Albany International revenue up $349.54M

Cover page 2 changes

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For the quarterly period ended: June September 30, 2026

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The registrant had 28.4 million shares of Class A Common Stock outstanding as of July October 15, 2026.

2 unchanged paragraphs

Financial statements 161 changes

3 unchanged paragraphs

June 30, Six Months Ended

Net revenues $ 329,482 $ 311,399 $ 640,815 $ 600,173

Cost of goods sold 221,581 213,892 433,120 406,180

Gross profit 107,901 97,507 207,695 193,993

Selling, general, and administrative expenses 56,068 58,502 114,367 112,314

Technical and research expenses 11,722 12,552 24,679 24,448

Restructuring expenses, net 7,973 4,183 11,138 6,698

Operating income 32,138 22,270 57,511 50,533

Interest expense, net 6,068 5,150 11,535 8,805

Other expense/(income), net 39 3,534 ( 3,154 ) 4,517

Income before income taxes 26,031 13,586 49,130 37,211

Income tax expense 8,327 4,254 15,977 10,530

Net income 17,704 9,332 33,153 26,681

Net income attributable to the Company $ 17,414 $ 9,183 $ 32,695 $ 26,538

Earnings per share attributable to Company shareholders - Basic $ 0.61 $ 0.31 $ 1.15 $ 0.87

Earnings per share attributable to Company shareholders - Diluted $ 0.61 $ 0.31 $ 1.14 $ 0.87

September 30, Nine Months Ended

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 290 149 458 143 189 122 647 265

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 )

1 unchanged paragraph

Basic 28,361 29,928 28,341 30,373

Diluted 28,588 30,090 28,568 30,535

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 $ 0.56 0.84 $ 0.54 0.81

3 unchanged paragraphs

June 30, Six Months Ended

Net income $ 17,704 $ 9,332 $ 33,153 $ 26,681

September 30, Nine Months Ended

Net income/(loss) $ 41,886 $ ( 97,638 ) $ 75,039 $ ( 70,957 )

1 unchanged paragraph

Foreign currency translation and other adjustments 2,492 40,149 ( 2,355 ) 53,272

Foreign currency translation and other adjustments ( 3,635 ) 2,676 ( 5,990 ) 55,948

Pension settlement/curtailment ( 3,200 ) ( 1,600 )

1 unchanged paragraph

Derivative valuation adjustment 1,021 ( 101 ) 1,678 ( 594 )

Prior service credit ( 39 ) ( 37 38 ) ( 78 117 ) ( 74 112 )

Net actuarial loss 366 306 734 593 315 1,100 908

Payments and amortization related to interest rate swaps included in earnings ( 153 100 ) ( 79 53 ) ( 286 386 ) ( 271 324 )

Derivative valuation adjustment 5,156 169 6,834 ( 425 )

1 unchanged paragraph

Derivative valuation adjustment ( 526 ) 38 ( 774 ) 74

Comprehensive income 20,861 47,191 32,014 78,379

Comprehensive income attributable to the Company $ 20,475 $ 46,887 $ 31,507 $ 78,291

Pension settlement/curtailment 844 422

Amortization of prior service credit 11 12 23 23 11 34 34

Amortization of net actuarial loss ( 97 106 ) ( 93 97 ) ( 213 319 ) ( 181 278 )

Payments and amortization related to interest rate swaps included in earnings 82 20 132 34 14 17 146 51

Derivative valuation adjustment ( 1,814 ) ( 7 ) ( 2,588 ) 67

Comprehensive income/(loss) 41,739 ( 94,645 ) 73,753 ( 16,266 )

Comprehensive income attributable to the noncontrolling interest 386 304 507 88 49 212 556 300

Comprehensive income/(loss) attributable to the Company $ 41,690 $ ( 94,857 ) $ 73,197 $ ( 16,566 )

1 unchanged paragraph

Inventories 146,158 121,589

Intangibles, net 19,667 21,428

Goodwill 160,552 162,507

Other assets 56,161 54,872

June September 30, 2026 December 31, 2025

Cash and cash equivalents $ 77,349 79,125 $ 112,350

Accounts receivable, net 252,133 277,692 235,084

Contract assets, net 77,287 164,438 87,102

Inventories 165,537 121,589

Income taxes prepaid and receivable 41,191 34,803 43,937

Prepaid expenses and other current assets 40,402 42,439 34,990

Assets held for sale 306,722 293,783

Total current assets 941,242 764,034 928,835

Property, plant and equipment, net 467,424 544,559 482,568

Intangibles, net 30,411 21,428

Goodwill 182,011 162,507

Deferred income taxes 66,319 57,059 68,499

Other assets 107,543 54,872

Total assets $ 1,711,365 1,685,617 $ 1,718,709

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and 81 more changes in the filing

Note 1: Significant Accounting Policies 3 changes

1 unchanged paragraph

In the opinion of management, the accompanying consolidated financial information reflects all adjustments necessary for a fair presentation of Albany International Corp.'s ("Albany", the "Registrant", the "Company", "we", "us", or "our") financial position, results of operations and cash flows for the interim periods presented, but does not include all disclosures normally required for the annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). All such adjustments are of a normal recurring nature, unless otherwise disclosed in this report. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company s Annual Report on Form 10-K for the year ended December 31, 2025.

2 unchanged paragraphs

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow Scope Improvements. The ASU clarifies the applicability of Topic 270 and the form and content of interim financial statements. In addition, it requires entities to disclose material events occurring since the last annual reporting period. The guidance will be effective for interim periods beginning January 1, 2028 and can be applied on a prospective or retrospective basis. We are evaluating the disclosure impact of this guidance; however, the standard will is not expected to have an impact on the Company s consolidated financial position, results of operations or cash flows.

1 unchanged paragraph

In September 2025, the FASB issued ASU No. 2025-06 to improve the accounting for costs related to internal-use software. The new guidance eliminates project stages and requires capitalizing software costs to begin when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. Additionally, disclosures for property, plant and equipment will be required for all capitalized software costs. The guidance is 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 The Company is currently evaluating the impact of this guidance on our consolidated financial statements.

1 unchanged paragraph

Note 2: Reportable Segments 100 changes

8 unchanged paragraphs

Three Months Ended June September 30, 2026

1 unchanged paragraph

Net revenues $ 178,710 $ 150,772 $ $ 329,482

Cost of goods sold 97,763 123,818 221,581

Gross profit 80,947 26,954 107,901

Selling, general and administrative expenses 33,490 11,315 11,263 56,068

Technical and research expenses 6,363 4,210 1,149 11,722

Restructuring expenses, net 6,389 1,584 7,973

Operating income/(loss) $ 34,705 $ 11,429 $ ( 13,996 ) $ 32,138

Net revenues $ 169,802 $ 179,737 $ $ 349,539

Cost of goods sold 94,434 114,727 209,161

Gross profit 75,368 65,010 140,378

Selling, general and administrative expenses 30,971 17,166 13,364 61,501

Technical and research expenses 6,412 4,498 1,276 12,186

Restructuring expenses, net 6,827 466 7,293

Operating income/(loss) $ 31,158 $ 43,346 $ ( 15,106 ) $ 59,398

Three Months Ended June September 30, 2025

1 unchanged paragraph

Net revenues $ 180,926 $ 130,473 $ $ 311,399

Cost of goods sold 97,167 116,725 213,892

Gross profit 83,759 13,748 97,507

Selling, general and administrative expenses 35,669 11,777 11,056 58,502

Technical and research expenses 7,373 4,125 1,054 12,552

Restructuring expenses, net 3,015 520 648 4,183

Net revenues $ 344,662 $ 296,153 $ $ 640,815

Cost of goods sold 188,653 244,467 433,120

Gross profit 156,009 51,686 207,695

Selling, general and administrative expenses 66,739 22,901 24,727 114,367

Technical and research expenses 13,548 8,758 2,373 24,679

Restructuring expenses, net 9,065 2,073 11,138

Net revenues $ 355,623 $ 244,550 $ $ 600,173

Cost of goods sold 191,962 214,218 406,180

Gross profit 163,661 30,332 193,993

Selling, general and administrative expenses 68,550 21,903 21,861 112,314

Technical and research expenses 14,616 7,799 2,033 24,448

Restructuring expenses, net 4,362 1,688 648 6,698

Operating income/(loss) $ 76,133 $ ( 1,058 ) $ ( 24,542 ) $ 50,533

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

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

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

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

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

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

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

Nine Months Ended September 30, 2026

Operating income/(loss) $ 37,702 $ ( 2,674 ) $ ( 12,758 ) $ 22,270 (in thousands) MC AEC Corporate Total

Net revenues $ 514,464 $ 475,890 $ $ 990,354

Cost of goods sold 283,087 359,194 642,281

Gross profit 231,377 116,696 348,073

Selling, general and administrative expenses 97,710 40,067 38,091 175,868

Technical and research expenses 19,960 13,256 3,649 36,865

Restructuring expenses, net 15,892 2,539 18,431

Operating income/(loss) $ 97,815 $ 63,373 $ ( 44,279 ) $ 116,909

Nine Months Ended September 30, 2025

Operating income/(loss) $ 66,657 $ 20,027 $ ( 29,173 ) $ 57,511 (in thousands) MC AEC Corporate Total

Net revenues $ 530,573 $ 331,034 $ $ 861,607

Cost of goods sold 284,842 432,710 717,552

Gross profit 245,731 ( 101,676 ) 144,055

Selling, general and administrative expenses 98,841 34,121 31,257 164,219

Technical and research expenses 21,332 11,472 3,111 35,915

Restructuring expenses, net 6,322 1,801 1,772 9,895

Operating income/(loss) $ 119,236 $ ( 149,070 ) $ ( 36,140 ) $ ( 65,974 )

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30, (in thousands)

1 unchanged paragraph

Machine Clothing $ 8,422 $ 7,973 $ 16,724 $ 15,679

Albany Engineered Composites 8,561 13,455 17,350 26,750

Corporate 35 323 73 613

Consolidated depreciation and amortization $ 17,018 $ 21,751 $ 34,147 $ 43,042

Machine Clothing $ 8,372 $ 8,604 $ 25,096 $ 24,283

Albany Engineered Composites 22,503 13,479 39,852 40,229

Corporate 41 355 115 968

Consolidated depreciation and amortization $ 30,916 $ 22,438 $ 65,063 $ 65,480

As a result of the Amelia Earhart Drive facility meeting the held-for-sale accounting criteria, the facility's assets and liabilities were classified as held-for-sale in the consolidated balance sheets as of December 31, 2025. and June 30, 2026. Upon classification as held for sale, the Company ceased depreciation and amortization of the related long-lived assets in accordance with applicable accounting guidance. As of September 30, 2026, the Company concluded the net assets at the site no longer met the criteria to be classified as held for sale and therefore, resumed depreciation and amortization of the long-lived assets including catch-up on unrecognized expense from earlier in the year. See Note 19, Held for Sale, of the Notes to the Consolidated Financial Statements for further details.

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

Consolidated Operating income/(loss) $ 32,138 $ 22,270 $ 57,511 $ 50,533

Interest income ( 693 ) ( 1,405 ) ( 1,575 ) ( 3,043 )

Other (income)/expense, net 39 3,534 ( 3,154 ) 4,517

Income before income taxes $ 26,031 $ 13,586 $ 49,130 $ 37,211

Three months ended September 30, Nine months ended September 30, (in thousands)

Operating income/(loss)

Machine Clothing $ 31,158 $ 43,103 $ 97,815 $ 119,236

Albany Engineered Composites 43,346 ( 148,012 ) 63,373 ( 149,070 )

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and 20 more changes in the filing

Note 3: Revenue Recognition: 43 changes

1 unchanged paragraph

The LEAP engine is used on the Airbus A320neo, A321neo, Boeing 737 MAX, and COMAC C919 aircraft. AEC's largest aerospace customer is the SAFRAN Group and sales to SAFRAN (consisting primarily of fan blades and cases for CFM International's LEAP engine) were $ 53.8 million and $ 44.4 46.4 million for the three months ended June September 30, 2026 and 2025, respectively and $ 102.1 155.9 million and $ 83.8 130.2 million for the six nine months ended June September 30, 2026 and 2025. The total of Accounts receivable and Contract assets due from SAFRAN amounted to $ 53.4 million and $ 60.8 million as of June September 30, 2026 and December 31, 2025, respectively.

Changes in the estimated profitability of long-term contracts could be caused by increases or decreases in the contract value, revisions to customer delivery requirements, updated labor or overhead projections, material costs, factors affecting the supply chain, changes in the evaluation of contract risks and opportunities, or other factors. The cumulative changes in the estimated profitability of long-term contracts decreased increased revenue by $ 2.7 3.5 million during the second third quarter of 2026 and $ 1.5 2.0 million for the first six nine months of 2026. The cumulative changes in the estimated profitability of long-term contracts increased operating income by $ 0.2 37.9 million which includes a cumulative catch up of depreciation and amortization of assets previously held for sale of $ 11.0 million during the second third quarter of 2026, and decreased increased operating income by $ 1.6 36.3 million which includes a cumulative catch up of depreciation and amortization of assets previously held for sale of $ 11.0 million for the six nine months ended June September 30, 2026. The increase increases in profitability during the second quarter of three and nine months ended September 30, 2026 was were primarily driven by a few large complex programs, including adjustments of $ 0.9 46.7 million and $ 44.5 million, respectively, for various CH-53K programs, primarily based on changes increases to future overhead rates over the remainder of the contract The decrease in profitability during the six months ended June 30, 2026 was primarily driven value partially offset by a few large complex programs, including adjustments of $ 2.2 million for various CH-53K programs, primarily based on changes to future overhead rates over the remainder of the contract.

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The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended June September 30, 2026:

Three months ended June September 30, 2026

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Machine Clothing $ 177,658 $ 1,052 $ 178,710

Machine Clothing $ 168,750 $ 1,052 $ 169,802

1 unchanged paragraph

Other AEC 4,035 94,488 98,523

Other AEC 3,336 123,305 126,641

1 unchanged paragraph

Total revenues $ 181,693 $ 147,789 $ 329,482

Total revenues $ 172,086 $ 177,453 $ 349,539

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

Three months ended June September 30, 2025

1 unchanged paragraph

Machine Clothing $ 179,904 $ 1,022 $ 180,926

Machine Clothing $ 173,929 $ 1,021 $ 174,950

1 unchanged paragraph

Other AEC 3,060 82,567 85,627

Other AEC 3,084 38,527 41,611

1 unchanged paragraph

Total revenues $ 182,964 $ 128,435 $ 311,399

Total revenues $ 177,013 $ 84,421 $ 261,434

1 unchanged paragraph

Six months ended June 30, 2026

Nine months ended September 30, 2026

2 unchanged paragraphs

Machine Clothing $ 342,558 $ 2,104 $ 344,662

Machine Clothing $ 511,308 $ 3,156 $ 514,464

1 unchanged paragraph

Other AEC 7,044 189,751 196,795

Other AEC 10,380 313,056 323,436

1 unchanged paragraph

Total revenues $ 349,602 $ 291,213 $ 640,815

Six months ended June 30, 2025

Total revenues $ 521,688 $ 468,666 $ 990,354

Nine months ended September 30, 2025

1 unchanged paragraph

Machine Clothing $ 353,580 $ 2,043 $ 355,623

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

1 unchanged paragraph

Other AEC 7,137 153,647 160,784

Other AEC 10,221 192,174 202,395

1 unchanged paragraph

Total revenues $ 360,717 $ 239,456 $ 600,173

Three months ended June 30, Six months ended June 30,

Americas PMC $ 82,735 $ 87,488 $ 158,844 $ 170,334

Engineered Fabrics 18,681 22,277 38,768 45,931

Total Machine Clothing Net revenues $ 178,710 $ 180,926 $ 344,662 $ 355,623

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

Three months ended September 30, Nine months ended September 30, (in thousands)

Americas PMC $ 83,199 $ 92,171 $ 242,043 $ 262,505

Engineered Fabrics 18,093 15,651 56,861 61,582

Total Machine Clothing Net revenues $ 169,802 $ 174,950 $ 514,464 $ 530,573

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the MC segment are generally for periods of less than a year and certain contracts in the AEC segment are relatively short duration firm-fixed-price orders. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $ 977.5 877.4 million and $ 1.1 billion as of September 30, 2026 and 2025 related primarily to firm fixed price contracts in the AEC segment. Of the remaining performance obligations as of June September 30, 2026, we expect to recognize as revenue approximately $ 81.7 64.3 million during 2026, $ 191.4 196.3 million during 2027, $ 153.4 176.9 million during 2028, and the remainder thereafter.

Note 4: Pensions and Other Postretirement Benefit Plans 7 changes

1 unchanged paragraph

The composition of the net periodic benefit cost/(income) for the six nine months ended June September 30, 2026 and 2025, was as follows:

2 unchanged paragraphs

Interest cost 3,049 2,947 663 707

Interest cost 4,570 4,505 995 1,060

3 unchanged paragraphs

Amortization of prior service cost/(income) ( 17 25 ) ( 13 20 ) ( 61 92 ) ( 61 92 )

1 unchanged paragraph

Net periodic benefit cost $ 2,826 $ 245 $ 629 $ 650

Net periodic benefit cost $ 4,235 $ 1,226 $ 943 $ 974

The amount of net periodic benefit cost/(credit) is determined at the beginning of each year and generally only varies from quarter to quarter when a significant event occurs, such as a curtailment or a settlement. There were no material curtailments or settlements during the six nine months ended June September 30, 2026. In the first six nine months of 2025, we took action to settle certain pension plan liabilities related to an MC pension plan in Switzerland, resulting in a net gain totaling $ 1.6 million.

1 unchanged paragraph

Note 5: Restructuring 31 changes

At MC, restructuring actions were taken in 2026 and 2025 to consolidate production activities across multiple facilities. For the three and six nine months ended June September 30, 2026, Restructuring expenses, net were related to transfers of fixed assets to other locations including overseas, workforce reductions, and manufacturing expenses related to ceased production. For the three months ended June September 30, 2025, these actions were related to workforce reductions of $ 3.0 2.0 million. For the six nine months ended June September 30, 2025, restructuring charges were related to workforce reductions, fixed asset impairments and related costs and inventory write-off costs of $ 6.1 8.1 million offset by a $ 1.8 million pension curtailment gain.

At AEC, restructuring activities in the prior year were related to reorganizational and workforce reduction costs, which resulted in Restructuring expenses, net of $ 0.5 0.1 million and $ 1.7 1.8 million for the three and six nine months ended June September 30, 2025, respectively. AEC did not incur any restructuring costs for the three and six nine months ended June September 30, 2026.

At Corporate, for the three and nine months ended September 30, 2026, Restructuring expenses, net were primarily related to workforce reductions and legal structure optimization.

1 unchanged paragraph

Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

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Machine Clothing $ 6,389 $ 3,015 $ 9,065 $ 4,618

Albany Engineered Composites 520 1,688

Corporate 1,584 648 2,073 648

Total $ 7,973 $ 4,183 $ 11,138 $ 6,954

Machine Clothing $ 6,827 $ 1,960 $ 15,892 $ 6,578

Albany Engineered Composites 113 1,801

Corporate 466 1,124 2,539 1,772

Total $ 7,293 $ 3,197 $ 18,431 $ 10,151

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Six Nine months ended June September 30, 2026 Total

2 unchanged paragraphs

Machine Clothing $ 9,065 $ 4,665 $ 4,400

Machine Clothing $ 15,892 $ 8,677 $ 7,215

1 unchanged paragraph

Corporate 2,073 2,073

Total $ 11,138 $ 6,738 $ 4,400

Corporate 2,539 2,539

Total $ 18,431 $ 11,216 $ 7,215

Six Nine months ended June September 30, 2025 Total

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Machine Clothing $ 4,618 $ 5,655 $ 723 $ ( 1,760 )

Total $ 6,954 $ 7,991 $ 723 $ ( 1,760 )

Machine Clothing $ 6,578 $ 7,615 $ 723 $ ( 1,760 )

Albany Engineered Composites 1,688 1,688 1,801 1,801

Corporate 1,772 1,772

Total $ 10,151 $ 11,188 $ 723 $ ( 1,760 )

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charges accrued Payments and other June September 30, 2026

Total restructuring and other liabilities $ 2,766 $ 11,138 18,431 $ ( 12,433 19,855 ) $ 1,471 1,342 (in thousands) December 31, 2024 Restructuring charges accrued Payments and other June September 30, 2025

Total restructuring and other liabilities $ 4,996 $ 7,991 11,188 $ ( 8,441 12,878 ) $ 4,546 3,306

Note 6: Other (Income)/Expense, net 10 changes

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30, (in thousands)

1 unchanged paragraph

Derivative instruments losses/(gains) ( 236 ) ( 735 ) ( 1,454 ) ( 3,261 )

Other losses/(gains) ( 664 ) ( 887 ) ( 1,970 ) ( 1,351 )

Total other (income)/expense, net $ 39 $ 3,534 $ ( 3,154 ) $ 4,517

Derivative instruments losses/(gains) ( 119 ) ( 95 ) ( 1,573 ) ( 3,357 )

Components of net periodic pension and postretirement cost other than service cost 1,478 ( 498 ) 2,961 323 1,011 4,439 1,334

Other losses/(gains) ( 985 ) ( 209 ) ( 2,955 ) ( 1,558 )

Total other (income)/expense, net $ ( 1,727 ) $ ( 347 ) $ ( 4,881 ) $ 4,170

Currency transaction losses/(gains), included within other (income)/expense, net were primarily the result of both realized and unrealized losses/(gains) on intercompany loans. In addition, changes in the fair value of derivative instruments included gains driven by currency rate movements, most notably the Brazilian Real and Mexican Peso. British Pound Sterling.

Note 7: Income Taxes 9 changes

Three months ended June 30, Six months ended June 30,

Effective income tax rate 32.0 % 31.3 % 32.5 % 28.3 %

The Company's effective income tax rate for the three and six nine months ended June September 30, 2026 and 2025, is as follows:

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

Effective income tax rate 24.9 % 20.0 % 28.5 % 16.4 %

1 unchanged paragraph

The effective rate for the six months ended June 30, 2026 was higher than the effective tax rate for the six months ended June 30, 2025, primarily due to unfavorable discrete tax items recognized in the current year, partially offset by favorable discrete tax items in the current year.

Our 2026 estimated annual effective tax rate primarily reflects the 21% federal tax rate, the impact of state and local taxation, the impact of taxation upon foreign operations, and forecasted permanent differences. Our actual effective tax rates were 32.5 28.5 % and 28.3 16.4 % for the six nine months ended June September 30, 2026 and 2025, respectively.

The effective tax rate for the nine months ended September 30, 2026 was higher than the effective tax rate for the nine months ended September 30, 2025, primarily due to the Company being in a loss position in prior year. Discrete tax items increased the effective tax rate by 0.2 % and 0.5 % for the three and nine months ended September 30, 2026, respectively, compared to increases of 0.6 % and 2.7 % for the three and nine months ended September 30, 2025, respectively.

The Company is subject to audit in the U.S. and various foreign jurisdictions. Our open tax years for major jurisdictions generally range from 2020-2025. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years. Audit outcomes and the timing of audit settlements are subject to significant uncertainty.

Note 8: Earnings Per Share 11 changes

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

Net income attributable to the Company $ 17,414 $ 9,183 $ 32,695 $ 26,538

Three months ended September 30, Nine months ended September 30, (in thousands, except earnings per share) 2026 2025 2026 2025

Net income attributable to the Company $ 41,697 $ ( 97,760 ) $ 74,392 $ ( 71,222 )

1 unchanged paragraph

Weighted average number of shares used in calculating basic net income per share 28,361 29,928 28,341 30,373 28,377 29,012 28,353 29,914

1 unchanged paragraph

Restricted stock units and multi-year awards 227 162 227 162 219 217

Weighted average number of shares used in calculating diluted net income per share 28,588 30,090 28,568 30,535 28,596 29,012 28,570 29,914

1 unchanged paragraph

Basic $ 0.61 $ 0.31 $ 1.15 $ 0.87

Diluted $ 0.61 $ 0.31 $ 1.14 $ 0.87

Basic $ 1.47 $ ( 3.37 ) $ 2.62 $ ( 2.38 )

Diluted $ 1.46 $ ( 3.37 ) $ 2.60 $ ( 2.38 )

Note 9: Accumulated Other Comprehensive Income ("AOCI") 25 changes

The table below presents changes in the components of AOCI for the period from December 31, 2025 to June September 30, 2026:

adjustments Pension and

adjustments Derivative

adjustment Total Accumulated Other

2 unchanged paragraphs

June 30, 2026 $ ( 121,743 ) $ ( 23,065 ) $ 131 $ ( 144,677 )

Interest (expense)/income related to swaps reclassified to the Consolidated Statements of Income/(Loss), net of tax ( 154 240 ) ( 154 240 )

Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income/(Loss), net of tax 466 466 698 698

Net current period other comprehensive income/(loss) ( 2,735 6,365 ) 846 750 1,073 4,006 ( 1,139 1,286 )

September 30, 2026 $ ( 125,373 ) $ ( 22,838 ) $ 3,387 $ ( 144,824 )

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

5 unchanged paragraphs

June 30, 2025 $ ( 125,584 ) $ ( 17,845 ) $ ( 863 ) $ ( 144,292 )

Interest (expense)/income related to swaps reclassified to the Consolidated Statements of Income/(Loss), net of tax ( 237 273 ) ( 237 273 )

Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income/(Loss), net of tax 360 360 552 552

Net current period other comprehensive income/(loss) 55,971 58,366 ( 3,517 3,044 ) ( 757 631 ) 51,697 54,691

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

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

The table below presents the expense/(income) amounts reclassified from AOCI, and the line items of the Consolidated Statements of Income/(Loss) that were affected for the three and six nine months ended June September 30, 2026, and the Consolidated Statements of Income/(Loss) for the three and six nine months ended June September 30, 2025:

Three months ended September 30, Nine months ended September 30, (in thousands)

2 unchanged paragraphs

Income tax effect 82 20 132 34

Income tax effect 14 17 146 51

Effect on net income due to items reclassified from Accumulated Other Comprehensive Income/(Loss) $ ( 71 86 ) $ ( 59 36 ) $ ( 154 240 ) $ ( 237 273 )

2 unchanged paragraphs

Amortization of prior service credit $ ( 39 ) $ ( 37 38 ) $ ( 78 117 ) $ ( 74 112 )

2 unchanged paragraphs

Income tax effect ( 86 ) 763 ( 190 ) 264

Income tax effect ( 95 ) ( 86 ) ( 285 ) 178

Effect on net income due to items reclassified from Accumulated Other Comprehensive Income $ 241 232 $ ( 2,168 ) 191 $ 466 698 $ ( 817 626 )

2 unchanged paragraphs

Note 10: Noncontrolling Interest 10 changes

2 unchanged paragraphs

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 three and six nine months ended June September 30, 2026.

1 unchanged paragraph

ASC Noncontrolling Interest Six months ended June 30,

ASC Noncontrolling Interest Nine months ended September 30,

1 unchanged paragraph

Net income of Albany Safran Composites (ASC) $ 5,442 7,769 $ 3,175 4,857

Less: Return attributable to the Company's preferred holding 859 892 1,299 1,352

Net income of ASC available for common ownership $ 4,583 6,470 $ 2,283 3,505

1 unchanged paragraph

Net income attributable to the noncontrolling interest $ 458 647 $ 228 351

1 unchanged paragraph

Net income attributable to noncontrolling interest 458 228 647 351

Changes in other comprehensive income attributable to the noncontrolling interest 49 286 ( 91 ) 376

2 unchanged paragraphs

Total Noncontrolling interest, end of interim period $ 6,400 6,449 $ 5,497 5,709

Note 11: Accounts Receivable 6 changes

Accounts receivable, net includes trade and other accounts receivable and bank promissory notes, net of allowance for expected credit losses. In connection with certain revenues in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year. As of June September 30, 2026 and December 31, 2025, Accounts receivable consisted of the following:

(in thousands) June September 30, 2026 December 31, 2025

Trade and other accounts receivable $ 237,576 264,425 $ 221,592

Bank promissory notes 18,165 17,396 17,844

Allowance for expected credit losses ( 3,608 4,129 ) ( 4,352 )

Accounts receivable, net $ 252,133 277,692 $ 235,084

Note 12: Contract Assets and Liabilities 10 changes

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

1 unchanged paragraph

Contract assets $ 77,758 $ 87,573

As of June September 30, 2026 and December 31, 2025, Contract assets and Contract liabilities consisted of the following:

(in thousands) June September 30, 2026 December 31, 2025

Contract assets $ 165,296 $ 87,573

1 unchanged paragraph

Contract liabilities $ 36,585 $ 33,397

Contract assets, net $ 77,287 164,438 $ 87,102

Contract liabilities $ 28,185 $ 33,397

Contract assets, net decreased increased $ 9.8 77.3 million during the six nine months ended June September 30, 2026, primarily due to a decrease the conclusion of the Amelia Earhart Drive strategic review upon which $ 68.6 million was reclassified from Assets held for sale back into Contract assets, net. The remaining increase in unbilled revenue is related to commercial and defense programs. There were no impairment losses related to our Contract assets during the six nine months ended June September 30, 2026 and June September 30, 2025.

Contract liabilities increased decreased $ 3.2 5.2 million for the period ended June September 30, 2026 compared to December 31, 2025, primarily due to amounts invoiced to customers revenue recognized from satisfied performance obligations for contracts that were in a contract liability position exceeding the revenue recognition partially offset by amounts reclassified from satisfied performance obligations. Liabilities held for sale back into Accrued liabilities upon the conclusion of the Amelia Earhart Drive strategic review. Revenue recognized for the six nine months ended June September 30, 2026 and 2025 that was included in the Contract liability balance at the beginning of the year was $ 20.8 23.8 million and $ 4.8 5.6 million, respectively.

Note 13: Inventories 6 changes

Raw materials $ 69,844 $ 60,311

Finished goods 18,988 14,326

As of June September 30, 2026 and December 31, 2025, Inventories consisted of the following:

(in thousands) June September 30, 2026 December 31, 2025

Raw materials $ 89,490 $ 60,311

Finished goods 20,038 14,326

Note 14: Goodwill and Other Intangible Assets 25 changes

The following table sets forth the gross carrying value, accumulated amortization and net values of intangible assets and goodwill as of June September 30, 2026 and December 31, 2025:

8 unchanged paragraphs

Total Finite-lived intangible assets $ 86,030 $ ( 72,635 ) $ 13,395

Total Finite-lived intangible assets $ 85,938 $ ( 61,762 ) $ 24,176

1 unchanged paragraph

AEC Goodwill 113,899 ( 21,829 ) 92,070

Heimbach Trade name $ 6,272 6,235 $ $ 6,272 6,235

MC Goodwill 68,482 68,482 68,216 68,216

AEC Goodwill 113,795 113,795

Total Indefinite-lived intangible assets: $ 188,653 188,246 $ ( 21,829 ) $ 166,824 188,246 (in thousands) Amortization life in years Gross carrying amount Accumulated amortization and other Net carrying amount

12 unchanged paragraphs

Translation June 30, 2026

As of June 30, 2026 and December 31, 2025, $ 13.4 million of finite-lived assets and $ 21.8 million of AEC goodwill related to the Amelia Earhart Drive facility were reclassified to held for sale. As of September 30, 2026, these amounts were reclassified back into their respective line items on the balance sheet.

The changes in intangible assets, net and goodwill from December 31, 2025 to June September 30, 2026, were as follows:

(in thousands) December 31, 2025 Reclassified from Assets Held for Sale Amortization Currency

Translation September 30, 2026

2 unchanged paragraphs

AEC Technology 2,416 ( 299 ) ( 72 ) 2,045

AEC Customer relationships 5,229 ( 472 ) ( 45 ) 4,712

AEC Technology 2,416 ( 446 ) ( 85 ) 1,885

AEC Intellectual property 745 ( 43 64 ) 702 681

AEC Customer relationships 5,229 13,384 ( 2,618 ) ( 56 ) 15,939

Heimbach Developed technology 6,582 ( 480 717 ) ( 166 194 ) 5,936 5,671

Total Finite-lived intangible assets $ 14,972 $ 13,384 $ ( 1,294 3,845 ) $ ( 283 335 ) $ 13,395 24,176

1 unchanged paragraph

AEC Goodwill 92,596 ( 526 ) 92,070

Heimbach Trade name $ 6,456 $ $ $ ( 184 221 ) $ 6,272 6,235

MC Goodwill 69,911 ( 1,429 1,695 ) 68,482 68,216

AEC Goodwill 92,596 21,829 ( 630 ) 113,795

Total Indefinite-lived assets: $ 168,963 $ 21,829 $ $ ( 2,139 2,546 ) $ 166,824 188,246

1 unchanged paragraph

Note 15: Financial Instruments 12 changes

1 unchanged paragraph

(in thousands, except interest rates) June September 30, 2026 December 31, 2025

1 unchanged paragraph

Less: Current maturities of long-term debt

Long-term debt $ 450,669 $ 455,663

USD borrowings $ 348,000 320,000 $ 350,000

EUR borrowings 102,669 102,087 105,663

Total bank debt 450,669 422,087 455,663

6 unchanged paragraphs

As of June September 30, 2026, the applicable interest rate for borrowings under the Amended Credit Agreement was based on one-month term SOFR and one-month EURIBOR plus the spread, which was 1.625 % .

As of June September 30, 2026, there was $ 450.7 422.1 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $ 349.3 377.9 million, based on our maximum leverage ratio and our Consolidated EBITDA (as defined in the Amended Credit Agreement).

As of June September 30, 2026 and December 31, 2025, the USD interest rate in effect was 5.48 5.61 % and 5.56 %, respectively, including the effect of interest rate swaps; at the end of June September 30, 2026 and December 31, 2025, the EUR interest rate in effect was 3.83 3.96 % and 3.73 %, respectively, including the effect of interest rate swaps.

1 unchanged paragraph

As of June September 30, 2026, our leverage ratio wa s 1.71 was 1.68 to 1.00 and our interest coverage ratio was 8.07 7.68 to 1.00. As of June September 30, 2026, we were in compliance with all applicable covenants. We anticipate continued compliance in each of the next four quarters while continuing to monitor future compliance based on current and future economic conditions.

2 unchanged paragraphs

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

The three USD forward starting interest rate swap agreement has a agreements have three-year tenor tenors and matures mature on November 15, 2029. The swap has swaps have the effect of fixing the SOFR portion of the interest rate on a total of $ 80 175 million of USD indebtedness drawn under the Amended Credit Facility. Under this these interest rate swap agreement, agreements, the Company pays a fixed rate of 3.516 % and the counterparty pays a floating rate based on the one-month term SOFR rate, reset monthly. The two EUR forward starting interest rate swap agreement has a agreements have three-year tenor tenors and matures mature on November 14, 2029. The swap has swaps have the effect of fixing the EURIBOR portion of the interest rate on 25 a total of 45 million of EUR indebtedness drawn under the Amended Credit Facility. Under this agreement, the Company pays a fixed rate of 2.602 % and the counterparty pays a floating rate based on the one-month EURIBOR rate, reset monthly.

2 unchanged paragraphs

Note 16: Fair-Value Measurements 12 changes

4 unchanged paragraphs

We had no Level 3 financial assets or liabilities at June September 30, 2026 or at December 31, 2025, other than certain pension assets as indicated in our December 31, 2025 Annual Report on Form 10-K.

2 unchanged paragraphs

June September 30, 2026 December 31, 2025

1 unchanged paragraph

Cash equivalents $ 11,404 $ $ 10,584 $

Cash equivalents $ 4,138 $ $ 10,584 $

1 unchanged paragraph

Interest rate swaps 629 768

Interest rate swaps 5,677 768

Foreign currency option contracts 340 353

2 unchanged paragraphs

The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the interest rate swaps are recorded as a component of Derivative valuation adjustment in the Shareholders equity section of the Consolidated Balance Sheets. As of June September 30, 2026, these interest rate swaps were determined to be highly effective hedges of interest rate cashflow risk. Amounts accumulated in Other comprehensive income are reclassified as interest expense/(income), net when the related interest payments (that is, the hedged forecasted transactions), affect earnings. Interest expense/(income) related to payments under the active swap agreements totaled $( 0.3 0.4 ) million for the six nine months ended June September 30, 2026 and $( 0.3 ) million for the six nine months ended June September 30, 2025.

3 unchanged paragraphs

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30, (in thousands) 2026 2025 2026 2025

1 unchanged paragraph

Foreign currency options (gains)/losses $ ( 91 ) $ ( 735 ) $ ( 1,174 ) $ ( 3,261 )

Foreign currency options (gains)/losses $ ( 13 ) $ ( 95 ) $ ( 1,187 ) $ ( 3,356 )

Note 17: Contingencies 5 changes

1 unchanged paragraph

We were defending 3,660 3,662 claims as of June September 30, 2026.

3 unchanged paragraphs

Six months ended June 30, 2026 3,677 37 20 3,660 $ 40

Nine months ended September 30, 2026 3,677 47 32 3,662 $ 100

1 unchanged paragraph

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 June September 30, 2026, we had resolved, by means of settlement or dismissal, 38,116 38,126 claims at a total cost of $ 10.9 11 million. Of this amount, almost 100 % was paid by our insurance carrier, who has confirmed that we have approximately $ 140 million of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.

The Company s subsidiary, Brandon Drying Fabrics, Inc. ( Brandon ), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against 7,675 7,676 claims as of June September 30, 2026, only twelve claims have been filed against Brandon since January 1, 2012, and only $ 15,000 in settlement costs have been incurred since 2001. Brandon was acquired by the Company in 1999 and has its own insurance policies covering periods prior to 1999. Since 2004, Brandon s insurance carriers have covered 100 % of indemnification and defense costs, subject to policy limits and a standard reservation of rights.

2 unchanged paragraphs

Note 18: Changes in Shareholders Equity 71 changes

The following tables summarize changes in Shareholders Equity for the three and six nine month periods ended June September 30, 2026:

4 unchanged paragraphs

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

Net income 17,414 290 17,704

Stock issued under incentive compensation plans 1

Taxes paid in lieu of share issuance ( 30 ) ( 30 )

Stock-based compensation 2,667 2,667

Shares issued to Directors 15 882 882

Purchase of Treasury shares

Share repurchase excise tax adjustment 146 146

Dividends declared on Class A Common Stock, $ 0.28 per share ( 7,944 ) ( 7,944 )

Dividends paid to noncontrolling interests

Cumulative translation adjustments 2,471 96 2,567

Pension and postretirement liability adjustments 262 262

1 unchanged paragraph

5 unchanged paragraphs

2 unchanged paragraphs

4 unchanged paragraphs

1 unchanged paragraph

5 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

and 58 more changes in the filing

Note 19: Held for Sale 19 changes

and 19 more changes in the filing

Forward-looking statements 135 changes

15 unchanged paragraphs

17 unchanged paragraphs

2 unchanged paragraphs

2 unchanged paragraphs

3 unchanged paragraphs

3 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

2 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

4 unchanged paragraphs

1 unchanged paragraph

2 unchanged paragraphs

1 unchanged paragraph

3 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

and 135 more changes in the filing

Market risk 7 changes

2 unchanged paragraphs

1 unchanged paragraph

2 unchanged paragraphs

1 unchanged paragraph

and 7 more changes in the filing

Unregistered sales of stock 6 changes

1 unchanged paragraph

and 6 more changes in the filing

Other information 1 change

1 unchanged paragraph

and 1 more change in the filing

Exhibits 5 changes

13 unchanged paragraphs

and 5 more changes in the filing