Earnings release
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Albany International Reports Third-Quarter 2026 Results October 28, 2026 Q3 2026 net revenue of $349.5 million, up 34% compared to $261.4 million in Q3 2025. Q3 2026 net income attributable to the Company of $41.7 million, or diluted earnings per share (EPS) of $1.46, compared to net loss of $(97.8) million, or diluted loss per share of $(3.37), in the prior year. Adjusted EBITDA of $100.1 million in Q3 2026 and adjusted diluted earnings (loss) per share of $1.68, compared to $(91.1) million and $(3.29) in Q3 2025. Q3 2026 positive free cash flow of $36.5 million. Paid $7.9 million in dividends and invested $12.2 million in capital in the third quarter, continuing the commitment of balanced capital allocation. PORTSMOUTH, N.H.--(BUSINESS WIRE)--Oct. 28, 2026-- Albany International Corp. (NYSE:AIN) today reported operating results for its third quarter of 2026, which ended September 30, 2026. Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, “I'm incredibly proud of the performance of the team in the third quarter. The team, with Engineered Composites leading the way, was able to favorably finalize the strategic review of our Amelia Earhart Drive facility in under a year and end the quarter with solid performance. We are now able to shift from addressing legacy challenges to focusing decisively on future opportunities across aerospace and defense; such as missiles, hypersonics, space, and next generation aircraft applications." Kleveland continued, “In Machine Clothing, our team navigated a dynamic market environment and delivered sales at the high-end of expectations, reflecting the resilience of the business and the strength of our team. Taken together, our performance reflects the progress we have made to optimize Albany’s operating model and reduce risk across our portfolio. We are pleased with the performance across the organization and look forward to updating investors on our path forward at our upcoming investor day in December.” Consolidated Results Summary of adjustments related to the renegotiation of the CH-53K contract and the conclusion of the Amelia Earhart Drive Strategic Review in the third quarter of 2026, and the CH-53K loss reserve adjustment recorded in the third quarter of 2025. Amelia Earhart Drive Adjustments (in thousands, except per share amounts) Q3 2026 Contribution Q3 2025 Reduction Revenue $11,637 ($46,007) Gross Margin1 $33,393 ($147,269) EBITDA $44,407 ($147,269) Diluted Earnings Per Share 2 $0.88 ($4.00) 1 Q3 2026 includes CH-53K impact of $44.4 million offset by catch-up of depreciation and amortization of $(11.0) million 2 Q3 2026 Diluted EPS impact includes a tax effect of $8.3 million The Company’s net revenues were $349.5 million in the third quarter of 2026, compared to $261.4 million in the prior year. The increase was primarily driven by higher volume in the Engineered Composites business and approximately $11.6 million in positive program adjustments resulting from the renegotiation of the CH-53K contract. Gross profit (loss) in the third quarter of 2026 was $140.4 million compared to $(49.9) million reported for the same period of 2025, which reflects the $33.4 million favorable adjustment following the contract modifications to the CH-53K program offset by the catch-up of depreciation and amortization, combined with higher volume and margin in Engineered Composites. These positive impacts were partially offset by lower volume, geographical mix, and lower fixed cost absorption in Machine Clothing. In the prior year, results were impacted by a $147.3 million unfavorable adjustment due to cost increases related to the CH-53K program.
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Selling, general, and administrative expenses were $61.5 million in the third quarter of 2026, compared to $51.9 million in the same period of 2025, driven primarily by increased compensation costs, and costs associated with the Strategic Review. In the third quarter of 2026, restructuring was higher than the prior year due to ongoing footprint optimization efforts in Machine Clothing. Operating income was $59.4 million, compared with an operating loss of $(116.5) million in the prior year, primarily reflecting improved profitability on the CH-53K program, including the reversal of previously recognized loss provisions. The effective tax rate for the quarter was 24.9% compared to a 20.0% effective tax benefit in the third quarter of 2025. The net income (loss) attributable to the Company was $41.7 million, or $1.46 per share on a diluted basis, compared to $(97.8) million, or $(3.37) per share in the third quarter of 2025. Adjusted diluted earnings (loss) per share (or Adjusted EPS, a non-GAAP measure) was $1.68 per share, compared to $(3.29) per share for the same period of last year. Adjusted results for the third quarter of 2026 exclude third-party costs related to the conclusion of the Strategic Review. Adjusted EBITDA (a non-GAAP measure) was $100.1 million and had a $44.4 million benefit related to the conclusion of the Strategic Review which resulted in contract modifications to the CH-53K program as well as stronger revenue and operating profit in Engineered Composites. This compares to $(91.1) million in the third quarter of 2025 which was negatively impacted by $(147.3) million related to the CH-53K loss reserve adjustment recorded at the initiation of the Strategic Review. Adjusted EBITDA margin was 28.6% and (34.8)% in the prior year. Sean Valashinas, Albany International’s Acting Chief Financial Officer, said, “As we look at the quarter following the conclusion of the Strategic Review, the underlying performance of the business was solid. In Engineered Composites, we continued to see strength across multiple programs, as production ramps and volumes scale. In Machine Clothing, we saw continued stability, with steady conditions in Asia, improving volumes in Europe, and market share holding firm as end markets adapted to current demand levels.” Machine Clothing Machine Clothing's net revenues decreased 3.0% after adjusting for currency translation, primarily driven by cyclical declines in the Americas. Machine Clothing’s adjusted EBITDA margin was 27.2%, compared to 31.0% in the third quarter of 2025. The margin decline is primarily driven by volume and geographic mix. Engineered Composites Engineered Composites’ net revenues increased 107.0% after adjusting for currency translation, driven by strength across commercial and defense programs, most notably on the commercial side within the LEAP program, and on the defense side under the CH-53K and missile programs. Adjusted EBITDA margin was 36.5%, compared to (155.5)% in the third quarter of 2025. The year-over-year change in segment Adjusted EBITDA margin largely reflects the impact of adjustments following the contract modification on the CH-53K program. The segment also benefited from higher underlying volume and improved efficiency. Capital Allocation Balance Sheet Free cash flow in the third quarter was approximately $36.5 million compared to approximately $25.7 million in the prior year. Capital expenditures were $12.2 million, compared to $18.3 million in the third quarter of 2025, and were driven primarily by efficiencies achieved through facility optimizations. Technical and research expenses totaled $12.2 million, compared to $11.5 million in the third quarter of 2025, consistent with the Company’s commitment to advancing proprietary technologies and supporting long-term growth in both Machine Clothing and Engineered Composites. Albany ended the quarter with cash and cash equivalents of $79.1 million and total debt of $422.1 million, resulting in a net debt position of $343.0 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders. Revised Outlook for the Fourth Quarter of 2026 Consolidated net revenue between $325 million and $335 million Machine Clothing net revenue between $170 million and $175 million Engineered Composites net revenue between $155 million and $160 million Adjusted EPS between $0.65 and $0.75 Revised fourth-quarter effective tax rate of 29.5%, vs. previous estimate of 31.5% Third-Quarter 2026 Results Conference Call/Webcast The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Thursday, October 29, 2026. Interested parties
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are encouraged to listen to the live webcast via the Company’s Investor Relations website at investors.albint.com or by registering via the link here. The event can also be accessed by dialing +1 (833) 461-5787 and using the Meeting ID: 551 970 689. An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Thursday, October 29, 2026. ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net revenues $ 349,539 $ 261,434 $ 990,354 $ 861,607 Cost of goods sold 209,161 311,372 642,281 717,552 Gross profit/(loss) 140,378 (49,938) 348,073 144,055 Selling, general, and administrative expenses 61,501 51,905 175,868 164,219 Technical and research expenses 12,186 11,467 36,865 35,915 Restructuring expenses, net 7,293 3,197 18,431 9,895 Operating income/(loss) 59,398 (116,507) 116,909 (65,974) Interest expense, net 5,337 5,897 16,872 14,702 Other expense/(income), net (1,727) (347) (4,881) 4,170 Income/(loss) before income taxes 55,788 (122,057) 104,918 (84,846) Income tax expense/(benefit) 13,902 (24,419) 29,879 (13,889) Net income (loss) 41,886 (97,638) 75,039 (70,957) Net income attributable to the noncontrolling interest 189 122 647 265 Net income (loss) attributable to the Company $ 41,697 $ (97,760) $ 74,392 $ (71,222) Earnings/(loss) per share attributable to Company shareholders - Basic $ 1.47 $ (3.37) $ 2.62 $ (2.38) Earnings /(loss) per share attributable to Company shareholders - Diluted $ 1.46 $ (3.37) $ 2.60 $ (2.38) Shares of the Company used in computing earnings per share: Basic 28,377 29,012 28,353 29,914 Diluted 28,596 29,012 28,570 29,914 Dividends declared per Class A share $ 0.28 $ 0.27 $ 0.84 $ 0.81 ALBANY INTERNATIONAL CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) September 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 79,125 $ 112,350 Accounts receivable, net 277,692 235,084 Contract assets, net 164,438 87,102 Inventories 165,537 121,589 Income taxes prepaid and receivable 34,803 43,937
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Prepaid expenses and other current assets 42,439 34,990 Assets held for sale — 293,783 Total current assets $ 764,034 $ 928,835 Property, plant and equipment, net 544,559 482,568 Intangibles, net 30,411 21,428 Goodwill 182,011 162,507 Deferred income taxes 57,059 68,499 Other assets 107,543 54,872 Total assets $ 1,685,617 $ 1,718,709 Liabilities and Shareholders' Equity Accounts payable $ 87,394 $ 64,499 Accrued liabilities 207,062 139,385 Income taxes payable 22,929 35,090 Liabilities held for sale — 203,323 Total current liabilities 317,385 442,297 Long-term debt 422,087 455,663 Other noncurrent liabilities 142,450 86,850 Deferred income taxes 15,581 1,797 Total liabilities 897,503 986,607 Commitments and Contingencies Shareholders' Equity: Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 41,056,929 issued in 2026 and 40,989,106 in 2025 41 41 Additional paid in capital 466,578 460,472 Retained earnings 1,026,863 976,373 Accumulated items of other comprehensive income: Translation adjustments (125,373) (119,008) Pension and postretirement liability adjustments (22,838) (23,911) Derivative valuation adjustment 3,387 (619) Treasury stock (Class A), at cost; 12,685,782 shares in 2026 and 12,685,782 in 2025 (566,993) (567,139) Total shareholders' equity 781,665 726,209 Noncontrolling interest 6,449 5,893 Total equity 788,114 732,102 Total liabilities and shareholders' equity $ 1,685,617 $ 1,718,709 ALBANY INTERNATIONAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Nine Months Ended September 30, 2026 2025 Cash flows from operating activities: Net income/ (loss) $ 75,039 $ (70,957) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 61,218 61,577 Amortization 3,845 3,903 Change in deferred taxes 13,863 (21,864) Loss/(gain) on disposal of property, plant and equipment 616 (390)
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Non-cash interest expense 694 777 Contract loss provision (recovery) (52,514) 139,665 Compensation and benefits paid or payable in Class A Common Stock 7,750 9,882 Provision for credit losses from uncollected receivables and contract assets 110 553 Foreign currency remeasurement loss/(gain) on intercompany loans (5,740) 7,587 Gain on sale of assets — (1,566) Changes in operating assets and liabilities that provided/(used) cash: Accounts receivable (16,468) 2,152 Contract assets (9,169) (7,952) Inventories (28,559) (5,105) Prepaid expenses and other current assets (6,742) (3,286) Income taxes prepaid and receivable 9,010 (13,825) Accounts payable 6,568 18,684 Accrued liabilities 5,109 (22,887) Income taxes payable (12,608) (13,022) Other noncurrent liabilities (1,451) (4,307) Other, net 1,052 (847) Net cash provided by operating activities 51,623 78,772 Cash flows from investing activities: Purchases of property, plant and equipment (33,277) (47,559) Purchased software (55) (1,250) Proceeds received from sale of assets — 3,243 Proceeds from sale of investment 1,660 — Other investing activities 1,119 — Net cash used in investing activities (30,553) (45,566) Cash flows from financing activities: Proceeds from borrowings 172,000 231,999 Repayment of borrowings (202,000) (82,044) Purchase of Treasury shares — (170,964) Taxes paid in lieu of share issuance (1,644) (2,521) Dividends paid (23,810) (24,738) Net cash used in financing activities (55,454) (48,268) Effect of exchange rate changes on cash and cash equivalents 1,159 8,089 Decrease in cash and cash equivalents (33,225) (6,973) Cash and cash equivalents at beginning of period 112,350 115,283 Cash and cash equivalents at end of period $ 79,125 $ 108,310 Supplemental disclosure of cash flow information: Cash paid for interest, net $ 18,144 $ 17,333 Cash paid for income taxes $ 22,080 $ 33,462 The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure: (in thousands, except percentages) Net revenues as reported, Q3 2026 (Decrease)/ increase due to changes in currency translation rates Q3 2026 revenues on same basis as Q3 2025 currency translation rates Net revenues as reported, Q3 2025 % Change compared to Q3 2025, excluding currency rate effects Machine Clothing $ 169,802 $ 84 $ 169,718 $ 174,950 (3.0)%
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Albany Engineered Composites 179,737 691 179,046 86,484 107.0% Consolidated total $ 349,539 $ 775 $ 348,764 $ 261,434 33.4% (in thousands, except percentages) Net revenues as reported, YTD 2026 (Decrease)/ increase due to changes in currency translation rates YTD 2026 revenues on same basis as 2025 currency translation rates Net revenues as reported, YTD 2025 % Change compared to 2025, excluding currency rate effects Machine Clothing $ 514,464 $ 8,363 $ 506,101 $ 530,573 (4.6)% Albany Engineered Composites 475,890 5,650 470,240 331,034 42.1% Consolidated total $ 990,354 $ 14,013 $ 976,341 $ 861,607 13.3% The following table presents Gross profit/ (loss) and Gross profit margin: (in thousands, except percentages) Gross profit, Q3 2026 Gross profit margin, Q3 2026 Gross profit, Q3 2025 Gross profit margin, Q3 2025 Machine Clothing $ 75,368 44.4% $ 82,070 46.9% Albany Engineered Composites 65,010 36.2% (132,008) (152.6)% Consolidated total $ 140,378 40.2% $ (49,938) (19.1)% (in thousands, except percentages) Gross profit, YTD 2026 Gross profit margin, YTD 2026 Gross profit, YTD 2025 Gross profit margin, YTD 2025 Machine Clothing $ 231,377 45.0% $ 245,731 46.3% Albany Engineered Composites 116,696 24.5% (101,676) (30.7)% Consolidated total $ 348,073 35.1% $ 144,055 16.7% Reconciliation of Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods have been calculated as follows. Prior-period non-GAAP results have been revised to conform to the current presentation by including the third-quarter CH-53K program contract reserve adjustment in operating results, reflecting the Company’s determination that the adjustment is part of the program’s underlying operating performance. Three months ended September 30, 2026 (in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 31,158 $ 43,346 $ (32,618) $ 41,886 Interest expense/(income), net — — 5,337 5,337 Income tax expense — — 13,902 13,902 Depreciation and amortization expense 8,372 22,503 41 30,916 EBITDA (non-GAAP) 39,530 65,849 (13,338) 92,041 Restructuring costs and other 6,827 — 466 7,293 Foreign currency revaluation (gains)/losses (86) 13 (2,095) (2,168) Strategic review and other transition expenses — 55 3,192 3,247 Pre-tax loss/(income) attributable to noncontrolling interest — (316) — (316) Adjusted EBITDA (non-GAAP) $ 46,271 $ 65,601 $ (11,775) $ 100,097 Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 27.2% 36.5% — 28.6% Three months ended September 30, 2025
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(in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 43,103 $ (148,012) $ 7,271 $ (97,638) Interest expense/(income), net — — 5,897 5,897 Income tax expense — — (24,419) (24,419) Depreciation and amortization expense 8,604 13,479 355 22,438 EBITDA (non-GAAP) 51,707 (134,533) (10,896) (93,722) Restructuring costs and other 1,960 113 1,124 3,197 Foreign currency revaluation (gains)/losses 541 92 (1,054) (421) Strategic review and other transition expenses — — — — Pre-tax (income) attributable to noncontrolling interest 2 (160) — (158) Adjusted EBITDA (non-GAAP) $ 54,210 $ (134,488) $ (10,826) $ (91,104) Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 31.0% (155.5)% — (34.8)% Nine months ended September 30, 2026 (in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 97,815 $ 63,373 $ (86,149) $ 75,039 Interest expense/(income), net — — 16,872 16,872 Income tax expense — — 29,879 29,879 Depreciation and amortization expense 25,096 39,852 115 65,063 EBITDA (non-GAAP) 122,911 103,225 (39,283) 186,853 Restructuring costs and other 15,892 — 2,539 18,431 Foreign currency revaluation (gains)/losses (1) (28) (4,726) (4,755) Strategic review and other transition expenses 541 164 5,685 6,390 Pre-tax (income) attributable to noncontrolling interest — (836) — (836) Adjusted EBITDA (non-GAAP) $ 139,343 $ 102,525 $ (35,785) $ 206,083 Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 27.1% 21.5% — 20.8% Nine months ended September 30, 2025 (in thousands) Machine Clothing Albany Engineered Composites Corporate expenses and other Total Company Net income/(loss) (GAAP) $ 119,236 $ (149,070) $ (41,123) $ (70,957) Interest expense/(income), net — — 14,702 14,702 Income tax expense — — (13,889) (13,889) Depreciation and amortization expense 24,283 40,229 968 65,480 EBITDA (non-GAAP) 143,519 (108,841) (39,342) (4,664) Restructuring costs and other 5,011 1,801 206 7,018 Foreign currency revaluation (gains)/losses 5,700 (52) 7,454 13,102 Strategic review and other transition expenses 182 (412) 616 386 Pre-tax (income) attributable to noncontrolling interest 122 (459) — (337) Adjusted EBITDA (non-GAAP) $ 154,534 $ (107,963) $ (31,066) $ 15,505 Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 29.1% (32.6)% — 1.8% The following table presents the reconciliation of Machine Clothing's Adjusted EBITDA Margin to Adjusted EBITDA Margin excluding the effect of changes in currency translation rates, a non-GAAP measure: (in thousands, except percentages) As reported, Q3 2026 (Decrease)/ increase due to changes in currency Q3 2026 on same basis as Q3 2025 currency translation rates As reported, Q3 2025
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translation rates Machine Clothing Net revenues $ 169,802 $ 84 $ 169,718 $ 174,950 Machine Clothing Adjusted EBITDA (non-GAAP) 46,271 (441) 46,712 54,210 Adjusted EBITDA Margin (Adjusted EBITDA divided by net revenues) (non-GAAP) 27.2% 27.5% 31.0% Per share impact of the adjustments to earnings per share are as follows: Three months ended September 30, 2026 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 7,293 $ 1,816 $ 5,477 $ 0.19 Foreign currency revaluation (gains)/losses (2,168) (540) (1,628) (0.06) Strategic review and other transition expenses 3,247 809 2,438 0.09 Three months ended September 30, 2025 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 3,197 $ 639 $ 2,558 $ 0.09 Foreign currency revaluation (gains)/losses (421) (84) (337) (0.01) Strategic review and other transition expenses — — 0.00 Nine months ended September 30, 2026 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 18,431 $ 5,253 $ 13,178 $ 0.46 Foreign currency revaluation (gains)/losses (4,755) (1,355) (3,400) (0.12) Strategic review and other transition expenses 6,390 1,821 4,569 0.16 Nine months ended September 30, 2025 (in thousands, except per share amounts) Pre tax Amounts Tax Effect After tax Effect Per share Effect Restructuring costs and other $ 7,018 $ 1,408 $ 5,610 $ 0.19 Foreign currency revaluation (gains)/losses 13,102 2,149 10,953 0.37 Strategic review and other transition expenses 386 63 323 0.01 The following table provides a reconciliation of Earnings per share attributable to the Company shareholders - Diluted (GAAP) to Adjusted earnings per share attributable to the Company shareholders - Diluted (non-GAAP): Three months ended September 30, Nine months ended September 30, Per share amounts (Diluted) 2026 2025 2026 2025 Earnings per share attributable to Company shareholders - Diluted (GAAP) $ 1.46 $ (3.37) $ 2.60 $ (2.38) Adjustments, after tax: Restructuring costs and other 0.19 0.09 0.46 0.19 Foreign currency revaluation (gains)/losses (0.06) (0.01) (0.12) 0.37 Strategic review and other transition expenses 0.09 — 0.16 0.01 Adjusted earnings per share attributable to Company shareholders - Diluted (non-GAAP) $ 1.68 $ (3.29) $ 3.10 $ (1.81) The calculations of net debt are as follows: (in thousands) September 30, 2026 December 31, 2025 September 30, 2025 Long-term debt 422,087 455,663 480,631 Total debt 422,087 455,663 480,631 Cash and cash equivalents 79,125 112,350 108,310 Net debt (non-GAAP) $ 342,962 $ 343,313 $ 372,321 Free cash flow is defined as GAAP "Net cash provided by operating activities" in a period less "Purchases of property, plant and equipment" and "Purchased software" in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The
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following table illustrates the calculation of free cash flow: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net cash provided by operating activities $ 48,631 $ 43,939 $ 51,623 $ 78,772 Purchases of property, plant and equipment (12,107) (18,033) (33,277) (47,559) Purchased software (43) (245) (55) (1,250) Free cash flow $ 36,481 $ 25,661 $ 18,291 $ 29,963 About Albany International Corp. Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications. Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms. Albany International is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, employs approximately 5,700 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com. Non-GAAP Measures This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; adjusted net revenues; Adjusted Gross profit/(loss); Adjusted Operating income/(loss);EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; Adjusted Net Income; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance. Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These current year revenues converted at prior year rates are then compared to the U.S. dollar amount as reported in the prior period. EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues. The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results. The Company’s Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted EPS may not be comparable to similarly titled measures of other companies. Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Forward-Looking Statements This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic
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conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2026 and in future years; expectations in 2026 and in future periods of revenues, Adjusted Net Revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Net Income, Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements. Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases. View source version on businesswire.com: https://www.businesswire.com/news/home/20261028873701/en/ Investor Contact Karen Blomquist Director, Investor Relations Tel +1 603.330.2461 EMAIL Karen.Blomquist@albint.com Media Contact Sheri Tripp Senior Manager, Corporate Communications and Marketing Tel +1 603.330.8317 EMAIL Sheri.Tripp@albint.com Source: Albany International Corp.