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Albany International (NYSE: AIN) Q2 profit and Adjusted EBITDA climb

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Albany International Corp. reported stronger results for the quarter ended June 30, 2026. Net revenues were $329.5 million, up 6% from $311.4 million a year earlier, driven by higher volume in the Albany Engineered Composites business, partly offset by softer demand and downtime in Machine Clothing.

Net income attributable to the Company was $17.4 million, or $0.61 per diluted share, compared with $9.2 million, or $0.31, in Q2 2025. Adjusted diluted EPS rose to $0.82 from $0.57, and Adjusted EBITDA increased to $57.8 million from $51.9 million, lifting margin to 17.6% from 16.7%.

Machine Clothing net revenues declined 2.4% year over year on a constant-currency basis and its Adjusted EBITDA margin was 28.0%, or 29.0% on a constant-currency basis. Albany Engineered Composites net revenues grew 14.2% in constant currency and expanded Adjusted EBITDA margin to 13.3% from 8.5%. The Company ended the quarter with $77.3 million of cash, total debt of $450.7 million and net debt of $373.3 million. For the third quarter of 2026, Albany guides consolidated net revenue to $320–$330 million and Adjusted EPS to $0.60–$0.70.

Positive

  • Q2 profitability surged, as net income attributable to the Company rose to $17.4 million and diluted EPS increased to $0.61, up 90% and 97% respectively from Q2 2025.
  • Adjusted earnings improved, with Adjusted EBITDA rising to $57.8 million from $51.9 million and Adjusted diluted EPS climbing to $0.82 from $0.57, while Adjusted EBITDA margin expanded to 17.6% from 16.7%.
  • Engineered Composites delivered strong growth, with constant-currency net revenues up 14.2% year over year and Adjusted EBITDA margin increasing to 13.3% from 8.5%.
  • Guidance remains profitable, with third-quarter 2026 consolidated net revenue projected between $320 million and $330 million and Adjusted EPS between $0.60 and $0.70.

Negative

  • Cash generation weakened, as net cash provided by operating activities for the first six months fell to $2,992 thousand from $34,833 thousand and free cash flow declined to $(18,190) thousand from $4,302 thousand.
  • Machine Clothing softness continued, with Q2 2026 net revenues down 2.4% year over year on a constant-currency basis and year-to-date constant-currency net revenues down 5.4% compared to 2025.
  • Restructuring costs increased, with restructuring expenses of $7,973 thousand in Q2 2026 versus $4,183 thousand a year earlier and $11,138 thousand year-to-date versus $6,698 thousand.

Filing Explained

At June 30, 2026, Albany had negative first-half free cash flow, with less cash and higher net debt than at December 31, 2025.

For the first six months of 2026, the company reported operating cash flow of $2,992 thousand against property, plant and equipment purchases of $21,170 thousand and software purchases of $12 thousand, resulting in negative free cash flow of $18,190 thousand.

The structural consequence for existing common holders is a smaller cash position and higher net debt at June 30, 2026: cash was $77,349 thousand, versus $112,350 thousand at December 31, 2025, while net debt was $373,320 thousand, versus $343,313 thousand.

The release defines free cash flow as operating cash flow less property, plant and equipment purchases and purchased software; these are historical six-month figures through June 30, 2026, rather than a commitment of future spending.

Financing activities used $19,200 thousand during the first six months, alongside reported borrowings of $83,000 thousand, repayments of $85,000 thousand, and dividends paid of $15,867 thousand.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net revenues Q2 2026 $329.5 million Quarter ended June 30, 2026; up 6% from $311.4 million in Q2 2025.
Net income attributable Q2 2026 $17.4 million Net income attributable to the Company in Q2 2026; up 90% from $9.2 million in Q2 2025.
Diluted EPS Q2 2026 (GAAP) $0.61 Q2 2026 diluted earnings per share; up 97% from $0.31 in Q2 2025.
Adjusted EBITDA Q2 2026 $57.8 million Adjusted EBITDA for Q2 2026 versus $51.9 million in Q2 2025; margin 17.6%.
Free cash flow YTD 2026 $(18,190) thousand Free cash flow for the six months ended June 30, 2026 versus $4,302 thousand in 2025.
Net debt June 30, 2026 $373,320 thousand Net debt as of June 30, 2026 compared with $343,313 thousand at December 31, 2025.
Engineered Composites revenue growth ex-FX Q2 2026 14.2 % Q2 2026 Albany Engineered Composites net revenues increase after currency translation adjustments.
Machine Clothing revenue change ex-FX Q2 2026 (2.4) % Q2 2026 Machine Clothing net revenues decrease after currency translation adjustments.
Adjusted EBITDA financial
"Adjusted EBITDA of $57.8 million in Q2 2026 and Adjusted EPS per diluted share"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow | $ | (18,190) | $ | 4,302"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
net debt financial
"Net debt (non-GAAP) | $ | 373,320 | $ | 343,313 | $ | 337,997"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
Machine Clothing financial
"Machine Clothing's net revenues decreased 2.4% after adjusting for currency translation"
Machine clothing are specialized industrial fabrics, belts and mats fitted to manufacturing equipment to support, convey, press or filter the material being produced — common examples include forming fabrics and press felts in papermaking. They affect product quality, production speed, energy use and maintenance needs, so changes in their cost, durability or availability can influence a manufacturer’s operating costs and capital spending. Think of them like the shoes and gloves a machine wears: they take the wear and shape how work gets done.
Albany Engineered Composites financial
"Albany Engineered Composites net revenues increased 14.2% after adjusting for currency translation"
non-GAAP financial
"Reconciliation of Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP)"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
Offering Type earnings_snapshot

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FAQ

What were Albany International (AIN) Q2 2026 revenues and earnings?
Albany International reported Q2 2026 net revenues of $329.5 million, up 6% from $311.4 million. Net income attributable to the Company was $17.4 million, with diluted EPS of $0.61 versus $9.2 million and $0.31 in Q2 2025. Adjusted diluted EPS was $0.82.

How did Albany International’s (AIN) Machine Clothing and Engineered Composites segments perform in Q2 2026?
Machine Clothing net revenues decreased 2.4% year over year on a constant-currency basis and posted an Adjusted EBITDA margin of 28.0%, or 29.0% constant currency. Albany Engineered Composites net revenues grew 14.2% in constant currency, with Adjusted EBITDA margin rising to 13.3% from 8.5%.

What guidance did Albany International (AIN) provide for Q3 2026?
For Q3 2026, Albany International expects consolidated net revenue of $320–$330 million. Machine Clothing net revenue is projected at $165–$170 million, Engineered Composites at $155–$160 million, and Adjusted EPS between $0.60 and $0.70, with an effective tax rate of 31.5%.

What were Albany International’s (AIN) cash flow and free cash flow for 2026 year-to-date?
For the six months ended June 30, 2026, Albany International generated net cash provided by operating activities of $2,992 thousand, down from $34,833 thousand a year earlier. Free cash flow was $(18,190) thousand, compared with $4,302 thousand in the prior-year period.

What is Albany International’s (AIN) debt and liquidity position as of June 30, 2026?
Albany International ended Q2 2026 with cash and cash equivalents of $77.3 million and total debt of $450.7 million, resulting in net debt of $373.3 million. The Company states it maintains significant financial flexibility and liquidity to support investments and shareholder returns.

How much did Albany International (AIN) invest in capital expenditures and R&D in Q2 2026?
In Q2 2026, Albany International reported capital expenditures of $11.9 million, down from $14.9 million in Q2 2025. Research and development expenses totaled $11.7 million, compared with $12.6 million a year earlier, supporting proprietary technologies in both core businesses.
325 Corporate DrivePortsmouthNew HampshireFALSE000081979300008197932026-04-302026-04-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report:    August 4, 2026
(Date of earliest event reported)
ALBANY INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
Delaware
1-10026
14-0462060
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S Employer
Identification No.)
325 Corporate Drive Portsmouth, New Hampshire
03801
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code       603-330-5800
None
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Class A Common Stock, $0.001 par value per share
AIN
The New York Stock Exchange (NYSE)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
☐    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




Item 2.02.  Results of Operations and Financial Condition.
On August 4, 2026 Albany International issued a news release reporting second-quarter 2026 financial results. The Company will host a webcast to discuss earnings at 8:30 a.m. Eastern Time on Tuesday August 4, 2026. The news release is furnished as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits.
(d)    Exhibits. The following exhibit is being furnished herewith:
99.1    News release dated August 4, 2026 reporting second-quarter 2026 financial results.



Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ALBANY INTERNATIONAL CORP.
By:
/s/ Willard C. Station
Name:
Willard C. Station
Title:
Executive Vice President, Chief Financial Officer
(Principal Financial Officer)
Date: August 4, 2026


EXHIBIT INDEX
Exhibit No.
Description
99.1
News release dated August 4, 2026 reporting second-quarter 2026 financial results.
104Inline XBRL cover page.




Exhibit 99.1

image.jpg
Albany International Reports Second-Quarter 2026 Results

•Q2 2026 net revenue of $329.5 million, up 6% compared to $311.4 million in Q2 2025.

•Q2 2026 net income attributable to the Company of $17.4 million, or diluted earnings per share (EPS) of $0.61, up 90% and 97% respectively, compared to net income of $9.2 million, or diluted EPS of $0.31, in the prior year.

•Adjusted EBITDA of $57.8 million in Q2 2026 and Adjusted EPS per diluted share of $0.82 up 11% and 45% respectively, compared to $51.9 million and $0.57 in Q2 2025.

•Paid $7.9 million in dividends and invested $11.9 million in capital in the second quarter, continuing the commitment of balanced capital allocation.

PORTSMOUTH, N.H.--(BUSINESS WIRE)--August 4, 2026 — Albany International Corp. (NYSE:AIN) today reported operating results for its second quarter of 2026, which ended June 30, 2026.

Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, “Our second-quarter performance delivered the strongest Adjusted EBITDA we have achieved in the past two years and grew 11.5% year-over-year, despite modestly lower-than-expected revenue due to several discrete factors. This result reflects the progress we have made to build a more nimble company and underscores the strength of our operating model, our focus on profitable growth, and the dedication of the Albany team."

Kleveland continued, “In Engineered Composites, we are seeing the benefits of a refined operating model centered on our innovative technologies, which enable lighter-weight, more durable solutions for customers across commercial aerospace, defense, and space applications. Our recent participation at the Farnborough International Airshow reinforced the value of our business, as leading OEMs and government stakeholders engaged with us to explore solutions enabled by our innovative material science. In Machine Clothing, we are applying that same focus on innovation to expand opportunities for our high-value, performance-driven products across a broader range of uses.”

Consolidated Results

The Company’s net revenues were $329.5 million in the second quarter of 2026, compared to $311.4 million in the prior year. The increase was primarily driven by higher volume in the Engineered Composites business, offset by some end-market softness in Machine Clothing along with downtime related to an equipment failure in the Machine Clothing business.

Gross profit of $107.9 million in the second quarter of 2026 was 10.7% higher than $97.5 million reported for the same period of 2025, as a result of cost controls in Machine Clothing and a favorable mix of aerospace and defense programs in the Engineered Composites business.
1


Selling, general, and administrative expenses were $56.1 million in the second quarter of 2026, compared to $58.5 million in the same period of 2025, driven primarily by cost containment initiatives.

Operating income was $32.1 million, compared to $22.3 million in the prior year, an increase of 44.3%, primarily driven by stronger gross profit and cost containment initiatives.

The effective tax rate for the quarter was 32.0% compared to a 31.3% effective tax rate in the second quarter of 2025.

The net income attributable to the Company was $17.4 million, or $0.61 per share on a basic and diluted basis, compared to $9.2 million, or $0.31 per share in the second quarter of 2025.

Adjusted diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.82 per share, compared to $0.57 per share for the same period of last year.

Adjusted EBITDA (a non-GAAP measure) was $57.8 million, compared to $51.9 million in the second quarter of 2025, an increase of 11.5%, due to stronger revenue and operating profit. Adjusted EBITDA margin was 17.6% and 16.7% in the prior year, up 90 basis points as a result of stronger contribution from Engineered Composites.

Will Station, Albany International’s Chief Financial Officer, said, “We are pleased with our second-quarter performance, as disciplined execution and a more focused operating model drove meaningful year-over-year improvement in profitability. As we look to the balance of the year, we remain well positioned to maintain our growth trajectory. In Engineered Composites, we expect continued strength as multiple programs scale and we benefit from our focus on quality of earnings, while in Machine Clothing, we remain focused on execution and margin stability as we manage a fluid demand environment across the geographies we serve.”

Machine Clothing

Machine Clothing's net revenues decreased 2.4% after adjusting for currency translation, primarily driven by cyclical declines in the Americas and machine downtime in that region.

Machine Clothing’s adjusted EBITDA margin was 28.0%, compared to 28.9% in the second quarter of 2025. The margin decline is primarily impacted by foreign currency impacts related to a weaker U.S. dollar. On a constant currency basis, margins were up slightly at 29.0% despite lower volumes, driven by synergies and efficiency gains across the network.

Engineered Composites

Engineered Composites net revenues increased 14.2% 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 13.3%, compared to 8.5% in the second quarter of 2025. The increase in margin was driven by the continued focus on quality of earnings and the scaling of more profitable programs.



2

Capital Allocation Balance Sheet

Capital expenditures were $11.9 million, compared to $14.9 million in the second quarter of 2025, and were driven primarily by facility optimizations. Research and development expenses totaled $11.7 million, compared to $12.6 million in the second 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 $77.3 million and total debt of $450.7 million, resulting in a net debt position of $373.3 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders.

Outlook for the Third Quarter of 2026

•Consolidated net revenue between $320 million and $330 million
•Machine Clothing net revenue between $165 million and $170 million
•Engineered Composite net revenue between $155 million and $160 million
•Adjusted EPS between $0.60 and $0.70
•Third-quarter effective tax rate of 31.5%

Second-Quarter 2026 Results Conference Call/Webcast

The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Tuesday, August 4, 2026. Interested parties 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: 487 159 842.

An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Tuesday, August 4, 2026.
3

ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net revenues$329,482 $311,399 $640,815 $600,173 
Cost of goods sold221,581 213,892 433,120 406,180 
Gross profit107,901 97,507 207,695 193,993 
Selling, general, and administrative expenses56,068 58,502 114,367 112,314 
Technical and research expenses11,722 12,552 24,679 24,448 
Restructuring expenses, net7,973 4,183 11,138 6,698 
Operating income32,138 22,270 57,511 50,533 
Interest expense, net6,068 5,150 11,535 8,805 
Other expense/(income), net39 3,534 (3,154)4,517 
Income before income taxes26,031 13,586 49,130 37,211 
Income tax expense8,327 4,254 15,977 10,530 
Net income17,704 9,332 33,153 26,681 
Net income attributable to the noncontrolling interest290 149 458 143 
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 
Shares of the Company used in computing earnings per share:
Basic28,361 29,928 28,341 30,373 
Diluted28,588 30,090 28,568 30,535 
Dividends declared per Class A share$0.28 $0.27 $0.56 $0.54 
4

ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, 2026December 31, 2025
Assets
Cash and cash equivalents$77,349 $112,350 
Accounts receivable, net252,133 235,084 
Contract assets, net77,287 87,102 
Inventories146,158 121,589 
Income taxes prepaid and receivable41,191 43,937 
Prepaid expenses and other current assets40,402 34,990 
Assets held for sale306,722 293,783 
Total current assets$941,242 $928,835 
Property, plant and equipment, net467,424 482,568 
Intangibles, net19,667 21,428 
Goodwill160,552 162,507 
Deferred income taxes66,319 68,499 
Other assets56,161 54,872 
Total assets$1,711,365 $1,718,709 
Liabilities and Shareholders' Equity
Accounts payable$75,075 $64,499 
Accrued liabilities133,829 139,385 
Income taxes payable24,524 35,090 
Liabilities held for sale187,108 203,323 
Total current liabilities420,536 442,297 
Long-term debt450,669 455,663 
Other noncurrent liabilities85,983 86,850 
Deferred income taxes2,088 1,797 
Total liabilities959,276 986,607 
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 202541 41 
Additional paid in capital464,148 460,472 
Retained earnings993,170 976,373 
Accumulated items of other comprehensive income:
Translation adjustments(121,743)(119,008)
Pension and postretirement liability adjustments(23,065)(23,911)
Derivative valuation adjustment131 (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' equity745,689 726,209 
Noncontrolling interest6,400 5,893 
Total equity752,089 732,102 
Total liabilities and shareholders' equity$1,711,365 $1,718,709 
5

ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30,
20262025
Cash flows from operating activities:
Net income$33,153 $26,681 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation32,853 40,085 
Amortization1,294 2,957 
Change in deferred taxes2,179 (2,761)
Loss/(gain) on disposal of property, plant and equipment324 (66)
Non-cash interest expense515 513 
Compensation and benefits paid or payable in Class A Common Stock5,009 3,654 
Provision/(recovery) for credit losses from uncollected receivables and contract assets(101)1,021 
Foreign currency remeasurement loss/(gain) on intercompany loans(3,788)7,171 
Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable(12,899)(4,490)
Contract assets(8,778)(15,329)
Inventories(22,912)(8,179)
Prepaid expenses and other current assets(5,195)(2,565)
Income taxes prepaid and receivable2,769 743 
Accounts payable14,488 26,878 
Accrued liabilities(23,259)(23,314)
Income taxes payable(11,034)(17,191)
Noncurrent receivables— (201)
Other noncurrent liabilities288 (2,927)
Other, net(1,914)3,719 
Net cash provided by operating activities2,992 34,833 
Cash flows from investing activities:
Purchases of property, plant and equipment(21,170)(29,526)
Purchased software(12)(1,005)
Proceeds received from sale of assets— 3,243 
Proceeds from sale of investment1,660 — 
Net cash used in investing activities(19,522)(27,288)
Cash flows from financing activities:
Proceeds from borrowings83,000 171,995 
Repayment of borrowings(85,000)(58,046)
Purchase of Treasury shares— (120,448)
Taxes paid in lieu of share issuance(1,333)(1,316)
Dividends paid(15,867)(16,693)
Net cash used in financing activities(19,200)(24,508)
Effect of exchange rate changes on cash and cash equivalents729 8,369 
Decrease in cash and cash equivalents(35,001)(8,594)
Cash and cash equivalents at beginning of period112,350 115,283 
Cash and cash equivalents at end of period$77,349 $106,689 
Supplemental disclosure of cash flow information:
Cash paid for interest, net$12,451 $10,710 
Cash paid for income taxes$23,056 $26,278 

6

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, Q2 2026(Decrease)/ increase due to changes in currency translation ratesQ2 2026 revenues on same basis as Q2 2025 currency translation ratesNet revenues as reported, Q2 2025% Change compared to Q2 2025, excluding currency rate effects
Machine Clothing$178,710 $2,137 $176,573 $180,926 (2.4)%
Albany Engineered Composites150,772 1,824 148,948 130,473 14.2 %
Consolidated total$329,482 $3,961 $325,521 $311,399 4.5 %

(in thousands, except percentages)Net revenues as reported, YTD 2026(Decrease)/ increase due to changes in currency translation ratesYTD 2026 revenues on same basis as 2025 currency translation ratesNet revenues as reported, YTD 2025% Change compared to 2025, excluding currency rate effects
Machine Clothing$344,662 $8,279 $336,383 $355,623 (5.4)%
Albany Engineered Composites296,153 4,959 291,194 244,550 19.1 %
Consolidated total$640,815 $13,238 $627,577 $600,173 4.6 %

The following table presents Gross profit and Gross profit margin:
(in thousands, except percentages)Gross profit,
Q2 2026		Gross profit margin, Q2 2026Gross profit,
Q2 2025		Gross profit margin, Q2 2025
Machine Clothing$80,947 45.3 %$83,759 46.3 %
Albany Engineered Composites26,954 17.9 %13,748 10.5 %
Consolidated total$107,901 32.7 %$97,507 31.3 %
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.

Three months ended June 30, 2026
(in thousands)Machine ClothingAlbany Engineered
Composites		Corporate expenses
and other		Total Company
Net income/(loss) (GAAP)$34,705 $11,429 $(28,430)$17,704 
Interest expense/(income), net— — 6,068 6,068 
Income tax expense— — 8,327 8,327 
Depreciation and amortization expense8,422 8,561 35 17,018 
EBITDA (non-GAAP)43,127 19,990 (14,000)49,117 
Restructuring costs and other6,389 — 1,584 7,973 
Foreign currency revaluation (gains)/losses 503 175 (521)157 
Strategic review and other transition expenses20 109 739 868 
Pre-tax loss/(income) attributable to noncontrolling interest — (289)— (289)
Adjusted EBITDA (non-GAAP)$50,039 $19,985 $(12,198)$57,826 
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)28.0 %13.3 %— 17.6 %
7

Three months ended June 30, 2025
(in thousands)Machine ClothingAlbany Engineered
Composites		Corporate expenses
and other		Total Company
Net income/(loss) (GAAP)$37,702 $(2,674)$(25,696)$9,332 
Interest expense/(income), net— — 5,150 5,150 
Income tax expense— — 4,254 4,254 
Depreciation and amortization expense7,973 13,455 323 21,751 
EBITDA (non-GAAP)45,675 10,781 (15,969)40,487 
Restructuring costs and other
3,015 520 (918)2,617 
Foreign currency revaluation (gains)/losses 3,467 21 5,449 8,937 
Strategic review and other transition expenses— 28 — 28 
Pre-tax (income) attributable to noncontrolling interest41 (228)— (187)
Adjusted EBITDA (non-GAAP)$52,198 $11,122 $(11,438)$51,882 
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)28.9 %8.5 %— 16.7 %

Six months ended June 30, 2026
(in thousands)Machine ClothingAlbany Engineered
Composites		Corporate expenses
and other		Total Company
Net income/(loss) (GAAP)$66,657 $20,027 $(53,531)$33,153 
Interest expense/(income), net— — 11,535 11,535 
Income tax expense— — 15,977 15,977 
Depreciation and amortization expense16,724 17,350 73 34,147 
EBITDA (non-GAAP)83,381 37,377 (25,946)94,812 
Restructuring costs and other
9,065 — 2,073 11,138 
Foreign currency revaluation (gains)/losses85 (41)(2,631)(2,587)
Strategic review and other transition expenses541 109 2,493 3,143 
Pre-tax (income) attributable to noncontrolling interest— (520)— (520)
Adjusted EBITDA (non-GAAP)$93,072 $36,925 $(24,011)$105,986 
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)27.0 %12.5 %— 16.5 %

Six months ended June 30, 2025
(in thousands)Machine ClothingAlbany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$76,133 $(1,058)$(48,394)$26,681 
Interest expense/(income), net— — 8,805 8,805 
Income tax expense
— — 10,530 10,530 
Depreciation and amortization expense
15,679 26,750 613 43,042 
EBITDA (non-GAAP)
91,812 25,692 (28,446)89,058 
Restructuring costs and other
4,617 1,688 (918)5,387 
Foreign currency revaluation (gains)/losses 5,159 (144)8,508 13,523 
Strategic review and other transition expenses182 (412)40 (190)
Pre-tax (income) attributable to noncontrolling interest
120 (299)— (179)
Adjusted EBITDA (non-GAAP)$101,890 $26,525 $(20,816)$107,599 
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)28.7 %10.8 %— 17.9 %
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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, Q2 2026(Decrease)/ increase due to changes in currency translation ratesQ2 2026 on same basis as Q2 2025 currency translation ratesAs reported, Q2 2025
Machine Clothing Net revenues$178,710 $2,137 $176,573 $180,926 
Machine Clothing Adjusted EBITDA (non-GAAP)50,039 (1,112)51,151 52,198 
Adjusted EBITDA Margin (Adjusted EBITDA divided by net revenues) (non-GAAP)28.0 %29.0 %28.9 %



Per share impact of the adjustments to earnings per share are as follows:

Three months ended June 30, 2026
(in thousands, except per share amounts)		Pre tax
Amounts		Tax
Effect		After tax
Effect
Per share
Effect
Restructuring costs and other$7,973 $2,551 $5,422 $0.19 
Foreign currency revaluation (gains)/losses 157 50 107 — 
Strategic review and other transition expenses868 278 590 0.02 

Three months ended June 30, 2025
(in thousands, except per share amounts)		Pre tax
Amounts		Tax
Effect		After tax
Effect		Per share
Effect
Restructuring costs and other$2,617 $845 $1,772 $0.06 
Foreign currency revaluation (gains)/losses 8,937 2,887 6,050 0.20 
Strategic review and other transition expenses28 9 19 0.00 

Six months ended June 30, 2026
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs and other
$11,138 $3,620 $7,518 $0.26 
Foreign currency revaluation (gains)/losses (2,587)(841)(1,746)(0.06)
Strategic review and other transition expenses3,143 1,021 2,122 0.07 

Six months ended June 30, 2025
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs and other
$5,387 $1,740 $3,647 $0.12 
Foreign currency revaluation (gains)/losses 13,523 4,368 9,155 0.30 
Strategic review and other transition expenses(190)(61)(129)(0.01)

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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 June 30,Six months ended June 30,
Per share amounts (Diluted)2026202520262025
Earnings per share attributable to Company shareholders - Diluted (GAAP)$0.61 $0.31 $1.14 $0.87 
Adjustments, after tax:
Restructuring costs and other0.19 0.06 0.26 0.12 
Foreign currency revaluation (gains)/losses — 0.20 (0.06)0.30 
Strategic review and other transition expenses0.02 — 0.07 (0.01)
Adjusted earnings per share attributable to Company shareholders - Diluted (non-GAAP)$0.82 $0.57 $1.41 $1.28 

The calculations of net debt are as follows:

(in thousands)June 30, 2026December 31, 2025June 30, 2025
Long-term debt450,669 455,663 444,686 
Total debt450,669 455,663 444,686 
Cash and cash equivalents77,349 112,350 106,689 
Net debt (non-GAAP)$373,320 $343,313 $337,997 

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 following table illustrates the calculation of free cash flow:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net cash provided by operating activities$(2,651)$32,714 $2,992 $34,833 
Purchases of property, plant and equipment
(11,880)(13,929)(21,170)(29,526)
Purchased software(12)(1,005)(12)(1,005)
Free cash flow$(14,543)$17,780 $(18,190)$4,302 




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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.

Adjusted Net Income is a supplemental measure of our performance that is not required by, or presented in accordance with U.S. GAAP. The company defines Adjusted Net Income to exclude costs related to the review of strategic alternatives for its structures assembly business, which could include a potential sale of that portion of the business. Such excluded adjustments to profitability to future contracts do not consist of items that are considered normal or recurring in the course of continued business operations.

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 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
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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.

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
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