on remittances and other payments from our non-U.S. 
operations, or the amount of any such taxes may increase; an outbreak or escalation of any insurrection or armed 
conflict may occur; governments may seek to nationalize our assets; or governments may impose or increase 
investment barriers or other restrictions affecting our business. In addition, emerging markets pose other 
uncertainties, including the protection of our intellectual property, pressure on the pricing of our products, and risks of 
political instability. The occurrence of any of these conditions could disrupt our business or prevent us from conducting 
business in particular countries or regions of the world.
The military invasion of Ukraine by Russia, and the ensuing sanctions are likely to continue to have an impact on our 
business. We have previously stopped shipping our products to Russia and abandoned a small joint venture in that 
country which supplied dryer fabrics to local papermakers, resulting in lost sales. Net assets were written-off in 2022 
and the Company does not expect future write-offs in this country. However, we expect that there could be further 
indirect impacts. For instance, the conflict has caused disruption in the availability of shipping options between Asia 
and Europe. Supply chain disruptions could make it more difficult to find favorable pricing and reliable sources for the 
raw materials we need, putting upward pressure on our costs and increasing the risk that we may be unable to 
acquire the materials or services we need to continue to make and deliver certain products. Moreover, these same 
pressures could hinder our customers’ ability to source materials needed for their own manufacturing efforts, thereby 
reducing or slowing their demand for our products. There can be no assurance that we will be able to pass through 
input cost increases to our customers or to fully offset them via operational efficiencies. If we are unsuccessful in 
managing such cost increases, they could have a material adverse effect on our business, financial position, results of 
operations, and liquidity.
Geopolitical tensions have heightened elsewhere as well, including between China and Taiwan. MC has significant 
manufacturing operations in China and vendors that support AEC import significant materials from China, and any 
escalation in this region could disrupt either segment of our business. These ongoing conflicts, along with other 
geopolitical uncertainties such as the current conflict in the Middle East, could have broader adverse impacts on 
macroeconomic factors that impact our business, cash flows, financial condition and results of operations.
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Changes in U.S. trade policy with foreign countries, or other changes in U.S. laws and policies governing foreign 
trade, as well as any responsive or retaliatory changes in regulations or policies by such countries, could have an 
adverse impact on our business, either directly or in the form of increased costs on our supply chain. While the direct 
impact to date of recent developments in global trade and tariff policy has not been significant, there is a risk that the 
impact of such developments on our supply chain will be reflected in higher costs from affected suppliers. 
In addition, our global presence subjects us to certain risks, including controls on foreign exchange and the 
repatriation of funds. While we have been able to repatriate current earnings in excess of working capital 
requirements from certain countries in which we operate without substantial governmental restrictions, there can be 
no assurance that we will be able to cost effectively repatriate foreign earnings in the future.
The implementation of trade tariffs could result in significant impacts on our business operations, financial 
condition, and overall market environment.
In 2024, the Company imported over $100 million into the U.S. from other countries, of which approximately 45% of 
the imports were from Mexico and 29% of the imports were from Canada. Tariffs on imported goods may lead to 
higher costs for raw materials, components, or finished products that we procure from affected countries. These 
increased costs may not be fully absorbed or passed on to customers, thereby impacting our profit margins. Tariffs 
may lead to disruptions in our supply chain if suppliers face increased costs or decide to relocate production. Delays 
or shortages could also affect our ability to meet customer demand on time. Trade partners affected by these tariffs 
may impose retaliatory tariffs on goods exported from the United States. This could reduce demand for our products in 
international markets and limit our growth opportunities. Tariff-related policies could further create price volatility and 
uncertainty in global markets. This may lead to fluctuations in customer demand and difficulty in forecasting revenues. 
Higher costs stemming from tariffs could lead customers to seek alternative products or services from competitors in 
regions not affected by such trade policies. Navigating the complexities of new trade regulations and compliance 
requirements may increase administrative burdens and operational costs. We continue to monitor developments 
regarding trade tariffs and assess their potential impact on our business. While we are exploring strategies to mitigate 
these risks, the full extent of tariffs' impact on our operations remains uncertain and may vary depending on the scope 
and duration of the policies.
Our growth strategy includes evaluating selected acquisitions, which entails certain risks to our business, 
and presents financial, managerial and operational challenges that may adversely affect our operating results 
and financial condition.
Our growth strategy includes acquisitions. Acquisitions involve various inherent risks, such as our ability to assess 
accurately the fair value, strengths, weaknesses, internal controls, contingent and other liabilities and potential 
profitability of the acquired business. We cannot assure that all potential risks or liabilities are adequately discovered, 
disclosed, or understood in each instance. We may fail to achieve anticipated synergies and lose key employees of 
the acquired business. In addition, internal controls over financial reporting of acquired companies may not be 
compliant with required standards. Issues may exist that could rise to the level of significant deficiencies or, in some 
cases, material weaknesses, particularly with respect to foreign companies or non-public U.S. companies. Customer 
dissatisfaction or performance problems with an acquired business, technology, service or product could also have a 
material adverse effect on our reputation and business. 
We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures 
or divesting businesses.
We have a history of making acquisitions, entering new markets, and pursuing joint ventures and we expect to 
opportunistically seek to make acquisitions, invest in strategic growth initiatives including possible entry into new 
markets, or enter into joint ventures in the future. We are subject to numerous risks as a result of our growth strategy, 
including, but not limited to, the following:
•
We may invest time and capital pursuing acquisitions, joint ventures, or new products that do not materialize;
•
We may incur costs and expenses associated with any unidentified or potential liabilities of the acquired 
companies;
•
We may not achieve anticipated revenue and cost benefits from the acquisitions, joint ventures, or new 
product development;
•
We may encounter unforeseen difficulties in integrating acquired operations, joint ventures, or new 
businesses into our existing operations; 
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•
Even if integration is successful, the financial and operational results may differ materially from our 
assumptions and forecasts due to unforeseen expenses, delays, conditions and liabilities; and
•
Our past or future acquisitions, joint ventures, or new businesses might not ultimately improve our competitive 
position and business.
We also periodically evaluate, and have engaged in, the disposition of assets and businesses. Divestitures could 
involve difficulties in the separation of operations, services, products and personnel, the diversion of management’s 
attention, the disruption of our business and the potential loss of key employees. After reaching an agreement with a 
buyer for the disposition of a business, the transaction may be subject to the satisfaction of pre-closing conditions, 
including obtaining necessary regulatory and government approvals, which, if not satisfied or obtained, may prevent 
us from completing the transaction. Divestitures may also involve continued financial involvement in or liability with 
respect to the divested assets and businesses, such as indemnities or other financial obligations, in which the 
performance of the divested assets or businesses could impact our results of operations. Any divestiture we 
undertake could adversely affect our results of operations.
We have previously announced the initiation of a strategic review of our structures assembly business which could 
include a potential sale of all or part of a production site in Salt Lake City, Utah. In connection with this review, we will 
incur costs and expenses and may not succeed in completing any strategic initiatives identified. A divesture of the 
business may not materialize or may not be completed without disruption. We may face additional risks related to 
such activities. For example, risks related to our ability to find appropriate buyers, obtain applicable contractual, 
regulatory, and/or governmental approvals, execute a transaction on favorable terms, separate divested business 
operations with minimal impact to our remaining operations, and effectively manage any transitional service 
arrangements. Further, any divestiture of the business may require us to recognize impairment charges. Any of these 
factors could materially and adversely affect our financial condition and operating results.
We may fail to realize all of the anticipated benefits of the acquisition of Heimbach or those benefits may take 
longer to realize than expected.
We continue to devote significant management attention to integrating the business practices and operations of 
Heimbach. We may experience disruptions to our business and, if integrated ineffectively, it could restrict the 
realization of the full expected benefits of the acquisition. The failure to meet the challenges involved in the integration 
process and to realize the anticipated benefits of the acquisition of Heimbach could cause an interruption or loss of 
momentum in our operations.
Difficulties in the integration of the acquired business may include rationalizing the operations, processes and systems 
of the acquired business, retaining and motivating key management and employees, and integrating existing business 
relationships with suppliers and customers. Even if integration is successful, the financial and operational results may 
differ materially from our assumptions and forecasts due to unforeseen expenses, delays, conditions and liabilities. In 
addition, we may incur unanticipated costs or expenses following an acquisition, including postclosing asset 
impairment charges, expenses associated with eliminating duplicate facilities, and other liabilities.
Furthermore, the acquisition of Heimbach may result in material unanticipated problems, expenses, charges, 
liabilities, competitive responses, loss of customers and other business relationships, and diversion of management’s 
attention. Additional integration challenges may include difficulty in achieving anticipated cost savings, synergies, 
business opportunities and growth prospects from the acquisition; difficulties in the integration of operations and 
systems, including pricing and marketing strategies; and difficulties in conforming standards, controls, procedures, 
financial reporting and accounting and other policies, business cultures and compensation structures.
Many of these factors will be outside of our control and any one of them could result in increased costs, including 
restructuring charges, decreases in revenues and diversion of management’s time and energy, which could adversely 
affect our business, financial condition and results of operations.
Risks related to our contracts
AEC is subject to significant financial risk related to potential quality escapes that could cause 
customer recalls, or production shortfalls that could cause delays in customer deliveries.
AEC manufactures critical aerospace parts and must meet increasingly demanding quality, delivery, and cost targets 
across a broad spectrum of programs and facilities. AEC’s ability to realize its full financial objectives will depend on 
how effectively it meets these challenges. Failure to accomplish these customer quality, delivery, and cost targets on 
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any key program could result in material losses to the Company and have a material adverse impact on the amount 
and timing of anticipated AEC revenues, segment operating income, and cash flows, which could in turn have a 
material adverse impact on our consolidated financial results.
Long-term supply contracts in our AEC segment pose certain risks.
AEC has a number of long-term contracts with fixed pricing, and is likely to enter into similar contracts in the future. 
While long-term contracts provide an opportunity to realize steady and reliable revenues for extended periods, they 
pose a number of risks, such as program cancellations, reductions or delays in orders by customers, the termination 
of such contracts or orders, changes in the customers’ requirements that may not entitle AEC to additional 
compensation or payment, or the occurrence of similar events over which AEC has no or limited control. 
Accounting for long-term contracts and related assets requires estimates and judgments related to our progress 
toward completion and the long-term performance on the contract. Significant judgments include potential risks 
associated with the ability and cost to achieve program schedule, including customer-directed delays or reductions in 
scheduled deliveries, and technical and other specific contract requirements including customer activity levels and 
variable consideration based upon that activity. Due to the size and long-term nature of many of AEC contracts, the 
estimation of total revenues and cost at completion is complex and subject to many variables. Management must 
make assumptions and estimates regarding contract revenue and cost (which may include estimates of variable 
consideration, including award fees and penalties), including, but not limited to, labor productivity and availability,  
complexity and scope of the work to be performed, availability and cost of materials, length of time to complete the 
performance obligation, availability and timing of funding from our customers, as well as overhead cost rates. In 2025, 
the Company recorded negative cumulative adjustments to the estimated profitability of long-term contracts in the 
amount of $165.8 million, primarily related to our CH-53K, Boeing waste tank, F-35, and Joint Strike Fighter programs. 
Because of the significance of management’s judgments and estimation processes, it is likely that materially different 
estimates could be recorded in the future if we used different assumptions or if the underlying circumstances were to 
change. Changes in underlying assumptions, circumstances or estimates may adversely affect our future results of 
operations and financial condition.
Sales of components for a number of programs that are currently considered to be important to the future revenue-
growth of AEC are pursuant to short-term purchase orders for a finite period or number of parts, or supply agreements 
with terms of one to four years. Such programs include airframe components for the F-35; forward fuselage frames for 
the Boeing 787; AFT assembly including skins and longerons, sponson assemblies, tail rotor pylon and the horizontal 
stabilizer for the CH-53K helicopter, and other long-term programs. As a result, while AEC reasonably expects to 
continue as a supplier on these programs for so long as it meets its obligations, there can be no assurance that this 
will be the case, or that, in programs where it is currently a sole supplier, this sole supplier status will continue. Even if 
AEC’s status as a supplier is extended or renewed, there can be no assurance that such extension or renewal will be 
on the same or similar commercial or other terms. Any failure by AEC to maintain its current supplier status under 
these programs, or any material change in their commercial or other terms, could have a material adverse effect on 
AEC’s future revenues and segment operating income.
AEC derives a significant portion of its revenue from contracts related to U.S. Government Department of 
Defense, which are subject to unique risks.
The funding of DoD programs is subject to congressional appropriations. Many of the DoD programs in which we 
participate may last several years, but they are normally funded annually. Changes in military strategy and priorities 
may affect future opportunities and/or existing programs. Long-term DoD contracts and related orders are subject to 
cancellation, delay or restructure if appropriations for subsequent performance periods are not made. The termination 
or reduction of funding for existing or new DoD programs could result in a material adverse effect on our earnings, 
cash flow and financial position.
Additionally, our business funded by the U.S. Government is subject to extensive federal and DoD agency acquisition 
regulations. As a result, specific business systems and processes, as well as our proposed contract costs, are subject 
to audits by U.S. Government agencies. U.S. Government representatives may audit our compliance with these 
required federal regulations, and such audits could result in adjustments to allowable contract costs. Any costs found 
to be improperly allocated to a specific contract will not be reimbursed, and such costs already reimbursed must be 
refunded. Certain business systems or processes found to be non-compliant to federal and agency regulations could 
result in a suspension of work until such compliance issues are corrected. If any audit uncovers improper or illegal 
activities, we may be subject to civil and criminal penalties and administrative sanctions, including termination of 
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contracts, forfeiture of profits, suspension of payments, fines and suspension or prohibition from doing business with 
the U.S. Government. Realization of any of these risks could result in a material adverse effect on our earnings, cash 
flow and financial position.
See also “The U.S. Government’s Department of Defense ("DoD") Cybersecurity Maturity Model Certification 
(“CMMC”) program introduces new and unique risks for DoD contractors.”
The loss of one or more major customers could have a material adverse effect on Net revenues and 
profitability.
In the AEC segment, our customer Safran accounted for approximately 37% of AEC's Net revenues in 2025, 
substantially all of which was under an exclusive long-term supply agreement relating to parts for the LEAP engine. 
Although we are an exclusive supplier of such parts, and although this is a cost-plus-fee arrangement, our customer is 
not obligated to purchase any minimum quantity of parts, and cancellation or significant reduction in demand for the 
LEAP program would have a material adverse impact on AEC’s Net revenues and profitability. 
LEAP engines are currently used on the Boeing 737 MAX, Airbus A320neo, Airbus A321neo and COMAC 919 aircraft. 
The LEAP long-term supply agreement contains certain events of default that, if triggered, could result in termination 
of the agreement by the customer, which would also have a material adverse impact on segment Net revenues and 
profitability.
A substantial portion of AEC’s non-LEAP revenue in the near term, and revenue growth opportunity in the longer term, 
is dependent upon a small number of customers and programs. Unlike the 3D-woven composite components supplied 
by ASC, parts supplied for such non-LEAP programs are capable of being made by a number of other suppliers. Such 
programs include airframe components for the F-35, forward fuselage frames for the Boeing 787, and sponsons, tail-
rotor pylons, horizontal stabilizers and struts for the CH-53K helicopter. Any failure by AEC to maintain its current 
supplier status under these programs, or any material change in their commercial or other terms, could have a 
material adverse effect on AEC’s future Net revenues and operating income.
Our top ten customers in the MC segment accounted for a significant portion of our Net revenues in 2025. The loss of 
one or more of these customers, or a significant decrease in the amount of machine clothing they purchase from us, 
could have a material adverse impact on MC's Net revenues and profitability. We could also be subject to similar 
impacts if one or more such customers were to suffer financial difficulties and be unable to pay us for products they 
have purchased. While we normally enter into long-term supply agreements with significant MC customers, the 
agreements generally do not obligate the customer to purchase any products from us, and may be terminated by the 
customer at any time with appropriate notice.
Risks related to information technology and cybersecurity
We are dependent on information technology networks, systems and cloud-based services to securely 
process, transmit and store electronic information and to communicate among our locations around the 
world and with our employees, customers and suppliers. The failure to prevent attacks on our operational 
systems and/or infrastructure or our cloud-based providers could result in disruptions to our businesses, 
loss or disclosure of regulated data, or the loss or disclosure of confidential and proprietary intellectual 
property or other assets. 
As the breadth and complexity of this infrastructure continues to grow, including the increasing reliance on, and use 
of, mobile technologies and cloud-based services, and as some of our global employees work remotely, the risk of 
security incidents and cyberattacks has increased. Cybersecurity threats are constantly expanding and evolving, 
becoming increasingly sophisticated and complex, increasing the difficulty of detecting and defending against them 
and maintaining effective security measures and protocols. The use of emerging technologies by organized cyber 
criminals, such as artificial intelligence and quantum computing, has increased the range of security threats faced by 
the Company. As AEC continues to perform aerospace and defense work, attacks from threat actors could become 
more persistent, including attacks from highly organized adversaries such as nation state actors, which target the 
defense industrial base and other critical infrastructure sectors. The improper conduct of our employees or others 
working on our behalf who have access to export controlled or other sensitive information could also adversely affect 
our business and reputation. 
Our customers, suppliers, and subcontractors experience similar security threats and an incident at one of these 
entities could adversely impact our business. These entities are typically outside our control and may have access to 
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our information with varying levels of security and cybersecurity resources, expertise, safeguards and capabilities. 
Breaches in our supply chain could compromise our data and adversely affect customer deliverables. We also rely on 
our supply chain to adequately detect and report cyber incidents, which could affect our ability to report or respond to 
cybersecurity incidents effectively or in a timely manner.
Our information technology systems, processes, sites and cloud-based providers may suffer interruptions or 
failures, or we may experience disruptions or challenges arising from the implementation or upgrading of 
new information technology systems, which may affect our ability to conduct our business.
Our information technology systems may be damaged or cease to function properly due to any number of causes, 
such as catastrophic events, power outages and security breaches (including destructive malware such as 
ransomware) resulting in unauthorized access or cyber-attacks. If our business continuity plans, incident response 
capabilities, and security controls do not function effectively, we may experience partial or complete interruptions in 
our operations, which may adversely impact our business, financial condition, results of operations and cash flows.
As part of our ongoing efforts to enhance operational efficiency and support our growth strategy, we implemented a 
significant upgrade to our Enterprise Resource Planning ("ERP") system by transitioning to a cloud-based platform. 
This upgrade is expected to streamline our business processes, improve data accessibility, and provide greater 
scalability. However, the implementation of a new ERP system involves substantial operational and internal controls 
risks. We cannot assure that all potential risks or liabilities are adequately discovered, disclosed, or understood in 
each instance. We may fail to achieve anticipated synergies. In addition, internal controls over financial reporting of 
acquired companies may not be compliant with required standards. Issues may exist that could rise to the level of 
significant deficiencies or, in some cases, material weaknesses.
We face legal, reputational and financial risks from any failure to protect customer and/or Company data from 
security incidents or cyberattacks.
Such incidents could lead to shutdowns or disruptions of or damage to our systems and those of our customers and 
suppliers, and unauthorized disclosure of sensitive or confidential information, potentially including personal data and 
proprietary business information. Unauthorized disclosure of, denial of access to, or other incidents involving sensitive 
or confidential Company, employee, customer or supplier data, whether through systems failure, employee 
negligence, fraud, misappropriation, or cybersecurity, ransomware or malware attacks, or other intentional or 
unintentional acts, could damage our reputation and our competitive positioning in the marketplace, disrupt our or our 
customer’s business, cause us to lose customers and result in significant financial exposure and legal liability.
We are subject to numerous laws and regulations designed to protect this information, such as the European Union’s 
General Data Protection Regulation (“GDPR”) and the United Kingdom’s GDPR, the Cybersecurity Law of the 
People's Republic of China, as well as various other U.S. federal and state laws governing the protection of privacy, 
health or other personally identifiable information and data privacy and cybersecurity laws in other regions. We are 
subject to U.S. federal procurement regulations such as the DFARS clause 252.204-7012, based on the NIST 
800-171 framework whose goal is protecting controlled unclassified information in non-federal systems and 
organizations. In 2025, we achieved the U.S. DoW CMMC Level 2 certification through an accredited CMMC Third-
Party Assessment Organization (C3PAO) in support of our AEC business segment. This will impact us in the coming 
years as it is formalized through the DFARS and those regulations are incorporated into our contracts for government 
programs.
These laws and regulations continue to evolve, are increasing in complexity and number and increasingly conflict 
among the various countries in which we operate, which has resulted in greater compliance risk and cost for us. 
Various privacy laws impose compliance obligations regarding the handling of personal data, including the cross-
border transfer of data, and significant financial penalties for noncompliance. If any person, including any of our 
employees, negligently disregards or intentionally breaches our established controls with respect to Company, 
employee, customer or supplier data, or otherwise mismanages or misappropriates that data, we could be subject to 
significant litigation, monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or 
more jurisdictions. These monetary damages might not be subject to a contractual limit of liability or an exclusion of 
consequential or indirect damages and could be significant. In addition, our liability insurance, which includes cyber 
insurance, might not be sufficient in type or amount to cover us against claims related to security incidents, 
cyberattacks and other related incidents.
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Risks related to our liquidity and financial matters
Fluctuations in currency exchange rates could adversely affect the Company’s business, financial 
condition, and results of operations.
We operate our business in many regions of the world, and currency rate movements can have a significant effect on 
operating results. The effect of currency rate changes on gross profit in the MC segment can be difficult to anticipate 
because we use a global sourcing and manufacturing model. Under this model, while some non-U.S. Net revenues 
and associated costs are in the same currency, other non-U.S. Net revenues are denominated in currencies other 
than the currency in which most costs of such sales are incurred. At the same time, the geographic sources of 
materials purchased (and the currencies in which these purchases are denominated) can vary depending on market 
forces, and the Company may also shift production of its products between manufacturing locations, which can result 
in a change in the currency in which certain costs to produce such products are incurred.
Changes in exchange rates can result in revaluation gains and losses that are reflected in our Consolidated 
Statements of Income. Revaluation gains and losses occur when our business units hold financial assets or liabilities 
denominated in a currency other than their functional currency. Operating results can also be affected by the 
translation of Net revenues and costs from each non-U.S. subsidiary’s functional currency to the U.S. dollar. 
Changes in the value of foreign currencies relative to the U.S. dollar could impact the reported level, in U.S. dollars, of 
Net revenues and operating expenses which are denominated in those currencies. Changes in currency exchange 
rates could adversely affect the Company’s business, financial condition or results of operations.
We have a substantial amount of indebtedness. At December 31, 2025, the Company had outstanding long-
term debt of $456 million.
At December 31, 2025, our leverage ratio (as defined in our primary borrowing agreement) was 1.66 to 1.00, and we 
had borrowed $456 million under our $800 million revolving credit facility. While we feel that we generate sufficient 
cash from operations and have sufficient borrowing capacity to make required capital expenditures to maintain and 
grow our business, any decrease in our cash generation could result in higher leverage. Higher leverage could hinder 
our ability to make acquisitions, capital expenditures, or other investments in our businesses, pay dividends, or 
withstand business and economic downturns. Our primary borrowing agreement contains a number of covenants and 
financial ratios that the Company is required to satisfy. The most restrictive of these covenants pertain to prescribed 
leverage and interest coverage ratios and asset dispositions. Any breach of any such covenants or restrictions would 
result in a default under such agreement that would permit the lenders to declare all borrowings under such 
agreement to be immediately due and payable and, through cross-default provisions, could entitle other lenders to 
accelerate their loans. In such an event, the Company would need to modify or restructure all or a portion of such 
indebtedness. Depending on prevailing economic conditions at the time, the Company might find it difficult to modify 
or restructure the debt on attractive terms, or at all.
From time to time, we use interest rate swaps to manage the interest cost associated with our borrowings. Future 
changes in the interest rate benchmark could affect the Company’s cost of borrowing and its cash flows, or the 
effectiveness of the hedges, which could have an effect on net income.
As of December 31, 2025, we had approximately $344 million of additional borrowing capacity under our $800 million 
revolving credit facility. The incurrence of additional indebtedness could increase the above-described risks 
associated with higher leverage. In addition, any such indebtedness could contain terms that are more restrictive than 
our current facilities.
Significant changes in critical estimates and assumptions related to pension and other post-retirement 
benefit (“OPEB”) costs and liabilities could affect our earnings and pension contributions in future periods. 
The determination of our pension and other post-retirement benefit plans’ expense or income involves significant 
judgments, specifically related to our discount rate, long-term return on assets, and other actuarial assumptions. We 
establish our discount rate assumption annually and review whether to change our long-term return on assets 
assumption annually. These estimates and actuarial assumptions could change significantly as a result to changes in 
economic, legislative, and/or demographic profiles. Such changes could result in unfavorable changes to our pension 
and OPEB expense and funded status, and our cash contributions thereof, which could have a negative impact on our 
results of operations. Further, the difference between actual investment returns and our long-term return on asset 
assumptions would result in a change to our pension and OPEB expense, funded status, as well as our required 
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contributions to the plans. We manage our plan assets in accordance with our investment management objectives, 
and they are subject to market volatility and other conditions. Differences may also arise due to changes in regulatory, 
accounting and other requirements applicable to pension plans.
The Company is exposed to the risk of increased expense in health-care related costs.
We are largely self-insured for some employee and business risks, including health care programs in the U.S. Losses 
under all of these programs are accrued based upon estimates of the ultimate liability for claims reported and an 
estimate of claims incurred but not reported, with assistance from third-party actuaries and service providers. 
However, these liabilities are difficult to assess and estimate due to unknown factors, including the severity of an 
illness and the number of incidents not reported. The accruals are based upon known facts and historical trends, and 
management believes such accruals to be adequate. The Company also maintains stop-loss insurance policies to 
protect against catastrophic claims above certain limits. If actual results significantly differ from estimates, our financial 
condition, results of operations, and cash flows could be materially impacted by losses under these programs, as well 
as higher stop-loss premiums in future periods.
Goodwill and other intangible assets represent a significant portion of our assets, and any impairment of 
these assets could negatively impact our results of operations and financial conditions. 
Goodwill and other intangible assets that have indefinite useful lives must be evaluated at least annually for 
impairment. The specific guidance for testing goodwill and other non-amortized intangible assets for impairment 
requires management to make certain estimates and assumptions when allocating goodwill to reporting units and 
determining the fair value of reporting unit net assets and liabilities, including, among other things, an assessment of 
market conditions, projected cash flows, investment rates, cost of capital and growth rates, which could significantly 
impact the reported value of goodwill and other intangible assets. Changes in our estimates and assumptions could 
adversely impact projected cash flows and the fair value of reporting units. Fair value is generally determined using a 
combination of the discounted cash flow, market multiple and market capitalization valuation approaches. Absent any 
impairment indicators, we generally perform our evaluations annually, using available forecast information. If at any 
time we determine an impairment has occurred, we are required to reflect the reduction in value as an expense within 
operating income, resulting in a reduction of earnings and a corresponding reduction in our net asset value in the 
period such impairment is identified. In the event there is deterioration in business conditions or estimated cash flows 
beyond amounts previously or currently forecasted, there is a risk of impairments on our goodwill and indefinite-lived 
intangible balances.
Unanticipated changes in tax laws or exposure to additional tax liabilities could affect our future profitability.
We are subject to income taxes in both the U.S. and various non-U.S. jurisdictions. Unanticipated changes in foreign 
and domestic tax laws, regulations, or policies, or their interpretation and application by regulatory bodies, or 
exposure to additional tax liabilities could affect our future profitability and cash flows. Our domestic and international 
tax liabilities are dependent upon the distribution of income among these jurisdictions. Our future results of operations 
could be adversely affected by changes in the effective tax rate as a result of a change in the mix of earnings in 
countries with differing statutory tax rates, as well as changes in the overall profitability of the Company, tax 
legislation, and generally accepted accounting principles.
As of December 31, 2025, we have approximately $49.1 million of net operating loss (“NOL”) carryforwards in various 
taxing jurisdictions. Our ability to utilize the NOL carryforward could be adversely impacted by several factors, 
including but not limited to significant changes to tax legislation and lower than expected future earnings. 
We are subject to tax audits by various tax authorities in many jurisdictions. Following the acquisition of Heimbach, the 
open tax years in these jurisdictions range from approximately 2019 to 2024. We regularly assess the potential 
outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. The 
results of tax audits and examinations of previously filed tax returns or related litigation and continuing assessments of 
our tax exposures could materially affect our financial results.
Risks related to our legal and regulatory environment
The Company may fail to adequately protect its proprietary technology or intellectual property, which would 
allow competitors or others to take advantage of its research and development efforts.
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Proprietary trade secrets are a source of competitive advantage in each of our segments. If our trade secrets were to 
become available to competitors, it could have a negative impact on our competitive strength. We employ measures 
to maintain the confidential nature of these secrets, including maintaining employment and confidentiality agreements, 
maintaining clear policies intended to protect such trade secrets, educating our employees about such policies, clearly 
identifying proprietary information subject to such agreements and policies, and vigorously enforcing such agreements 
and policies. Despite such measures, our employees, consultants, and third parties to whom such information may be 
disclosed in the ordinary course of our business may breach their obligations not to reveal such information, and any 
legal remedies available to us may be insufficient to compensate our damages.
Our success depends on our ability to protect our intellectual property. We rely on a combination of patents, trade 
secrets, and contractual agreements to safeguard our intellectual property. However, there is a risk that these 
measures may not be sufficient to prevent the unauthorized use or infringement of our intellectual property rights. We 
may also face intellectual property disputes and litigation. These disputes could arise from allegations of infringement 
by third parties of our intellectual property or from claims that our operations infringe the intellectual property rights of 
others. Such litigation can be costly, time-consuming, and may divert management's attention and resources from 
other business operations. If we are unsuccessful in defending our intellectual property, or if our intellectual property 
rights are deemed invalid or unenforceable, we may lose valuable competitive advantages. This could result in a 
decline in market share, reduced revenue, and a material adverse effect on our business, financial condition, and 
results of operations. Furthermore, we may be required to license our technology to third parties or to license 
technology from third parties to settle intellectual property disputes. Such licenses may not be available on 
commercially reasonable terms, or at all, which could further harm our business and financial performance.
The Company is subject to legal proceedings and legal compliance risks.
We are subject to a variety of legal proceedings in multiple jurisdictions where we conduct business. Litigation is an 
inherently unpredictable process and unanticipated negative outcomes are always possible. An adverse outcome in 
any period could have an adverse impact on the Company’s operating results for that period.
We are also subject to a variety of legal compliance risks. While we believe that we have adopted appropriate risk 
management and compliance programs, the global and diverse nature of our operations means that legal compliance 
risks will continue to exist and related legal proceedings and other contingencies, the outcome of which cannot be 
predicted with certainty, are likely to arise from time to time. Failure to resolve successfully any legal proceedings 
related to compliance matters could have an adverse impact on our results in any period.
Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, 
and violation of these regulations could harm our business.
We are subject to numerous, and sometimes conflicting, legal regimes on matters as diverse as anti corruption, 
import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and 
disclosure control obligations, securities regulation, sustainability and climate initiatives, human capital requirements, 
anti-competition, anti-money-laundering, data privacy and protection, government compliance, wage-and-hour 
standards, employment and labor relations and human rights. The global nature of our operations further increases 
the difficulty of compliance. 
Compliance with diverse legal requirements is costly, time-consuming and requires significant resources. Violations of 
one or more of these regulations in the conduct of our business could result in significant fines, enforcement actions 
or criminal sanctions against us and/or our employees, prohibitions on doing business and damage to our reputation. 
Violations of these regulations in connection with the performance of our obligations to our customers also could result 
in liability for significant monetary damages, fines, enforcement actions and/or criminal prosecution or sanctions, 
unfavorable publicity and other reputational damage and restrictions on our ability to effectively carry out our 
contractual obligations and thereby expose us to potential claims from our customers. Due to the varying degrees of 
development of the legal systems of the countries in which we operate, local laws may not be well developed or 
provide sufficiently clear guidance and may be insufficient to protect our rights.
In particular, in many parts of the world, including countries in which we operate and/or seek to expand, practices in 
the local business community might not conform to international business standards and could violate anti corruption 
laws, or regulations, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010. The Company 
provides, and all employees must participate in, regular training activities with respect to the Company's business 
ethics standards and expectations. Our employees, subcontractors, suppliers, and agents, any companies we may 
acquire and their employees, subcontractors, suppliers and agents, and other third parties with which we associate, 
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could take actions that violate policies or procedures designed to promote legal and regulatory compliance or 
applicable anti corruption laws or regulations. Violations of these laws or regulations by us, our employees or any of 
these third parties could subject us to criminal or civil enforcement actions (whether or not we participated or knew 
about the actions leading to the violations), including fines or penalties, disgorgement of profits and suspension or 
disqualification from work, including U.S. federal contracting, any of which could materially adversely affect our 
business, including our results of operations and our reputation. 
Our global operations are subject to increasing environmental, social and governance regulatory 
requirements, increasing operational and compliance costs, as well as the risk of noncompliance.
Evolving sustainability and social regulation, contractual requirements, and policy requirements, including transition 
risks associated with climate change, may pose risk to our market outlook, brand and reputation, financial outlook, 
cost of capital, global supply chain, and production continuity, which may impact our ability to achieve long-term 
business objectives. 
Changes in environmental and climate change laws or regulations could lead to additional operational restrictions and 
compliance requirements upon us or our products, require new or additional investment in product and packaging 
designs, result in carbon offset investments or otherwise could negatively impact our business and/or competitive 
position. Increasing industry performance standards, increasing sustainability disclosure requirements in the U.S. and 
globally, and requirements on manufacturing and product air pollutant emissions, especially GHG emissions, may 
result in increased costs or reputational risks and could limit our ability to manufacture and/or market certain of our 
products at acceptable costs, or at all. Increasing global chemical restrictions and bans, increasing regulation related 
to product end-of-life and packaging materials, and water and waste requirements may drive increased costs to us 
and our suppliers and impact our production continuity and data facilities.
Changes in laws and regulations could mandate significant and costly changes to the way we conduct our business, 
including increasing the cost of compliance, or could impose additional taxes. Changes in sustainability reporting 
requirements may also impact our global operations as we continue collecting information for reports to be published 
according to new standards.
We will face significant challenges in being able to implement separate but overlapping standard-setting initiatives, 
which may contain inconsistencies. We are devoting substantial resources to sustainability reporting to ensure 
compliance; however, the reporting landscape is highly dynamic and uncertainty remains. Implementing separate but 
overlapping newly introduced standard-setting initiatives in short timetables may result in inconsistencies and higher 
costs. Non-compliance could result in various penalties, including liability for significant monetary damages, fines, 
enforcement actions and/or sanctions. Given the reach of new and proposed regulations in the jurisdictions where we 
operate, there is the possibility that we may not be able to comply, or may not be able to comply in time. We also may 
not be able to ensure that relevant companies within our supply chain are compliant with applicable supply chain due 
diligence acts, which may require us to embark on new due diligence processes with other companies and in some 
cases parting ways with suppliers.
Changes to several international regulatory frameworks including the European Union's Corporate Sustainability 
Reporting Directive (“CSRD”) and Corporate Sustainability Due Diligence Directive (“CSDDD”) have increased 
thresholds and moved out compliance timeframes by several years. We continue to closely monitor developments in 
sustainability- and climate change-related laws, regulations and policies for their potential effect on our business, 
however, we are currently not able to accurately predict the materiality of any potential costs associated with such 
developments. In addition, climate change-related litigation and investigations have increased in recent years and any 
claims or investigations against us could be costly to defend, and our business could be adversely affected by the 
outcome.
Certain provisions of our Certificate of Incorporation, our Bylaws and Delaware law could hinder, delay 
or prevent a change in control of us that you might consider favorable, which could also adversely affect 
the price of our Common Stock.
Certain provisions under our Certificate of Incorporation, our Bylaws and Delaware law could discourage, delay or 
prevent a transaction involving a change in control of the Company, even if doing so would benefit our stockholders. 
These provisions could delay or prevent a change in control and could limit the price that investors might be willing to 
pay in the future for shares of our Common Stock.
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Our Certificate of Incorporation authorizes our Board of Directors to issue new series of preferred stock without 
stockholder approval. Depending on the rights and terms of any new series created, and the reaction of the market to 
the series, the rights or value of our Common Stock could be negatively affected. For example, subject to applicable 
law, our Board of Directors could create a series of preferred stock with superior voting rights to our existing common 
stock. The ability of our Board of Directors to issue this new series of preferred stock could also prevent or delay a 
third party from acquiring us, even if doing so would be beneficial to our stockholders.
We may not pay cash dividends on our Common Stock.
It is our current practice to pay cash dividends on our common stock. There can be no assurance, however, that we 
will pay dividends in the future in the amounts that we have in the past, or at all. Our Board of Directors may change 
the timing and amount of any future dividend payments or eliminate the payment of future dividends in its sole 
discretion, without any prior notice to our stockholders. Our ability to pay dividends will depend upon many factors, 
including our financial position and liquidity, results of operations, legal requirements, restrictions that may be imposed 
by the terms of our current and future credit facilities and other debt obligations and other factors deemed relevant by 
our Board of Directors. For example, we have a substantial amount of indebtedness and while we feel that we 
generate sufficient cash from operations and have sufficient borrowing capacity to make required capital expenditures 
to maintain and grow our business, any decrease in our cash generation could result in higher leverage. Higher 
leverage could hinder our ability to make acquisitions, capital expenditures, or other investments in our businesses, 
pay dividends, or withstand business and economic downturns.
In the future, we may also enter into other credit agreements or other borrowing arrangements or issue debt securities 
that, in each case, restrict or limit our ability to pay cash dividends on our common stock. In addition, since a 
significant portion of our cash is generated from operations of our subsidiaries, our ability to pay dividends is in part 
dependent on the ability of our subsidiaries – some of which are located outside of the U.S. – to make distributions to 
us. Such distributions will be subject to their operating results, cash requirements and financial condition, as well as 
our ability to repatriate cash held by non-U.S. subsidiaries. Any change in the level of our dividends or the suspension 
of the payment thereof could adversely affect the market price of our common stock.
If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about 
our business, our stock price and trading volume could decline.
The trading market for our Class A Common Stock depends in part on the research and reports that securities or 
industry analysts publish about us or our business. If one or more of the analysts who covers us downgrades our 
Class A Common Stock or publishes inaccurate or unfavorable research about our business, our stock price would 
likely decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, 
demand for our Class A Common Stock could decrease, which could cause our stock price and trading volume to 
decline.
Future sales of shares by us or our existing stockholders could cause our stock price to decline.
Sales of substantial amounts of our common stock in the public market, or the perception that these sales could 
occur, could cause the market price of our common stock to decline or might make it more difficult for us to sell equity 
securities in the future at a time and at a price that we deem appropriate. As of February 19, 2026, we had 28.3 million 
shares of Class A Common Stock outstanding. In addition, shares of Common Stock are issuable upon the vesting of 
outstanding equity awards, and certain shares are reserved for future issuance under our equity compensation plans.
Shareholder activism can have a significant impact on our operations, strategy, and overall performance.
Activist shareholders may attempt to influence or enact changes in our corporate governance, business strategies, or 
financial decisions. This can lead to substantial disruptions and pose various risks. Activist campaigns can divert the 
attention of our management team and board of directors from executing our business strategy and managing day-to-
day operations. The need to respond to shareholder activists' demands or proposals can be time-consuming and may 
detract from our ability to focus on long-term goals. Shareholder activists may propose changes to our board 
composition, executive compensation, or other governance practices. Proposed changes could lead to instability or 
conflict within our leadership, potentially affecting the company's strategic direction and decision-making processes. 
Shareholder activism often brings increased scrutiny from the media, investors, and analysts. Negative publicity or 
heightened market perception of instability could adversely affect our stock price, investor confidence, and overall 
market reputation. This could also lead to increased volatility in our stock and potential loss of shareholder value. 
Activist shareholders may push for changes in our business strategies, such as divestitures, acquisitions, cost-cutting 
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measures, or shifts in focus. While some suggestions may align with broader market trends or opportunities, others 
may conflict with our long-term vision or operational capabilities, potentially leading to suboptimal business outcomes. 
Engaging with activist shareholders may also increase the risk of legal challenges or regulatory scrutiny. Activist 
campaigns can result in proxy battles, litigation, or regulatory investigations, which can be costly, time-consuming, and 
damaging to our reputation. Prolonged activist campaigns and the associated uncertainty can negatively affect 
employee morale and retention. Employees may become concerned about the stability of their positions or the overall 
direction of the company, potentially leading to decreased productivity and higher turnover rates. Implementing 
changes advocated by activists may involve substantial costs or capital expenditures, which could impact our financial 
position and operating results. We are vigilant in monitoring and addressing potential activism to safeguard our long-
term interests and those of our shareholders.
Item 1B. 
UNRESOLVED STAFF COMMENTS
None.
Item 1C. 
CYBERSECURITY
Risk Management and Strategy
Albany International Corp. views cybersecurity risk management as a cornerstone of our Enterprise Risk Management 
("ERM") strategy, and we are committed to protecting our digital assets and sustaining investor confidence. 
Cybersecurity risks we face include data breaches, operational disruptions, reputational harm, and regulatory fines. 
Such incidents could lead to shutdowns or disruptions of or damage to our systems and those of our customers and 
suppliers, and unauthorized disclosure of sensitive or confidential information, potentially including personal data and 
proprietary business information. Unauthorized disclosure of, denial of access to, or other incidents involving sensitive 
or confidential Company, employee, customer or supplier data, whether through systems failure, employee 
negligence, fraud, misappropriation, or cybersecurity, ransomware or malware attacks, or other intentional or 
unintentional acts, could damage our reputation and our competitive positioning in the marketplace, disrupt our 
business or our customers' businesses, cause us to lose customers and result in significant financial exposure and 
legal liability.
These risks are identified, assessed and managed within the broader context of our ERM strategy, ensuring a 
comprehensive approach to organizational risk. We incorporate cybersecurity risk assessments into our overall 
enterprise risk assessment process. This integration ensures that cyber risks are evaluated and managed alongside 
other operational, financial, and strategic risks, offering a holistic view of our risk landscape. Our ERM strategy is 
overseen by an Enterprise Risk Management Committee, which is made up of representatives from our finance, legal, 
accounting, internal audit and global information systems functions, our business leaders and members of the Senior 
Leadership Team. It is led by our Chief Financial Officer and its actions are reported to our Board of Directors on a 
quarterly basis.
Our Chief Information Officer and Senior Director of Information Security, along with members of their respective 
teams, are responsible for identifying and managing cybersecurity risk. The Senior Leadership Team, the Board of 
Directors and the Board’s Audit Committee receive regular updates and engage in regular strategic discussions 
relating to cybersecurity risk management as part of their overall oversight of risk management.
Our cybersecurity framework leverages internationally recognized standards, including the CIS 20 and the NIST SP 
800-171 frameworks, and is required to comply with the Department of War Cybersecurity Maturity Model Certification 
(CMMC). We have policies and procedures in place designed to maintain compliance with relevant cybersecurity and 
data privacy laws and regulations in the jurisdictions in which we operate, such as the European Union GDPR and the 
California Consumer Privacy Act.
Our cybersecurity strategy includes policies, procedures, and technology that proactively safeguard our operations 
against cybersecurity threats. Internal teams and external experts regularly conduct risk assessments and audits to 
identify cybersecurity threats, ensure regulatory compliance, and adhere to control process best practices. Continuous 
monitoring of our networks and systems for threats and vulnerabilities is a key component of our strategy, supported 
by the analysis of threat intelligence from external sources. This multi-layered approach enables early detection and 
facilitates prompt response to potential cybersecurity threats. We regularly review and update our cybersecurity 
strategies, policies and procedures, taking into consideration the latest advancements in cybersecurity practices and 
changes to the threat landscape.
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We have a cybersecurity incident response and crisis management plan in place, which incorporates regular training 
and simulation exercises, including with senior management, to ensure readiness and efficacy in responding to 
cybersecurity incidents. Our incident response and crisis management plan coordinates the activities we will take to 
prepare for, detect, respond to and recover from cybersecurity incidents, which include processes to triage, assess 
severity for, escalate, contain, investigate, and remediate the incident, as well as to comply with potentially applicable 
legal obligations and mitigate reputational damage.
In addition, we provide regular security awareness education and training for all employees and consultants, conduct 
internal “phishing” testing and training for “clickers,” require mandatory security training for all new hires and publish 
periodic cybersecurity newsletters to highlight any emerging or urgent security threats. We also carry insurance that 
provides protection against the potential losses arising from a cybersecurity incident.
We engage qualified third-party cybersecurity experts for in-depth cyber risk assessments, penetration tests, and 
compliance audits, which provide impartial perspective and insight into our cybersecurity posture and we engage 
consultants for the development and refinement of our cybersecurity strategy and maturity, drawing upon industry best 
practices and regulatory knowledge. These collaborations also include the refinement of our incident response and 
crisis management plan and employee training, emphasizing the transfer of knowledge for sustainable in-house 
capabilities.
Our cybersecurity risk management processes extend to the oversight and identification of threats associated with our 
use of third-party service providers. We set clear objectives for third-party service providers, and we assess 
cybersecurity practices and any history of security incidents before engaging any potential service providers. Our 
contracts explicitly include requirements relating to cybersecurity, including adherence to certain standards, to ensure 
compliance with our security protocols. Once engaged, we regularly monitor the cybersecurity posture of major 
providers through log reports and intelligent threat protection analysis.
Our business strategy, results of operations and financial condition have not been materially affected by risks from 
cybersecurity threats, including as a result of previous cybersecurity incidents, but we cannot provide assurance that 
they will not be materially affected in the future by such risks and any future material incidents. Based on our review of 
past cybersecurity incidents, we believe that all such incidents were addressed promptly and effectively. In the last 
fiscal three years, we have not experienced any material information cybersecurity incidents and the expenses we 
have incurred from any cybersecurity incidents were immaterial. See Item 1A, “Risk Factors” of this Annual Report on 
Form 10-K for more information on our cybersecurity-related risks.
Governance
Board of Directors
The Board of Directors oversees our risk management processes, including with respect to cybersecurity risk, and the 
Board considers cybersecurity risk management an enterprise priority. The Board has delegated primary responsibility 
for reviewing and discussing with management our strategies, initiatives and policies relating to cybersecurity to the 
Audit Committee, which regularly reports to the full Board regarding such review and discussions. In addition, in 
connection with its oversight of cybersecurity risks in relation to financial reporting and internal controls, the Audit 
Committee plays a crucial role in the Board’s understanding and management of the financial and operational impacts 
of cybersecurity risks.
As part of their oversight of cybersecurity risk, the Board and Audit Committee regularly review detailed cybersecurity 
reports, which include analyses of the threat landscape, recent incidents, and the efficacy of our cybersecurity 
strategy. In addition, the Chief Information Officer and Senior Director of Information Security provide bi-annual 
updates to the Audit Committee and annual briefings to the full Board on our cybersecurity posture, strategy, and risk 
management. These reviews and updates are complemented by ongoing cybersecurity training for board members to 
enhance their decision-making and oversight effectiveness.
Regular active engagement in strategic discussions by the Board and Audit Committee ensures that cybersecurity 
considerations are effectively integrated into our overall business strategy and align with Company objectives and 
demonstrates the Board’s commitment to proactive cybersecurity oversight.
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Management
Although the Board oversees our overall risk management, day-to-day management of cybersecurity risk is the 
responsibility of management. Management’s critical role involves assessing and managing these risks through 
regular evaluations, deploying advanced security measures, and developing policies. Management integrates these 
strategies across all our operations, fostering a culture of cybersecurity awareness within the Company. This proactive 
stance is essential to safeguarding digital assets and ensuring operational resilience against evolving cyber threats.
Quarterly, the Chief Information Officer and Senior Director of Information Security present detailed cybersecurity 
reports to the Enterprise Risk Committee, focusing on strategic initiatives and evolving threats. The Enterprise Risk 
Committee, meeting quarterly, evaluates cybersecurity within the broader organizational risk context, ensuring 
consistent assessment and management.
The Chief Financial Officer chairs quarterly Enterprise Risk Management Committee meetings to review and evaluate 
various risk factors, including cybersecurity. The Chief Financial Officer's expertise in financial risk management, 
strategic planning, and organizational leadership is instrumental in guiding the committee's discussions and decisions. 
The Chief Financial Officer ensures that appropriate financial and operational implications of cybersecurity risk are 
considered and integrated into our Enterprise Risk Management Strategy. 
The Chief Information Officer oversees our broader IT strategy, including cybersecurity, and presents quarterly to the 
Enterprise Risk Management Committee, bi-annually to the Audit Committee, and annually to the Board. The Chief 
Information Officer's expertise in information technology, cybersecurity, and strategic planning, forged over 25 years, 
20 of which has been spent in leadership at global publicly traded companies, is integral to our approach to 
cybersecurity risk management. This expertise is crucial in aligning our cybersecurity initiatives with business 
objectives, ensuring that our strategies effectively support the Company's overall goals.
The Senior Director of Information Security, reporting to and collaborating with the Chief Information Officer, manages 
our Enterprise Cybersecurity team. Day-to-day responsibilities include the implementation of cybersecurity strategies, 
cybersecurity risk management, and enhancing defenses against evolving threats. Our Senior Director of Information 
Security has over 35 years of IT experience, 12 of which have been spent leading the Company’s cybersecurity 
efforts. The Information Security plays a key role in shaping our cybersecurity strategy, ensuring alignment with 
industry standards and integration into our broader IT strategy.
Regular reporting channels between the Senior Director of Information Security, the Chief Information Officer, and the 
Chief Financial Officer facilitate a cohesive, well-informed approach to managing cybersecurity risks. These reports 
include detailed analyses of potential threats, incident response readiness, and the effectiveness of existing 
cybersecurity measures. 
Item 2. 
PROPERTIES
Our principal manufacturing facilities are located in Belgium, Brazil, Canada, China, France, Germany, Italy, Mexico, 
Spain, Sweden, the United Kingdom, and the United States. The aggregate square footage of our operating facilities 
in the United States is approximately 2.1 million square feet, of which 1.2 million square feet are owned and 0.9 
million square feet are leased. Our facilities located outside the United States comprise approximately 4.5 million 
square feet, of which 4.0 million square feet are owned and 0.5 million square feet are leased. We consider these 
facilities to be in good condition and suitable for our purpose. The capacity associated with these facilities is adequate 
to meet production levels required and anticipated through 2026.
Item 3. 
LEGAL PROCEEDINGS
The information set forth above is described in Note 21, Commitments and Contingencies, of the Notes to the 
Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report 
on Form 10-K.
Item 4. 
MINE SAFETY DISCLOSURES
Not applicable.
Index
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PART II
Item 5. 
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND 
ISSUER PURCHASES OF EQUITY SECURITIES
We have Class A Common Stock with a par value of $0.001. Our Class A Common Stock is principally traded on the 
New York Stock Exchange under the ticker symbol AIN. According to Broadridge Financial Solutions, Inc., as of 
December 31, 2025, there were approximately 70,000 beneficial owners of our Class A Common Stock. Dividends are 
paid on our Class A Common Stock. Our cash dividends, and the high and low prices per share of our Class A 
Common Stock, were as follows for the periods presented:
2025
Cash dividends per share
$ 
0.27 $ 
0.27 $ 
0.27 $ 
0.28 
Class A Common Stock prices:
High
$ 
82.96 $ 
70.94 $ 
72.53 $ 
60.44 
Low
$ 
69.04 $ 
59.75 $ 
52.80 $ 
41.42 
2024
Cash dividends per share
$ 
0.26 $ 
0.26 $ 
0.26 $ 
0.27 
Class A Common Stock prices:
High
$ 
97.34 $ 
91.16 $ 
94.16 $ 
87.46 
Low
$ 
85.76 $ 
79.75 $ 
81.29 $ 
67.92 
Quarter Ended
March 31
June 30
September 30
December 31
Index
33

The graph below compares the cumulative 5-Year total return of holders of Albany International Corp.’s Common 
Stock with the cumulative total returns of the Russell 2000 index and a customized peer group of seventeen 
companies which are: BWX Technolgies Inc, Curtiss-Wright Corp, Ducommun Inc, Enpro Inc, Esca Technologies Inc, 
Franklin Electric Co Inc, Graco Inc, Helios Technologies Inc, Hexcel Corp, Kadant Inc, Mercury Systems Inc, Mueller 
Water Products Inc, Nordson Corp, SPX Technologies Inc, Standex International Corp, Trimas Corp, Woodward Inc. 
The graph assumes that the value of the investment in our common stock, in each index, and in the peer group 
(including reinvestment of dividends) was $100 on December 31, 2020 and tracks it through December 31, 2025.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Albany International Corp., the Russell 2000 Index,
and a Peer Group
Albany International Corp.
Russell 2000
Peer Group
Dec-20
Dec-21
Dec-22
Dec-23
Dec-24
Dec-25
$0
$25
$50
$75
$100
$125
$150
$175
$200
*$100 invested on 12/31/20 in stock or index, including reinvestment of dividends.
Copyright© 2026 Russell Investment Group. All rights reserved.
Fiscal year ending December 31. 
Albany International 
Corp.
$100.00
$121.62
$136.90
$137.89
$113.65
$73.34
Russell 2000
100.00
114.82
91.35
106.82
119.14
134.40
Peer Group
100.00
111.36
103.77
131.72
149.51
198.27
December 31,
2020
2021
2022
2023
2024
2025
The stock price performance included in this graph is not necessarily indicative of future stock price performance.
Restrictions on dividends and other distributions are described in Note 17, Financial Instruments of the Notes to the 
Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report 
on Form 10-K.
Disclosures of securities authorized for issuance under equity compensation plans are included under Item 12, 
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters, of this Annual 
Report on Form 10-K.
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34

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. Under this plan, the Company repurchased 1,649,081 shares for a total cost of $136.2 million through 
February 21, 2025. Of this, 158,177 shares were repurchased in 2025 for $12.6 million.
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 supersedes 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. Under this plan, the 
Company repurchased 2,682,859 shares in 2025 for a total cost of $173.3 million, including excise taxes and fees. As 
of December 31, 2025, we were authorized to repurchase shares up to $76.7 million.
Issuer Purchases of Equity Securities during the three months ended December 31, 2025
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)
October 1 to 
October 31, 2025
 
— $ 
—  
— $ 
93,445 
November 1 to 
November 30, 2025
 
206,585  
45.06  
206,585  
84,139 
December 1 to 
December 31, 2025
 
153,682  
48.72  
153,682  
76,648 
Total
 
360,267 
 
360,267 $ 
76,648 
Item 6. 
[RESERVED]
ITEM 7. 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“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 included under Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. 
The MD&A generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. 
Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 
10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results or Operations” in the 
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 
26, 2025, incorporated herein by reference.
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 
Index
35

capacity that enable it to offer high quality specific part and assembly solutions that achieve its customers’ application 
performance requirements.
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
During 2025, the MC segment delivered a resilient performance, with several areas performing well despite uneven 
market dynamics. In Asia, softer demand—across Paper Machine Clothing & Engineered Fabrics—contributed to 
regional pressure, while EF also declined due to strategic divestment and planned plant consolidation in Europe. 
Packaging and Tissue continued to perform well, supported by growth across most regions. Publication grades 
remained under structural pressure, and the MC segment expects publication grade paper demand to continue 
declining into 2026 and beyond, offset by growing demand for tissue grade products. Looking ahead to 2026, we 
expect Packaging and Tissue to remain positive contributors, with sales in Europe and the Americas holding broadly 
stable, while Asia’s trajectory remains uncertain.
We believe the 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, particularly 
within the pressing market, manufacturing productivity efficiencies and cost controls.
The MC segment has been a significant generator of cash 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.
In August, 2023, the Company acquired Heimbach, a privately-held manufacturer of paper machine clothing 
headquartered in Düren, Germany, which provides the MC segment with an increase in scale and complementary 
technology that further drives MC's differentiated manufacturing sales and service network. The Heimbach integration 
is a multi-year program that started with harmonizing Heimbach operations with our legacy MRP systems and 
establishing a new global customer and operations organization. There is a disciplined focus to realize not only the 
combined benefits from procurement and overhead, but also to leverage best practices in manufacturing and a deep 
realignment of our operational footprint. 
During 2024, the Company announced several initiatives to further rationalize MC's operating footprint, including the 
closure of the South Korea facility, the consolidation of activities and facilities across the United Kingdom and the 
closure of Heimbach's Switzerland facility. The Company made progress and realized significant synergies from these 
efforts during 2025, and announced additional closures of engineered fabrics facilities in Italy, France and the United 
Kingdom. 
Albany Engineered Composites
The AEC segment's strategy is to continue to build on its global brand by leveraging its industry leading performance 
to drive future growth through technology differentiation. This includes continued investment in AEC's proprietary 3D-
woven technology to accelerate solutions that can be offered across a set of broader applications; and by leveraging 
the AEC's non-3D technology capabilities and capacity, on high-value aerospace (both commercial and defense) 
applications, and other emerging markets such as space and advance air mobility ("AAM"). The AEC segment 
provides longer-term growth potential for the Company as it ramps current production programs and captures new 
commercial and defense opportunities.
The AEC segment (including Albany Safran Composites, LLC (“ASC”), in which our customer SAFRAN Group owns a 
10% noncontrolling interest) supplies a number of customers in the aerospace industry. AEC’s largest aerospace 
Index
36

customer is the SAFRAN Group ("SAFRAN") and sales to SAFRAN, through ASC, (consisting primarily of fan blades 
and cases for CFM International’s LEAP engine) accounted for approximately 15% of the Company’s consolidated 
Net revenues in 2025. The AEC segment, through ASC, also supplies 3D-woven composite fan cases for the GE9X 
engine. Outside of ASC, the AEC segment also supplies 3D-woven composite vanes for the F-35 Liftfan.
The AEC segment's current portfolio of non-3D programs includes components for the CH-53K helicopter, 
components for the F-35, missile bodies for Lockheed Martin’s JASSM air-to-surface missiles, fuselage components 
for the Boeing 787 aircraft, vacuum waste tanks for Boeing commercial aircraft and components and structures for 
other commercial, defense, and space and AAM programs. In 2025, approximately 35% of AEC net revenues were 
related to U.S. government contracts or programs.
The 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.
As a result of the higher costs and operational challenges, the AEC segment updated labor, material input and scrap 
assumptions and estimates for certain long-term programs that resulted in negative cumulative changes in estimated 
profitability in the amount of $165.8 million in 2025. This amount includes a $155.9 million change in estimated 
profitability associated with the performance of the CH-53K contracts, of which $147.3 million was recognized in the 
third quarter and was inclusive of a loss reserve adjustment of $98.0 million for greater than planned labor content 
and higher material inputs caused by inflation estimated for the duration of the contract. This adjustment represents 
the estimated full loss anticipated over the remaining eight year life of the program, and we are engaging with our 
CH-53K customer to discuss potential solutions. In spite of these ongoing discussions, subsequent to the end of the 
third quarter, we announced that we will commence a strategic review of the Amelia Earhart Drive facility in Salt Lake 
City. Such review could result in a sale of the facility and would include an exit of the structures assembly portion of 
our business, including the CH-53K contract work. As of December 31, 2025, we have determined that the assets of 
this group meet the held-for-sale criteria, and have been classified as such within our Consolidated Balance Sheet.
Consolidated Results of Operations
Net Revenues and Gross Profit
The following table summarizes our Consolidated Net revenues and Gross profit:
Years ended December 31,
2025
2024
2023
Net revenues
$ 1,182,813 
$ 1,230,615 
$ 1,147,909 
Gross profit
 
243,920 
 
401,776 
 
423,718 
Gross profit margin
 20.6 %
 32.6 %
 36.9 %
% change in net revenues
 -3.9 %
 7.2 %
 10.9 %
(in thousands, except percentages)
Consolidated Net revenues decreased 4% compared to 2024, driven by reduced demand for MC products in Asia and 
AEC revenue adjustments primarily related to the CH-53K program based on our long-term contract estimates. These 
decreases are partially offset by higher revenue on the AEC LEAP program. 
The decrease in Consolidated Gross profit during 2025, as compared to 2024, was driven primarily by increased cost 
assumptions that adjusted the expected profitability of the AEC segments CH-53K long-term contracts. Gross profit as 
a percentage of revenues was 21%.
Index
37

Operating Expenses
The following table summarizes Consolidated Operating expenses by classification:
Years ended December 31,
2025
2024
2023
Selling, general and administrative expenses
$ 
218,326 
$ 
210,882 
$ 
214,915 
Technical and research expenses
 
48,015 
 
46,097 
 
40,627 
Restructuring expenses, net
 
13,682 
 
13,438 
 
282 
Total operating expenses
$ 
280,023 
$ 
270,417 
$ 
255,824 
Total operating expenses as a % of net revenues
 23.7 %
 22.0 %
 22.3 %
(in thousands, except percentages)
Consolidated SG&A expenses increased 3.5% as compared to 2024 and as a percentage of Net revenues, SG&A 
expenses increased from 17.1% in 2024 to 18.5% in 2025. The overall increase in Consolidated SG&A expenses was 
due to the net effect of a $4.4 million increase in personnel-related costs, an increase of $1.9 million in professional 
fees, and an increase of $3.2 million in global information system costs.
Consolidated Technical and research expenses increased 4.2% as compared to 2024 and as a percentage of Net 
revenues increased from 3.7% in 2024 to 4.1% in 2025. This change is primarily driven by increased activity within our 
New Business Ventures group.
In addition to the items discussed above affecting Gross profit, SG&A and Technical and research expenses, 
Operating income was affected by Restructuring expense, net, of $13.7 million in 2025, as compared to $13.4 million 
in 2024.
At MC, restructuring actions were taken throughout 2024 and 2025 in order to cease operations at several facilities. 
Prior year actions at the Company's MC forming fabric manufacturing facility in Chungju, South Korea, at the 
Company's Heimbach engineered fabric manufacturing facility in Rochdale, UK, and at the Company's Heimbach 
paper machine clothing facility in Olten, Switzerland, concluded in 2025. Additional actions were announced in 2025 to 
close engineered fabric facilities in Ballo, Italy and Saint Junien, France as well as a facility in Manchester, United 
Kingdom. These actions drove $8.3 million of restructuring charges during 2025, compared to $11.2 million in 2024, a 
decrease that is primarily due to the timing of the announced actions, workforce reductions, and related costs. We 
expect to incur additional restructuring expenses related to these actions into 2026.
At AEC, restructuring activities were related to reductions in the workforce at various AEC locations, which resulted in 
restructuring expenses of $3.3 million for the year ended  2025 and $3.6 million for the year ended 2024.
During the first quarter of 2025, the Company decided to consolidate headquarters in Portsmouth, NH.  This change 
impacts approximately 100 employees and will continue through the first half of 2026. Through December 31, 2025, 
this has resulted in expenses of $2.0 million related to retention, relocation, severance, and professional costs.
Index
38

Operating Income
The following table summarizes operating income/(loss) by business segment:
Years ended December 31,
2025
2024
2023
Machine Clothing
$ 
156,212 
$ 
183,632 
$ 
188,429 
Albany Engineered Composites
 
(145,135) 
 
(11,603) 
 
27,351 
Corporate
 
(47,180) 
 
(40,670) 
 
(47,886) 
Total operating income (loss)
$ 
(36,103) 
$ 
131,359 
$ 
167,894 
% of net revenues
 -3.1 %
 10.7 %
 14.6 %
(in thousands, except percentages)
See the Segment Results of Operations section of this Management Discussion and Analysis of Financial Condition 
and Results of Operations for significant drivers of Operating income/(loss) for each business segment.
Other Earnings Items
The following table summarizes other earnings items that are presented below Operating income:
Years ended December 31,
2025
2024
2023
Interest expense, net
$ 
20,605 $ 
12,549 $ 
13,601 
Other (income)/expense, net
 
5,079  
1,721  
(6,163) 
Income tax (benefit)/expense
 
(4,828)  
29,034  
48,846 
Net income/(loss) attributable to the noncontrolling interest
 
383  
432  
490 
(in thousands)
Interest Expense, net
Interest expense, net increased by $8.1 million over the prior year primarily due to higher average borrowings, in part 
offset by $1.1 million of greater interest income earned on cash equivalents during the current year. For more 
information, see Note 17, Financial Instruments, of the Notes to the Consolidated Financial Statements in Item 8, 
Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. 
Other (income)/expense, net
Other (income)/expense, net included foreign currency related transactions that resulted in losses of $8.9 million in 
2025 as compared to $3.9 million of gains in 2024. In addition, changes in the fair value of derivative instruments 
included gains of $3.7 million in 2025 and losses of $3.5 million in 2024, driven by currency rate movements, most 
notably the Brazilian Real and Mexican Peso. See Note 6, Other (Income)/Expense, net, of the Notes to the 
Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on 
Form 10-K for additional information.
 Income Taxes
Years ended December 31, 
2025
2024
2023
Effective tax rate
7.8%
24.8%
30.4%
The effective tax rate represents the combined federal, state and foreign tax effects attributable to pretax earnings. For 
more information on income tax, see Note 7, Income Taxes, of the Notes to the Consolidated Financial Statements in 
Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.
The Company has continuously monitored its ability to realize deferred tax assets as it pertains to Heimbach GmbH 
due to their existing net operating loss carryovers. After reviewing the positive and negative evidence available as of 
December 31, 2025, we continue to assert that we will more likely than not be able to utilize the net deferred tax 
assets. Net operating losses, which make up the majority of the deferred tax assets, have an unlimited carryforward 
period in Germany and we expect continued improvements in the business post-acquisition due to synergies and 
efficiencies that will be realized in the near future. The current net deferred tax asset position at Heimbach GmbH as of 
December 31, 2025 is $16.5 million. If it was determined that a valuation allowance was required, a deferred tax 
Index
39

expense of $16.5 million as of December 31, 2025 would be required to create a reserve against those net deferred tax 
assets. The assessment of the need for a valuation allowance could change in future periods if additional negative 
evidence is observed. The amount of the tax expense needed to book the valuation allowance could also change 
depending on additional activities. 
The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new 
global minimum tax of 15% effective on January 1, 2024. While the U.S. has indicated that it will not adopt the Pillar 
Two framework at this time, various jurisdictions in which we operate have enacted, or are in the process of enacting, 
legislation to implement these rules. Based on their current design, the Pillar Two rules are expected to apply to our 
global operations. We have evaluated the impact of these rules and have determined that it did not materially increase 
our global tax costs in 2025. We will continue to monitor U.S. and global legislative action related to Pillar Two for 
potential impacts.
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40

Segment Results of Operations
Machine Clothing Segment
The MC segment accounted for 59.9% of our consolidated revenues during 2025. A summary of MC's selected 
financial results is as follows:
Years ended December 31,
2025
2024
2023
Net revenues
$ 
708,066 
$ 
749,907 
$ 
670,768 
% change
 -5.6 %
 11.8 %
 10.1 %
Gross profit
 
323,732 
 
346,044 
 
331,558 
% of net revenues
 45.7 %
 46.1 %
 49.4 %
SG&A expenses
 
131,175 
 
123,120 
 
118,196 
Technical and research expenses
 
28,090 
 
29,832 
 
24,651 
Restructuring expenses, net
 
8,255 
 
9,460 
 
282 
Operating income
$ 
156,212 
$ 
183,632 
$ 
188,429 
% of net revenues
 22.1 %
 24.5 %
 28.1 %
(in thousands, except percentages)
Net revenues
Net revenues decreased 5.6% as compared to 2024, driven by reduced demand in Asia, most significantly in China, 
and by site consolidations, unplanned equipment downtime in one of our production facilities and lower than 
anticipated sales pricing. This decline is slightly offset by a strong performance within the European market, 
particularly related to the drying and pressing programs. Further, changes in currency translation rates had the effect 
of increasing Net revenues $1.2 million.
Gross Profit
Gross profit decreased by $22.3 million as compared to 2024, primarily driven by the volume declines noted above; 
with gross profit margin also decreasing slightly from 46.1% in 2024 to 45.7% in 2025.
Operating Income
Operating income decreased $27.4 million or 14.9% as compared to 2024, primarily as a result of gross profit declines 
and increased SG&A costs. Incremental SG&A expenses were primarily a result of increased revaluation losses on 
monetary operating assets.
Backlog
Backlog at MC can include certain unconfirmed customer indications that may be cancelled prior to release into 
production. Additionally, a significant amount of orders do not enter backlog due to short lead times. As such, we 
believe that the segment’s backlog is not a strong indicator of expected future revenue.
Albany Engineered Composites Segment
The AEC segment accounted for 40.1% of our consolidated net revenues during 2025. 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 39% of segment revenue for 2025 and 
2024. 
In addition, AEC has long-term contracts in which the selling price is fixed. In accounting for those contracts, we 
estimate the profit 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. Changes in estimated contract profitability will affect 
revenue and gross profit when the change occurs, which could have a significant favorable or unfavorable effect on 
revenue and gross profit in any reporting period. For contracts with anticipated losses, a provision for the entire 
amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. 
Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or 
Index
41

administrative cost allocations, which are treated as period expenses. Expected losses on projects include losses on 
contract options that are probable of exercise, excluding profitable options that often follow.
A summary of AEC's selected financial results is as follows:
Years ended December 31,
2025
2024
2023
Net revenues
$ 
474,747 
$ 
480,708 
$ 
477,141 
% change
 -1.2 %
 0.7 %
 12.2 %
Gross profit
 
(79,812) 
 
55,732 
 
92,160 
% of net revenues
 -16.8 %
 11.6 %
 19.3 %
SG&A expenses
 
46,449 
 
47,421 
 
48,833 
Technical and research expenses
 
15,615 
 
16,265 
 
15,976 
Restructuring expenses, net
 
3,259 
 
3,649 
 
— 
Operating income/(loss)
$ 
(145,135) 
$ 
(11,603) 
$ 
27,351 
% of net revenues
 -30.6 %
 -2.4 %
 5.7 %
(in thousands, except percentages)
Net revenues
Net revenues decreased 1.2%, primarily driven by $54.9 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 on various 
programs including LEAP. Further, changes in currency translation rates had the effect of increasing Net revenues 
$1.4 million.
Gross Profit
Gross profit decreased $135.5 million as compared to last year, and Gross profit margin decreased from 11.6% in 
2024 to (16.8)% in 2025. The reduction was driven primarily by approximately $155.9 million of increased life of 
contract cost assumptions surrounding the estimated profitability of our CH-53K long-term contracts. 
Operating Income/(Loss)
Operating income decreased $133.5 million, principally due to reduced Gross profit as noted above. This was slightly 
offset by a decrease in SG&A expenses of $1.0 million, driven by a $0.7 million decrease in personnel-related costs. 
Technical and research expenses decreased $0.7 million as compared to 2024, driven by decreased research 
material and labor costs. Lastly, restructuring activities were related to reductions in the workforce at various AEC 
locations and resulted in restructuring expenses of $3.3 million, further reducing Operating income.
Backlog
Backlog at AEC represents the aggregate dollar value of products and services for the given term of our contracts with 
customers where we have enforceable rights, including both funded and unfunded contract scope, for which products 
have not been provided or services have not been performed, but excluding unexercised contract options and 
potential orders under ordering-type contracts. For new contract awards, the initial backlog recorded may only reflect 
a portion of the total value of the contract award, particularly for ordering-type contracts. Backlog may increase over 
time as the orders placed against a contract include enforceable rights. For our ASC LEAP contract with our partner 
Safran, our backlog reflects the agreed business plan values with Safran for the subsequent full twelve-month 
calendar year. 
Orders included in our backlog may be modified, canceled, or rescheduled by our customers, although customers 
may incur cancellation penalties as defined in the terms of such customer contracts; and which such terms may vary 
from contract to contract. If any of our enforceable contracts were to be terminated, our backlog would be reduced by 
the expected value of the unfilled orders of such contracts. 
Backlog differs from unsatisfied performance obligations for contracts disclosed in Note 3, Revenue Recognition, of 
the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of our 
Annual Report on Form 10-K, which excludes unsatisfied performance obligations with an original expected duration 
of one year or less.
Index
42

Backlog at AEC was $1.4 billion as of December 31, 2025.
Working Capital, Liquidity and Capital Structure
Working Capital
Payment terms granted to paper industry and other machine clothing customers reflect general competitive practices. 
Terms vary with product, competitive conditions, and the country of operation. In some markets, customer agreements 
require us to maintain significant amounts of finished goods inventory to assure continuous availability of our 
products.
In addition to supplying paper, paperboard, and tissue companies, the MC segment is a leading supplier to the 
nonwovens (which includes the manufacture of products such as diapers, personal care, and household wipes), 
building products, and tannery and textile industries. These non-paper industries have a wide range of customers, 
with markets that vary from industrial applications to consumer use products. The AEC segment primarily serves 
customers in the commercial and defense aerospace market through both engine and airframe applications. AEC's 
working capital levels rose steadily in the last several years in line with the segment's growth.
In the MC segment, the Chinese New Year, summer months, and the end of the year are often periods of lower 
production for some of our customers, which, in the past contributed to seasonal variation in sales and orders. In 
recent years, shorter order cycles and lower inventory levels throughout the supply chain have become a more 
significant factor in quarterly sales. The impact of these combined factors on any quarter can be difficult to predict, 
and can make quarterly comparisons less meaningful than annual comparisons. While seasonality is generally not a 
significant factor in the Albany Engineered Composites segment, the commercial terms of the supply agreement 
governing the LEAP program resulted in fourth quarter sales volatility in recent years.
Cash Flow Summary
For the years ended December 31,
2025
2024
2023
Net income
$ 
(56,959) $ 
88,055 $ 
111,610 
Depreciation and amortization
 
87,914  
89,294  
76,733 
Changes in working capital(a)
 
10,861  
54,321  
(44,214) 
Changes in long-term liabilities, deferred taxes and other credits
 
(45,865)  
(23,033)  
(11,829) 
Contract loss provision
 
139,665  
—  
— 
Other operating items
 
16,858  
9,804  
15,756 
Net cash provided by operating activities
 
152,474  
218,441  
148,056 
Net cash used in investing activities
 
(68,262)  
(80,180)  
(217,899) 
Net cash used in financing activities
 
(96,051)  
(183,832)  
(52,641) 
Effect of exchange rate changes on cash flows
 
8,906  
(12,566)  
4,128 
Increase/(decrease) in cash and cash equivalents
 
(2,933)  
(58,137)  
(118,356) 
Cash and cash equivalents at beginning of year
 
115,283  
173,420  
291,776 
Cash and cash equivalents at end of year
$ 
112,350 $ 
115,283 $ 
173,420 
(in thousands)
_________________________
(a) Includes Accounts receivable, Contract assets, Inventories, Accounts payable and Accrued liabilities.
Net cash provided by operating activities during 2025 was $152.5 million, compared to $218.4 million in 2024. The 
decrease was primarily driven by slower working capital turns at both segments much of which is driven by higher 
levels of year-end shipments at AEC, as well as lower net income adjusted for non-cash items.
Net cash used in investing activities included capital expenditures totaling $71.5 million and $81.2 million during 2025 
and 2024, respectively, which include investments in new aerospace programs and productivity enhancements in our 
MC segment. In addition to lower capital expenditures, the decrease from 2024 is due, in part, to proceeds from the 
sale of Arcari in April 2025.
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Net cash used in financing activities was $96.1 million during 2025 as compared to $183.8 million during 2024. The 
change in cash used in finance activities is a result of increased borrowings and a decrease in principal debt 
payments versus prior year, partially offset by increased share repurchases. 
Liquidity and Capital Structure
We finance our business activities primarily with cash generated from operations and borrowings, largely through our 
revolving credit agreement as discussed below. Our subsidiaries outside of the United States may also maintain 
working capital lines with local banks.
Under our $800 million unsecured credit agreement, $455.7 million of borrowings were outstanding as of 
December 31, 2025. 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 December 31, 2025, we had cash and cash equivalents of $112.4 million and availability under our Credit 
Agreement of $344.3 million, for a total liquidity of approximately $456.7 million. For more information on the revolving 
credit agreement, see Note 17, Financial Instruments, of the Notes to the Consolidated Financial Statements in Item 
8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. 
As of December 31, 2025, $91.6 million of our total cash and cash equivalents was held by non-U.S. subsidiaries. The 
Company has targeted for repatriation $122.2 million of current year and prior year earnings of the Company’s foreign 
operations. The accumulated undistributed earnings of the Company’s foreign operations not targeted for repatriation 
to the U.S. were approximately $132.1 million, 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. We paid dividends of $32.5 
million and $32.5 million during 2025 and 2024, respectively. In total, the Company repurchased 2,841,036 shares in 
2025 for a total cost of $187.9 million. On February 21, 2025, the Company's Board of Directors authorized the 
Company to repurchase shares up to $250 million, which replaces a prior authorization put in place in 2021. The 
Company has $76.7 million remaining under this authorization for future share repurchases.
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 $12 million. There were no material changes in 
the Company’s off-balance sheet arrangements during 2025.
Other Sources/Uses of Capital
We have contractual commitments to repay debt, make payments under leases, contribute to our pension and 
postretirement plans, and settle obligations related to agreements to purchase goods and services, income taxes, 
compensation plans, and as applicable, interest rate swaps. We estimate these contractual commitments amount to 
approximately $595.2 million as of December 31, 2025, of which we expect to pay $41.7 million within the next year. 
Interest payments on debt are expected to be approximately $17.6 million in 2026, $17.6 million in 2027, and $11.1 
million in 2028, and principal payments on debt of $330.7 million are not due until 2028. For more information on the 
revolving credit agreement, see Note 17, Financial Instruments, for payments related to leases see Note 20, Leases, 
and for payments related to pension and postretirement plans see Note 4, Pension, Postretirement, and Other Benefit 
Plans, as included in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and 
Supplementary Data, of this Annual Report on Form 10-K. Payments for these commitments are not representative of 
all our future cash requirements, which will vary based on future needs. 
Critical Accounting Policies
For the discussion of our accounting policies, see Note 1, Accounting Policies, of the Notes to the Consolidated 
Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. 
The preparation of financial statements in conformity with accounting principles generally accepted in the United 
States of America requires management to make assumptions and estimates that directly affect the amounts reported 
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in the Consolidated Financial Statements. Each of these assumptions is subject to uncertainties and changes in those 
assumptions or judgments which can affect our results of operations. In addition to the accounting policies stated in 
Note 1, Accounting Policies, of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements 
and Supplementary Data, of this Annual Report on Form 10-K, the financial statement amounts and disclosures are 
significantly influenced by market factors, judgments and estimates as described below.
Revenue Recognition
Contracts with customers in the MC segment have various terms that can affect the point in time when revenue is 
recognized. The contractual terms are closely monitored in order to ensure revenue is recognized in the proper 
period.
Products and services provided under long-term contracts represent a significant portion of net revenues in the AEC 
segment. AEC’s largest source of revenue is derived from the LEAP contract under a cost-plus-fee agreement. The 
fee may vary within a narrow range based on our success in achieving certain cost targets. Revenue is recognized 
over time as costs are incurred. Under this contract, there is judgment involved in determining applicable contract 
costs and the amount of revenue to be recognized.
We also have fixed price long-term contracts, for which revenue is generally recognized over time using an input 
method as the measure of progress. This method requires significant judgment and estimation, which could be 
considerably 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.
AEC has long-term aerospace contracts under which there are two phases: a phase during which the production part 
is designed and tested, and a phase of supplying production parts. During the design and testing phases, we perform 
pre-production or nonrecurring engineering services, which are normally considered a fulfillment activity, rather than a 
performance obligation. Fulfillment activities that create resources that will be used in satisfying performance 
obligations in the future, and are expected to be recovered, are capitalized in Other assets. The capitalized costs are 
amortized into cost of goods sold over the period which the asset is expected to contribute to future cash flows, 
including anticipated renewal periods. Accumulated capitalized costs are written-off when those costs are determined 
to be unrecoverable.
For contracts with anticipated losses, a provision for the entire amount of the estimated remaining loss is charged 
against income in the period in which the loss becomes known. Contract loss provisions include contract options that 
are probable of exercise, excluding any profitable options that might be expected to follow. Contract losses are 
determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative costs, 
which are treated as period expenses. We are required to limit our estimate of contract values to the period of the 
legally enforceable contract. While certain contracts are expected to be profitable over the course of the program life 
when including expected renewals, our estimate of contract revenues and costs is limited to the estimated value of 
enforceable rights and obligations, excluding anticipated renewals. In some cases, the contract period may result in a 
loss contract provision at the inception of the contract. 
Pension and Postretirement Liabilities
We sponsor several pension and postretirement benefit plans. Our liabilities under these defined benefit plans are 
determined using methodologies that involve several actuarial assumptions, the most significant of which are the 
discount rate, health care cost inflation rate and the long-term rate of return on plan assets. We review our actuarial 
assumptions on an annual basis and make modifications to the assumptions when appropriate.
Discount Rate Selection
We select a discount rate for purposes of measuring obligations under defined benefit plans by matching cash flows 
separately for each plan to the yields on high-quality zero-coupon bonds. We use the RATE: Link 60-90 model (the 
"RATE Link"). We believe the projected cash flows used to determine RATE Link provide a good approximation of the 
timing and amounts of our defined benefit payments under our plans and no adjustments to RATE Link has been 
made.
Measurement of our postretirement benefit obligations requires the use of several assumptions about factors that will 
affect the amount and timing of future benefit payments. The assumed health care cost trend rates are the most 
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critical estimates for measurement of the postretirement benefit obligation. Changes in the health care cost trend rates 
have a significant effect on the amounts reported for the health care benefit obligation.
Long-term Rate of Return on Plan Assets Assumption
Our expected long-term rate of return on plan assets is derived from our asset allocation strategies and anticipated 
future long-term performance of individual asset classes. Our analysis gives consideration to recent plan performance 
and historical returns; however, the assumptions are primarily based on long-term, prospective rates of return. The 
weighted average long-term rate of return on plan assets for our defined benefit pension plans is 4.82% for 2025.
Based on information provided by actuaries and other relevant sources, the Company believes that the assumptions 
used to estimate expenses, assets and liabilities of pensions and postretirement benefits are reasonable; however, 
changes in these assumptions could impact the Company’s financial position, results of operations or cash flows.
Income Taxes
We evaluate the realizability of deferred tax assets by assessing available positive and negative evidence, including 
the expected reversal of existing temporary differences and projections of future taxable income. If, based on the 
weight of available evidence, we believe that it is more likely than not some portion of the deferred tax asset will not 
be realized, a valuation allowance is established. The amount of a valuation allowance is based upon management’s 
best estimate of deferred tax assets that are not expected to be realized.
Tax positions taken or expected to be taken in a tax return are recognized when it is more-likely-than-not, based on 
technical merits, to be sustained upon examination by taxing authorities. The amount of tax benefit recognized is 
measured as the largest amount of benefit that has a greater than 50% likely of being realized upon ultimate 
settlement, including resolution of any administrative appeals or litigation process, where applicable. These 
evaluations involve a high degree of uncertainty because they require us to make material assumptions about future 
events that are inherently difficult to predict. Key judgments include projections of future taxable income across 
multiple tax jurisdictions, interpretations of continually evolving tax laws and regulations, expectations regarding audit 
outcomes, and assessments of the timing and reversals of temporary differences. Changes in these assumptions or in 
actual outcomes could materially affect the amount of deferred tax assets we are able to realize, the valuation 
allowance recorded, and the recognition and measurement of uncertain tax positions
Business Combinations
As we enter into business combinations, we perform acquisition accounting requirements including the following:
•
Identifying the acquirer,
•
Determining the acquisition date,
•
Recognizing and measuring the identifiable assets acquired and the liabilities assumed, and
•
Recognizing and measuring goodwill, as applicable.
We complete valuation procedures and record the resulting fair value of the acquired assets and assumed liabilities in 
accordance with the acquisition method under ASC 805, Business Combinations. The acquisition methodology 
requires management to make assumptions and apply judgment to determine the fair value of assets acquired and 
liabilities assumed. If estimates or assumptions used to complete the enterprise valuation and estimates of the fair 
value of the acquired assets and assumed liabilities significantly differ from assumptions made, the resulting 
difference could materially affect the fair value of net assets.
In determining the fair value of the tangible assets, including property, plant and equipment, we consider the cost-
approach and the market approach, which estimates the cost to replace the asset, less accrued depreciation resulting 
from physical deterioration, functional obsolescence and external obsolescence. In the determination of the fair value 
of the identified intangible assets, we use cash flow models following the income approach, specifically, a relief from 
royalty method methodology. Inputs include estimated revenue growth rates, gross margins, operating expenses, and 
estimated attrition, royalty and discount rates. Goodwill is recorded as the difference in the fair value of the acquired 
assets and assumed liabilities and the purchase price, as applicable. 
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Goodwill and Intangible assets
Goodwill is not amortized, but is tested for impairment at least annually. Estimating the fair value of reporting units 
requires the use of estimates and significant judgments, including but not limited to revenue growth rates, operating 
margins, discount rates, and future market conditions. It is possible that these judgments and estimates could change 
in future periods. Impairment assessments inherently involve management judgments regarding a number of 
assumptions such as those described. Due to the many variables inherent in the estimation of a reporting unit’s fair 
value and the relative size of our recorded goodwill, differences in assumptions could have a material effect on the 
estimated fair value of one or more of our reporting units and could result in a goodwill impairment charge in a future 
period. 
The determination of the fair value of intangible assets acquired in a business acquisition is subject to many estimates 
and assumptions. Among such estimates and assumptions are royalties, discount rate and useful life. We review 
amortizable intangible asset groups for impairment whenever events and changes in circumstances indicate that the 
related carrying amounts may not be recoverable.
Recent Accounting Pronouncements
See "Recent Accounting Pronouncements" in Note 1, Accounting Policies, of the Notes to the Consolidated Financial 
Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. 
Item 7A. 
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 potential losses 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 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 $602.4 million. The potential loss in fair value resulting from a hypothetical 10% adverse change in 
quoted foreign currency exchange rates amounts to $60.2 million. Furthermore, related to foreign currency 
transactions, we have exposure to various nonfunctional currency balances totaling $214.9 million. This amount 
includes, on an absolute basis, exposures to assets and liabilities held in currencies other than our local entities' 
functional currency. On a net basis, we had $137.9 million of foreign currency assets as of December 31, 2025. 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 $13.8 million. Actual results may differ.
Interest Rate Risk
We are exposed to interest rate fluctuations with respect to our variable rate debt, depending on general economic 
conditions.
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On December 31, 2025, we had the following variable rate debt:
(in thousands, except interest rates)
Long-term debt:
    Credit agreement borrowings outstanding (net of fixed rate portion, due in 2028):
USD borrowings (end of period all-in interest rate of 5.48%)
$ 
225,000 
EUR borrowings (end of period all-in interest rate of 3.56%)
 
52,831 
    Foreign bank debt
 
— 
Total
$ 
277,831 
Assuming borrowings were outstanding for an entire year, an increase of one percentage point in weighted average 
interest rates would increase interest expense by $2.8 million. To manage interest rate risk, we may periodically enter 
into interest rate swap agreements to effectively fix the interest rates on variable rate debt to a specific rate for a 
period of time. (See Note 18, Fair-Value Measurements, of the Notes to the Consolidated Financial Statements, in 
Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K).
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Item 8. 
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm
50
Consolidated Statements of Income/(Loss) for the years ended December 31, 2025, 2024, and 2023
53
Consolidated Statements of Comprehensive Income/(Loss) for the years ended December 31, 2025, 2024, 
and 2023
54
Consolidated Balance Sheets as of December 31, 2025 and 2024
55
Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024, and 2023
56
Notes to Consolidated Financial Statements
57
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49

Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Albany International Corp.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Albany International Corp. and subsidiaries (the 
Company) as of December 31, 2025 and 2024, the related consolidated statements of income (loss), comprehensive 
income (loss), and cash flows for each of the years in the three-year period ended December 31, 2025, and the 
related notes and financial statement Schedule - Valuation and Qualifying Accounts (collectively, the consolidated 
financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the 
financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash 
flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally 
accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United 
States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria 
established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations 
of the Treadway Commission, and our report dated February 27, 2026 expressed an unqualified opinion on the 
effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to 
express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm 
registered with the PCAOB and are required to be independent with respect to the Company in accordance with the 
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and 
the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of 
material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of 
material misstatement of the consolidated financial statements, whether due to error or fraud, and performing 
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the 
amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting 
principles used and significant estimates made by management, as well as evaluating the overall presentation of the 
consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated 
financial statements that was communicated or required to be communicated to the audit committee and that: (1) 
relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our 
especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter 
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating 
the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or 
disclosures to which it relates.
Evaluation of estimated total contract costs at completion for Albany Engineered Composites revenue 
recognition for certain firm-fixed-price contracts
As discussed in Note 3 to the consolidated financial statements, a portion of the Albany Engineered Composites 
(AEC) segment revenue is earned under firm-fixed-price orders that are placed under definitive agreements, with 
revenue recognized over time as costs are incurred. Under the cost-to-cost measure of progress, the extent of 
progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at 
completion of the performance obligation. Revenue is recorded proportionally as costs are incurred.
We identified the evaluation of estimated total contract costs at completion for AEC revenue recognition for certain 
firm-fixed-price contracts as a critical audit matter. A high degree of auditor judgment was required to evaluate the 
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estimates of total contract costs at completion because of the varied nature and inherent complexities of the 
contractual performance obligations.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design 
and tested the operating effectiveness of certain internal controls over the AEC revenue process. This included 
controls related to developing forecasted estimated total contract costs. For certain contracts, we compared the 
Company’s historical estimates of costs to actual costs incurred to assess the Company’s ability to estimate 
accurately. We read relevant agreements, including amendments, and inquired of financial and operational personnel 
of the Company to identify factors that should be considered within the cost to complete estimates. We inspected the 
Company’s analysis of contract status, including forecasted costs, which we compared against historical costs.
/s/ KPMG LLP
We have served as the Company’s auditor since 2014.
Boston, Massachusetts
February 27, 2026 
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Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Albany International Corp.:
Opinion on Internal Control Over Financial Reporting
We have audited Albany International Corp. and subsidiaries' (the Company) internal control over financial reporting 
as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by 
the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in 
all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria 
established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations 
of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United 
States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related 
consolidated statements of income (loss), comprehensive income (loss), and cash flows for each of the years in the 
three-year period ended December 31, 2025, and the related notes and financial statement Schedule - Valuation and 
Qualifying Accounts (collectively, the consolidated financial statements), and our report dated February 27, 2026 
expressed an unqualified opinion on those consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its 
assessment of the effectiveness of internal control over financial reporting, included in the accompanying 
Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the 
Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with 
the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal 
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was 
maintained in all material respects. Our audit of internal control over financial reporting included obtaining an 
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and 
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit 
also included performing such other procedures as we considered necessary in the circumstances. We believe that 
our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding 
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance 
with generally accepted accounting principles. A company’s internal control over financial reporting includes those 
policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly 
reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that 
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally 
accepted accounting principles, and that receipts and expenditures of the company are being made only in 
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance 
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that 
could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become 
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may 
deteriorate.
/s/ KPMG LLP
Boston, Massachusetts
February 27, 2026 
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CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
For the years ended December 31, 
(in thousands, except per share amounts)
Net revenues
$ 1,182,813 $ 1,230,615 $ 1,147,909 
Cost of goods sold
 
938,893  
828,839  
724,191 
Gross profit
 
243,920  
401,776  
423,718 
Selling, general and administrative expenses
 
218,326  
210,882  
214,915 
Technical and research expenses
 
48,015  
46,097  
40,627 
Restructuring expenses, net
 
13,682  
13,438  
282 
Operating income/(loss)
 
(36,103)  
131,359  
167,894 
Interest income
 
(5,159)  
(4,064)  
(6,566) 
Interest expense
 
25,764  
16,613  
20,167 
Other expense/(income), net
 
5,079  
1,721  
(6,163) 
Income/(loss) before income taxes
 
(61,787)  
117,089  
160,456 
Income tax (benefit)/expense
 
(4,828)  
29,034  
48,846 
Net income/(loss)
 
(56,959)  
88,055  
111,610 
Net income attributable to the noncontrolling interest
 
383  
432  
490 
Net income/(loss) attributable to the Company
$ 
(57,342) $ 
87,623 $ 
111,120 
Earnings per share:
Basic earnings (loss) per share attributable to Company shareholders
$ 
(1.94) $ 
2.81 $ 
3.56 
Diluted earnings (loss) per share attributable to Company shareholders $ 
(1.94) $ 
2.80 $ 
3.55 
Dividends declared per share
$ 
1.09 $ 
1.05 $ 
1.01 
Weighted average shares outstanding:
   Basic
 
29,566  
31,231  
31,171 
   Diluted
 
29,566  
31,338  
31,276 
2025
2024
2023
The accompanying notes are an integral part of the consolidated financial statements.
Index
Albany International Corp.
53

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
For the years ended December 31, 
(in thousands)
Net income/(loss)
$ 
(56,959) $ 
88,055 $ 
111,610 
Other comprehensive income/(loss), before tax:
Foreign currency translation and other adjustments
 
60,352  
(56,551)  
18,593 
Pension settlement/curtailment
 
(2,002)  
—  
— 
Pension/postretirement plan remeasurement
 
(8,361)  
3,888  
4,302 
Amortization of pension and postretirement liability adjustments:
Prior service credit
 
(150)  
(150)  
(4,122) 
Net actuarial loss
 
1,151  
613  
1,383 
Payments and amortization related to interest rate swaps included 
in earnings
 
(269)  
(13,547)  
(15,062) 
Derivative valuation adjustment
 
(399)  
1,261  
3,512 
Income taxes related to items of other comprehensive income/(loss):
Pension settlement/curtailment
 
422  
—  
— 
Pension/postretirement plan remeasurement
 
1,763  
(1,283)  
(673) 
Amortization of pension and postretirement liability adjustments
 
(210)  
(153)  
904 
Payments and amortization related to interest rate swaps included 
in earnings
 
62  
3,419  
3,811 
Derivative valuation adjustment
 
92  
(318)  
(889) 
Comprehensive income/(loss)
 
(4,508)  
25,234  
123,369 
Comprehensive income/(loss) attributable to the noncontrolling interest  
484  
(543)  
949 
Comprehensive income/(loss) attributable to the Company
$ 
(4,992) $ 
25,777 $ 
122,420 
2025
2024
2023
The accompanying notes are an integral part of the consolidated financial statements.
Index
Albany International Corp.
54

CONSOLIDATED BALANCE SHEETS
At December 31,
(in thousands, except share and per share data)
Assets
Current assets:
Cash and cash equivalents
$ 
112,350 $ 
115,283 
Accounts receivable, net
 
235,084  
246,688 
Contract assets, net
 
87,102  
166,557 
Inventories
 
121,589  
145,845 
Income taxes prepaid and receivable
 
43,937  
19,187 
Prepaid expenses and other current assets
 
34,990  
37,132 
Assets held for sale
 
293,783  
— 
Total current assets
 
928,835  
730,692 
Property, plant and equipment, net
 
482,568  
563,431 
Intangibles, net
 
21,428  
38,127 
Goodwill
 
162,507  
176,261 
Deferred income taxes
 
68,499  
28,757 
Other assets
 
54,872  
111,428 
Total assets
$ 1,718,709 $ 1,648,696 
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
$ 
64,499 $ 
66,095 
Accrued liabilities
 
139,385  
141,904 
Income taxes payable
 
35,090  
18,367 
Liabilities held for sale
 
203,323  
— 
Total current liabilities
 
442,297  
226,366 
Long-term debt
 
455,663  
318,531 
Other noncurrent liabilities
 
86,850  
138,830 
Deferred taxes and other liabilities
 
1,797  
16,022 
Total liabilities
 
986,607  
699,749 
Commitments and Contingencies (Note 21)
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; issued 40,989,106 in 2025 and 40,917,539 in 2024  
41  
41 
Additional paid-in capital
 
460,472  
452,933 
Retained earnings
 
976,373  
1,065,763 
Accumulated items of other comprehensive income:
Translation adjustments
 
(119,008)  
(181,555) 
Pension and postretirement liability adjustments
 
(23,911)  
(14,328) 
Derivative valuation adjustment
 
(619)  
(106) 
Treasury stock (Class A), at cost; 12,685,782 shares in 2025 and 9,844,746 in 2024  
(567,139)  
(379,210) 
Total Company shareholders’ equity
 
726,209  
943,538 
Noncontrolling interest
 
5,893  
5,409 
Total shareholders' equity
 
732,102  
948,947 
Total liabilities and shareholders’ equity
$ 1,718,709 $ 1,648,696 
2025
2024
The accompanying notes are an integral part of the consolidated financial statements.
Index
Albany International Corp.
55

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 
(in thousands)
2025
2024
2023
OPERATING ACTIVITIES
Net income
$ 
(56,959) $ 
88,055 
$ 
111,610 
Adjustments to reconcile net income to net cash provided by operating 
activities:
Depreciation
 
82,712 
 
82,452 
 
70,374 
Amortization
 
5,202 
 
6,842 
 
6,359 
Change in deferred taxes and other liabilities
 
(43,315)  
(15,331)  
(2,046) 
Impairment of property, plant, equipment, and inventory
 
(390)  
2,038 
 
1,773 
Non-cash interest expense
 
1,029 
 
1,025 
 
1,404 
Contract loss provision
 
139,665 
 
— 
 
— 
Share-based compensation
 
10,060 
 
4,715 
 
6,936 
Provision/(recovery) for credit losses from uncollected receivables and 
contract assets
 
(139)  
310 
 
640 
Foreign currency remeasurement (gain)/loss on intercompany loans
 
8,883 
 
81 
 
(2,831) 
Fair value adjustment on foreign currency options
 
— 
 
— 
 
(139) 
Gain on sale of assets
 
(1,566)  
(513)  
— 
Changes in operating assets and liabilities that provided/(used) cash, net of 
impact of business acquisition:
Accounts receivable
 
(724)  
31,764 
 
(11,038) 
Contract assets
 
(23,189)  
12,289 
 
(32,156) 
Inventories
 
17,627 
 
14,627 
 
15,093 
Prepaid expenses and other current assets
 
1,865 
 
4,002 
 
1,530 
Income taxes prepaid and receivable
 
(25,060)  
(8,574)  
(2,897) 
Accounts payable
 
9,172 
 
(3,084)  
(5,672) 
Accrued liabilities
 
7,975 
 
(1,275)  
(10,441) 
Income taxes payable
 
14,507 
 
6,918 
 
(1,988) 
Noncurrent receivables
 
— 
 
(780)  
3,723 
Other noncurrent liabilities
 
(2,550)  
(7,702)  
(9,783) 
Other, net
 
7,669 
 
582 
 
7,605 
Net cash provided by operating activities
 
152,474 
 
218,441 
 
148,056 
INVESTING ACTIVITIES
Purchase of business, net of cash acquired
 
— 
 
— 
 
(133,470) 
Purchases of property, plant and equipment
 
(69,830)  
(80,249)  
(83,560) 
Purchased software
 
(1,675)  
(958)  
(869) 
Proceeds received from sale of assets
 
3,243 
 
1,027 
 
— 
Net cash used in investing activities
 
(68,262)  
(80,180)  
(217,899) 
FINANCING ACTIVITIES
Proceeds from borrowings
 
272,003 
 
145,595 
 
78,040 
Principal payments on debt
 
(147,044)  
(279,838)  
(92,274) 
Debt acquisition costs
 
— 
 
— 
 
(4,108) 
Purchase of Treasury shares
 
(186,012)  
(14,175)  
— 
Taxes paid in lieu of share issuance
 
(2,521)  
(2,931)  
(3,136) 
Dividends paid
 
(32,477)  
(32,483)  
(31,163) 
Net cash used in financing activities
 
(96,051)  
(183,832)  
(52,641) 
Effect of exchange rate changes on cash and cash equivalents
 
8,906 
 
(12,566)  
4,128 
(Decrease) in cash and cash equivalents
 
(2,933)  
(58,137)  
(118,356) 
Cash and cash equivalents at beginning of period
 
115,283 
 
173,420 
 
291,776 
Cash and cash equivalents at end of period
$ 
112,350 
$ 
115,283 
$ 
173,420 
The accompanying notes are an integral part of the consolidated financial statements.
Index
Albany International Corp.
56

1. Accounting Policies
Basis of Consolidation and Presentation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted 
accounting principles in the United States of America ("GAAP") and include the accounts of Albany International Corp. 
and its subsidiaries (the Company, Albany, we, us, or our) after elimination of intercompany transactions. 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. See Note 3, Reportable Segments and Geographical Data, of the Notes to the Consolidated Financial 
Statements for more information on our segments. 
On August 31, 2023, the Company completed the acquisition of Heimbach GmbH ("Heimbach"), a privately-held 
manufacturer of paper machine clothing and technical textiles, as further described in Note 24, Business Combination, 
of the Notes to the Consolidated Financial Statements of our 2023 Annual Report on Form 10-K. The financial results 
of the acquired company are included in the Machine Clothing reportable segment since the date of the acquisition.
The Company owns 90% of the common equity of Albany Safran Composites, LLC ("ASC") which is reported within 
the Albany Engineered Composites segment. The Company also previously owned 85% of Arcari, SRL ("Arcari") 
which was divested during the second quarter of 2025. Additional information regarding noncontrolling interest is 
included in Note 10, Noncontrolling Interest, of the Notes to the Consolidated Financial Statements.
Estimates
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in 
the United States requires management to make estimates and assumptions that affect the reported amounts of 
assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial 
statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in 
the accounting for, among others, revenue recognition, contract profitability, allowances for doubtful accounts, rebates 
and sales allowances, inventory allowances, financial instruments, including derivatives, pension and other 
postretirement benefits, 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 materially 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.
Revenue Recognition
In our Machine Clothing ("MC") business segment, we recognize revenue at the point in time when we satisfy our 
performance obligations related to the manufacture and delivery of products. In our Albany Engineered Composites 
("AEC") business segment, revenue from most long-term contracts is generally recognized over time using an input 
method as the measure of progress. The amount of revenue in excess of progress billings on long-term contracts is 
included in Contract assets, net, which represent rights to consideration that are conditional on something other than 
the passage of time, such as completion of remaining performance obligations. 
For over time contracts, we are required to limit our estimate of contract values to the period of the legally enforceable 
contract. While certain contracts are expected to be profitable over the course of the program life when including 
expected renewals, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights 
and obligations, excluding anticipated renewals. This contract period may result in a loss contract provision at contract 
inception. Expected losses on projects include losses on contract options that are probable of exercise, excluding 
profitable options that may follow. For contracts with anticipated losses, a provision for the entire amount of the 
estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
57

are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative 
cost allocations, which are treated as period expenses.
Products and services provided under long-term contracts represent a significant portion of Net revenues in the AEC 
segment. We have contracts with certain customers for which revenue is recognized under a cost-plus-fee agreement. 
We also have fixed price long-term contracts, for which we use the percentage of completion (incurred cost to total 
estimated cost) method. That method requires significant judgment and estimation, which could be considerably 
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. 
Additional accounting policies related to revenue from contracts with customers are set forth in Note 3, Revenue 
Recognition, of the Notes to the Consolidated Financial Statements.
We limit the concentration of credit risk in receivables by closely monitoring credit and collection policies. We record 
allowances for sales returns as a deduction in the computation of Net revenues. Such provisions are recorded on the 
basis of written communication with customers and/or historical experience. Any value added taxes that are imposed 
on sales transactions are excluded from Net revenues.
Cost of Goods Sold
Cost of goods sold includes the cost of materials, provisions for obsolete inventories, labor and supplies, shipping and 
handling costs, depreciation of manufacturing facilities and equipment, purchasing, receiving, warehousing, and other 
expenses. Cost of goods sold also includes provisions for loss contracts and charges for the write-off of inventories 
that result from an exit activity.
Selling, General, and Administrative ("SG&A") Expenses
Selling, general, and administrative expenses are primarily comprised of wages, incentive compensation, benefits, 
travel, professional fees, revaluation of trade foreign currency balances, global information system costs, and other 
costs, and are expensed as incurred. Selling expense includes costs related to contract acquisition and provisions for 
expected credit losses on financial assets measured at amortized cost.
Technical and Research Expenses
Technical and research expenses are charged to operations as incurred and consist primarily of compensation, 
supplies, and professional fees incurred in connection with intellectual property. 
The AEC segment participates in both company-sponsored, and customer-funded research and development. Some 
customer-funded research and development may be on a cost-sharing basis and considered to be a collaborative 
arrangement, in which case both parties are active participants and are exposed to the risks and rewards dependent 
on the success of the activity. In such cases, amounts charged to the collaborating entity are credited against 
research and development expense. For customer-funded research and development in which we anticipate funding 
to exceed expenses, we include amounts charged to the customer in Net revenues, while expenses are included in 
Cost of goods sold.
Restructuring Expense
We may incur expenses related to exiting a line of business or restructuring of our operations or organizational 
structure, which could include employee termination costs, costs to consolidate or close facilities, or costs to terminate 
contractual relationships. Restructuring expenses may also include impairment of Property, plant and equipment, as 
described below under “Property, Plant and Equipment.” Employee termination costs include severance pay and 
social costs for periods after employee service is completed. Termination costs related to an ongoing benefit 
arrangement are recognized when the amount becomes probable and estimable. Termination costs related to a one-
time benefit arrangement are recognized at the communication date to employees. Costs related to contract 
termination, relocation of employees, outplacement and the consolidation or the closure of facilities, are recognized 
when incurred.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
58

Income Taxes
Deferred income taxes are recognized for the tax consequences of temporary differences and tax attributes by 
applying enacted statutory tax rates applicable for future years to differences between existing assets and liabilities for 
financial reporting and income tax return purposes. The effect of tax rate changes on deferred taxes is recognized in 
the income tax provision in the period that includes the enactment date. A valuation allowance is established, as 
needed, to reduce net deferred tax assets to the amount expected to be realized. In the event it becomes more likely 
than not that some or all of the deferred tax asset valuation allowances will not be needed, the valuation allowance 
will be adjusted.
In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our 
income tax positions and record tax benefits for all years subject to examination based upon management’s 
evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it 
is more likely than not that a tax benefit will be sustained, we have determined the amount of the tax benefit to be 
recognized by estimating the largest amount of tax benefit that has a greater than 50% likelihood of being realized 
upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income 
tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been 
recognized in the financial statements. Where applicable, associated interest and penalties have also been 
recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of 
income tax expense. We have not elected to reclassify stranded tax effects from Accumulated items of other 
comprehensive income (AOCI) to retained earnings. 
Earnings Per Share
Basic net earnings or loss per share is computed using the weighted average number of shares of Class A Common 
Stock outstanding during each year. Diluted net income per share includes the effect of all potentially dilutive 
securities. If we report a net loss from continuing operations, the diluted loss per share is equal to the basic earnings 
per share calculation.
Translation of Financial Statements
Assets and liabilities of non-U.S. operations are translated at year-end rates of exchange, and the income statement 
accounts are translated at average monthly exchange rates. Gains or losses resulting from translating non-U.S. 
currency financial statements into U.S. dollars are recorded in other comprehensive income and accumulated in 
Shareholders’ equity in the caption “Translation adjustments.”
Selling, general, and administrative expenses include foreign currency gains and losses resulting from third party 
balances, such as receivables and payables, which are denominated in a currency other than the entity’s functional 
currency. Gains or losses resulting from cash and short-term intercompany loans and balances denominated in a 
currency other than the entity’s functional currency, and foreign currency options are generally included in Other 
expense, net. Gains and losses on long-term intercompany loans not intended to be repaid are recorded in other 
comprehensive income. 
The following table summarizes foreign currency transaction gains and losses recognized in the income statement:
(in thousands)
2025
2024
2023
(Gains)/losses included in:
Selling, general, and administrative expenses
$ 
6,252 $ 
(4,495) $ 
4,181 
Other (income)/expense, net
 
8,883  
(3,900)  
(2,916) 
Total transaction (gains)/losses
$ 
15,135 $ 
(8,395) $ 
1,265 
Years ended December 31,
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
59

Cash and Cash Equivalents
Cash and cash equivalents consist of cash and highly liquid short-term investments with maturities of three months or 
less at the date of acquisition by the company.
Accounts Receivable
Accounts receivable includes trade and other accounts receivables and Bank promissory notes. In connection with 
certain sales in Asia Pacific, 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.
In accordance with ASC 326, Current Expected Credit Losses ("CECL"), the Company recognizes an allowance for 
expected credit losses on financial assets measured at amortized cost, such as Accounts receivable and Contract 
assets. The allowance is determined using a CECL model that is based on an historical average three-year loss rate 
and is measured by financial asset type on a collective (pool) basis when similar risk characteristics exist, at an 
amount equal to lifetime expected credit losses. The estimate reflects the risk of loss due to credit default, even when 
the risk is remote, and considers available relevant information about the collectability of cash flows, including 
information about past events, current conditions, and reasonable and supportable expected future economic 
conditions.
See additional information set forth in Note 11, Accounts Receivable, of the Notes to the Consolidated Financial 
Statements.
Contract Assets and Contract Liabilities
Contract assets includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost 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 payment becomes unconditional. Contract 
liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are included in 
Accrued liabilities in the Consolidated Balance Sheet.
See additional information set forth in Note 12, Contract Assets and Liabilities, of the Notes to the Consolidated 
Financial Statements.
Inventories
Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw 
materials inventory is valued on an average cost basis. Other inventory cost elements are valued at cost, using the 
first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or 
net realizable value based upon assumptions about future demand and market conditions. Write-downs of inventories 
are charged to Cost of goods sold. 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.
See additional information set forth in Note 3, Revenue Recognition, and Note 13, Inventories, of the Notes to the 
Consolidated Financial Statements.
Leases
We determine if an arrangement is a lease at inception. A contract is, or contains a lease if the contract conveys the 
right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a 
contract conveys the right to control the use of an identified asset, we assess whether:
•
The contract involves the use of an identified asset. This may be specified explicitly or implicitly, and should 
be physically distinct or represent substantially all of the capacity of a physically distinct asset,
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
60

•
The lessee has the right to obtain substantially all of the economic benefits from use of the asset throughout 
the period of use, and
•
The lessee has the right to direct the use of the asset, which is demonstrated when the lessee has decision-
making rights that are most relevant to changing how and for what purpose the asset is used.
Judgment is required in the determination of whether a contract contains a lease, the appropriate classification, 
allocation of consideration, and the determination of the discount rate for the lease. Key estimates and judgments 
include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present 
value, (2) lease term and (3) lease payments.
We have certain lease agreements with lease and non-lease components. For most of these leases, we account for 
the lease and non-lease components as a single lease component, in accordance with the practical expedient that is 
available for ongoing accounting. Additionally, for certain other leases, such as for vehicles, we apply a portfolio 
approach. Such new leases are classified as finance or operating, with classification affecting the pattern and 
classification of expense recognition in the income statement. Expenses related to operating leases are recognized on 
a straight-line basis, while those determined to be finance leases are recognized following a front-loaded expense 
profile, in which interest and amortization are presented separately in the income statement.
Operating lease right of use asset ("ROU") assets are included in Other assets in the Consolidated Balance Sheets, 
while finance lease ROU assets are included in Property, plant, and equipment, net. Lease liabilities for both operating 
and finance leases are included in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance 
Sheets.
See additional information set forth in Note 20, Leases, of the Notes to the Consolidated Financial Statements.
Debt
The Company relies on bank financing as an important source of liquidity for business activities. Outstanding debt is 
classified as current or long-term based on the maturity of the Company's financing arrangements. See additional 
information set forth in Note 17, Financial Instruments, of the Notes to the Consolidated Financial Statements.
Property, Plant and Equipment
Property, plant and equipment are recorded at cost, or if acquired as part of a business combination, at fair value. 
Depreciation is recorded using the straight-line method over the estimated useful lives of the assets for financial 
reporting purposes. In some cases, accelerated methods are used for income tax purposes. Significant additions or 
improvements extending assets’ useful lives are capitalized; normal maintenance and repair costs are expensed as 
incurred. The cost of fully depreciated assets remaining in use is included in the respective asset and accumulated 
depreciation accounts. When items are sold or retired, related gains or losses are included in Net income.
Computer software purchased for internal use, at cost, is amortized on a straight-line basis over five to eight years, 
depending on the nature of the asset, after being placed into service, and is included in Property, plant, and 
equipment. We capitalize internal and external costs incurred related to the software development stage. Capitalized 
salaries, travel, and consulting costs related to the software development totaled $1.2 million in both 2025 and 2024.
We review the carrying value of property, plant and equipment and other long-lived assets for impairment whenever 
events and circumstances indicate that the carrying value of an asset group may not be recoverable from the 
estimated future cash flows expected to result from its use and eventual disposition.
See additional information set forth in Note 14, Property, Plant and Equipment, Net, of the Notes to the Consolidated 
Financial Statements.
Business Combinations
The total purchase consideration for an acquisition is measured at the fair value of the assets acquired and liabilities 
assumed as of the acquisition date. Costs that are directly attributable to the acquisition are expensed as incurred. 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
61

Identifiable assets acquired, liabilities assumed, and noncontrolling interests in an acquisition are measured initially at 
their fair values at the acquisition date. We recognize goodwill if the fair value of the total purchase consideration and 
any noncontrolling interest is in excess of the net fair value of the identifiable assets acquired and the liabilities 
assumed. We include the results of operations of the acquired business in the consolidated financial statements 
beginning on the acquisition date. 
Assets and Liabilities Held for Sale
Disposal groups are classified as held-for-sale if their carrying amounts are expected to be recovered through a sale 
transaction rather than through continuing use. Disposal groups classified as held-for-sale are measured at the lower 
of their carrying amount or the fair value less costs of disposal. Disposal groups are classified as current if the sale is 
probable within one year of the balance sheet date. Depreciation or amortization of an asset ceases when it is 
classified as held-for-sale. When disposal groups are classified as held-for-sale, prior period amounts are not 
reclassified to reflect the current period presentation within the Consolidated Balance Sheet.
The determination of the fair value less costs of disposal involves the use of estimates and assumptions that tend to 
be uncertain. Determining the fair value of a disposal group quantitatively requires the use of significant estimates and 
assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among 
others. For purposes of allocating goodwill to the disposal groups that represent a portion of a reporting unit, we 
determine the fair value of each disposal group based on income-based valuation techniques, utilizing projected 
discounted cash flows. Additionally, there may be adjustments in a future period related to resolution of uncertainties 
that arise from the terms of the disposal transaction, such as the resolution of purchase price adjustments and 
indemnifications, resolution of uncertainties that arise from and are directly related to the operations of the component 
before its disposal. 
Goodwill, Intangibles, and Other Assets
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. Intangible assets from acquired businesses are recognized at fair 
value on the acquisition date and consist of customer relationships, customer contracts, technology, intellectual 
property and other intangible assets. Goodwill and intangible assets with indefinite useful lives are not amortized, but 
are tested for impairment at least annually. 
We perform an impairment test of our goodwill at least annually in the second quarter or more frequently whenever 
events or changes in circumstances indicate the carrying value of goodwill may be impaired. Such events or changes 
in circumstances may include a significant deterioration in overall economic conditions, changes in the business 
climate of our industry, a decline in our market capitalization, operating performance indicators, competition, 
reorganizations of our business, or the disposal of all or a portion of a reporting unit. 
Our goodwill has been allocated to and is tested for impairment at a level referred to as the reporting unit, which is our 
business segment level or a level below the business segment. The level at which we test goodwill for impairment 
requires us to determine whether the operations below the business segment constitute a self-sustaining business for 
which discrete financial information is available and segment management regularly reviews the operating results.
We may use qualitative or quantitative approaches when testing goodwill for impairment. When we use the qualitative 
approach, we perform a qualitative evaluation of events and circumstances impacting the reporting unit to determine 
the likelihood of goodwill impairment. Based on that qualitative evaluation, if we determine it is more likely than not 
that the fair value of a reporting unit exceeds its carrying amount, no further evaluation is necessary. Otherwise, we 
perform a quantitative impairment test. To perform the quantitative impairment test, we compare the fair value of a 
reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, 
goodwill of the reporting unit is not impaired. If the carrying value of the reporting unit, including goodwill, exceeds its 
fair value, a goodwill impairment loss is recognized in an amount equal to that excess. 
Determining the fair value of a reporting unit quantitatively requires the use of significant estimates and assumptions, 
including revenue growth rates, operating margins, discount rates, and future market conditions, among others. To 
determine fair value, we utilize a market-based approach and an income approach. Under the market-based 
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
62

approach, we utilize information regarding the Company, as well as publicly available industry information, to 
determine earnings multiples. Under the income approach, we determine fair value based on estimated future cash 
flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall 
level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.
Impairment assessments inherently involve management judgments regarding a number of assumptions such as 
those described above. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the 
relative size of our recorded goodwill, differences in assumptions could have a material effect on the estimated fair 
value of one or more of our reporting units and could result in a goodwill impairment charge in a future period. See 
additional information set forth in Note 15, Goodwill and Other Intangible Assets, of the Notes to the Consolidated 
Financial Statements.
Other Assets
For some AEC contracts, we perform pre-production or nonrecurring engineering services. These costs are normally 
considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that 
will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized to 
Other assets, which is classified as a noncurrent asset in the Consolidated Balance Sheets. The capitalized costs are 
amortized into Cost of goods sold over the period over which the asset is expected to contribute to future cash flows, 
which includes anticipated renewal periods.
Included in Other assets is $10.4 million in 2025 and $17.0 million in 2024 for defined benefit pension plans where 
plan assets exceed the projected benefit obligations. Other assets also include financial assets of $1.1 million in 2025 
and $0.6 million in 2024. See additional information set forth in Note 18, Fair-Value Measurements, of the Notes to the 
Consolidated Financial Statements.
Stock-Based Compensation
We have incentive compensation plans that authorize the issuance of stock-based awards for key employees, which 
are designed to reward short and long-term contributions and provide incentives for recipients to remain with the 
Company. We issue stock-based awards in the form of restricted stock units and performance stock units that 
generally vest between one and five years from the grant date and can be settled in cash or shares. Expenses 
associated with these awards are recognized over each respective vesting period. Liability based awards are settled 
in cash, while equity-based awards are settled in stock. See additional information for stock-based compensation 
plans in Note 22, Stock-Based Compensation, of the Notes to the Consolidated Financial Statements. 
Derivatives
From time to time, we use derivatives to mitigate potentially large adverse effects from changes in currency exchange 
rates and interest rates. We monitor our exposure to these risks and evaluate, on an ongoing basis, the risk of 
potentially large adverse effects versus the costs associated with hedging such risks.
We may use interest rate swaps in the management of interest rate exposures and foreign currency derivatives to 
manage foreign currency exposure related to assets and liabilities denominated in foreign currencies. When we enter 
into a derivative contract, we make a determination whether the transaction is deemed to be a hedge for accounting 
purposes. For those contracts deemed to be a hedge, we formally document the relationship between the derivative 
instrument and the risk being hedged. In this documentation, we specifically identify the asset, liability, forecasted 
transaction, cash flow, or net investment that has been designated as the hedged item, and evaluate whether the 
derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are 
not met, we do not use hedge accounting for the derivative.
All derivative contracts are recorded at fair value, as a net asset or a net liability on the Consolidated Balance Sheets. 
The changes in fair values of derivative contracts are recorded each period in earnings or accumulated other 
comprehensive income, depending on whether a derivative is effective as part of the hedged transaction. Gains and 
losses on derivative contracts reported in accumulated other comprehensive income are subsequently included in 
earnings in the periods in which earnings are affected by the hedged item. For transactions that are designated as an 
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
63

effective hedge, we perform an evaluation of the effectiveness of the hedge on the date of inception and on an 
ongoing basis. The related gains and losses of derivative instruments, including those designated in hedge 
accounting relationships, are included as operating activities in the Consolidated Statements of Cash Flows.
For derivatives that are designated and qualify as hedges of net investments in subsidiaries located outside the U.S., 
changes in the fair value of derivatives are reported in other comprehensive income as part of Translation 
adjustments.
The Company does not engage in derivative instruments for speculative or trading purposes. See Note 17, Financial 
Instruments, of the Notes to the Consolidated Financial Statements for additional information.
Pension, Postretirement, and Other Benefit Plans
As described in Note 4, Pension, Postretirement, and Other Benefit Plans, of the Notes to the Consolidated Financial 
Statements, we have pension and postretirement benefit plans covering certain current and former employees. 
The pension plans are generally trusteed or insured, and accrued amounts are funded as required in accordance with 
governing laws and regulations. The annual expense and liabilities recognized for defined benefit pension plans and 
postretirement benefit plans are developed from actuarial valuations. Inherent in these valuations are key 
assumptions, including discount rates and expected return on plan assets, which are updated on an annual basis. We 
consider current market conditions, including changes in interest rates, in determining these assumptions. Discount 
rate assumptions are based on the population of plan participants and a mixture of high-quality fixed-income 
investments with durations that match expected future payments. The assumption for expected return on plan assets 
is based on historical and expected returns on various categories of plan assets.
Government Grants
The Company recognizes government grants only when there is reasonable assurance that we will comply with the 
conditions attached to them and the grants will be received. Government grants are recognized in the Consolidated 
Statements of Income on a systematic basis over the periods in which we recognize as expenses the related costs for 
which the grants are intended to compensate. A government grant that becomes receivable as compensation for 
expenses or losses already incurred or for the purpose of giving immediate financial support with no future related 
costs is recognized in the Consolidated Statements of Income of the period in which it becomes receivable.
Recent Accounting Pronouncements
New Accounting Standards Adopted
In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): 
Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to 
require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing 
operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax 
expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires 
entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other 
changes. The adoption of this standard had an impact on the income tax disclosures presented in this Annual Report 
on Form 10-K, however, there was no impact to the results of operations, cash flows, and financial condition. We 
elected to adopt ASU 2023-09 prospectively as permitted by the guidance. See Note 7, Income Taxes, of the Notes to 
the Consolidated Financial Statements for additional information.
New Accounting Standards Not Yet Adopted
In September 2025, the Financial Accounting Standards Board (FASB) issued guidance to improve the accounting for 
costs related to internal-use software. The new guidance eliminates project stages and requires capitalizing software 
costs to begin when (1) management has authorized and committed to funding the software project and (2) it is 
probable that the project will be completed and the software will be used to perform the function intended. Additionally, 
disclosures for property, plant and equipment will be required for all capitalized software costs. The guidance is 
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
64

effective in the first quarter of 2028 with early adoption permitted as of the beginning of an annual reporting period. 
Upon adoption, the guidance may be applied prospectively, retrospectively or using a modified transition approach. 
We are evaluating the impact of this guidance on our consolidated financial statements.
In November 2024, the FASB issued guidance to improve the disclosure of expenses in commonly presented 
expense captions. The new guidance requires a public entity to provide tabular disclosure, on an annual and interim 
basis, of amounts for the following expense categories: (1) purchases of inventory, (2) employee compensation, (3) 
depreciation and (4) intangible asset amortization, as included in each relevant expense caption. Additionally, on an 
annual and interim basis, a qualitative description is required for amounts remaining in relevant expense captions that 
are not separately disaggregated quantitatively. 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 requires certain 
amounts that are currently required to be disclosed to be included in the same tabular disclosure as these 
disaggregation requirements. Furthermore, on an annual and 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 
2027 annual reporting, 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 and Geographic Data
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.
The accounting policies of the segments are the same as those described in Note 1, Accounting Policies, of the Notes 
to the Consolidated Financial Statements. Corporate expenses include wages and benefits for corporate 
headquarters personnel, costs related to information systems development and support, and professional fees related 
to legal, audit, and other activities. Corporate expenses are not allocated to the reportable segments, except certain 
global information system costs discussed below, because the decision-making for these functions lies outside of the 
segments.
Machine Clothing:
The MC segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue 
and towel, pulp, nonwovens, fiber cement and 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 for MC 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 manufacturing 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 AEC segment provides highly engineered, advanced composite structures to customers in the commercial and 
defense aerospace industries. The segment includes Albany Safran Composites, LLC (“ASC”), in which our customer, 
SAFRAN Group ("Safran"), owns a 10% 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.
Other significant programs in AEC include the Sikorsky CH-53K, F-35, JASSM, and Boeing 787 programs. AEC also 
supplies vacuum waste tanks for Boeing commercial programs, and specialty components for the Rolls Royce lift fan 
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
1. Accounting Policies — (continued)
65

on the F-35, as well as the fan case for the GE9X engine. In 2025, approximately 35% of AEC net 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:
Year ended December 31, 2025
(in thousands)
MC
AEC
Corporate
Total
Net revenues
$ 
708,066 $ 
474,747 $ 
— $ 
1,182,813 
Cost of goods sold
 
384,334  
554,559  
—  
938,893 
Gross profit
 
323,732  
(79,812)  
—  
243,920 
Selling, general and administrative expenses
 
131,175  
46,449  
40,702  
218,326 
Technical and research expenses
 
28,090  
15,615  
4,310  
48,015 
Restructuring expenses, net
 
8,255  
3,259  
2,168  
13,682 
Operating income/(loss)
$ 
156,212 $ 
(145,135) $ 
(47,180) $ 
(36,103) 
For the year ended December 31, 2025, Selling, general and administrative expenses include global information 
systems costs of $17.3 million, $17.6 million and $0.2 million for MC, AEC and Corporate, respectively.
Year ended December 31, 2024
(in thousands)
MC
AEC
Corporate
Total
Net revenues
$ 
749,907 $ 
480,708 $ 
— $ 
1,230,615 
Cost of goods sold
 
403,863  
424,976  
—  
828,839 
Gross profit
 
346,044  
55,732  
—  
401,776 
Selling, general and administrative expenses
 
123,120  
47,421  
40,341  
210,882 
Technical and research expenses
 
29,832  
16,265  
—  
46,097 
Restructuring expenses, net
 
9,460  
3,649  
329  
13,438 
Operating income/(loss)
$ 
183,632 $ 
(11,603) $ 
(40,670) $ 
131,359 
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 year ended December 31, 2024, Selling, general and administrative 
expenses include global information systems costs of $15.2 million, $15.7 million and $1.0 million for MC, AEC and 
Corporate, respectively. Global information systems costs were previously included in Corporate expenses.
Year ended December 31, 2023
(in thousands)
MC
AEC
Corporate
Total
Net revenues
$ 
670,768 $ 
477,141 $ 
— $ 
1,147,909 
Cost of goods sold
 
339,210  
384,981  
—  
724,191 
Gross profit
 
331,558  
92,160  
—  
423,718 
Selling, general and administrative expenses
 
118,196  
48,833  
47,886  
214,915 
Technical and research expenses
 
24,651  
15,976  
—  
40,627 
Restructuring expenses, net
 
282  
—  
—  
282 
Operating income/(loss)
$ 
188,429 $ 
27,351 $ 
(47,886) $ 
167,894 
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
2. Reportable Segments and Geographic Data — (continued)
66

For the year ended December 31, 2023, Selling, general and administrative expenses include global information 
systems costs of $10.9 million, $14.2 million and $2.1 million for MC, AEC and Corporate, respectively. Global 
information systems costs were previously included in Corporate expenses.
The following table reconciles Operating income (loss) to Income before income taxes:
(in thousands)
2025
2024
2023
Operating income/(loss)
$ 
(36,103) $ 
131,359 $ 
167,894 
Reconciling items:
Interest income
 
(5,159)  
(4,064)  
(6,566) 
Interest expense
 
25,764  
16,613  
20,167 
Other (income)/expense, net
 
5,079  
1,721  
(6,163) 
Income before income taxes
$ 
(61,787) $ 
117,089 $ 
160,456 
Years ended December 31,
Interest income, Interest expense, and Other income/expense are not allocated to the business segments.
The following table summarizes depreciation and amortization by segment:
Years ended December 31,
(in thousands)
2025
2024
2023
Depreciation and amortization
Machine Clothing
 
32,849  
33,917  
24,616 
Albany Engineered Composites
 
53,731  
54,228  
50,764 
Corporate
 
1,334  
1,149  
1,353 
Consolidated total
$ 
87,914 $ 
89,294 $ 
76,733 
Results for the years ended December 31, 2025,  December 31, 2024, and December 31, 2023 include Heimbach, 
which was acquired August 31, 2023. Depreciation expense for Heimbach on Property, plant, and equipment, net was 
$10.9 million, $12.4 million, and $4.0 million in 2025, 2024, and 2023 respectively; and amortization expense on 
Intangibles, net was $1.0 million, $1.0 million, and $0.3 million  in 2025, 2024, and 2023 respectively.
In the measurement of assets utilized by each reportable segment, we include Inventories, Accounts receivable, net, 
Contract assets, net, Property, plant and equipment, net, Intangibles, net and Goodwill. Assets held-for-sale have 
been removed from segment assets and presented as a reconciling item.
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
2. Reportable Segments and Geographic Data — (continued)
67

The following table presents assets and capital expenditures by reportable segment:
(in thousands)
2025
2024
2023
Segment assets
Machine Clothing
$ 
618,476 $ 
600,603 $ 
669,907 
Albany Engineered Composites
 
491,802  
736,306  
800,931 
Reconciling items:
Cash
 
112,350  
115,283  
173,420 
Income taxes prepaid, receivable and deferred
 
112,436  
47,944  
33,984 
Prepaid and Other assets
 
89,862  
148,560  
156,772 
Assets held for sale
 
293,783  
—  
— 
Total assets
$ 1,718,709 $ 1,648,696 $ 1,835,014 
Capital expenditures and purchased software
Machine Clothing
$ 
30,770 $ 
21,270 $ 
25,917 
Albany Engineered Composites
 
39,098  
58,121  
57,404 
Corporate
 
1,637  
1,816  
1,108 
Total capital expenditures and purchased software
$ 
71,505 $ 
81,207 $ 
84,429 
As of December 31,
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
2. Reportable Segments and Geographic Data — (continued)
68

The following table shows data by geographic area. Net revenues are based on the location of the operation recording 
the final sale to the customer. Net revenues recorded by our entity in Switzerland are derived from products sold 
throughout Europe and Asia, and are invoiced in various currencies.
(in thousands)
2025
2024
2023
Net revenues
United States
$ 
638,064 $ 
650,532 $ 
649,500 
Switzerland
 
110,775  
109,751  
115,207 
Germany
 
77,398  
86,991  
32,239 
France
 
76,360  
81,141  
77,573 
China
 
62,335  
67,732  
65,135 
Brazil
 
68,642  
66,943  
69,527 
Mexico
 
58,384  
57,928  
58,874 
Other countries
 
90,855  
109,597  
79,854 
Total Net revenues
$ 1,182,813 $ 1,230,615 $ 1,147,909 
Property, plant and equipment, net
United States
$ 
202,729 $ 
299,370 $ 
303,578 
China
 
54,991  
52,063  
57,070 
Germany
 
48,858  
46,033  
52,934 
Mexico
 
45,844  
38,762  
46,759 
France
 
28,015  
30,935  
31,069 
United Kingdom
 
16,100  
16,651  
18,306 
Canada
 
16,194  
14,313  
15,318 
Spain
 
12,808  
12,154  
14,804 
Other countries
 
57,029  
53,150  
62,151 
Total Property, plant and equipment, net
$ 
482,568 $ 
563,431 $ 
601,989 
Years ended December 31,
3. Revenue Recognition
We account for a contract when it has approval and commitment from both parties, the rights of the parties are 
identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is 
probable. Revenue is measured based on the consideration specified in the contract with the customer, and excludes 
any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by 
transferring control over a product or service, or a series of distinct goods or services, to the customer which occurs 
either at a point in time, or over time, depending on the performance obligation in the contract. A performance 
obligation is a promise in the contract to transfer a distinct good or service to the customer, and is the unit of account. 
“Control” refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from the product. 
A contract’s transaction price is allocated to each material distinct performance obligation and is recognized as 
revenue when, or as, the performance obligation is satisfied.
In our MC segment, our primary performance obligation in most contracts is to provide solution-based, custom-
designed fabrics and belts to the customer. We satisfy this performance obligation upon transferring control of the 
product to the customer at a specific point in time. Contracts with customers in the MC segment have various terms 
that can affect the point in time when revenue is recognized. Generally, the customer obtains control when the product 
has been received at the location specified by the customer, at which time the only remaining obligations under the 
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
2. Reportable Segments and Geographic Data — (continued)
69

contract may be fulfillment costs, in the form of shipping and handling, which are accrued when control of the product 
is transferred.
In the MC segment, contracts with certain customers may also obligate us to provide various product-related services 
at no additional cost to the customer. When this obligation is material in the context of the contract with the customer, 
we recognize a separate performance obligation and allocate revenue to those services on a relative estimated 
standalone selling price basis. The standalone selling price for these services is determined based upon an analysis 
of the services offered and an assessment of the price we might charge for such services as a separate offering. As 
we typically provide such services on a stand-ready basis, we recognize this revenue over time. Revenue allocated to 
such service performance obligations is the only MC revenue that is recognized over time.
In our AEC segment, we primarily enter into contracts to manufacture and deliver highly engineered advanced 
composite products to our customers. A significant portion of AEC revenue is earned under a mix of short duration and 
long duration, firm-fixed-price orders that are placed under master agreements that contain general terms and 
conditions applicable to all orders placed under the master agreements. We assess each contract at its inception to 
determine whether it should be combined with other contracts. When making this determination we consider factors 
such as whether two or more contracts were negotiated and executed at or near the same time or were negotiated 
with an overall profit objective. If combined, we treat the combined contracts as a single contract for revenue 
recognition purposes. We evaluate the products or services promised in each contract at inception to determine 
whether the contract should be accounted for as having one or more performance obligations. For most AEC 
contracts, the nature of our promise (or our performance obligation) to the customer is to provide a significant service 
of integrating a complex set of tasks and components into a single project or capability, which will often result in the 
delivery of multiple highly interdependent and interrelated units.
At the inception of a contract, we determine the transaction price based on the consideration we expect to receive for 
the products or services being provided under the contract. For contracts where a portion of the price may vary, we 
estimate variable consideration at the most likely amount, which is included in the transaction price to the extent it is 
probable that a significant reversal of cumulative revenue recognized will not occur. We analyze the risk of a 
significant revenue reversal and if necessary, constrain the amount of variable consideration recognized in order to 
mitigate this risk.
We estimate the transaction price based on our current rights, and do not contemplate future modifications (including 
unexercised options) or follow-on contracts until they become legally enforceable. Many AEC contracts are 
subsequently modified to include changes in specifications, requirements or price, which may create new or change 
existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to 
account for the modification as an adjustment to the existing contract or as a separate contract. Generally, we are able 
to conclude that such modifications are not distinct from the existing contract, due to the significant integration of the 
obligations, and the interrelated nature of tasks, provided for in the modification and the existing contract. Therefore, 
such modifications are accounted for as if they were part of the existing contract, and we accumulate the values of 
such modifications in our estimates of contract value.
Revenue is recognized over time for substantially all of our contracts in AEC as most of our contracts have provisions 
that are deemed to transfer control to the customer over time. Revenue is recognized based on the extent of progress 
towards completion of the performance obligation. The selection of the method to measure progress toward 
completion requires judgment and is based on the nature of the products or services to be provided. We generally use 
the cost-to-cost measure of progress for our contracts because it best depicts the transfer of assets to the customer 
which occurs as we incur costs to produce the contract deliverables. Under the cost-to-cost measure of progress, the 
extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated 
costs at completion of the performance obligation. Revenue, including profit, is recorded proportionally as costs are 
incurred. Accounting for long-term contracts requires significant judgment and estimation, which could be considerably 
different if the underlying circumstances were to change. When any adjustments of estimated contract revenue or 
costs are required, any changes from prior estimates are included in revenues or earnings in the period in which the 
change occurs. 
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
3. Revenue Recognition — (continued)
70

The sum of net adjustments to the estimated profitability of long-term contracts decreased AEC revenue by $69.1 
million and operating income by $165.8 million in 2025. The decrease in profitability was primarily driven by a few 
large complex programs, including adjustments of $155.9 million for various CH-53K programs, based on changes to 
estimated material input costs, labor hours, and future overhead rates over the remainder of the contract. 
Comparatively, adjustments in the estimated profitability of long-term contracts decreased operating income by $43.2 
million and $4.1 million in 2024 and 2023 respectively.  The unfavorable effects in 2024 related to higher labor, 
material, and scrap costs. The unfavorable effects in 2023 related to additional reserves taken on certain contracts 
and inflationary factors decreasing anticipated margins. 
AEC’s largest source of revenue is derived from the LEAP contract (see Note 10, Noncontrolling Interest, of the Notes 
to the Consolidated Financial Statements) under a cost-plus-fee agreement. The fee may vary within a narrow range 
based on our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred, with 
contract billings adjusted annually to reflect actual costs. Under this contract, there is judgment involved in 
determining applicable contract costs and expected margin, and therefore, in determining the amount of revenue to be 
recognized.
The LEAP engine is used on the Airbus A320neo, A321neo, Boeing 737 MAX, and COMAC 919 aircraft. AEC’s largest 
aerospace customer is SAFRAN and sales to SAFRAN (consisting primarily of fan blades and cases for CFM’s LEAP 
engine) accounted for approximately 15% of the Company’s consolidated Net revenues in 2025. In 2025, SAFRAN 
leased manufacturing space from AEC for the GE9X program. Rent paid by SAFRAN under this lease amounted to 
$1.0 million in 2025 and $1.0 million in 2024. AEC sales to SAFRAN were $177.0 million in 2025, $178.1 million in 
2024, and $187.6 million in 2023. The total of Accounts receivable and Contract assets due from SAFRAN amounted 
to $60.8 million and $78.5 million as of December 31, 2025 and 2024, respectively.
Payment terms granted to MC and AEC customers reflect general competitive practices. Terms vary with product, 
competitive conditions, and the country of operation.
The following table provides a summary of the composition of each business segment:
Machine Clothing (MC)
Machine Clothing
Paper machine clothing: Permeable 
and impermeable belts used in the 
manufacture of paper, paperboard, 
tissue and towel, and pulp
                                                         
Engineered fabrics: Belts used in the 
manufacture of nonwovens, fiber 
cement and several other industrial 
applications
World-wide
Albany Engineered 
Composites (AEC)
Albany Safran 
Composites (ASC)
Airframe and engine 
Components (Other 
AEC)
3D-woven, injected composite 
components for aircraft engines
                                                           
Composite airframe and engine 
components for military and 
commercial aircraft
Rochester, NH 
Commercy, France 
Queretaro, Mexico
                                        
Salt Lake City, UT 
Boerne, TX            
Queretaro, Mexico 
Kaiserslautern, Germany
Segment
Product Group
Principal Product or Service
Principal Locations
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.
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ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
3. Revenue Recognition — (continued)
71

The following table presents disaggregated revenue for each product group by timing of revenue recognition:
For the year ended December 31, 2025
(in thousands)
Point in Time  
 Revenue Recognition
Over Time   
Revenue Recognition
Total
Machine Clothing
$ 
703,980 
$ 
4,086 
$ 
708,066 
Albany Engineered Composites 
ASC
 
— 
 
173,094 
 
173,094 
Other AEC
 
14,128 
 
287,525 
 
301,653 
Total Albany Engineered Composites
 
14,128 
 
460,619 
 
474,747 
Total net revenues
$ 
718,108 
$ 
464,705 
$ 
1,182,813 
For the year ended December 31, 2024
(in thousands)
Point in Time  
 Revenue Recognition
Over Time   
Revenue Recognition
Total
Machine Clothing
$ 
745,978 
$ 
3,929 
$ 
749,907 
Albany Engineered Composites
ASC
 
— 
 
175,888 
 
175,888 
Other AEC
 
19,518 
 
285,302 
 
304,820 
Total Albany Engineered Composites
 
19,518 
 
461,190 
 
480,708 
Total net revenues
$ 
765,496 
$ 
465,119 
$ 
1,230,615 
For the year ended December 31, 2023
(in thousands)
Point in Time  
 Revenue Recognition
Over Time   
Revenue Recognition
Total
Machine Clothing
$ 
666,990 
$ 
3,778 
$ 
670,768 
Albany Engineered Composites
ASC
 
— 
 
184,184 
 
184,184 
Other AEC
 
20,546 
 
272,411 
 
292,957 
Total Albany Engineered Composites
 
20,546 
 
456,595 
 
477,141 
Total net revenues
$ 
687,536 
$ 
460,373 
$ 
1,147,909 
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:
Years ended December 31,
(in thousands)
2025
2024
2023
Americas PMC
$ 
351,211 $ 
341,204 $ 
349,544 
Eurasia PMC
 
277,226  
301,436  
250,048 
Engineered Fabrics
 
79,629  
107,267  
71,176 
Total Machine Clothing net revenues
$ 
708,066 $ 
749,907 $ 
670,768 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
3. Revenue Recognition — (continued)
72

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. Most contracts in the AEC 
segment are a mix of short duration and long duration firm-fixed-price orders, many representing performance 
obligations with an original maturity of less than one year. Remaining performance obligations on contracts that had 
an original duration of greater than one year totaled $1.0 billion as of December 31, 2025, $1.1 billion as of 
December 31, 2024, and $1.2 billion as of December 31, 2023, and related primarily to firm contracts in the AEC 
segment. Of the remaining performance obligations as of December 31, 2025, we expect to recognize as revenue 
approximately $166 million during 2026, $182 million during 2027, $154 million during 2028, and the remainder 
thereafter.
4. Pension, Postretirement, and Other Benefit Plans
Voluntary Savings Plan
The Company maintains a voluntary savings plan covering all employees in the United States. The Plan, known as 
the Prosperity Plus Savings Plan, is a qualified plan under section 401(k) of the U.S. Internal Revenue Code. The 
Company matches, in the form of cash, between 50% and 100% of employee contributions up to a defined maximum. 
The investment of employee contributions to the plan is self-directed. The Company’s cost of the plan amounted to 
$8.5 million in 2025, $7.8 million in 2024, and $7.3 million in 2023.
The plan allows for discretionary matching contributions. The Company uses such discretion to provide profit sharing 
contributions to plan participants. Such contributions are based on Company performance and vary from year to year 
and contributions are generally made in the first quarter following the Company’s fiscal year-end. The Company’s 
profit-sharing plan covers all employees in the United States. After the close of each year, the Board of Directors 
reviews and approves the amount of the profit-sharing contribution. Company contributions to the plan are in the form 
of cash. The expense recorded for this plan was $3.2 million in 2025, $2.4 million in 2024, and $4.9 million in 2023.
Pension and Postretirement Plans
The Company has defined benefit pension and postretirement plans covering certain current and former U.S. and 
non-U.S. employees. The eligibility, benefit formulas, and contribution requirements for plans vary by location.
As of December 31, 2025, U.S. benefit obligations exist through the U.S. Supplemental Executive Retirement Plan 
(“SERP”), a frozen unfunded pension plan, and the U.S. postretirement welfare plan ("PRW"), a frozen plan which 
provides various medical, dental, and life insurance benefits. The U.S. Pension Plus Plan, a qualified defined benefit 
pension plan was terminated in 2021 and settled during 2022.
The Company recognizes the funded status of each defined benefit and other postretirement benefit plan. Each 
overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. Company pension 
plan disclosures for U.S. and non-U.S. plans have been combined for both 2025 and 2024, except where indicated 
below.
The Company’s pension and postretirement benefit costs and benefit obligations are based on actuarial valuations 
that are affected by many assumptions, the most significant of which are the assumed discount rate, expected rate of 
return on pension plan assets, and mortality. Each of the assumptions is reviewed and updated annually, as 
appropriate. The assumed rates of return for pension plan assets are determined for each major asset category based 
on historical rates of return for assets in that category and expectations of future rates of return based, in part, on 
simulated future capital market performance. The assumed discount rate is based on yields from a portfolio of 
currently available high-quality fixed-income investments with durations matching the expected future payments, 
based on the demographics of the plan participants and the plan provisions.
Gains and losses arise from changes in the assumptions used to measure the benefit obligations, and experience 
different from what had been assumed, including asset returns different than what had been expected. The Company 
amortizes gains and losses in excess of a “corridor” over the average future service of the plan’s current participants. 
The corridor is defined as 10% of the greater of the plan’s projected benefit obligation or market-related value of plan 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
3. Revenue Recognition — (continued)
73

assets. The market-related value of plan assets is also used to determine the expected return on plan assets 
component of net periodic cost. 
To the extent the Company’s unrecognized net losses and unrecognized prior service costs, including the amount 
recognized through accumulated other comprehensive income, are not reduced by future favorable plan experience, 
they will be recognized as a component of the net periodic cost in future years.
The following table sets forth the plan benefit obligations:
(in thousands, except percentages)
Pension plans
Other
postretirement 
benefits
Pension plans
Other 
postretirement 
benefits
Benefit obligation, beginning of year
$ 137,111 
$ 
26,715 
$ 158,323 
$ 
28,684 
Service cost
 
1,156 
 
40 
 
1,812 
 
46 
Interest cost
 
6,013 
 
1,414 
 
6,114 
 
1,416 
Plan participants' contributions
 
266 
 
— 
 
530 
 
— 
Actuarial (gain)/loss
 
3,533 
 
1,235 
 
(3,868) 
 
(709) 
Benefits paid
 
(10,464) 
 
(2,566) 
 
(9,423) 
 
(2,651) 
Acquisitions/Divestiture
 
(374) 
 
— 
 
— 
 
— 
Settlements and curtailments
 
(15,043) 
 
— 
 
(7,805) 
 
— 
Foreign currency changes
 
12,121 
 
41 
 
(8,572) 
 
(71) 
Benefit obligation, end of year
$ 134,319 
$ 
26,879 
$ 137,111 
$ 
26,715 
Accumulated benefit obligation
$ 129,003 
$ 
— 
$ 132,198 
$ 
— 
Weighted average assumptions used to
determine benefit obligations, end of year:
Discount rate — U.S. plan
 4.84 %
 5.21 %
 5.44 %
 5.61 %
Discount rate — non-U.S. plans
 4.71 %
 4.95 %
 4.32 %
 4.70 %
Cash balance interest crediting rate - Switzerland 
pension plan
 1.20 %
 — 
 1.15 %
 — 
Compensation increase — U.S. plan
N/A
N/A
N/A
N/A
Compensation increase — non-U.S. plans
 2.90 %
 2.75 %
 2.68 %
 2.75 %
As of December 31, 2025
As of December 31, 2024
During 2025, pension benefit obligations decreased by $2.8 million, related to several factors including benefit 
payments made to participants of the plan which resulted in a decrease of $10.5 million, and settlement and 
curtailments which resulted in a decrease of $15.0 million, offset by foreign currency changes, with an increase of 
$12.1 million, as well as several other offsetting items. Other postretirement benefit obligations increased by $0.2 
million in 2025, primarily driven by interest costs and actuarial losses. 
During 2024, pension benefit obligations decreased by $21.2 million, related to several factors including benefit 
payments made to participants of the plan which resulted in a decrease of $9.4 million, and foreign currency changes 
which resulted in a decrease of $8.6 million, as well as several other offsetting items. Other postretirement benefit 
obligations decreased by $2.0 million in 2024, primarily driven by payments made by the Company to participants of 
the plan. 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
4. Pension, Postretirement, and Other Benefit Plans — (continued)
74

The following sets forth information about plan assets:
(in thousands)
Pension plans
Other 
postretirement 
benefits
Pension plans
Other 
postretirement 
benefits
Fair value of plan assets, beginning of year
$ 
103,137 $ 
— $ 
112,688 $ 
— 
Actual return on plan assets, net of expenses
 
668  
—  
(408)  
— 
Employer contributions
 
5,644  
2,566  
8,744  
2,651 
Plan participants' contributions
 
266  
—  
530  
— 
Benefits paid
 
(10,464)  
(2,566)  
(9,423)  
(2,651) 
Acquisitions
 
—  
—  
—  
— 
Settlements
 
(14,767)  
—  
(3,811)  
— 
Other
 
—  
—  
—  
— 
Foreign currency changes
 
7,127  
—  
(5,183)  
— 
Fair value of plan assets, end of year
$ 
91,611 $ 
— $ 
103,137 $ 
— 
As of December 31, 2025
As of December 31, 2024
The funded status of the plans was as follows:
(in thousands)
Pension plans
Other 
postretirement 
benefits
Pension plans
Other 
postretirement 
benefits
Fair value of plan assets
$ 
91,611 $ 
— $ 
103,137 $ 
— 
Benefit obligation
 
134,319  
26,879  
137,111  
26,715 
Funded status
$ 
(42,708) $ 
(26,879) $ 
(33,974) $ 
(26,715) 
Accrued benefit cost, end of year
$ 
(42,708) $ 
(26,879) $ 
(33,974) $ 
(26,715) 
Amounts recognized in the consolidated balance 
sheets consist of the following:
Noncurrent asset
$ 
10,406 $ 
— $ 
16,982 $ 
— 
Current liability
 
(5,332)  
(2,727)  
(4,915)  
(2,772) 
Noncurrent liability
 
(47,782)  
(24,152)  
(46,041)  
(23,943) 
Net amount recognized
$ 
(42,708) $ 
(26,879) $ 
(33,974) $ 
(26,715) 
Amounts recognized in accumulated other 
comprehensive income consist of:
Net actuarial loss
$ 
28,845 $ 
2,597 $ 
19,529 $ 
1,345 
Prior service cost/(credit)
 
(93)  
(237)  
(96)  
(360) 
Net amount recognized
$ 
28,752 $ 
2,360 $ 
19,433 $ 
985 
As of December 31, 2025
As of December 31, 2024
The composition of the net pension plan funded status as of December 31, 2025 was as follows:
Pension plans with pension assets
$ 
— $ 
10,406 $ 
10,406 
Pension plans without pension assets
 
(3,636)  
(49,478)  
(53,114) 
Total
$ 
(3,636) $ 
(39,072) $ 
(42,708) 
(in thousands)
U.S. plan
Non-U.S. 
plans
Total
The underfunded balance in the U.S. relates to the Supplemental Executive Retirement Plan.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
4. Pension, Postretirement, and Other Benefit Plans — (continued)
75

The composition of the net periodic benefit plan cost for the years ended December 31, 2025, 2024, and 2023, was 
as follows:
(in thousands, except percentages)
2025
2024
2023
2025
2024
2023
Components of net periodic benefit 
cost:
Service cost
$ 1,156 
$ 1,812 
$ 1,478 
$ 
40 
$ 
46 
$ 
60 
Interest cost
 
6,013 
 
6,114 
 
5,151 
 
1,414 
 
1,416 
 
1,874 
Expected return on assets
 
(4,538) 
 
(5,430) 
 
(4,347) 
 
— 
 
— 
 
— 
Amortization of prior service cost/
(credit)
 
(28) 
 
(26) 
 
(32) 
 
(122) 
 
(124) 
 
(4,090) 
Amortization of net actuarial loss
 
1,185 
 
647 
 
555 
 
(34) 
 
(34) 
 
828 
Settlement
 
2,355 
 
(33) 
 
— 
 
— 
 
— 
 
— 
Curtailment (gain)/loss
 
(4,356) 
 
(37) 
 
— 
 
— 
 
— 
 
— 
Net periodic benefit cost
$ 1,787 
$ 3,047 
$ 2,805 
$ 1,298 
$ 1,304 
$ (1,328) 
Weighted average assumptions 
used to determine net cost:
Discount rate — U.S. plan
 5.44 %
 5.15 %
 5.49 %
 5.61 %
 5.21 %
 5.55 %
Discount rate — non-U.S. plans
 4.32 %
 4.05 %
 5.15 %
 4.70 %
 4.70 %
 5.20 %
Cash balance interest crediting 
rate - Switzerland pension plan
 1.15 %
 1.30 %
 2.15 %
 — 
 — 
 — 
Expected return on plan assets — 
U.S. plan
N/A
N/A
N/A
N/A
N/A
N/A
Expected return on plan assets — 
non-U.S. plans
 4.82 %
 4.98 %
 5.21 %
N/A
N/A
N/A
Rate of compensation increase — 
U.S. plan
N/A
N/A
N/A
N/A
N/A
N/A
Rate of compensation increase — 
non-U.S. plans
 2.68 %
 2.89 %
 3.08 %
 2.75 %
 2.75 %
 2.75 %
Pension plans
Other postretirement benefits
Pretax (gains)/losses on plan assets and benefit obligations recognized in other comprehensive income for the years 
ended December 31, 2025, 2024, and 2023, was as follows:
(in thousands)
2025
2024
2023
2025
2024
2023
Settlements/curtailments
$ 
2,002 $ 
70 $ 
— $ 
— $ 
— $ 
— 
Asset/liability loss/(gain)
 
7,126  
(2,023)  
4,365  
1,235  
(709)  
(6,131) 
Amortization of actuarial gain/
(loss)
 
(1,185)  
(646)  
(554)  
34  
34  
(828) 
Amortization of prior service 
cost/(credit)
 
28  
26  
32  
122  
124  
4,090 
Currency impact
 
1,349  
(748)  
757  
(16)  
28  
(8) 
Cost/(benefit) in Other 
comprehensive income
$ 
9,320 $ 
(3,321) $ 
4,600 $ 
1,375 $ 
(523) $ 
(2,877) 
Pension plans
Other postretirement benefits
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
4. Pension, Postretirement, and Other Benefit Plans — (continued)
76

Investment Strategy
Our investment strategy for pension assets differs for the various countries in which we have defined benefit pension 
plans. Some of our defined benefit plans do not require funded trusts and, in those arrangements, the Company funds 
the plans on a “pay as you go” basis. The largest of the funded defined benefit plans are in Canada and the United 
Kingdom.
For the countries in which the Company has funded pension trusts, the investment strategy may also be liability driven 
or, in other cases, to achieve a competitive, total investment return, achieving diversification between and within asset 
classes and managing other risks. Investment objectives for each asset class are determined based on specific risks 
and investment opportunities identified. Actual allocations to each asset class vary from target allocations due to 
periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement 
investment allocation positions, and the timing of benefit payments and contributions.
Fair-Value Measurements
The following tables present plan assets as of December 31, 2025, and 2024, using the fair-value hierarchy, which 
has three levels based on the reliability of inputs used, as described in Note 18, Fair-Value Measurements, of the 
Notes to the Consolidated Financial Statements. Certain investments that are measured at fair value using net asset 
value ("NAV") as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair 
value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts 
presented in the funded status table above. As of December 31, 2025 and 2024, there were no investments expected 
to be sold at a value materially different than NAV.
(in thousands)
Quoted prices 
in active 
markets Level 1
Significant 
other 
observable 
inputs Level 2
Significant 
unobservable 
inputs Level 3
Total
Common Stocks and equity funds
$ 
— $ 
— $ 
— $ 
— 
Debt securities
 
283  
43,281  
—  
43,564 
Insurance contracts
 
—  
—  
3,998  
3,998 
Real Estate
 
—  
—  
—  
— 
Hedge Funds
 
—  
—  
—  
— 
Cash and short-term investments
 
6,643  
—  
—  
6,643 
Total investments in the fair value hierarchy
$ 
6,926 $ 
43,281 $ 
3,998  
54,205 
Investments at net asset value:
Common Stocks and equity funds
 
12,689 
Fixed income funds
 
24,717 
Limited partnerships
 
— 
Total plan assets
$ 
91,611 
Assets at Fair Value as of  December 31, 2025
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
4. Pension, Postretirement, and Other Benefit Plans — (continued)
77

Assets at Fair Value as of  December 31, 2024
(in thousands)
Quoted prices 
in active 
markets Level 1
Significant 
other 
observable 
inputs Level 2
Significant 
unobservable 
inputs Level 3
Total
Common Stocks and equity funds
$ 
— $ 
4,241 $ 
— $ 
4,241 
Debt securities
 
—  
49,940  
—  
49,940 
Insurance contracts
 
—  
—  
3,528  
3,528 
Real Estate
 
—  
—  
3,244  
3,244 
Hedge Funds
 
—  
—  
836  
836 
Cash and short-term investments
 
5,323  
—  
—  
5,323 
Total investments in the fair value hierarchy
$ 
5,323 $ 
54,181 $ 
7,608  
67,112 
Investments at net asset value:
Common Stocks and equity funds
 
13,124 
Fixed income funds
 
22,901 
Limited partnerships
 
— 
Total plan assets
$ 
103,137 
The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2025 and 
2024:
Insurance contracts -
total level 3 assets
$ 
7,608 $ 
— $ 
81 $ 
(3,691) $ 
— $ 
3,998 
(in thousands)
December 31, 
2024
Net realized 
gains
Net unrealized 
gains
Net purchases, 
issuances
and 
settlements
Net transfers 
(out of) Level 3
December 31, 
2025
(in thousands)
December 31, 
2023
Net realized 
gains
Net unrealized 
gains
Net purchases, 
issuances
and 
settlements
Net transfers 
(out of) Level 3
December 31, 
2024
Insurance contracts -
total level 3 assets
$ 
7,597 $ 
— $ 
58 $ 
(47) $ 
— $ 
7,608 
None of the Company's U.S. pension plans held assets during 2025 or 2024. The asset allocation for the Company’s 
non-U.S. pension plans for 2025 and 2024, and the target allocation, by asset category, are as follows:
Target
Allocation
Percentage of plan assets 
at plan measurement date
Asset category
2025
2024
Equity securities
 12 %
 12 %
 15 %
Debt securities
 31 %
 31 %
 70 %
Real estate
 1 %
 1 %
 3 %
Other(1)
 56 %
 56 %
 12 %
 100 %
 100 %
 100 %
Non-U.S. Plans
(1)Other includes hedged equity and absolute return strategies, as well as private equity. The Company has 
procedures to monitor the performance of these investments and compares asset valuations to audited 
financial statements of the funds.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
4. Pension, Postretirement, and Other Benefit Plans — (continued)
78

The targeted plan asset allocation is based on an analysis of the actuarial liabilities, a review of viable asset classes, 
and an analysis of the expected rate of return, risk, and other investment characteristics of various investment asset 
classes.
At the end of 2025 and 2024, the projected benefit obligation, accumulated benefit obligation, and fair value of plan 
assets for pension plans with projected benefit obligation and an accumulated benefit obligation in excess of plan 
assets were as follows:
(in thousands)
2025
2024
Projected benefit obligation
$ 
58,331 $ 
55,067 
Fair value of plan assets
 
5,217  
4,111 
Plans with projected
benefit obligation in
excess of plan assets
Plans with accumulated
benefit obligation in
excess of plan assets
(in thousands)
2025
2024
Accumulated benefit obligation
$ 
55,260 $ 
52,493 
Fair value of plan assets
 
4,463  
3,509 
Information about expected cash flows for the pension and other benefit obligations are as follows:
Expected employer contributions and direct employer payments in the next 
fiscal year
$ 
5,931 $ 
2,727 
Expected benefit payments
 
2026  
10,324  
2,727 
 
2027  
9,640  
2,626 
 
2028  
9,707  
2,525 
 
2029  
9,589  
2,423 
 
2030  
9,810  
2,324 
2031 to 2035 (expected, combined)  
46,753  
10,126 
(in thousands)
Pension 
plans
Other postretirement 
benefits
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
4. Pension, Postretirement, and Other Benefit Plans — (continued)
79

5. Restructuring
At MC, restructuring actions were taken throughout 2024 and 2025 in order to cease operations at several facilities. 
Prior year actions at the Company's MC forming fabric manufacturing facility in Chungju, South Korea, at the 
Company's Heimbach engineered fabric manufacturing facility in Rochdale, UK, and at the Company's Heimbach 
paper machine clothing facility in Olten, Switzerland, concluded in 2025. Additional actions were announced in 2025 to 
close engineered fabric facilities in Ballo, Italy and Saint Junien, France as well as a facility in Manchester, United 
Kingdom. These actions drove $8.3 million of restructuring charges during 2025, compared to $9.5 million in 2024, a 
decrease that is primarily due to the timing of the announced actions. Restructuring expenses were a result of 
workforce reductions, fixed asset impairments, and related costs. The Company incurred an additional $0.3 million 
recorded in Costs of goods sold due to the write-off of inventory compared to $1.7 million in 2024. We expect to incur 
additional restructuring expenses related to these actions into 2026.
At AEC, restructuring activities were related to reductions in the workforce at various AEC locations, which resulted in 
restructuring expenses of $3.3 million for the year ended  2025 and $3.6 million for the year ended 2024.
Restructuring expenses incurred at MC and AEC during 2023 were not significant. 
The following table summarizes charges reported in the Consolidated Statements of Income under “Restructuring 
expenses, net” and "Cost of goods sold":
Machine Clothing
$ 
8,511 $ 
8,255 $ 
256 
Albany Engineered Composites
 
3,259  
3,259  
— 
Corporate
 
2,168  
2,168  
— 
Total restructuring expense
$ 
13,938 $ 
13,682 $ 
256 
Year ended December 31, 2025 (in thousands)
Total 
restructuring 
costs 
incurred
Termination 
and other 
costs - 
restructuring
Impairment of 
assets - Cost 
of goods sold
Year ended December 31, 2024 (in thousands)
Total 
restructuring 
costs 
incurred
Termination 
and other 
costs - 
restructuring
Impairment of 
assets - Cost 
of goods sold
Machine Clothing
$ 
11,165 $ 
8,298 $ 
2,867 
Albany Engineered Composites
 
3,649  
3,649  
— 
Corporate
 
329  
329  
— 
Total restructuring expense
$ 
15,143 $ 
12,276 $ 
2,867 
Machine Clothing
$ 
282 $ 
282 $ 
— 
Albany Engineered Composites
 
—  
—  
— 
Corporate
 
—  
—  
— 
Total restructuring expense
$ 
282 $ 
282 $ 
— 
Year ended December 31, 2023 (in thousands)
Total 
restructuring 
costs 
incurred
Termination 
and other 
costs
Impairment of 
assets - Cost 
of goods sold
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
80

The table below presents the changes in restructuring liabilities for 2025 and 2024:
(in thousands)
December 31, 
2024
Restructuring 
charges 
accrued
Payments 
and Other
December 31, 
2025
Total termination and other costs
$ 
4,996 $ 
13,682 $ 
(15,912) 
$ 
2,766 
As of December 31, 2025, we expect that the total $2.8 million of Accrued liabilities for restructuring will be paid within 
one year.
  (in thousands)
December 31, 
2023
Restructuring 
charges 
accrued
Payments 
and Other
December 31, 
2024
Total termination and other costs
$ 
— $ 
12,276 $ 
(7,280) 
$ 
4,996 
6. Other (Income)/Expense, net
The components of Other expense/(income), net, are:
(in thousands)
2025
2024
2023
Currency transactions
$ 
8,883 $ 
(3,900) $ 
(2,916) 
Derivative instruments losses/(gains)
 
(3,735)  
3,459  
(351) 
Components of net periodic pension and postretirement cost other 
than service
 
3,890  
2,493  
(61) 
Other
 
(3,959)  
(331)  
(2,835) 
Total other (income)/expense, net
$ 
5,079 $ 
1,721 $ 
(6,163) 
Years ended December 31,
Other (income)/expense, net included foreign currency related transactions associated with cash and intercompany 
balances which resulted in losses of $8.9 million  during 2025 and gains of $3.9 million during 2024. In addition, 
changes in the fair value of derivative instruments included gains of $3.7 million during 2025 and losses of $3.5 million 
in 2024, driven by currency rate movements, most notably the Brazilian Real and Mexican Peso. Net periodic pension 
and postretirement costs, other than service costs, were $3.9 million during 2025 and $2.5 million during 2024. Other 
(income)/expense, net, also included 2025 bank fees, amortization of debt issuance costs, and gains or losses on the 
sale of assets. 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
5. Restructuring — (continued)
81

7. Income Taxes
Provision for income taxes consisted of the following:
Years ended December 31,
(in thousands)
2025
2024
2023
Income before income taxes:
U.S.
$ 
(114,505) $ 
26,660 $ 
68,872 
Non-U.S.
 
52,718  
90,429  
91,584 
$ 
(61,787) $ 
117,089 $ 
160,456 
Income tax expense/(benefit)
Current:
Federal
$ 
1,920 $ 
2,682 $ 
17,005 
State
 
2,021  
4,724  
2,030 
Non-U.S.
 
27,502  
34,053  
34,110 
$ 
31,443 $ 
41,459 $ 
53,145 
Deferred:
Federal
$ 
(25,281) $ 
1,699 $ 
(1,700) 
State
 
(1,731)  
(804)  
863 
Non-U.S.
 
(9,259)  
(13,320)  
(3,462) 
$ 
(36,271) $ 
(12,425) $ 
(4,299) 
Total income tax expense
$ 
(4,828) $ 
29,034 $ 
48,846 
Cash payments for taxes in 2025 consisted of the following:
Years ended December 31,
(in thousands)
2025
Income Taxes Paid:
Domestic
Federal
$ 
2,291 
State
 
2,319 
Foreign
Brazil
 
12,588 
Canada
 
4,787 
China
 
6,836 
France
 
2,308 
Mexico
 
8,166 
Other
 
3,143 
Total
$ 
42,438 
Cash payments for taxes amounted to $47.3 million in 2024, and $54.5 million in 2023.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
82

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:
Year Ended December 31, 2025
(in thousands)
Amount
Percent
U.S. federal statutory income tax rate
 
(12,976) 
 21.0 %
Domestic federal
Effect of changes in tax laws or rate enacted in the current period
 
— 
 — %
Effect of cross-border tax laws
Subpart F income
 
552 
 (0.9) %
Other
 
73 
 (0.1) %
Tax credits
Research & Development Tax Credit
 
(1,004) 
 1.6 %
Foreign Tax Credit - Generation, Utilization, and Expiration
 
1,025 
 (1.7) %
Other
 
(162) 
 0.3 %
Changes in valuation allowances
 
(1,486) 
 2.4 %
Nontaxable or nondeductible items
Officer's compensation
 
612 
 (1.0) %
Other
 
(674) 
 1.1 %
Changes in unrecognized tax benefits
 
(581) 
 0.9 %
Other
 
(7) 
 — %
State and Local Income Taxes, Net of Federal Tax Effect (a)
 
1,048 
 (1.7) %
Foreign tax effects
Brazil
State and local (Social Contribution)
 
3,362 
 (5.4) %
Foreign Rate Differential
 
1,500 
 (2.4) %
Other
 
(371) 
 0.6 %
Canada
Foreign Rate Differential
 
(341) 
 0.6 %
Withholding tax
 
1,476 
 (2.4) %
State and local (Quebec & Ontario)
 
545 
 (0.9) %
Other
 
233 
 (0.4) %
China
Foreign Rate Differential
 
677 
 (1.1) %
Withholding tax
 
2,414 
 (3.9) %
Other
 
(84) 
 0.1 %
Spain
State and local (Trade Tax)
 
(762) 
 1.2 %
Foreign Rate Differential
 
(630) 
 1.0 %
UK
Return to provision
 
(664) 
 1.1 %
Foreign Rate Differential
 
(157) 
 0.3 %
Other foreign jurisdictions
Foreign Rate Differential
 
796 
 (1.3) %
Withholding tax
 
1,188 
 (1.9) %
Other
 
(430) 
 0.7 %
Effective income tax rate
 
(4,828) 
 7.8 %
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
7. Income Taxes — (continued)
83

2024
2023
U.S. federal statutory tax rate
 21.0 %
 21.0 %
State taxes, net of federal benefit
 2.3 
 1.9 
Non-U.S. local income taxes
 2.3 
 1.4 
U.S. permanent adjustments
 0.6 
 0.8 
Foreign permanent adjustments
 1.0 
 0.7 
Foreign rate differential
 2.1 
 2.0 
Net U.S. tax on non-U.S. earnings and foreign withholdings
 2.8 
 5.1 
Provision for/(resolution) of tax audits and contingencies, net
 (1.3) 
 0.3 
U.S. Pension Settlement - Release of Residual Tax Effect
 — 
 — 
Change in valuation allowances
 4.4 
 (1.2) 
Impact of Mexico net operating loss inflation revaluation
 (2.2) 
 — 
Establishment of deferred tax asset for Non-U.S. reserves
 (4.3) 
 — 
Impact of amended tax returns
 (0.8) 
 — 
Return to provision
 (2.2) 
 (1.2) 
Other adjustments
 (0.9) 
 (0.4) 
Effective income tax rate
 24.8 %
 30.4 %
Years ended December 31,
In 2024, the Company also recorded new valuation allowances totaling $6.7 million and released a valuation 
allowance of $6.3 million in a non-U.S. jurisdiction due to positive evidence indicating that a full valuation allowance 
was no longer required. The remaining increase in valuation allowance is due to increases in deferred tax assets in 
entities that already had established valuation allowances.
On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (OBBBA). The OBBBA retains the 21% 
corporate tax rate and makes permanent several tax provisions from the Tax Cuts and Jobs Act of 2017, including 
immediate expensing of domestic R&D, enhanced interest deductibility, and 100 percent bonus depreciation effective 
in 2025. Revisions to the international tax rules become effective in 2026. In the fourth quarter of 2025, we completed 
our assessment of the OBBBA, and the impacts were not material.
The Company has operations which constitute a taxable presence in 22 countries outside of the United States. The 
Company is subject to audit in the U.S. and various foreign jurisdictions. Our open tax years for major jurisdictions 
generally range from 2019-2024. We believe appropriate provisions for all outstanding tax issues have been made for 
all jurisdictions and all open years.
During the periods reported, income outside of the U.S. was heavily concentrated within Brazil (34% tax rate), and 
China (25% tax rate). As a result, the foreign income tax rate differential was primarily attributable to these tax rate 
differences. 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
7. Income Taxes — (continued)
84

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of certain 
assets and liabilities for financial reporting purposes and income tax purposes. Significant components of the 
Company’s deferred tax assets and liabilities are as follows:
(in thousands)
2025
2024
2025
2024
Deferred tax assets:
Accounts receivable, net
$ 
667 $ 
502 $ 
1,466 $ 
1,138 
Inventories
 
2,542  
2,473  
1,471  
1,636 
Incentive compensation
 
2,289  
1,453  
1,054  
750 
Property, plant, equipment and intangibles, net
 
—  
—  
—  
— 
Pension, post retirement benefits - non-current
 
6,388  
6,440  
4,832  
2,202 
Tax loss carryforwards
 
30  
49  
49,776  
32,963 
Tax credit carryforwards
 
3,935  
3,602  
238  
29 
Leases
 
13,149  
12,192  
2,500  
2,205 
Reserves
 
32,871  
2,639  
6,999  
7,150 
Deferred revenue
 
—  
—  
—  
— 
Other
 
749  
373  
239  
909 
Deferred tax assets before valuation allowance
 
62,769  
29,723  
68,575  
48,982 
Less: valuation allowance
 
(340)  
(1,826)  
(17,135)  
(13,670) 
Total deferred tax assets
$ 
62,429 $ 
27,897 $ 
51,440 $ 
35,312 
Deferred tax liabilities:
Unrepatriated foreign earnings
$ 
5,744 $ 
4,961 $ 
— $ 
— 
Property, plant, equipment and intangibles, net
 
9,822  
4,626  
17,440  
14,483 
Basis difference in partner capital
 
989  
1,420  
—  
— 
Basis difference in investment
 
5,732  
5,081  
—  
— 
Derivatives
 
—  
38  
151  
125 
Leases
 
12,201  
11,433  
2,303  
2,053 
Deferred revenue
 
279  
380  
2,688  
4,663 
Other
 
(11,743)  
—  
(144)  
— 
Total deferred tax liabilities
 
23,024  
27,939  
22,438  
21,324 
Net deferred tax (liability)/asset
$ 
39,405 $ 
(42) $ 
29,002 $ 
13,988 
For the year ended December 31
U.S.
Non-U.S.
Deferred income tax assets, net of valuation allowances, are expected to be realized through the reversal of existing 
taxable temporary differences and future taxable income. 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
7. Income Taxes — (continued)
85

As of December 31, 2025, the Company's net operating loss, capital loss and tax credit carryforwards were as follows: 
Jurisdiction
U.S. Federal
 2026 - 2045
$ 
— $ 
2,558 
U.S. State
 2035 - 2042
 
30  
1,010 
U.S. State
 Indefinite 
 
—  
367 
Non-U.S.
 2026 - 2040
 
3,287  
— 
Non-U.S.
 Indefinite 
 
45,806  
— 
Balance at end of year
$ 
49,123 $ 
3,935 
(in thousands)
Expiration Period
Net Operating 
and Capital Loss 
Carryforwards
Tax Credit 
Carryforwards
The Company records the residual U.S. and foreign taxes on certain amounts of foreign earnings that have been 
targeted for repatriation to the U.S. These amounts are not considered to be indefinitely reinvested, and the Company 
accrued for the tax cost on these earnings to the extent they cannot be repatriated in a tax-free manner. The 
Company has targeted for repatriation $122.2 million of current year and prior year earnings of the Company’s foreign 
operations. If these earnings were distributed, the Company would be subject to foreign withholding taxes of $5.2 
million and U.S. income taxes of $1.3 million which have already been recorded.
The accumulated undistributed earnings of the Company’s foreign operations not targeted for repatriation to the U.S. 
are intended to remain indefinitely invested in foreign operations.
No additional income taxes have been provided on the indefinitely invested foreign earnings at December 31, 2025. If 
these earnings were distributed, the Company could be subject to income taxes and additional foreign withholding 
taxes. Determining the amount of unrecognized deferred tax liability related to any additional outside basis difference 
in these entities is not practical due to the complexities of the hypothetical calculation.
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits. If 
recognized, the $2.3 million would impact the effective tax rate as of December 31, 2025 as follows:
Unrecognized tax benefits balance at January 1,
$ 
3,142 $ 
2,741 $ 
792 
Increase in gross amounts of tax positions related to prior years
 
678  
1,102  
2,373 
Decrease in gross amounts of tax positions related to prior years
 
—  
(224)  
— 
Increase in gross amounts of tax positions related to current years
 
—  
196 
Decrease due to settlements with tax authorities
 
(1,714)  
(460)  
— 
Increase (decrease) due to lapse in statute of limitations
 
—  
116  
(656) 
Currency translation
 
206  
(133)  
36 
Unrecognized tax benefits balance at December 31,
$ 
2,312 $ 
3,142 $ 
2,741 
(in thousands)
2025
2024
2023
The Company recognizes interest and penalties related to unrecognized tax benefits within its global operations as a 
component of income tax expense. The Company recognized $0.2 million, $0.4 million and $0.5 million interest and 
penalties related to the unrecognized tax benefits noted above, for the years 2025, 2024 and 2023, respectively.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
7. Income Taxes — (continued)
86

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:
(in thousands, except market price and earnings per share)
2025
2024
2023
Net income attributable to the Company
$ 
(57,342) $ 
87,623 $ 
111,120 
Weighted average number of shares:
Weighted average number of shares used in calculating basic net 
income/(loss) per share
 
29,566  
31,231  
31,171 
Effect of dilutive stock-based compensation plans:
Restricted stock units and multi-year awards(a)
 
—  
107  
105 
Weighted average number of shares used in calculating diluted net 
income/(loss) per share
 
29,566  
31,338  
31,276 
Net income/(loss) per share:
Basic
$ 
(1.94) $ 
2.81 $ 
3.56 
Diluted(a)
$ 
(1.94) $ 
2.80 $ 
3.55 
Years ended December 31,
Shares outstanding, net of treasury shares, were 28.3 million as of December 31, 2025, 31.1 million as of 
December 31, 2024, and 31.2 million as of December 31, 2023. 
(a) Restricted stock units and multi-year awards of 0.2 million were not included in the computation of diluted earnings 
per share, as their effects would be anti-dilutive as of  December 31, 2025.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
87

9. Accumulated Other Comprehensive Income ("AOCI")
The table below presents changes in the components of AOCI from January 1, 2023 to December 31, 2025:
January 1, 2023
$ 
(146,851) $ 
(15,783) $ 
17,707 $ 
(144,927) 
Other comprehensive income/(loss) before 
reclassifications
 
21,950  
(3,357)  
2,623  
21,216 
Pension/postretirement plan remeasurement, net of 
tax
 
—  
3,629  
—  
3,629 
Interest expense related to swaps reclassified to the 
Statements of Income, net of tax
 
—  
—  
(11,251)  
(11,251) 
Pension and postretirement liability adjustments 
reclassified to Statements of Income, net of tax
 
—  
(1,835)  
—  
(1,835) 
Net current period other comprehensive income
 
21,950  
(1,563)  
(8,628)  
11,759 
December 31, 2023
$ 
(124,901) $ 
(17,346) $ 
9,079 $ 
(133,168) 
Other comprehensive income/(loss) before 
reclassifications
 
(56,654)  
103  
943  
(55,608) 
Pension/postretirement plan remeasurement, net of 
tax
 
—  
2,605  
—  
2,605 
Interest expense related to swaps reclassified to the 
Statements of Income, net of tax
 
— 
 
(10,128)  
(10,128) 
Adjustment related to prior period change in opening 
valuation allowance
 
—  
310  
—  
310 
Net current period other comprehensive income
 
(56,654)  
3,018  
(9,185)  
(62,821) 
December 31, 2024
$ 
(181,555) $ 
(14,328) $ 
(106) $ 
(195,989) 
Other comprehensive income/(loss) before 
reclassifications
 
62,547  
(2,195)  
(307)  
60,045 
Pension/postretirement settlements and curtailments, 
net of tax
 
—  
(1,580)  
—  
(1,580) 
Pension/postretirement plan remeasurement, net of 
tax
 
—  
(6,598)  
—  
(6,598) 
Interest expense related to swaps reclassified to the 
Statements of Income, net of tax
 
—  
—  
(207)  
(207) 
Pension and postretirement liability adjustments 
reclassified to Statements of Income, net of tax
 
—  
791  
—  
791 
Net current period other comprehensive income/
(loss)
 
62,547  
(9,582)  
(514)  
52,451 
December 31, 2025
$ 
(119,008) $ 
(23,910) $ 
(620) $ 
(143,538) 
(in thousands)
Translation 
adjustments
Pension and 
postretirement 
liability 
adjustments
Derivative 
valuation 
adjustment
Total Other 
Comprehensive 
Income
The components of our Accumulated Other Comprehensive Income that are reclassified to the Statement of Income 
relate to our pension and postretirement plans and interest rate swaps.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
88

The table below presents the expense/(income) amounts reclassified, and the line items of the Statement of Income 
that were affected for the years ended December 31, 2025, 2024, and 2023.
Pretax Derivative valuation reclassified from Accumulated Other 
Comprehensive Income:
(Income)/Expense related to interest rate swaps included in Income 
before taxes(a)
$ 
(269) $ 
(13,547) $ 
(15,062) 
Income tax effect
 
62  
3,419  
3,811 
Effect on net income due to items reclassified from Accumulated 
Other Comprehensive Income
$ 
(207) $ 
(10,128) $ 
(11,251) 
Pretax pension and postretirement liabilities reclassified from 
Accumulated Other Comprehensive Income:
Amortization of prior service credit
$ 
(150) $ 
(150) $ 
(4,122) 
Amortization of net actuarial loss
 
1,151  
613  
1,383 
Total pretax amount reclassified(b)
 
1,001  
463  
(2,739) 
Income tax effect
 
(210)  
(153)  
904 
Effect on net income due to items reclassified from Accumulated 
Other Comprehensive Income
$ 
791 $ 
310 $ 
(1,835) 
(in thousands)
2025
2024
2023
________________________
(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 17, Financial Instruments, and 
Note 18, 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% equity interest in a new Albany subsidiary, 
Albany Safran Composites, LLC ("ASC"). Under the terms of the transaction agreements, ASC will be the exclusive 
supplier to SAFRAN of advanced 3D-woven composite parts in accordance with agreed upon scope parameters 
defined between both companies, for use in aircraft and rocket engines, thrust reversers and nacelles, and aircraft 
landing and braking systems (the “SAFRAN Applications”). AEC may develop and supply parts other than advanced 
3D-woven composite parts for all aerospace applications, as well as advanced 3D-woven composite parts for any 
aerospace applications that are not SAFRAN Applications (such as airframe applications) and any non-aerospace 
applications.
The agreement provides SAFRAN an option to purchase Albany’s remaining 90% interest upon the occurrence of 
certain bankruptcy or performance default events, or if Albany’s Engineered Composites business is sold to a direct 
competitor of SAFRAN. The purchase price is based initially on the same valuation of ASC used to determine 
SAFRAN’s 10% equity interest, and increases over time as LEAP production increases.
In accordance with the operating agreement, Albany received a $28.0 million preferred holding in ASC which includes 
a preferred return based on the Company’s revolving credit agreement. The common shares of ASC are owned 90% 
by Albany and 10% by SAFRAN.
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.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
9. Accumulated Other Comprehensive Income (AOCI) — (continued)
89

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 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 fourth quarter of 2025.
The table below presents a reconciliation of income attributable to the noncontrolling interest and noncontrolling equity 
in the Company’s subsidiaries:
(in thousands, except percentages)
2025
2024
Net income/(loss) of Albany Safran Composites (ASC)
$ 
6,474 
$ 
4,759 
Less: Return attributable to the Company's preferred holding
 
1,799 
 
1,329 
Net income/(loss) of ASC available for common ownership
$ 
4,675 
$ 
3,430 
Ownership percentage of noncontrolling shareholder
 10 %
 10 %
Net income/(loss) attributable to noncontrolling interest
$ 
468 
$ 
343 
Noncontrolling interest, beginning of year
$ 
4,983 
$ 
5,423 
Net income/(loss) attributable to noncontrolling interest
 
468 
 
343 
Changes in other comprehensive income attributable to noncontrolling interest
 
442 
 
(783) 
ASC noncontrolling interest, end of year
$ 
5,893 
$ 
4,983 
ASC Noncontrolling Interest:
Arcari noncontrolling interest, end of year
$ 
— $ 
426 
Total noncontrolling interest, end of year
$ 
5,893 $ 
5,409 
11. Accounts Receivable
As of December 31, 2025 and 2024, Accounts receivable consisted of the following:
Trade and other accounts receivable
$ 
221,592 $ 
231,136 
Bank promissory notes
 
17,844  
19,637 
Allowance for expected credit losses
 
(4,352)  
(4,085) 
Accounts receivable, net
$ 
235,084 $ 
246,688 
(in thousands)
December 31,
2025
December 31,
2024
Allowances for expected credit losses are recorded at the same time the financial asset is recorded. The Company 
monitors financial assets for credit impairment events to assess whether there has been a significant increase in 
credit risk since initial recognition, and considers both quantitative and qualitative information. The risk of loss due to 
credit default increases when one or more events occur that can have a detrimental impact on estimated future cash 
flows of that financial asset. Evidence that a financial asset is subject to greater credit risk includes observable data 
about significant financial difficulty of the customer, a breach of contract, such as a default or past due event, or it 
becomes probable that the customer will enter bankruptcy or other financial reorganization, among other factors. It 
may not be possible to identify a single discrete event, but rather, the combined effect of several events that may 
cause an increase in risk of loss.
The probability of default is driven by the relative financial health of our customer base and that of the industries in 
which we operate, as well as the broader macro-economic environment. A changing economic environment or 
forecasted economic scenario can lead to a different probability of default and can suggest that credit risk has 
changed.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
10. Noncontrolling Interest — (continued)
90

At each reporting period, the Company will recognize the amount of change in current expected credit losses as an 
allowance gain or loss in Selling, general, and administrative expenses in the Consolidated Statements of Income. 
Financial assets are written-off when the Company has no reasonable expectation of recovering the financial asset, 
either in its entirety, or a portion thereof. This is the case when the Company determines that the customer does not 
have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-
off.
The following tables present the (increases)/decreases in the allowance for credit losses for Accounts receivable:
(in thousands)
December 31,
2024
(Charge)/ 
benefit
Currency
translation
Other
December 31,
2025
Specific customer reserves
$ 
(2,934) $ 
81 $ 
(314) $ 
(47) $ 
(3,214) 
Incremental expected credit losses
 
(1,151)  
(18)  
(84)  
115  
(1,138) 
Accounts receivable expected credit losses
$ 
(4,085) $ 
63 $ 
(398) $ 
68 $ 
(4,352) 
(in thousands)
December 31, 
2023
(Charge)/ 
benefit
Currency
translation
Other
December 31, 
2024
Specific customer reserves
$ 
(2,484) $ 
(541) $ 
128 $ 
(37) $ 
(2,934) 
Incremental expected credit losses
 
(2,776)  
157  
76  
1,392  
(1,151) 
Accounts receivable expected credit losses
$ 
(5,260) $ 
(384) $ 
204 $ 1,355 $ 
(4,085) 
12. Contract Assets and Liabilities
Contract assets and Contract liabilities (included in Accrued liabilities) are reported in the Consolidated Balance 
Sheets in a net position, on a contract-by-contract basis at the end of each reporting period. Contract assets and 
contract liabilities are summarized as follows:
Contract assets
$ 
87,573 $ 
167,397 
Allowance for expected credit losses
 
(471)  
(840) 
Contract assets, net
$ 
87,102 $ 
166,557 
Contract liabilities
$ 
33,397 $ 
6,085 
(in thousands)
December 31,
2025
December 31,
2024
Contract assets, net decreased $79.5 million during the year ended December 31, 2025 primarily due to a decrease in 
unbilled revenue related to commercial and defense programs. There were no impairment losses related to our 
Contract assets during the year ended  December 31, 2025 and 2024.
The following tables present the (increases)/ decreases in the allowance for credit losses for Contract assets:
(in thousands)
December 31,
2024
(Charge)/ 
benefit
Currency
translation
Other
December 31,
2025
Contract assets expected credit 
losses
$ 
(840) $ 
76 $ 
(17) $ 
310 $ 
(471) 
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
11. Accounts Receivable— (continued)
91

(in thousands)
December 31,
2023
(Charge)/ 
benefit
Currency
translation
Other
December 31,
2024
Contract assets expected credit 
losses
$ 
(908) $ 
52 $ 
16 $ 
— $ 
(840) 
Contract liabilities increased $27.3 million during the year ended December 31, 2025, primarily due to amounts 
invoiced to customers for contracts that were in a contract liability position exceeding the revenue recognition from 
satisfied performance obligations. Revenue recognized for the years ended December 31, 2025 and 2024 that was 
included in the Contract liability balance at the beginning of the year was $5.6 million and $4.3 million, respectively.
13. Inventories
As of December 31, 2025 and 2024, inventories consisted of the following:
Raw materials
$ 
60,311 $ 
76,559 
Work in process
 
46,952  
54,917 
Finished goods
 
14,326  
14,369 
Total inventories
$ 
121,589 $ 
145,845 
(in thousands)
December 31, 
2025
December 31, 
2024
14. Property, Plant and Equipment, net
The table below sets forth the components of property, plant and equipment as of December 31, 2025 and 2024:
Land and land improvements
$ 
31,007 $ 
28,161 25 years for improvements
Buildings
 
296,052  
306,273 15 to 40 years
Machinery and equipment
 
1,176,690  
1,188,661 5 to 15 years
Furniture and fixtures
 
11,176  
11,457 5 years
Computer and other equipment
 
20,096  
25,024 3 to 10 years
Software
 
69,475  
69,932 5 to 8 years
Capital expenditures in progress
 
71,517  
75,262 
Property, plant and equipment, gross
 
1,676,013  
1,704,770 
Accumulated depreciation and amortization
 (1,193,445)  (1,141,339) 
Property, plant and equipment, net
$ 
482,568 $ 
563,431 
(in thousands)
2025
2024
Estimated useful life
Depreciation expense was $82.7 million in 2025, $82.5 million in 2024, and $70.4 million in 2023. Software 
amortization is recorded in Selling, general, and administrative expense and was $2.1 million in 2025, $1.9 million in 
2024, and $1.9 million in 2023.
Capital expenditures, including purchased software, were $71.5 million in 2025, $81.2 million in 2024, and $84.4 
million in 2023. Unamortized software cost was $5.7 million, $5.4 million, and $6.6 million in each of the years ended 
December 31, 2025, 2024, and 2023, respectively. Expenditures for maintenance and repairs are charged to income 
as incurred and amounted to $30.7 million in 2025, $25.4 million in 2024, and $22.4 million in 2023.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
12. Contract Assets and Liabilities— (continued)
92

15. Goodwill and Other Intangible Assets
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, however, these assets are tested for impairment at least annually at the reporting unit level, using either a 
qualitative or quantitative approach. Impairment is the condition that exists when the carrying amount of a reporting 
unit, including goodwill, exceeds its fair value.
In the second quarter of 2025, the Company applied a qualitative assessment approach in performing its annual 
evaluation of goodwill and indefinite-lived trademark intangibles for the Company's Machine Clothing reporting unit 
and Engineered Composites reporting units. Based on the qualitative evaluation of the events and circumstances 
impacting the reporting units, management determined it is more likely than not that the fair value of each reporting 
unit exceeded its carrying amount, and no further evaluation was necessary. 
In the third quarter of 2025, the Company revised its estimates and assumptions used in certain program estimates at 
completion of its AEC reporting unit, most significantly the CH-53K program. As a result of the changes in estimates, 
we performed a quantitative assessment of the AEC reporting unit's goodwill for impairment. As part of the quantitative 
assessment, management used the income and market approach to determine fair value by considering projected 
cash flows and market multiples for each reporting unit. Management performed the quantitative assessments and 
concluded that each reporting unit’s fair value continued to significantly exceed its carrying value. Accordingly, no 
impairment charges were recorded. 
In the second quarter of 2025, the Company wrote-off the remaining Finite-lived intangible assets balance at our 
Arcari, SRL location due to restructuring actions being taken to cease operations at the manufacturing facility. This 
decision resulted in a non-cash write-off of intangibles for $0.3 million.
In the fourth quarter of 2024, the Company wrote-off the remaining Finite-lived intangible assets balance at our 
Rochdale, UK location due to restructuring actions being taken to cease operations at the manufacturing facility. This 
decision resulted in a non-cash write-off of intangibles for $0.3 million, which is presented as other changes in the 
table below for intangible assets and goodwill in 2024.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
93

We amortize certain patents, trademarks and names, customer contracts, relationships and technology assets that 
have finite-lives. The changes in intangible assets and goodwill from December 31, 2023 to December 31, 2025, were 
as follows:
Finite-lived intangible 
assets:
AEC Trademarks and 
trade names
6-15
$ 
11 $ 
— $ 
— $ 
(11) $ 
— $ 
— 
AEC Technology
10-15
 
2,680  
—  
—  
(616)  
352  
2,416 
AEC Intellectual property
15
 
828  
—  
—  
(83)  
—  
745 
AEC Customer 
relationships
8-15
 
21,892  
(13,384)  
—  
(3,504)  
225  
5,229 
Heimbach Developed 
technology
9
 
7,004  
—  
(315)  
(988)  
881  
6,582 
Total Finite-Lived intangible 
assets, net
$ 32,415 $ (13,384) $ 
(315) $ 
(5,202) $ 
1,458 $ 14,972 
Indefinite-lived intangible 
assets:
Heimbach Trade name
$ 
5,712 $ 
— $ 
— $ 
— $ 
744 $ 
6,456 
MC Goodwill
 
63,988  
—  
—  
—  
5,923  
69,911 
AEC Goodwill
 112,273  
(21,829)  
—  
—  
2,152  
92,596 
Total Indefinite-lived 
intangible assets
$ 181,973 $ (21,829) $ 
— $ 
— $ 
8,819 $ 168,963 
(in thousands, except for years)
Amortization 
life in years
Balance at 
December 
31, 2024
Reclassified 
to Held for 
Sale
Other 
Changes
Amortization
Currency 
Translation
Balance at 
December 
31, 2025
(in thousands, except for years)
Amortization 
life in years
Balance at 
December 31,
2023
Acquisition
Amortization
Currency
Translation
Balance at 
December 31,
2024
Finite-lived intangible 
assets:
AEC Trademarks and trade 
names
6-15
$ 
22 $ 
— $ 
(11) $ 
— $ 
11 
AEC Technology
10-15
 
3,426  
—  
(569)  
(177)  
2,680 
AEC Intellectual property
15
 
911  
—  
(83)  
—  
828 
AEC Customer 
relationships
8-15
 
25,485  
—  
(3,480)  
(113)  
21,892 
Heimbach Developed 
technology
9
 
8,732  
(289)  
(953)  
(486)  
7,004 
Total Finite-Lived intangible 
assets, net
$ 
38,576 $ 
(289) $ 
(5,096) $ 
(776) $ 
32,415 
Indefinite-lived intangible 
assets:
Heimbach Trade name
$ 
6,070 $ 
— $ 
— $ 
(358) $ 
5,712 
MC Goodwill
 
66,873  
—  
—  
(2,885)  
63,988 
AEC Goodwill
 
113,308  
—  
—  
(1,035)  
112,273 
Total Indefinite-lived intangible 
assets
$ 
186,251 $ 
— $ 
— $ 
(4,278) $ 
181,973 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
15. Goodwill and Other Intangible Assets — (continued)
94

As of December 31, 2025, the gross carrying amount and accumulated amortization of Finite-lived intangible assets 
was $35.1 million and $20.1 million, respectively. 
Amortization expense related to Finite-lived intangible assets was reported in the Consolidated Statement of Income 
as follows: $0.9 million in Cost of goods sold and $4.3 million in Selling, general and administrative expenses in 2025; 
$1.1 million in Cost of goods sold and $4.2 million in Selling, general and administrative expenses in 2024; and $0.4 
million in Cost of goods sold and $4.1 million in Selling, general and administrative expenses in 2023. 
Estimated amortization expense of intangibles for the years ending December 31, 2026 through 2030, is as follows:
2026
$ 
2,000 
2027
 
1,900 
2028
 
1,900 
2029
 
1,800 
2030
 
1,200 
Year
Annual 
amortization
(in thousands)
16. Accrued Liabilities
Accrued liabilities as of December 31, 2025 and 2024 consist of the following:
Salaries, wages and benefits
$ 
46,403 $ 
57,253 
Contract liabilities
 
33,397  
6,085 
Returns and allowances
 
10,787  
9,422 
Dividends
 
7,928  
8,431 
Pension and postretirement 
 
8,059  
8,744 
Operating lease liabilities
 
4,274  
7,607 
Other tax
 
5,400  
7,329 
Contract loss reserve
 
600  
10,524 
Freight
 
2,318  
3,256 
Professional fees
 
5,032  
5,539 
Restructuring
 
2,766  
4,996 
Other
 
12,421  
12,718 
Total accrued liabilities
$ 
139,385 $ 
141,904 
(in thousands)
2025
2024
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
15. Goodwill and Other Intangible Assets — (continued)
95

17. Financial Instruments
Debt principally consists of a revolving credit agreement and foreign bank debt assumed in the acquisition of 
Heimbach. The following table represents our outstanding debt as of December 31, 2025 and 2024:
Borrowings under the Amended Credit Agreement(1):
USD borrowings
$ 
350,000 $ 
225,000 
EUR borrowings
 
105,663  
93,485 
Foreign bank debt
 
—  
46 
Total bank debt
 
455,663  
318,531 
Less: Current maturities of long-term debt
 
—  
— 
Long-term debt
$ 
455,663 $ 
318,531 
(1) The credit facility matures in August 2028. At the end of the December 31, 2025 and December 31, 2024, the USD 
interest rate in effect was 5.56% and 5.77%, respectively, including the effect of interest rate swaps; at the end of 
December 31, 2025, the EURIBOR interest rate was 3.73% and 4.09% at the end of December 31, 2024, including 
the effect of interest rate swaps. 
(in thousands, except interest rates)
2025
2024
There are no principal payments on long-term debt until 2028, at which time the balance of $455.7 million is due. 
Cash payments of interest amounted to $24.6 million in 2025, $14.7 million in 2024 and $18.7 million in 2023.
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 December 31, 2025, the applicable interest rate for borrowings under the Amended Credit Agreement was 
based on one-month term SOFR and one-month EURIBOR, plus the spread, which was 1.625%.
 As of December 31, 2025, there was $456 million of borrowings outstanding under the Amended Credit Agreement 
and we had borrowings available of $344 million, based on our maximum leverage ratio and our consolidated EBITDA 
(as defined in the Amended Credit Agreement).
Under the Amended Credit Agreement, we are required to maintain a leverage ratio (as defined in the Amended 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 Amended 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.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
96

As of December 31, 2025, our leverage ratio was 1.66 to 1.00 and our interest coverage ratio was 8.30 to 1.00. As of 
December 31, 2025, we were in compliance with all applicable covenants. We anticipate continued compliance in 
each of the next four quarters while continuing to monitor future compliance based on current and future economic 
conditions.
The borrowings are guaranteed by certain of the Company’s subsidiaries 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). Indebtedness under the Amended Credit Agreement is ranked equally in right of payment to all 
unsecured senior debt.
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.
These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 18, Fair-
Value Measurements, of the Notes to the Consolidated Financial Statements. No cash collateral was received or 
pledged in relation to the swap agreements.
18. 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 December 31, 2025, or at December 31, 2024, other than certain 
pension assets (see Note 4, Pension, Postretirement, and Other Benefit Plans, of the Notes to the Consolidated 
Financial Statements).
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
17. Financial Instruments — (continued)
97

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:
(in thousands)
Quoted prices 
in active 
markets
(Level 1)
Significant 
other 
observable 
inputs 
(Level 2)
Quoted prices 
in active 
markets
(Level 1)
Significant 
other 
observable 
inputs
(Level 2)
Fair Value
Assets:
Cash equivalents
$ 
10,584 $ 
— 
$ 
11,273 $ 
— 
Foreign currency option contracts
 
— 
 
— 
Foreign currency forward contracts
 
— 
 
— 
Other Assets:
Common stock of unaffiliated foreign public 
company (a)
 
1,098  
— 
 
631  
— 
Interest rate swaps
 
—  
768 
 
—  
149 
Liabilities:
Other Non-Current Liabilities
Interest rate swaps
 
—  
— 
 
—  
(218) 
December 31, 2025
December 31, 2024
(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 are 
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 flow through the caption Derivative valuation adjustment in the Shareholders’ equity 
section of the Consolidated Balance Sheets. In November, 2024, the Company entered into a USD and EUR interest 
rate swap agreements (see Note 17, Financial Instruments, of the Notes to the Consolidated Financial Statements for 
additional information). As of December 31, 2025, these interest rate swaps were determined to be highly effective 
hedges of interest rate cash flow 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 (income)/expense related to payments under the active swap agreements totaled $0.3 million in 
2025, $13.4 million in 2024 and $(15.0) million in 2023. 
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 
assets and Accounts payable, 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 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.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
18. Fair-Value Measurements — (continued)
98

(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:
(in thousands)
2025
2024
2023
Derivatives not designated as hedging
instruments:
Foreign currency hedging (gains)/losses
$ 
(3,735) $ 
3,459 $ 
(351) 
19. Other Noncurrent Liabilities
As of December 31, 2025 and 2024, Other noncurrent liabilities consisted of the following:
Operating leases
$ 
7,423 $ 
61,062 
Postretirement benefits other than pensions
 
24,151  
23,943 
Pension liabilities
 
47,782  
46,041 
Incentive and deferred compensation
 
2,951  
1,908 
Other
 
4,543  
5,876 
Total other noncurrent liabilities
$ 
86,850 $ 
138,830 
(in thousands)
2025
2024
20. Leases
We are generally the lessee in our lease transactions. Lessees are required to recognize a lease liability and a right of 
use ("ROU") asset for leases with terms greater than 12 months, in accordance with the practical expedient that is 
available for ongoing accounting.
ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent an 
obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized 
on the commencement date based on the present value of lease payments over the lease term, using the rate implicit 
in the lease. If that rate is not readily determinable, the rate is based on the Company’s incremental borrowing rate. 
The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease 
terms may include options to extend or terminate the lease. Our ROU assets include the values associated with the 
additional periods when it is reasonably certain that we will exercise the option. We review the carrying value of ROU 
assets for impairment whenever events and circumstances indicate that the carrying value of an asset group may not 
be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.
We have entered into operating leases for offices, manufacturing facilities, warehouses, vehicles, and certain 
equipment. Our leases have remaining lease terms of one year to 14 years, some of which include options to extend 
the leases for up to 10 years, and some of which include options to terminate the leases within one year.
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
18. Fair-Value Measurements — (continued)
99

The components of lease expense were as follows:
For the years ended
(in thousands)
December 31, 2025
December 31, 2024
December 31, 2023
Operating lease:
Fixed lease cost
 
11,576  
10,776  
9,591 
Variable lease cost
 
1,906  
516  
108 
Short-term lease cost
 
776  
2,170  
2,060 
Total lease expense
$ 
14,258 $ 
13,462 $ 
11,759 
The Company was not party to any leases classified as finance leases for the periods ending December 31, 2025, 
2024, or 2023.
Supplemental cash flow information related to leases was as follows:
For the years ended
(in thousands)
December 31, 2025
December 31, 2024
December 31, 2023
Cash paid for amounts included in the 
measurement of lease liabilities:
Operating cash outflows from operating 
leases
$ 
11,809 $ 
11,204 $ 
10,105 
Right-of-use assets obtained in exchange for 
lease obligations:
Operating leases
$ 
9,746 $ 
17,698 $ 
9,114 
The initial recognition of each ROU asset and lease liability at lease commencement is a noncash transaction that is 
excluded from amounts reported in the Consolidated Statements of Cash Flows.
Supplemental balance sheet information related to leases was as follows:
Operating leases
Right of use assets
$ 
11,387 
$ 
61,671 
Lease liabilities included in
Accrued liabilities
$ 
4,274 
$ 
7,607 
Other noncurrent liabilities
 
7,423 
 
61,062 
Total operating lease liabilities
$ 
11,697 
$ 
68,669 
(in thousands)
December 31, 
2025
December 31, 
2024
Additional information for leases existing at December 31, 2025 and 2024 was as follows:
December 31, 2025
December 31, 2024
Weighted average remaining lease term
Operating leases
13 years
13 years
Weighted average discount rate
Operating leases
 5.8 %
 5.8 %
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
20. Leases — (continued)
100

Maturities of lease liabilities as of December 31, 2025 were as follows:
(in thousands)
Operating leases
Year ending December 31,
2026
$ 
4,809 
2027
 
3,600 
2028
 
1,692 
2029
 
860 
2030
 
408 
Thereafter
 
2,548 
Total lease payments
 
13,917 
Less imputed interest
 
(2,220) 
Total
$ 
11,697 
The above table excludes leases held by the disposal group for which the Company is the obligor. Payments for these 
leases are expected to be $6.2 million in 2026, $6.3 million in 2027, $5.3 million in 2028, $5.4 million in 2029, $5.5 
million in 2030, and $57.1 million thereafter. Of these payments, $27.7 million is imputed interest at December 31, 
2025.
21. 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 3,677 claims as of December 31, 2025.
The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise 
resolved, and the aggregate settlement amount during the periods presented:
2023
3,598
19
27
3,606
$74
2024
3,606
10
50
3,646
13
2025
3,646
28
59
3,677
173
Year ended December 31,
Opening 
Number of 
Claims
Claims 
Dismissed, 
Settled, or
Resolved
New Claims
Closing 
Number of 
Claims
Amounts Paid 
(thousands) to
Settle or 
Resolve
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 we 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 December 31, 2025 we had resolved, by means 
of settlement or dismissal, 38,079 claims. The total cost of resolving all claims was $10.9 million. Of this amount, 
almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million of 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
20. Leases — (continued)
101

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 December 31, 2025, only twelve claims have 
been filed against Brandon since January 1, 2012, and only $15,000 in settlement costs have been incurred since 
2001. Brandon was acquired by the Company in 1999 and has its own insurance policies covering periods prior to 
1999. 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.
22. Stock-Based Compensation
We have cash-based and stock-based incentive compensation plans that can be awarded for key employees, which 
are designed to reward short and long-term contributions and used as retention incentives for key senior 
management. We grant stock-based awards in the form of restricted stock units that are generally settled with the 
issuance of Class A shares. We grant performance phantom stock units that are treated as liability-based awards and 
are generally settled in cash. The vesting periods generally range between one and five years from the grant date. 
Expenses associated with these awards are recognized over each respective vesting period.
Performance and Retention Awards
The Albany International 2017 and 2023 Long-term Incentive Plans provide senior executive members of 
management with incentive compensation based on achieving certain performance or service measures. Awards can 
be settled in cash or shares of Class A Common Stock. If the settlement is in the form of Class A Common Stock, 
participants may elect to receive shares net of applicable income taxes. 
Multi-Year Performance Plan Awards 
Long-term performance incentives were granted to executives as multi-year performance plan ("MPP") awards in 
each of 2023, 2024. Beginning in 2025, long-term performance incentive awards took the form of restricted stock unit 
award. Each of the MPP awards vests three years after the grant date, and the extent of payout is dependent upon 
the achievement of certain performance metrics during the three-year performance period, as defined by the 
Compensation Committee of the Board of Directors. Settlement of the awards are scheduled to occur no later than 90 
days after the end of the performance period. If a participant terminates employment prior to the award becoming fully 
vested, the participant forfeits either their entire award or a pro rata portion of the MPP award. The grant date share 
price is determined when the awards are approved by the Compensation Committee of the Board of Directors each 
year and that price is used to measure the cost for the share-based portion of an award. MPP awards are generally 
settled in shares. Expense associated with these awards is recognized over the vesting period. and is adjusted 
quarterly based on estimated achievement of performance metrics. In connection with these awards, we recognized 
(income)/expense of ($2.1) million in 2025, $1.6 million in 2024 and $5.1 million in 2023. Based on current estimates 
of achievement of certain performance metrics, we anticipate recognizing $0.1 million of expense in 2026 and 2027. 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
21. Commitments and Contingencies — (continued)
102

Restricted Stock Unit Awards 
Long-term restricted stock unit awards (“RSU”) were granted to executives and other eligible employees which vest 
annually and settle in shares  no later than 90 days after the vesting period ends. The grant date share price is the 
date when the award is approved by the Compensation Committee of the Board of Directors and is used to measure 
the cost of the award. We recognized $6.5 million of expense in 2025 associated with RSU’s, $2.6 million in 2024, and 
$4.2 million in 2023. Based on RSU’s outstanding at December 31, 2025, we expect to record approximately 
$3.4 million of expense in 2026 and $1.4 million of expense in 2027. 
As of December 31, 2025, there were 1,341,905 shares of Company stock authorized for the payment of awards 
under these plans. Information with respect to these plans is presented below:
Shares potentially payable at January 1, 2023
 
135,941 $ 
79.11 $ 
10,754 
Forfeitures
 
(9,035) $ 
92.02 
Payments
 
(112,279) $ 
86.35 
Shares accrued based on 2023 performance
 
124,181 $ 
92.52 
Shares potentially payable at December 31, 2023
 
138,808 $ 
84.41 $ 
11,717 
Forfeitures
 
(14,689) $ 
92.02 
Payments
 
(77,782) $ 
89.44 
Shares accrued based on 2024 performance
 
81,468 $ 
91.80 
Shares potentially payable at December 31, 2024
 
127,805 $ 
85.69 $ 
10,952 
Forfeitures
 
(39,057) $ 
87.50 
Vesting
 
(59,180) $ 
87.62 
Grants
 
195,506 $ 
72.45 
Shares accrued based on 2025 performance
 
21,226 $ 
88.33 
Shares potentially payable at December 31, 2025
 
246,300 $ 
79.34 $ 
19,541 
(in thousands, except number of shares and weighted average grant date value 
per share)
Number of 
shares
Weighted 
average grant 
date value 
per share
Year-end 
intrinsic value
Performance Phantom Stock
Long-term cash retention incentives with a performance component were granted to members of management as 
Phantom Stock Plan ("PSP") awards. Awards under this plan vest over a 3 to 5 year period and are paid annually in 
cash based on current market prices of the Company’s stock. Under this program, employees may earn more or less 
than the target award based on the Company’s results in the year of the award. Expense recognized for this plan 
amounted to $3.3 million in 2025, $5.4 million in 2024, and $7.8 million in 2023.  Based on awards outstanding at 
December 31, 2025, we expect to record approximately $2.3 million of compensation cost from 2026 to 2028. The 
weighted average period for recognition of that cost is approximately 1.4 years.
Non-employee Director stock compensation
The Company’s independent Directors are paid an annual retainer, of which a certain amount is required to be paid in 
shares. The total number of shares paid to each independent Director is determined by the share closing price on the 
day of the Annual Meeting at which the election of Directors occurs. This resulted in compensation expense of 
$0.8 million in 2025, $1.2 million in 2024, and $1.1 million in 2023 in the form of shares. 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
22. Stock-Based Compensation — (continued)
103

23. Shareholders’ Equity
We currently have one class of Common Stock, Class A Common Stock, with a par value of $0.001. Each share is 
entitled to one vote on all matters submitted to shareholders, and will receive dividends as approved by the Board of 
Directors. 
The Company's Board of Directors authorized the Company to repurchase shares of up to $250 million through open 
market purchases, privately negotiated transactions or otherwise, and to determine the prices, times and amounts. 
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 share repurchase program does not have an 
expiration date. 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. As of December 31, 2025, the Company has repurchased in total 2,682,859 
shares under the current plan for a total cost of $173.3 million. We are currently authorized to repurchase shares up to 
$76.7 million under the current program. Further, shares were purchased in 2025 for $12.6 million under a now 
expired authorization. Repurchases made during 2025 are subject to excise taxes of $1.9 million, payable in 2026.
Activity in Shareholders’ equity for 2023, 2024, and 2025 is presented below:  
(in thousands)
Class A
Common Stock
Additional 
paid-in capital
Retained 
earnings
Accumulated 
items of other
comprehensive 
income
Class A
Treasury Stock
Noncontrolling 
Interest
Total Equity
Shares
Amount
Shares
Amount
January 1, 2023
 
40,785 
$ 
41 
$ 
441,540 
$ 
931,318 
$ 
(144,927)  
9,675 
$ (364,923) $ 
4,494 
$ 
867,543 
Net income
 
— 
 
— 
 
— 
 
111,120 
 
— 
 
— 
 
— 
 
490 
 
111,610 
Compensation and 
benefits paid or 
payable in shares
 
71 
 
— 
 
5,851 
 
— 
 
— 
 
— 
 
— 
 
— 
 
5,851 
Shares issued to 
Directors'
 
— 
 
— 
 
827 
 
— 
 
— 
 
(13)  
258 
 
— 
 
1,085 
Dividends declared 
on Class A Common 
Stock, $1.01 per 
share
 
— 
 
— 
 
— 
 
(31,496)  
— 
 
— 
 
— 
 
— 
 
(31,496) 
Initial equity related 
to Noncontrolling 
Interest in Arcari
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
509 
 
509 
Cumulative 
translation 
adjustments
 
— 
 
— 
 
— 
 
— 
 
21,950 
 
— 
 
— 
 
459 
 
22,409 
Pension and 
postretirement 
liability adjustments
 
— 
 
— 
 
— 
 
— 
 
(1,563)  
— 
 
— 
 
— 
 
(1,563) 
Derivative valuation 
adjustment
 
— 
 
— 
 
— 
 
— 
 
(8,628)  
— 
 
— 
 
— 
 
(8,628) 
December 31, 2023
 
40,856 
$ 
41 
$ 
448,218 
$ 
1,010,942 
$ 
(133,168)  
9,662 
$ (364,665) $ 
5,952 
$ 
967,320 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
104

(in thousands)
Class A
Common Stock
Additional 
paid-in capital
Retained 
earnings
Accumulated 
items of other
comprehensive 
income
Class A
Treasury Stock
Noncontrolling 
Interest
Total Equity
Shares
Amount
Shares
Amount
January 1, 2024
 
40,856 
$ 
41 
$ 
448,218 
$ 
1,010,942 
$ 
(133,168)  
9,662 
$ (364,665) $ 
5,952 
$ 
967,320 
Net income
 
— 
 
— 
 
— 
 
87,623 
 
— 
 
— 
 
— 
 
432 
 
88,055 
Compensation and 
benefits paid or 
payable in shares
 
51 
 
— 
 
3,812 
 
— 
 
— 
 
— 
 
— 
 
— 
 
3,812 
Shares issued to 
Directors'
 
10 
 
— 
 
903 
 
— 
 
— 
 
— 
 
— 
 
— 
 
903 
Purchase of 
Treasury shares
 
— 
 
— 
 
— 
 
— 
 
— 
 
183 
 
(14,545)  
— 
 
(14,545) 
Dividends declared 
on Class A Common 
Stock, $1.05 per 
share
 
— 
 
— 
 
— 
 
(32,802)  
— 
 
— 
 
— 
 
— 
 
(32,802) 
Dividends paid to 
noncontrolling 
interests
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
(166)  
(166) 
Cumulative 
translation 
adjustments
 
— 
 
— 
 
— 
 
— 
 
(56,654)  
— 
 
— 
 
(809)  
(57,463) 
Pension and 
postretirement 
liability adjustments
 
— 
 
— 
 
— 
 
— 
 
3,018 
 
— 
 
— 
 
— 
 
3,018 
Derivative valuation 
adjustment
 
— 
 
— 
 
— 
 
— 
 
(9,185)  
— 
 
— 
 
— 
 
(9,185) 
December 31, 2024
 
40,917 
$ 
41 
$ 
452,933 
$ 
1,065,763 
$ 
(195,989)  
9,845 
$ (379,210) $ 
5,409 
$ 
948,947 
(in thousands)
Class A
Common Stock
Additional 
paid-in capital
Retained 
earnings
Accumulated 
items of other
comprehensive 
income
Class A
Treasury Stock
Noncontrolling 
Interest
Total Equity
Shares
Amount
Shares
Amount
January 1, 2025
 
40,917 
$ 
41 
$ 
452,933 
$ 
1,065,763 
$ 
(195,989)  
9,845 
$ (379,210) $ 
5,409 
$ 
948,947 
Net income
 
— 
 
— 
 
— 
 
(57,342)  
— 
 
— 
 
— 
 
383 
 
(56,959) 
Stock- based 
compensation
 
61 
 
— 
 
9,300 
 
— 
 
— 
 
— 
 
— 
 
— 
 
9,300 
Stock issued under 
incentive 
compensation plans
 
— 
 
— 
 
(1,067)  
— 
 
— 
 
— 
 
— 
 
— 
 
(1,067) 
Taxes paid in lieu of 
share issuance
 
— 
 
— 
 
(1,454)  
— 
 
— 
 
— 
 
— 
 
— 
 
(1,454) 
Shares issued to 
Directors'
 
11 
 
— 
 
760 
 
— 
 
— 
 
— 
 
— 
 
— 
 
760 
Purchase of 
Treasury shares
 
— 
 
— 
 
— 
 
— 
 
— 
 
2,841 
 
(187,929)  
— 
 
(187,929) 
Dividends declared 
on Class A Common 
Stock, $1.09 per 
share
 
— 
 
— 
 
— 
 
(31,953)  
— 
 
— 
 
— 
 
— 
 
(31,953) 
Dividends paid to 
noncontrolling 
interests
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
— 
 
(88)  
(88) 
Cumulative 
translation 
adjustments
 
— 
 
— 
 
— 
 
— 
 
62,547 
 
— 
 
— 
 
101 
 
62,648 
Pension and 
postretirement 
liability adjustments
 
— 
 
— 
 
— 
 
— 
 
(9,583)  
— 
 
— 
 
— 
 
(9,583) 
Derivative valuation 
adjustment
 
— 
 
— 
 
— 
 
(95)  
(513)  
— 
 
— 
 
88 
 
(520) 
December 31, 2025
 
40,989 
$ 
41 
$ 
460,472 
$ 
976,373 
$ 
(143,538)  
12,686 
$ (567,139) $ 
5,893 
$ 
732,102 
Index
ALBANY INTERNATIONAL CORP.
Notes to Consolidated Financial Statements
23. Shareholders’ Equity — (continued)
105

24. Held for Sale
During the fourth quarter of 2025, the Company announced that it is exploring strategic alternatives for its structures 
assembly business as it is not aligned with our long-term strategy. Exiting this business will enable the AEC business 
segment to focus on higher-margin, advanced technology component opportunities where we have a strong record of 
execution, and differentiated material science, including our 3D woven technology. The structure assembly program 
operates within the AEC segment out of the Amelia Earhart Drive facility in Salt Lake City, and is part of Albany 
Aerostructures Composites, LLC, a wholly-owned subsidiary. In addition to the structure assembly work for the 
program, the site also manufactures advanced composite parts for the CH-53K and other commercial and defense 
programs.
The Company has assessed the held-for-sale accounting criteria and classified the assets and liabilities associated 
with Amelia Earhart Drive facility as held-for-sale at December 31, 2025. Management has also performed a 
quantitative assessment of the fair value of the disposal group less costs of disposal based on income-based 
valuation techniques, utilizing projected discounted cash flows. The result was that fair value exceeds the net carrying 
value, and no impairment charge has been recorded.
The carrying amounts of the assets and liabilities of the facility classified as held-for-sale in our Consolidated Balance 
Sheet were as follows:
(in thousands)
December 31, 2025
Accounts receivable, net
$ 
27,159 
Contract assets, net
 
68,550 
Inventories
 
16,422 
Prepaid expenses and other current assets
 
697 
Property, plant and equipment, net
 
93,525 
Intangibles, net
 
13,384 
Goodwill
 
21,829 
Other assets
 
52,217 
Total assets held for sale
$ 
293,783 
Accounts payable
$ 
16,408 
Accrued liabilities
 
115,448 
Other noncurrent liabilities
 
59,724 
Deferred taxes and other liabilities
 
11,743 
Total liabilities held for sale
$ 
203,323 
25. Subsequent Events
The Company evaluated subsequent events occurring after the balance sheet date through the date these financial 
statements were issued and determined that no events occurred that would require adjustment to, or disclosure in, the 
financial statements.
106

Item 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL 
DISCLOSURE
None.
Item 9A. 
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company, with the participation of its management, including its Chief Executive Officer and Chief Financial 
Officer, has carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure 
controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) as of December 31, 2025. Such 
disclosure controls and procedures are designed to ensure that information required to be disclosed in reports under 
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the 
Commission's rules and forms, and to ensure that information required to be disclosed under the Exchange Act is 
accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as 
appropriate to allow timely decisions regarding required disclosure.
Based on and as of the date of this evaluation, the Chief Executive Officer and the Chief Financial Officer have 
concluded that the Company’s disclosure controls and procedures were effective as of such date.
Management’s Report on Internal Control over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over financial 
reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Company’s 
internal control system is a process designed to provide reasonable assurance regarding the reliability of financial 
reporting and the preparation of financial statements for external reporting purposes in accordance with accounting 
principles generally accepted in the United States of America and includes those policies and procedures that (1) 
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and 
dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as 
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, 
and that receipts and expenditures of the Company are being made only in accordance with authorizations of 
management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely 
detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on 
the financial statements.
Because of its limitations, internal control over financial reporting may not prevent or detect misstatements. Also, 
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become 
inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may 
deteriorate.
Management, under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer, and 
oversight of the Board of Directors, conducted an assessment of the effectiveness of the Company’s internal control 
over financial reporting as of December 31, 2025 using the criteria set forth by the 2013 Committee of Sponsoring 
Organizations of the Treadway Commission ("COSO") in Internal Control – Integrated Framework.
Based on management’s assessment, we have concluded that our internal control over financial reporting was 
effective at December 31, 2025. Our independent registered accounting firm has issued a report on the effectiveness 
of our internal control over financial reporting which is included under Item 8.
Changes in Internal Control over Financial Reporting
Management of the Company has evaluated the changes in the Company's internal controls over financial reporting 
during 2025. There were no changes in our internal control over financial reporting during our fourth fiscal quarter of 
2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial 
reporting.
107

/s/ Gunnar Kleveland
/s/ Willard C. Station
/s/ Sean Valashinas
Gunnar Kleveland
Willard C. Station
Sean Valashinas
President and
Chief Executive Officer
and Director
Executive Vice 
President and Chief 
Financial Officer
Vice President - 
Controller and Chief 
Accounting Officer
(Principal Executive Officer)
(Principal Financial Officer)
(Principal Accounting Officer)
Item 9B. 
OTHER INFORMATION
Securities Trading Plans of Directors and Executive Officers
During the three months ended December 31, 2025, none of the members of our Board of 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” as defined in Item 408(c) of Regulation S-K.
Index
108

PART III
The information required by Items 10, 11, 12, 13, and 14 is set forth under the headings below and when applicable is 
incorporated herein by reference to the Company’s 2026 Proxy Statement (“Proxy Statement”) to be filed with the 
SEC within 120 days after December 31, 2025 in connection with the solicitation of proxies for the Company’s 2025 
annual meeting of shareholders.
Item 10. 
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
a)
Directors. The information set out in the section captioned “Election of Directors”, will be filed within the Proxy 
Statement. 
b)
Executive Officers. Information about the officers of the Company is included in Item 1, Business, in Part I of 
this Annual Report on Form 10-K.
c)
Significant Employees. Same as Executive Officers in b) above.
d)
Nature of any family relationship between any director, executive officer, person nominated or chosen to 
become a director or executive officer. The information is included in the section captioned “Certain Business 
Relationships and Related Person Transactions”, filed within in the Proxy Statement.
e)
Business experience, during the past five years, of each director, executive officer, person nominated or 
chosen to become director or executive officer, and significant employees. Information about the Company's 
Executive Officers is included in Item 1, Business, in Part I of this Annual Report on Form 10-K and the 
information about the Company's Directors is included in the section captioned “Election of Directors” in the 
Proxy Statement.
f)
Involvement in certain legal proceedings by any director, person nominated to become a director or executive 
officer. The information, if any, is included in the section captioned “Election of Directors”, filed within the Proxy 
Statement.
g)
Certain promoters and control persons. None.
h)
Audit Committee Financial Expert. The information is included in the section captioned “Corporate Governance 
at Albany International”, filed within the Proxy Statement.
i)
Code of Ethics. The Company has adopted a Code of Ethics that applies to all of its employees, directors, and 
officers, including the Chief Executive Officer, Chief Financial Officer and Vice President- Controller and Chief 
Accounting Officer. A copy of the Code of Ethics is filed as Exhibit 10(p) and is available at the Corporate 
Governance section of the Company’s website (www.albint.com), within the investor materials section. A copy 
of the Code of Ethics may be obtained, without charge, by writing to: Investor Relations Department, Albany 
International Corp., 325 Corporate Drive, Portsmouth, New Hampshire 03801. Any amendment to the Code of 
Ethics will be disclosed by posting the amended Code of Ethics on the Company’s website. Any waiver of any 
provision of the Code of Ethics will be disclosed by the filing of a Form 8-K.
j)
Insider Trading Policy. The Company has adopted an insider trading policy governing the purchase, sale, and/
or other dispositions of its securities by our directors, officers and employees that we believe is reasonably 
designed to promote compliance with insider trading laws, rules and regulations, and the exchange listing 
standards applicable to the Company. A copy of our Insider Trading Policy is filed as Exhibit 19. It is the 
Company’s policy to comply with all applicable securities and state laws (including appropriate approvals by 
the Company’s board of directors or appropriate committee, if required) when engaging in transactions in the 
Company’s securities.
Item 11. 
EXECUTIVE COMPENSATION
The information required by this item is set forth in the sections of the Company’s 2026 Proxy Statement captioned 
“2025 Executive Compensation Earned,” “Summary Compensation Table,” “CEO Pay Ratio,” “Grants of Plan-Based 
Awards,” “Outstanding Equity Awards At Fiscal Year-End,” “Option Exercises and Stock Vested,” “Pension Benefits,” 
“Nonqualified Deferred Compensation,” “Director Compensation,” “Compensation Committee Report,” “Compensation 
Discussion and Analysis,” and “Compensation Committee Interlocks and Insider Participation” and is incorporated 
herein by reference.
Index
109

Item 12. 
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED 
STOCKHOLDER MATTERS
The information required by this item is set forth in the section captioned “Share Ownership” in the Company’s 2026 
Proxy Statement and is incorporated herein by reference.
Equity Compensation Plan Information
(a)
(b)
(c)
Equity compensation plans 
approved by security holders
 
— (1)  
—  
1,341,905 (1),(2),(3),(4),(5)
Equity compensation plans not 
approved by security holders
 
— 
 
—  
— 
Total
 
— (1)  
—  
1,341,905 (1),(2),(3),(4),(5)
Plan Category
Number of securities to 
be issued upon
exercise of outstanding 
options, warrants,
and rights
Weighted average 
exercise price of
outstanding options, 
warrants, and rights
Number of securities 
remaining available
for future issuance 
under equity
compensation plans 
(excluding securities
reflected in column (a))
_______________________
(1)
Does not include 46,318, 60,078, and 175,876 shares that have been granted and may be issued pursuant to 
2023, 2024 and 2025, respectively, performance incentive awards granted to certain executive officers pursuant 
to either the 2017 Incentive Plan or the 2023 Incentive Plan. Nor does it include 10,416 shares that will be issued 
pursuant to non-employee director restricted stock units issued pursuant to the 2023 Incentive Plan (see footnote 
5 below). In each case such awards are not “exercisable,” but will be paid out to the recipients in accordance 
with their terms, subject to certain conditions. The ultimate number of shares actually issued pursuant to such 
awards may be higher or lower depending upon, among other things, forfeitures, cancellation, or, in the particular 
case of performance share unit awards, actual performance as measured against the performance award target 
goals.
(2)
Reflects the number of shares that may be issued pursuant to future awards under the 2023 Incentive Plan. This 
includes the Common Stock that remained available for issuance under the 2017 Incentive Plan but which are 
now issuable under the 2023 Incentive Plan (see footnote 4 below).
(3)
The 2017 Incentive Plan does not permit the Board of Directors to increase the number of shares that may be 
issued under the Plan without shareholder consent. Shares of Common Stock covered by awards granted under 
the 2017 Incentive Plan through 2023 are counted as used to the extent the awards are actually earned and 
settled in shares, including shares withheld to satisfy participant personal income tax requirements. If shares are 
issued subject to conditions that may result in the forfeiture, cancellation, or return of such shares to the 
Company, any shares forfeited, canceled, or returned shall be treated as not issued.
(4)
The 2023 Incentive Plan does not permit the Board of Directors to increase the number of shares that may be 
issued under the Plan without shareholder consent. However, the 2023 Incentive Plan expressly provides that 
any shares remaining available for issuance under the 2017 Incentive Plan would be available for issuance 
under the 2023 Incentive Plan, in addition to the 1,000,000 shares authorized by shareholders with the approval 
of the 2023 Incentive Plan. Shares of Common Stock covered by awards granted under the 2023 Incentive Plan 
are counted as used to the extent the awards are actually earned and settled in shares, including shares 
withheld to satisfy participant personal income tax requirements. If shares are issued subject to conditions that 
may result in the forfeiture, cancellation, or return of such shares to the Company, any shares forfeited, canceled, 
or returned shall be treated as not issued.
(5)
The Company’s independent Directors are paid an annual retainer in the aggregate dollar amount of $220,000 
for service as a member of the Company’s Board of Directors (excluding additional fees for committee 
memberships), of which $135,000 is required to be paid in shares of Class A Common Stock. The total number 
of shares to be paid to each independent Director each year shall be determined by the closing price of a share 
of such stock on the day of the Annual Meeting at which the election of Directors for such year occurs ("the 
Valuation Price"), as such Valuation Price is reported for such day in the Wall Street Journal, rounded down to 
Index
110

the nearest whole number. Independent Directors are expected to hold shares with a value of $660,000 or three 
times the value of the annual retainer. Independent Directors may elect to receive, in stock, all of the retainer 
payable in shares of Common Stock. Beginning in 2024, the shares paid to independent Directors are paid from 
the pool of shares available pursuant to the 2023 Incentive Plan. In addition, beginning in 2024 Directors can 
elect to defer receipt of all or a portion of such shares until a future date, in which case they are granted a non-
employee director restricted stock unit award, awarding restricted stock units in a number equal to the number of 
shares deferred. 
Item 13. 
CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
The information required by this item is set forth in the section captioned "Director Independence" and “Election of 
Directors” in the Company’s 2026 Proxy Statement and is incorporated herein by reference.
Item 14. 
PRINCIPAL ACCOUNTANT FEES AND SERVICES
Our independent registered public accounting firm is KPMG LLP, Boston, MA, Auditor Firm ID: 185.
The information required by this item is included in Item 2, "Ratification of Independent Auditors" in the Company’s 
2026 Proxy Statement and is incorporated herein by reference.
Index
111

PART IV
Item 15. 
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)(1) 
FINANCIAL STATEMENTS
Page Number in Form 10-K
See Item 8 of this Form 10-K setting forth the Report of the Independent Registered Public 
Accounting Firm (PCAOB ID 185) and our Consolidated Financial Statements.
50
(a)(2) 
FINANCIAL STATEMENT SCHEDULES
ALBANY INTERNATIONAL CORP. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
(Amounts in thousands)
Column A
Column B
Column C
Column D
Column E
Description
Balance at 
beginning of 
period
Charge 
to expense
Other (a)
Balance at end 
of the period
Allowance for doubtful accounts
Year ended December 31:
2025
$ 
4,925 $ 
(139) $ 
37 $ 
4,823 
2024
 
6,190  
310  
(1,575)  
4,925 
2023
 
3,984  
640  
1,566  
6,190 
Allowance for sales returns
Year ended December 31:
2025
$ 
9,422 $ 
6,301 $ 
(4,936) $ 
10,787 
2024
 
10,232  
6,253  
(7,063)  
9,422 
2023
 
9,070  
5,499  
(4,337)  
10,232 
Valuation allowance deferred tax assets
Year ended December 31:
2025
$ 
15,496 $ 
408 $ 
1,571 $ 
17,475 
2024
 
9,848  
6,855  
(1,207)  
15,496 
2023
 
9,786  
(1,381)  
1,443  
9,848 
__________________________
(a) Amounts acquired, sold, written off, or recovered, and the effect of changes in currency translation rates, are 
included in Column D.
Index
112

3 (a)
Amended and Restated Certificate of Incorporation 
of Company
8-K
05/18/23
3.1
Albany International Corp. By Laws, effective as of 
September 20, 2024.
8-K
09/26/24
4.1
Description of the Company's securities registered 
pursuant to Section 12 of the Securities Exchange Act 
of 1934, as amended.
8-K
08/05/21
4 (a)
Article IV of Certificate of Incorporation of Company
8-K
05/18/23
4 (b)
Specimen Stock Certificate for Class A Common Stock
S-1, No. 
33-16254
09/30/87
Credit Agreements
10.1
First Amendment to Amended and Restated Credit 
Agreement, dated as of June 28, 2024, between 
Albany International Corp. and JPMorgan Chase 
Bank, N.A., as Administrative Agent.
10-Q
6/30/24
08/06/24
10(k)(xx)
$800 million Five-Year Revolving Credit Facility 
Agreement among Albany International Corp., the 
other Borrowers named therein, the Lenders Party 
thereto, JPMorgan Chase Bank, N.A., as 
Administrative Agent, dated as of August 16, 2023.
8-K
08/16/23
10(k)(xx)
$700 Million Five-Year Revolving Credit 
Facility Agreement among Albany International Corp., 
the other Borrowers named therein, the Lenders Party 
thereto, JPMorgan Chase Bank, N.A., as 
Administrative Agent, dated as of October 27, 2020
8-K
10/29/20
Restricted Stock Units
10(l)(vi)
2003 Restricted Stock Unit Plan, as amended May 
7, 2008
8-K
05/13/08
10(l)(viii)
2011 Performance Phantom Stock Plan as adopted 
on May 26, 2011
10-Q
6/30/11
08/09/11
10(l)(xi)
Form of Restricted Stock Unit Award for units 
granted on August 28, 2018
8-K
09/04/18
10(l)(xii)
Form of Restricted Stock Unit Award for units 
granted on April 1, 2019
10-Q
3/31/19
05/01/19
10(l)(xiii)
Form of Restricted Stock Unit Award for units 
granted on November 4, 2019
10-K
12/31/19
02/28/20
10(l)(xiv)
Form of 2011 Performance Stock Bonus agreement
10-K
12/31/19
02/28/20
10(l)(xv)
Form of 2021 Restricted Stock Unit Award Agreement
8-K
02/25/21
10(l)(xvi)
Form of 2024 Restricted Stock Unit Award Agreement
8-K
02/29/24
10(l)(xvii)
Form of 2024 Non-Employee Director Restricted Stock 
Unit Award Agreement
8-K
02/29/24
10(l)(xviii)
Form of 2025 Performance Stock Award Agreement
8-K
02/27/25
10(l)(xix)
Form of 2025 Restricted Stock Unit Award Agreement
8-K
02/27/25
Stock Options
10(m)(i)
1992 Stock Option Plan
8-K
01/18/93
10(m)(vii)
1998 Stock Option Plan, as amended and restated as 
of August 7, 2003
10-Q
9/30/03
11/06/03
Executive Compensation
10(m)(xix)
Form of 2021 Multi-year Performance Bonus 
Agreement
8-K
02/25/21
Incorporated by Reference
Exhibit 
Number
Exhibit Description
Filed 
Herewith
Form
Period 
Ending
Filing Date
Index
113

10(m)(xx)
Form of Special Incentive Award Agreement
8-K
06/14/23
10(m)(xxi)
Form of 2024 Multi-Year Performance Bonus 
Agreement
8-K
02/29/24
10(l)(viii)
Form of Severance Agreement between the 
Company and certain corporate officers or key 
executives
8-K
01/04/16
10(n)(i)
Supplemental Executive Retirement Plan, adopted as 
of January 1, 1994, as amended and restated as 
of January 1, 2008
8-K
01/02/08
10(n)(ii)
2017 Incentive Plan
Def 14A
03/29/17
10(n)(vii)
2023 Long Term Incentive Plan
Def 14A
03/30/23
10(n)(viii)
Form of 2024 Annual Performance Bonus Award 
Agreement
8-K
02/29/24
10(o)(iv)
Directors’ Annual Retainer Plan, as amended 
and restated as of February 23, 2018
Def 14A
03/28/18
10(p)
Code of Ethics
10-K
12/31/03
03/11/04
10(q)
Directors Pension Plan, amendment dated as 
of January 12, 2005
8-K
01/13/05
10(t)
Form of Indemnification Agreement
8-K
04/12/06
10(u)(x)
Voluntary Separation Agreement and General 
Release, dated May 16, 2025, between the Company 
and Robert Starr.
8-K
07/30/25
10.2
Amended and restated LLC operating agreement 
by and between Albany Engineered Composites 
and Safran Aerospace Composites, Inc. 10% equity 
interest in ASC for $28 million
10-K
12/31/13
02/26/14
10.3
Employment agreement, dated September 1, 2023, 
between the Company and Gunnar Kleveland
8-K
08/21/23
10.4
Form of Special Incentive Award Agreement
8-K
08/21/23
19
Insider Trading Policy
X
10-K
12/31/25
02/27/26
21
Subsidiaries of Company
X
10-K
12/31/25
02/27/26
23
Consent of Independent Registered Public 
Accounting Firms
X
10-K
12/31/25
02/27/26
24
Powers of Attorney
X
10-K
12/31/25
02/27/26
31(a)
Certification of Gunnar Kleveland required pursuant to 
Rule 13a-14(a) or Rule 15d-14(a)
X
10-K
12/31/25
02/27/26
31(b)
Certification of Willard C. Station required pursuant 
to Rule 13a-14(a) or Rule 15d-14(a)
X
10-K
12/31/25
02/27/26
32(a)
Certification of Gunnar Kleveland and Willard C. 
Station required pursuant to Rule 13a-14(b) or 
Rule 15d-14(b) and Section 1350 of Chapter 63 of 
Title 18 of the United States Code
X
10-K
12/31/25
02/27/26
97
Incentive Compensation Recovery Policy
X
10-K
12/31/25
02/27/26
Incorporated by Reference
Exhibit 
Number
Exhibit Description
Filed 
Herewith
Form
Period 
Ending
Filing Date
Index
114

The following information from the Registrant’s Annual Report on Form 10-K for the year ended December 31, 
2025, formatted in Inline XBRL (Extensive Business Reporting Language), filed herewith:
101(i)
Consolidated Statements of Income for the years 
ended December 31, 2025, 2024, and 2023
X
10-K
12/31/25
02/27/26
101(ii)
Consolidated Statements of Comprehensive Income 
for the years ended December 31, 2025, 2024, and 
2023
X
10-K
12/31/25
02/27/26
101(iii)
Consolidated Balance Sheets as of December 31, 
2025 and 2024
X
10-K
12/31/25
02/27/26
101(iv)
Consolidated Statements of Cash Flows for the years 
ended December 31, 2025, 2024, and 2023
X
10-K
12/31/25
02/27/26
101(v)
Notes to Consolidated Financial Statements
X
10-K
12/31/25
02/27/26
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
Index
115

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly 
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the 27th day of 
February, 2026.
ALBANY INTERNATIONAL CORP.
By
/s/ Willard C. Station
Willard C. Station
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Index
116

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following 
persons on behalf of the Company and in the capacities and on the dates indicated.
*
President and Chief Executive Officer and Director
February 27, 2026
Gunnar Kleveland
(Principal Executive Officer)
/s/ Willard C. Station
Executive Vice President and Chief Financial Officer
February 27, 2026
Willard C. Station
(Principal Financial Officer)
*
Vice President - Controller and Chief Accounting Officer
February 27, 2026
Sean Valashinas
(Principal Accounting Officer)
*
Chairman of the Board and Director
February 27, 2026
John R. Scannell
*
Director
February 27, 2026
Katharine L. Plourde
*
Director
February 27, 2026
Mark J. Murphy
*
Director
February 27, 2026
Kenneth W. Krueger
*
Director
February 27, 2026
J. Michael McQuade
*
Director
February 27, 2026
Christina M. Alvord
*
Director
February 27, 2026
Russell E. Toney
*
Director
February 27, 2026
Bonnie C. Lind
*By /s/ Willard C. Station
Willard C. Station
Attorney-in-fact
Signature
Title
Date
Index
117

CORPORATE INFORMATION
Investor Relations
The Company's Investor Relations Department may be contacted at:
Investor Relations Department
Albany International Corp.
325 Corporate Drive
Portsmouth, NH 03801
Telephone: (603) 330-5800
E-mail: investor.relations@albint.com
Transfer Agent and Registrar
Computershare
PO box 43078
Providence, RI 02940-3078
Telephone (toll-free): 1-877-277-9931
Web: www.computershare.com/investor
Shareholder Services
As an Albany International shareholder, you are invited to take advantage of our convenient shareholder services.
Computershare maintains the records for our registered shareholders and can help you with a variety of shareholder-
related services at no charge, including:
•
Change of name and/or address
•
Consolidation of accounts
•
Duplicate mailings
•
Dividend reinvestment enrollment
•
Lost stock certificates
•
Transfer of stock to another person
•
Additional administrative services
Access your investor statements online 24 hours a day, 7 days a week at Investor Center. For more information, go to 
www.computershare.com/investor.
Notice of Annual Meeting
We will again hold our Annual Meeting virtually this year. The Annual Meeting of the Company’s shareholders will be 
held virtually on Friday, May 15, 2026 at 9:00 a.m. EDT. Access details for the virtual meeting will be published in the 
Company’s 2026 Proxy filed with the Securities and Exchange Commission.
Equal Employment Opportunity
Albany International, as a matter of policy, does not discriminate against any employee or applicant for employment 
because of race, color, religion, sex, sexual orientation, national origin, age, physical or mental disability, or status as 
a disabled or Vietnam-era veteran. This policy of nondiscrimination is applicable to matters of hiring, upgrading, 
promotions, transfers, layoffs, terminations, rates of pay, selection for training, recruitment, and recruitment 
advertising. The Company maintains affirmative action programs to implement its EEO policy. 
Index
118

Directors and Officers
Directors:
John R. Scannell, Chairman2 
Gunnar Kleveland
Retired – Chief Executive Officer,
President and Chief Executive Officer
Moog, Inc.
Katharine L. Plourde1,3
Kenneth W. Krueger1,3
Former Principal and Analyst,
Former Interim President and Chief Executive Officer
Donaldson, Lufkin & Jenrette, Inc.
Manitowoc Company Inc.
Mark J. Murphy1,3
J. Michael McQuade2,3
Chief Financial Officer,
Director, the Belfer Center for Science and International Affairs
Micron Technology, Inc.
Harvard University Kennedy School of Government
Christina M. Alvord2,3
Russell E. Toney1,2
Former President, Central Division,
President, 
Vulcan Materials Company
Nortek Air Solutions
Bonnie C. Lind1, 2
Former Sr. Vice President, CFO & Treasurer
Neenah Inc.
1 Member, Audit Committee
2 Member, Compensation Committee
3 Member, Governance Committee
Officers:
Gunnar Kleveland
Willard C. Station
President and Chief Executive Officer
Executive Vice President and Chief Financial Officer
Merle Stein
Christopher Stone
President – Machine Clothing
President – Albany Engineered Composites
Suzanne Purdum
Robert A. Hansen
Chief Human Resources Officer
Senior Vice President and Chief Technology Officer
Sean Valashinas
Joseph M. Gaug
Vice President – Controller and Chief Accounting 
Officer
Senior Vice President – General Counsel and Secretary
Index
119

2025 ANNUAL REPORT AND 10-K  | 12
325 CORPORATE DRIVE, 
PORTSMOUTH, NH 03801 USA
(603) 330-5850
www.albint.com
investor.relations@albint.com