# EDGAR Filing Document

**Accession Number:** 0000819793
**File Stem:** 0001628280-26-012906
**Filing Date:** 2026-2
**Character Count:** 503201
**Document Hash:** 2f6658e72a5670dd0d0d26e75a5d6c20
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-012906.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001628280-26-012906

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 158

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ALBANY INTERNATIONAL CORP /DE/
- **CENTRAL INDEX KEY:** 0000819793
- **STANDARD INDUSTRIAL CLASSIFICATION:** BROADWOVEN FABRIC MILS, MAN MADE FIBER & SILK [2221]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 140462060
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-10026
- **FILM NUMBER:** 26701429

**BUSINESS ADDRESS:**
- **STREET 1:** 216 AIRPORT DRIVE
- **CITY:** ROCHESTER
- **STATE:** NH
- **ZIP:** 03867
- **BUSINESS PHONE:** 6033305850

**MAIL ADDRESS:**
- **STREET 1:** 216 AIRPORT DRIVE
- **CITY:** ROCHESTER
- **STATE:** NH
- **ZIP:** 03867

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ALBINT INC
- **DATE OF NAME CHANGE:** 19870924

?xml version='1.0' encoding='ASCII'? ain-20251231

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

______________________________________________________________

**FORM 10-K** 

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended: December 31, 2025** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from __________ to __________.**

**Commission file number: 1-10026** 

______________________________________________________________

**ALBANY INTERNATIONAL CORP.** 

____________________________________________________________________

**(Exact name of registrant as specified in its charter)**

**<u>Delaware</u>**

(State or other jurisdiction of incorporation or organization)

**<u>325 Corporate Drive, Portsmouth, New Hampshire</u>**

**(Address of principal executive offices)**

**<u>14-0462060</u>**

(IRS Employer

Identification No.)

**<u>03801</u>**

**(Zip Code)**

Registrant's telephone number, including area code <u>603-330-5800</u> 

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

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Class A Common Stock, $0.001 par value per share | AIN | The New York Stock Exchange (NYSE) |
| Securities registered pursuant to Section 12(g) of the Act: | Securities registered pursuant to Section 12(g) of the Act: |  |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

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

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

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

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

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

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

The aggregate market value of the Common Stock held by non-affiliates of the registrant on June 30, 2025, the last business day of the registrant's most recently completed second quarter, computed by reference to the price at which Common Stock was last sold on such a date, was $2.1 billion.

The registrant had 28.3 million shares of Class A Common Stock outstanding as of February 19, 2026.

---

| | |
|:---|:---|
| **<u>DOCUMENTS INCORPORATED BY REFERENCE</u>** | **<u>PART</u>** |
| Portions of the Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on May 15, 2026. | III |

---

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | **<u>[PART I](#ib1b89345a4364fb69d7ce3189f67b705_13)</u>** | |
| <u>[Item 1.](#ib1b89345a4364fb69d7ce3189f67b705_16)</u> | <u>[Business](#ib1b89345a4364fb69d7ce3189f67b705_16)</u> | <u>[5](#ib1b89345a4364fb69d7ce3189f67b705_16)</u> |
| <u>[Item 1A.](#ib1b89345a4364fb69d7ce3189f67b705_19)</u> | <u>[Risk Factors](#ib1b89345a4364fb69d7ce3189f67b705_19)</u> | <u>[14](#ib1b89345a4364fb69d7ce3189f67b705_19)</u> |
| <u>[Item 1B.](#ib1b89345a4364fb69d7ce3189f67b705_22)</u> | <u>[Unresolved Staff Comments](#ib1b89345a4364fb69d7ce3189f67b705_22)</u> | <u>[29](#ib1b89345a4364fb69d7ce3189f67b705_22)</u> |
| <u>[Item 1C.](#ib1b89345a4364fb69d7ce3189f67b705_25)</u> | <u>[Cybersecurity](#ib1b89345a4364fb69d7ce3189f67b705_25)</u> | <u>[29](#ib1b89345a4364fb69d7ce3189f67b705_25)</u> |
| <u>[Item 2.](#ib1b89345a4364fb69d7ce3189f67b705_28)</u> | <u>[Properties](#ib1b89345a4364fb69d7ce3189f67b705_28)</u> | <u>[31](#ib1b89345a4364fb69d7ce3189f67b705_28)</u> |
| <u>[Item 3.](#ib1b89345a4364fb69d7ce3189f67b705_31)</u> | <u>[Legal Proceedings](#ib1b89345a4364fb69d7ce3189f67b705_31)</u> | <u>[31](#ib1b89345a4364fb69d7ce3189f67b705_31)</u> |
| <u>[Item 4.](#ib1b89345a4364fb69d7ce3189f67b705_34)</u> | <u>[Mine Safety Disclosures](#ib1b89345a4364fb69d7ce3189f67b705_34)</u> | <u>[31](#ib1b89345a4364fb69d7ce3189f67b705_34)</u> |
|  | **<u>[PART II](#ib1b89345a4364fb69d7ce3189f67b705_37)</u>** |  |
| <u>[Item 5.](#ib1b89345a4364fb69d7ce3189f67b705_40)</u> | <u>[Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](#ib1b89345a4364fb69d7ce3189f67b705_40)</u> | <u>[32](#ib1b89345a4364fb69d7ce3189f67b705_40)</u> |
| <u>[Item 6.](#ib1b89345a4364fb69d7ce3189f67b705_43)</u> | <u>[\[Reserved\]](#ib1b89345a4364fb69d7ce3189f67b705_43)</u> | <u>[34](#ib1b89345a4364fb69d7ce3189f67b705_43)</u> |
| <u>[Item 7.](#ib1b89345a4364fb69d7ce3189f67b705_46)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ib1b89345a4364fb69d7ce3189f67b705_46)</u> | <u>[34](#ib1b89345a4364fb69d7ce3189f67b705_46)</u> |
| <u>[Item 7A.](#ib1b89345a4364fb69d7ce3189f67b705_79)</u> | <u>[Quantitative and Qualitative Disclosures about Market Risk](#ib1b89345a4364fb69d7ce3189f67b705_79)</u> | <u>[46](#ib1b89345a4364fb69d7ce3189f67b705_79)</u> |
| <u>[Item 8.](#ib1b89345a4364fb69d7ce3189f67b705_82)</u> | <u>[Financial Statements and Supplementary Data](#ib1b89345a4364fb69d7ce3189f67b705_82)</u> | <u>[48](#ib1b89345a4364fb69d7ce3189f67b705_82)</u> |
| <u>[Item 9.](#ib1b89345a4364fb69d7ce3189f67b705_178)</u> | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ib1b89345a4364fb69d7ce3189f67b705_178)</u> | <u>[106](#ib1b89345a4364fb69d7ce3189f67b705_178)</u> |
| <u>[Item 9A.](#ib1b89345a4364fb69d7ce3189f67b705_181)</u> | <u>[Controls and Procedures](#ib1b89345a4364fb69d7ce3189f67b705_181)</u> | <u>[106](#ib1b89345a4364fb69d7ce3189f67b705_181)</u> |
| <u>[Item 9B.](#ib1b89345a4364fb69d7ce3189f67b705_184)</u> | <u>[Other Information](#ib1b89345a4364fb69d7ce3189f67b705_184)</u> | <u>[107](#ib1b89345a4364fb69d7ce3189f67b705_184)</u> |
|  | **<u>[PART III](#ib1b89345a4364fb69d7ce3189f67b705_187)</u>** |  |
| <u>[Item 10.](#ib1b89345a4364fb69d7ce3189f67b705_190)</u> | <u>[Directors, Executive Officers and Corporate Governance](#ib1b89345a4364fb69d7ce3189f67b705_190)</u> | <u>[108](#ib1b89345a4364fb69d7ce3189f67b705_190)</u> |
| <u>[Item 11.](#ib1b89345a4364fb69d7ce3189f67b705_193)</u> | <u>[Executive Compensation](#ib1b89345a4364fb69d7ce3189f67b705_193)</u> | <u>[108](#ib1b89345a4364fb69d7ce3189f67b705_193)</u> |
| <u>[Item 12.](#ib1b89345a4364fb69d7ce3189f67b705_196)</u> | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#ib1b89345a4364fb69d7ce3189f67b705_196)</u> | <u>[109](#ib1b89345a4364fb69d7ce3189f67b705_196)</u> |
| <u>[Item 13.](#ib1b89345a4364fb69d7ce3189f67b705_199)</u> | <u>[Certain Relationships, Related Transactions and Director Independence](#ib1b89345a4364fb69d7ce3189f67b705_199)</u> | <u>[110](#ib1b89345a4364fb69d7ce3189f67b705_199)</u> |
| <u>[Item 14.](#ib1b89345a4364fb69d7ce3189f67b705_202)</u> | <u>[Principal Accountant Fees and Services](#ib1b89345a4364fb69d7ce3189f67b705_202)</u> | <u>[110](#ib1b89345a4364fb69d7ce3189f67b705_202)</u> |
|  | **<u>[PART IV](#ib1b89345a4364fb69d7ce3189f67b705_205)</u>** |  |
| <u>[Item 15.](#ib1b89345a4364fb69d7ce3189f67b705_208)</u> | <u>[Exhibits and Financial Statement Schedules](#ib1b89345a4364fb69d7ce3189f67b705_208)</u> | <u>[111](#ib1b89345a4364fb69d7ce3189f67b705_208)</u> |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**Forward-Looking Statements**

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

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in geopolitical conditions impacting countries where the Company does or intends to do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to achieve or maintain anticipated profitable growth;

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

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

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

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

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

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With the change in the United States Presidential Administration, proposed tariffs by the new Administration that may significantly and adversely impact our results of operations;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adverse impacts from fluctuations in foreign currency exchange rates;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Costly and disruptive legal disputes and settlements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future levels of indebtedness and capital expenditures;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cybersecurity incidents or significant computer system compromises or data breaches;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant problems with information systems or networks;

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

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

Further information concerning important factors that could cause actual events or results to be materially different from the forward-looking statements can be found in "Business Environment Overview and Trends" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as in Item 1A, Risk Factors. Although we believe the expectations reflected in our forward-looking statements are based on reasonable assumptions, it is not possible to foresee or identify all factors that could have a material and negative impact on our future performance. The forward-looking statements included or incorporated by reference in this annual report are made on the basis of our assumptions and analyses, as of the time the statements are made, in light of our experience and perception of historical conditions, expected future developments, and other factors believed to be appropriate under the circumstances, except as otherwise required by law. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**PART I**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS**

**General**

Founded in 1895, Albany International Corp. is a global leader in advanced textiles and materials processing specializing in designing and manufacturing high-performance engineered fabrics and composite components and assemblies that serve industries such as paper, industrial manufacturing, and aerospace. The terms the Registrant, the Company, Albany, we, us, or our mean Albany International Corp. and its subsidiaries, unless the context indicates another meaning.

The following description of our business should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" within Item 7 of this Annual Report on Form 10-K, including the information contained therein under the heading "Business Environment Overview and Trends."

**Business Segments**

The Company operates under two business segments: Machine Clothing and Albany Engineered Composites. Following is a table of Net revenues by segment for years ended December 31, 2025, 2024, and 2023.

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** |
| Machine Clothing | $**708066** | $749907 | $670768 |
| Albany Engineered Composites | **474747** | 480708 | 477141 |
| Total net revenues | $**1182813** | $1230615 | $1147909 |

---

The table that sets forth certain segment financial performance metrics and selected balance sheet data appears in Note 3, *Reportable Segments and Geographic Data,* of the Notes to the Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

<u>Machine Clothing</u>

The Machine Clothing ("MC") segment is the world's leading producer of custom-designed fabrics and high-speed process belts critical in the manufacture of all grades of paper products characterized primarily as Paper Machine Clothing ("PMC"). MC supplies highly engineered consumable permeable, and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp, referred to in the industry as "machine clothing" or "paper machine clothing." The MC segment also supplies Engineered Fabric ("EF") products that provide solutions for nonwovens, fiber cement and several other industrial applications.

PMC Products: We design, manufacture, and market paper machine clothing for each section of the paper machine and for every grade of paper. Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure. The design and material composition of paper machine clothing can have a considerable effect on the quality of paper products produced and a meaningful effect on the energy and resource efficiency of the paper machines on which it is used. Principal paper machine clothing products include forming, pressing, and drying fabrics, and process belts. PMC product revenues accounted for more than 80% of MC's segment Net revenues.

EF products: EF products are solution-focused, custom-designed fabrics and belts. These products are also utilized in process industries outside of papermaking such as nonwovens, corrugators, building products, tannery and textile industries and designed to improve production rates and lower the overall cost of operation. EF product revenue accounted for less than 20% of the MC segment's Net revenues.

The MC segment sells its products directly to customer end-users in countries across the globe. MC products, manufacturing processes, and distribution channels are substantially similar in each region of the world in which we operate. No individual customer accounted for as much as 10% of MC segment Net revenues in any of the periods presented.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

<u>Albany Engineered Composites</u>

The Albany Engineered Composites ("AEC") segment is a leader in innovative composite technology solutions and manufacturer of engineered components for demanding aerospace and defense applications. AEC provides highly engineered, advanced composite solutions to customers and platforms in the commercial and defense markets, as well as for space-launch vehicles and the emerging advanced air mobility market ("AAM"). The segment includes Albany Safran Composites, LLC ("ASC"), in which our customer, SAFRAN Group ("SAFRAN"), owns a 10% noncontrolling interest. AEC, through ASC, is the exclusive supplier to the LEAP program of advanced composite fan blades and fan cases under a long-term supply contract. The LEAP engine is used on the Airbus A320neo and A321neo, Boeing 737 MAX, and COMAC 919 aircrafts. AEC's largest aerospace customer is SAFRAN and sales to SAFRAN (consisting primarily of fan blades and cases for CFM's LEAP engine) accounted for approximately 15% of the Company's consolidated net revenues in 2025. Other significant AEC programs include the CH-53K helicopter, F-35 fighter jet, Joint Air-to-Surface Standoff Missile ("JASSM"), Boeing 787 aircraft, Beta Alia, and other commercial, defense, space and AAM programs. AEC also supplies vacuum waste tanks for most Boeing commercial aircraft, as well as the fan case for the GE9X engine used on the Boeing 777 aircraft. In 2025, approximately 35% of the AEC segment's revenues were related to U.S. government contracts or programs.

During the fourth quarter of 2025, the Company announced that it is exploring strategic alternatives for its structures assembly business including a potential sale of all or a part of the business at the Amelia Earhart Drive Facility in Salt Lake City.

**International Operations**

Our MC business segment maintains manufacturing facilities in Belgium, Brazil, Canada, China, France, Germany, Italy, Mexico, Spain, Sweden, the United Kingdom, and the United States. MC's global manufacturing footprint is designed to most efficiently meet regional customer requirements. Our AEC business segment maintains manufacturing facilities in the United States, France, Mexico, and Germany to meet customer demand in those regions.

Our global presence subjects us to certain risks, including tariffs and other restrictions on trade, foreign exchange exposure and our ability to repatriate funds from foreign jurisdictions. While global trade and tariff policies have not had a material impact to our past results of operations, there is risk that the impact of recent developments on companies in our supply chain could cause higher costs from affected suppliers.

We have a cash repatriation strategy that returns a certain amount of foreign current year earnings that are not indefinitely reinvested. Changes in the trade or regulatory compliance in any country that we have significant cash balances could make it more difficult to repatriate foreign earnings cost-effectively in the future.

**Research, Development and Technology**

We invest in research, new product development, and technical analysis with the objective of maintaining our technological leadership in each business segment. While much of our research activity supports existing products, we also engage in significant research and development activities for new technology platforms, products and product enhancements.

Our MC segment products are custom-designed for each user, depending on the type, size, and speed of the machine, and the products being produced. Products are specifically designed for each section and position on a machine, the grade of product being produced, and the quality of the stock used. Technical expertise, judgment, and experience are critical in designing the appropriate clothing for each machine, position, and application. As a result, many employees in sales and technical functions have engineering degrees, paper mill experience, or other manufacturing experience in the markets in which we operate. Our market leadership position reflects our commitment to technology innovation. This innovation has resulted in new products and enhancements across all of our product lines.

AEC develops innovative solutions and manufactures advanced composite parts for complex aerospace applications, using a range of core technologies, including its proprietary 3D-woven reinforced composites technology, traditional 2D laminated composite structures, automated fiber placement for both thermoplastics and thermoset composites as well as rigid installation for through-thickness reinforcements, and braided structures. As critical materials are constraining the US industrial base, 3D-woven components are a critical replacement for titanium structures for commercial and defense applications with compression strengths far exceeding traditional titanium properties. In

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

addition, AEC continues to leverage its 3D-woven technology to develop differentiated processing solutions for high-temperature applications, including hypersonic flight components. AEC is working closely with its customers to develop high performance alternatives to traditional thermal protection and energy absorption requirements. These preforms serve as the building blocks for an array of critical applications, ranging from thermal protection to energy absorption.

In addition to continuous significant investment in core research and development activities in pursuit of new proprietary products and manufacturing processes, experienced research and development employees in each business segment also work collaboratively with customers, OEMs and suppliers on targeted development efforts to introduce new products and applications in their respective markets.

Technical and research expenses totaled $48.0 million in 2025, $46.1 million in 2024, and $40.6 million in 2023. In 2025, these costs were 4.1% of total Company Net revenues. Research and development in the AEC segment include both Company-sponsored and customer-funded activities. Some customer funded research and development may be on a cost sharing basis, in which case, amounts charged to the collaborating entity are credited against research and development costs. For customer-funded research and development in which we anticipate funding to exceed expenses, we include amounts charged to the customer in Net revenues. Cost of goods sold associated with customer-funded research was $6.4 million in 2025, $5.6 million in 2024, and $6.4 million in 2023.

**New Business Ventures**

The Company maintains a New Business Ventures team dedicated to developing innovative products and business opportunities that address high growth opportunities which are adjacent to our current business portfolio utilizing our existing developed technologies, materials science and extensive expertise across our MC and AEC segments. The team's strategy is to unlock further potential in focus areas, such as 3D weaving, resin transfer molding, large scale flat weaving, and the application of technically diverse composite materials and coatings, to create and certify groundbreaking products.

For instance, we are currently exploring the use of our 3D weaving expertise in combination with our resin and coatings capabilities to enhance the effectiveness of products that can be used in various defense and space applications. In coordination with raw material providers and equipment OEMs, we are developing an enhanced value proposition for the market that further reduces weight and improves overall performance of identified products in applications across various industries.

We are also innovating within our MC segment, with our material science focus on constantly improving our work within the polymer business. Our innovation allows us to produce new, hybrid polymer systems that not only increase our performance in the field, but accomplish this in a sustainable manner. Our expertise in materials extends into many of our core technologies, such as weaving, coatings, and extrusions, for example. This allows us to create new systems, improving resilience and temperature resistance.

Our goal is to leverage our existing subject matter experts across our Research, Development and Technology teams to drive future profitable growth of new products addressing an expanded range of applications and end-markets. Although we do not expect meaningful revenue growth from New Business Ventures until 2027, the investments we are making today will be a pillar for new innovative product opportunities.

**Intellectual Property**

We continue to develop proprietary intellectual property that supports the industries we serve. Our portfolio includes patents and trademarks registered worldwide, as well as, copyrights, trade secrets, research and development outputs, and engineering and manufacturing know-how. We also license intellectual property to and from third parties. While our portfolio provides meaningful competitive advantages, in general, we do not believe that any single patent, trademark, license or other intellectual property right or group of related intellectual property rights is of such importance that its loss or termination would have a material adverse effect on our business taken as a whole.

**Raw Materials**

Primary raw materials for our MC products are polymer monofilaments and fibers, which have generally been available from a number of suppliers. In addition, we manufacture polymer monofilaments, a basic raw material for all types of machine clothing, at our facility in Homer, New York, which supplies approximately 20% of our worldwide monofilament requirements.

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In our AEC segment, the primary raw materials are carbon fiber and resin. While there are a number of potential suppliers of carbon fiber and other raw materials used by AEC, the use of certain suppliers may be mandated by customer agreements, and alternative suppliers would be subject to material qualification or other requirements that may preclude or delay their availability. In the case of mandated suppliers, AEC endeavors to enter into long-term supply agreements to help mitigate cost and availability risks.

Currently, the primary raw materials used in each segment are derived from petroleum, and are therefore sensitive to changes in the cost of petroleum and petroleum intermediates.

**Competition**

<u>Machine Clothing</u>

Price and technology are the primary means of competitive differentiation in the industry. Our MC product portfolio is broad and deep, with products for every part of the machine and a wide range of machine types and paper grades. MC's research and development team works closely with the sales and technical organization to develop new products to meet changes in customer needs, and also pursues targeted joint development activities with customers and equipment manufacturers to create new products. Albany's experienced sales and technical team members – many of whom have worked in the industries that we serve – work closely with each customer to acquire deep understanding of the customer's combination of raw materials, manufacturing equipment, manufacturing processes, and paper, pulp, nonwovens or other product being produced – a combination that is unique to each customer, plant and machine. This experience and knowledge, combined with knowledge of and experience with MC's own extensive product portfolio, allows the sales and technical teams to ensure that the appropriate machine clothing products are being supplied for each part of the machine, to customize those products as needed for best performance, and to continuously propose new products that offer each customer the possibility of even better performance and increased savings. MC's machine clothing solutions enable our customers to reduce energy and water consumption, improve resource efficiency, and help maintain and improve water quality. These efforts – which effectively integrate MC's experience and technological expertise into each product we sell – are reflected in MC's strong competitive position in the marketplace. Some of the MC's paper machine clothing competitors also supply paper machines, papermaking equipment, and aftermarket parts and services, and often bundle machine clothing products with original or rebuilt machines and/or aftermarket services.

<u>Albany Engineered Composites</u>

Competitive factors in the markets in which our AEC segment competes are product performance, delivery performance, quality, and price. Achieving lower weight without sacrificing strength is the key to improving fuel efficiency, which helps reduce the carbon emissions footprint of global aviation, and is a critical performance requirement in the aerospace industry. Our broad array of capabilities in composites enables us to offer customers the opportunity to displace metal components and, in some cases, conventional composites with lower-weight, higher-strength, and higher-temperature and corrosion resistant composites. The dominant competitive factor is the relative importance the customer places on these performance benefits, which include fuel savings/emissions reductions due to lower weight, against the possible cost advantage of more traditional metal and composite components.

**Human Capital Resources**

At our company, we are proud to employ approximately 5,700 people across North America, South America, Europe, and Asia. Our team's talent and creativity are our biggest strengths, and we are deeply committed to fostering a workplace culture that values respect, engagement, and well-being. We focus on our employees' physical, mental, and social health, offer career development opportunities, and provide competitive pay and benefits. In addition, our people strategy is closely aligned with our business goals.

Our top priority is keeping our employees safe. We aim for zero workplace injuries and track safety metrics throughout the year, such as Total Recordable Incident Rate (TRIR), Serious Injuries and Fatalities (SIFs), safety behaviors, and proactive safety actions taken. Our safety culture is reinforced by linking a portion of each Executive Officer's incentive compensation to achieving company-wide TRIR goals.

We work hard to create an inclusive and fair environment where a broad range of experiences, backgrounds, and skills are celebrated and respected. We believe that this culture boosts innovation and helps our people reach their full potential. Our hiring strategy seeks out people with varying backgrounds, knowledge, and experiences and results in

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the most qualified candidates. As of December 31, 2025, our total workforce is 28.0% female. In the U.S., our headcount is approximately 2,400 employees, with 34.1% self-identifying as a minority.

Our talent management strategy focuses on developing our internal talent for promotion, hiring the best people from outside the company when no internal candidate is available, and using our internship program to identify future talent and build the talent pipeline. We believe in continuous learning and development and offer various training opportunities, including on-the-job training, virtual courses, and external learning programs. All employees regularly participate in safety, ethics, and compliance training.

Our Leadership Training Programs are targeted at different segments of our employee population with programs for new and potential managers, more experienced leaders, and executives.

Our employees around the world enjoy competitive compensation and benefits. In the U.S., this includes 401(k) matching, profit sharing, generous vacation time, health and dental insurance, and recognition programs, among others. We also emphasize work-life balance and well-being.

We support global human rights, aligning our policies with the United Nations Global Compact and the Universal Declaration of Human Rights. Our strategy is to focus on the advantages inherent in combining our individual strengths for collective success and promoting an inclusive company culture.

Our Albany Values focus on actions our employees can take to set the foundation for our future growth and success. The Albany Values are as follows:

• **Albany wins together** (Teamwork)

–We combine our individual strengths for collective success

–We share knowledge to grow it

–We embrace the advantage of our diversity

• **Count on each other** (Trust & Respect)

–We empower each other

–We welcome input and value differences

–We treat each other fairly and equitably

• **Own your actions** (Accountability)

–We do what we say and say what we do

–We act with integrity

–We pursue ever better solutions

• **Care about each other** (Safety)

–We are all responsible for a safe and sustainable environment

–We make safe choices

–We value well-being (mental, physical, and social)

• **Share your enthusiasm** (Passion)

–We are excited to be part of Albany

–We put our hearts into every task

–We lift each other up

We live these values every day at Albany.

**Sustainability Business Impact and Value Creation**

Our business is centered around driving success for our customers. Our products are designed for performance and consistency, while enabling our customers to meet their organizational goals around product performance, process efficiency, and product sustainability.

As described above, our paper machine clothing products enable our paper-making customers to reduce their own environmental footprint by reducing their energy consumption, and improving both resource and operating efficiency.

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For example, energy is one of the top three cost components in the paper making process; our machine clothing solutions use innovative technologies to reduce the amount of heat energy required for paper production.

In aerospace, weight savings that drive fuel efficiency are essential for the industry to achieve its goals for sustainable aviation. This fundamental design goal has driven the increased use of lightweight composite structures in an ever-broadening sphere of aerospace applications. We have applied learnings from our 130 years of experience manufacturing machine clothing to pioneer 3D weaving technologies to manufacture our composite material. The process involves layering and interweaving fibers in a precise process to create complex, high-strength parts that allows for the production of lightweight and strong composite parts with high-performance properties, well-suited for use in aerospace, defense and industrial applications.

These structurally demanding applications have historically been served by heavier, metallic structures, and traditional laminated composites do not possess the required structural characteristics that 3D woven can offer. As such, our proprietary 3D woven technology expands the role that lightweight composites can serve as the next generation of aircraft is designed and built.

<u>Supporting customers through innovation and performance</u>

We continue to innovate and remain focused on developing and bringing to market proprietary products aimed at improving the energy and resource efficiency needed for our customers' products and their production processes.

This includes working with our partner on Product Carbon Footprints, leveraging AI to accelerate insights. To support our customers we can design for circularity and product recycling at the end of life, and we can also design for lower Product Carbon Footprints. Our customer objectives guide us in raw material and supplier selection as well as specialized partnerships for product recycling and reuse. Since many of our customers have waste reduction and circularity goals, providing cutting edge solutions for product end of life has been an increasing focus for Albany International. Additionally, many of our customers have Scope 3 emissions reduction goals, therefore we focus on our own operational efficiency and emissions reduction as an integral part of our customers' value chain.

<u>Driving business value for Albany International</u>

As a global manufacturer, energy is a significant expense for Albany International, and therefore we have a goal of reducing our energy consumption and our associated Scope 1 and 2 emissions by 50% by 2030. Energy consumption reductions are critical both in supporting our customers in their organizational sustainability goals, and to advance our own business strategy and operational resilience. We have been progressing a number of global on-site solar initiatives where there is a compelling business case, which provides operational cost savings to our facilities as well as securing a portion of our energy supply, in addition to reducing our emissions. We have invested in a virtual power purchase agreement ("VPPA") related to our U.S. operations, and where appropriate we have also been entering into renewable energy contracts, demonstrating our commitment to supporting our customers' Scope 3 emissions reduction goals.

We are also committed to reducing waste, both from our own operations as well as our customers', and we have a goal of zero waste to landfill by 2030 for our operations in the Americas and Europe. We continue to look for opportunities to reduce waste generated across our operations and our products, and where waste materials have market value, to ensure they are repurposed appropriately.

In addition to partnering with several third parties who recycle and reuse our scrap materials in other applications such as plastic furniture, textile yarn, and reinforced concrete, we have engaged in several pilot programs through universities and start-ups to test new technologies to increase circularity and recycling for our products at the end of life. We believe further developing this capability provides a significant benefit for our customers and partners.

Innovation has been integral to our story for over 130 years and continues to be a focus for Albany International. As described above, we have a New Business Ventures group focused on broader applications of our proprietary technology, in consideration of broader macroeconomic trends and sustainability evolution.

<u>Aligning with global frameworks for compliance and transparency</u>

Compliance with global and local environmental regulation throughout our operations is a clear imperative both for our customers and for meeting our own organizational values and expectations. We have a robust global and local EHS and sustainability program to ensure we continue to evolve our operations in line with regulatory and customer requirements, managing risk and opportunity. This continuous evolution drives new insights for our business, and increasing reporting transparency provides the opportunity for greater comparability and collaboration across companies and industries.

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A key element of our EHS and sustainability program is to identify material topics, through assessment of double materiality, to identify areas for improvement, discover new opportunities, and drive value creation. This process also facilitates compliance and helps to articulate our unique stories of innovation and our value proposition.

**Executive Officers**

The following table sets forth certain information with respect to the executive officers of the Company:

*Gunnar Kleveland, 56, President and Chief Executive Officer*, joined the Company in 2023 and serves the Company as President and Chief Executive Officer. Prior to joining the Company, Mr. Kleveland served as President and Chief Executive Officer of Textron Specialized Vehicles Inc. He has also served as the President of TRU Simulation + Training Inc. and Executive Vice President of Integrated Operations for Bell Helicopter Textron Inc. Prior to joining Textron in 2004, Mr. Kleveland was a fighter pilot in the Royal Norwegian Air Force (RNoAF).

*Willard Station, 50, Executive Vice President and Chief Financial Officer,* joined the Company in 2025. Prior to joining the Company, Will served as Senior Vice President of Primary Care Sales for McKesson Medical-Surgical, a McKesson Corporation subsidiary, leading a team of more than 1,200 account executives and specialists supporting primary care physicians, ambulatory surgery centers, as well as community hospitals and laboratories. Prior to that, he was the subsidiary's Chief Financial Officer and Senior Vice President of Finance. Will's career also includes 16 years at The Boeing Company, where he held a number of increasingly senior finance roles, notably Vice President and Chief Financial Officer of Commercial Derivatives Airplanes and Director of Financial Operations for Boeing Commercial Airplanes (BCA).

*Merle Stein, 49, President – Machine Clothing*, joined the company in 2011. He brings deep experience in the pulp and paper industry, extensive knowledge of the Machine Clothing business, and a strong strategic understanding of its markets. His background includes broad leadership roles with a particular focus on operational excellence and customer-facing functions. Before becoming President, he served as Division Chief Operating Officer beginning in 2024, overseeing all operational aspects of the segment and leading the Sales & Marketing, Operations, Procurement, R&D and Human Resources functions. Earlier roles included Vice President Sales & Marketing/Applications for the Americas, as well as several other sales and marketing leadership positions such as Vice President Sales MC – North America, Regional Business Director. Prior to joining the company, Mr. Stein managed papermaking operations at Essity's greenfield mill in Alabama, ultimately rising to the role of Papermill Manager. He earned a Bachelor's degree in Chemical Engineering as well as an Executive MBA degree from Auburn University in Auburn, AL.

*Chris Stone, 53, President – Albany Engineered Composites*, joined the company in 2024. He brings a deep knowledge of the A&D industry, and considerable broad experiences to his new role. He has held a wide range of leadership positions at public companies, with a focus in manufacturing and supply chain management, business operations, production control, logistics and organizational transformation. Most recently he served as Vice President & Chief Supply Chain Officer at Lockheed Martin Corporation from 2021 to 2024. Prior to joining Lockheed Martin, he was Vice President – Supply Chain & Material Management at Aerojet Rocketdyne from 2018 to 2021, and previously held various management positions at Textron companies, including Textron Marine & Land System and Bell Helicopter from 2005 to 2018. He is a former Aviation Officer with the United States.

*Suzanne Purdum, 57, Chief Human Resources Officer*, joined the company in 2024. Ms. Purdum brings more than 25 years of experience in a number of HR disciplines including development and execution of HR strategy, organization design and effectiveness, learning and development, talent management, employee and labor relations, change management, and compensation and benefits. She is an experienced HR leader and business professional who has held executive level positions in Business Partnering, Total Rewards, and Talent Acquisition at a global level for large US multinational companies. Most recently, Ms. Purdum served as the Senior Executive Director for Boeing Global Human Resources – Europe, Israel and Ukraine. Prior to this role, Ms. Purdum held multiple leadership roles of increasing responsibility at Boeing, TRU Simulation + Training, Bell Helicopter, and Textron.

*Joseph M. Gaug, 62, Senior Vice President* – *General Counsel and Secretary,* joined the Company in 2004. Mr. Gaug is responsible for the Company's global legal, compliance, sustainability, risk management, and intellectual property functions, overseeing a team of lawyers, paralegals and other professionals. He has served as General Counsel and Secretary since 2020. He previously served as Associate General Counsel from 2004 and as Associate General Counsel and Assistant Secretary from 2006 to May 2020. Prior to 2004 he was a principal at the law firm of

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McNamee, Lochner, Titus & Williams, PC, where, among other clients, he had represented the Company in various matters as outside counsel.

*Robert A. Hansen, 68, Senior Vice President and Chief Technology Officer,* joined the Company in 1981. Mr. Hansen has served the Company as Senior Vice President and Chief Technology Officer since January 2010. He previously served as Vice President – Corporate Research and Development from April 2006 to January 2010, and Director of Technical and Marketing – Europe Press Fabrics from 2004 to April 2006. From 2000 to 2004, he served as Technical Director – Göppingen, Germany. Before 2000, he served the Company in a number of technical management and research and development positions in Europe and the U.S.

*Sean Valashinas, 54, Vice President – Controller and Chief Accounting Officer*, joined the Company in 2025. Prior to joining the Company, Mr. Valashinas served as Vice President of Accounting, Treasury, and Tax at Resonetics. Previously, he spent 17 years at Standex International Corporation, where he held roles of Chief Accounting Officer, Assistant Treasurer, and Vice President of Finance for the Standex Engineering Technologies Group. Mr. Valashinas began his career at PricewaterhouseCoopers and later held management roles at The Hershey Company.

**Governance**

We are incorporated under the laws of the State of Delaware and are the successor to a New York corporation originally incorporated in 1895, which was merged into the Company in August 1987 solely for the purpose of changing the domicile of the corporation. References to the Company that relate to any time prior to the August 1987 merger should be understood to refer to the predecessor New York corporation.

We embrace uncompromising honesty and behave ethically and fairly. We are committed to following the laws, regulations, standards, and ethical practices everywhere we do business. Ethics and compliance play an integral part in our decision making and business operations. Our Corporate Governance Guidelines, Business Ethics Policy, and Code of Ethics for the Chief Executive Officer, Chief Financial Officer, and Controller, and the charters of the Audit, Compensation, and Governance Committees of the Board of Directors are available at the Corporate Governance section of our website (www.albint.com).

Data security is a top priority at the Company. To protect our Company and customer data, we employ industry best practices and adhere to the Center for Internet Security ("CIS") 20 and National Institute of Standards and Technology ("NIST") SP 800-171 cyber security frameworks. Our Data Security strategy is overseen by the Audit Committee of our Board of Directors, regularly reviewed at the executive level, directed by our Chief Information Officer, and managed by our Enterprise Cyber Security (ECS) team. For information on our approach, see Item 1C, Cybersecurity in this Part I and the Sustainability section of our website at https://www.albint.com/sustainability/.

**Regulatory Matters**

Our AEC segment business is heavily regulated. We may contract with U.S. Government agencies and entities, or we are a subcontractor to an OEM who contracts directly with U.S. Government agencies and entities. We must comply with, and are affected by, laws and regulations relating to the formation, administration and performance of U.S. Government contracts and contracts with foreign governments. The U.S. Government, and other foreign governments, may terminate any government contract at their convenience or for default, if we fail to meet specified performance measurements. If such contracts were to be terminated for convenience, we would generally be entitled to receive payment for work completed and allowable termination and cancellation costs. If the U.S. Government, and other foreign governments, terminate a contract due to our default, generally, we would only be paid for work that has been accepted by our customer and our customer can require us to pay the differential between the original contract price and cost to re-procure the contract items, net of work accepted from the original contract. In addition, we can be held liable for damages resulting from our default and may be responsible to provide transition services to another supplier or the customer.

**Available Information**

Our principal executive offices are located at 325 Corporate Drive, Portsmouth, New Hampshire 03801. Our telephone number is 603-330-5800 and our website is www.albint.com.

Our current reports on Form 8-K, quarterly reports on Form 10-Q, and annual reports on Form 10-K, proxy statements for our annual stockholders' meetings and amendments to those reports are electronically filed with the Securities and Exchange Commission (the "SEC"), and all such reports and amendments to such reports have been and will be

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made available, free of charge, through our website at www.albint.com as soon as reasonably practicable after such filing. In addition, copies of our Annual Report on Form 10-K will be made available, free of charge, upon written request.

We make our website content available for information purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this Annual Report on Form 10-K.

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**Item 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS**

*The risks and uncertainties described below are those that we have identified as material, but are not the only risks and uncertainties facing the Company. This list is not all-inclusive or necessarily in order of importance. If any of the events contemplated by the following risks occur, our business, financial condition, or results of operations could be materially adversely affected. Some of these risks are described below and in the documents incorporated by reference, and investors should take these risks into account when evaluating any investment decision involving the Company.* 

**Risks related to our business and operations**

***A number of industry factors have had, and in future periods could have, an adverse impact on net revenues, profitability and cash flow in the Company's MC and AEC segments.***

Significant consolidation and rationalization in the paper industry in recent years have reduced global consumption of paper machine clothing in certain markets and for certain grades. Developments in digital media have adversely affected demand for newsprint and for printing and writing grades of paper, which has had, and is likely to continue to have, an adverse effect on demand for paper machine clothing in those markets. In addition, changes in shipping, fulfillment, and consumer packaging practices—including a shift from traditional corrugated boxes to alternative packaging formats such as bags, lighter-weight materials, and smaller boxes—have reduced demand growth for certain packaging paper grades, which may further negatively affect demand for paper machine clothing used in those applications. At the same time, technological advances in papermaking, including in paper machine clothing, while contributing to the papermaking efficiency of customers, have in some cases lengthened the useful life of our products and reduced the number of pieces required to produce the same volume of paper. These factors have had, and in the future are likely to have, an adverse effect on paper machine clothing net revenues.

The market for paper machine clothing in recent years has been characterized by continuous pressure to provide more favorable commercial terms, which has in turn placed pressure on our operating results. We expect such pressure to remain intense in all paper machine clothing markets, especially during periods of customer consolidation, plant closures, or when major contracts are being renegotiated. The increasing changes within our Asian competitors, particularly in China, heightens the challenge of maintaining sales in that region. This challenge is further intensified by a preference among Chinese customers and government entities to source products from domestic manufacturers, which can adversely impact our ability to compete effectively in the Chinese market.

Similar pressures in the markets in which AEC serves are highly competitive and price sensitive. AEC competes with domestic and international companies that have substantially greater manufacturing, purchasing, marketing, and financial resources than the Company. Some of AEC's facilities also compete for labor with other industrial and commercial businesses. If we are unable to successfully compete for new business, our net revenues, growth, and operating margins may decline.

Net revenues from the LEAP contract peaked at over $210 million in 2019 but dropped sharply in subsequent years due to factors beyond the Company's control, such as Boeing production issues and the COVID-19 pandemic. Although conditions have improved, similar disruptions could occur again and impact AEC's performance

Additionally, many of AEC's customers, as well as the companies supplied by our customers, are under pressure to improve returns on their substantial investments made in recent years in new technologies, new programs and new product introductions. This has contributed to a relentless focus on capital investments to reduce costs, resulting in continuous pressure for cost reductions and customer pricing improvement throughout the supply chain. Future consolidation in the aerospace industry could intensify these pressures.

***Some of the Company's competitors in the MC segment have the capability to make and sell paper machines and papermaking equipment as well as other engineered fabrics.***

Although customers historically have tended to view the purchase of paper machine clothing and the purchase of paper machines as separate purchasing decisions, the ability to bundle fabrics with new machines and after-market services could provide an advantage to our competitors. This underscores the importance of our ability to maintain the technological competitiveness and value of our products, and a failure to do so could have a material adverse effect on our business, financial condition, and results of operations. Moreover, we cannot predict how the nature of

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competition in this segment may continue to evolve as a result of future consolidation among our competitors, or consolidation involving our competitors and other suppliers to our customers.

***AEC is subject to significant risks related to the potential manufacture and sale of defective or non-conforming products.***

AEC manufactures and sells products that are incorporated into commercial and military aircraft. If AEC were to supply products with manufacturing defects, or products that failed to conform to contractual requirements, we could be required to recall and/or replace them, and we could also be subject to substantial contractual damages or warranty claims from our customers, including claims to pay the differential between the original contract price and cost to re-procure defective contract items, net of work accepted from the original contract, or claims to provide transition services to another supplier or the customer. AEC could also be subject to product liability claims if such failures were to cause death, injury or losses to third parties, or damage claims resulting from the grounding of aircraft into which such defective or non-conforming products are incorporated. We are required to meet, and maintain continuous independent certification to, certain international industry standards including AS/EN9100 quality management system standards and Nadcap Special Processes certifications that are designed to assure rigorous quality standards are maintained throughout the aerospace industry supply chain. Additionally, although we maintain product liability insurance at levels we believe to be prudent and consistent with industry practice to help mitigate these risks, these coverages may not be sufficient to fully cover AEC's exposure for such risks, which could have a material adverse effect on AEC's results of operations and cash flows.

***The long-term organic growth prospects of AEC are subject to a number of risks.***

The prospect of future successful organic growth in AEC depends in large part on its ability to maintain and grow a healthy pipeline of potential new products and applications for its technologies, to transform a sufficient number of those potential opportunities into commercial supply agreements, and to then execute its obligations under such agreements. In addition, existing and future supply agreements, especially for commercial and defense aerospace, are subject to the same curtailment or cancellation risks as the programs they support.

AEC is currently working on potential new product applications in the aerospace industry. These development projects may or may not result in commercial supply opportunities. In the event that AEC succeeds in developing products and securing contracts to manufacture and supply them, it will face the same industrialization and manufacturing ramp-up risks that it currently faces on its existing contracts, and AEC may or may not be successful in meeting its obligations under these contracts. Failure to manage these development, commercialization and execution risks could have a material adverse impact on AEC's prospects for revenue growth.

In addition to these development and manufacturing execution risks, future AEC growth will likely require additional cash to fund the investments in equipment, capital, and development efforts needed to achieve this growth. Until AEC is able to consistently generate cash flows sufficient to fund its existing operations and any future investments needed to support its growth, it will remain dependent on the MC segment's ability to generate cash. A significant decline in MC net revenues, operating income or cash flows could therefore have a material adverse impact on AEC's ability to invest and deliver on future growth.

***Deterioration of global economic conditions could have an adverse impact on the Company's business and results of operations.***

The Company identifies in this section a number of risks, the effects of which may be exacerbated by an unfavorable economic climate. For example, a recession could lead to lower consumption in all paper grades including tissue and packaging, which would not only reduce consumption of paper machine clothing, but could also increase price competition in the machine clothing industry.

Similarly, in the Company's AEC segment, a decline in global or regional economic conditions could result in reduced orders for aircraft or aircraft engines, or the cancellation of existing orders, which would in turn result in reduced demand for the AEC components utilized on such aircraft or engines. Customer demand for AEC's lightweight composite aircraft components is driven by market demand for the lighter, more fuel-efficient aircraft engine and other applications into which they are incorporated, such as the CFM International LEAP engine. Fuel costs are a significant part of operating costs for airlines and, in many cases, may constitute a carrier's single largest operating expense. A sustained drop in oil prices, and related decline in the price of jet fuel, could prompt airlines to defer orders or delivery dates for such newer, more fuel-efficient airframes and aircraft engines, as the urgency to reduce fuel consumption

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may be lessened. In addition, any economic conditions that led to sustained high interest rates could affect the airline's ability to finance new aircraft and engine orders.

Weak or unstable economic conditions also increase the risk that one or more of our customers might be unable to pay outstanding accounts receivable, whether as the result of bankruptcy or an inability to obtain working capital financing from banks or other lenders. Furthermore, both the MC and AEC business segments manufacture products that are custom-designed for a specific customer application. In the event of a customer liquidity issue, the Company could be required to write off amounts that are included in Contract assets or Inventories. In the case of AEC, such write-offs could also include investments in equipment, tooling, and non-recurring engineering costs, some of which could be significant depending on the program.

***The U.S. Government's Department of Defense ("DoD") Cybersecurity Maturity Model Certification ("CMMC") program introduces new and unique risks for DoD contractors.***

Under the applicable federal regulations for DoD contractors, AEC is required to comply with the agency's current cybersecurity regulations. In addition to these current regulations, AEC will be required to comply with the new CMMC program requirements on future contracts as they are flowed down from our DoD prime customers in the coming years. Given the current and planned future portfolio of U.S. Government-related business and based on the CMMC Proposed Rule released by the DoD in December 2023, AEC announced in December 2025 that it had achieved the U.S. Department of War (DoW) Cybersecurity Maturity Model Certification (CMMC) Level 2 certification through an accredited CMMC Third-Party Assessment Organization (C3PAO). AEC expects to be required to comply fully with CMMC Level 3 for certain programs as those requirements are further defined. This will require a DCMA Defense Industrial Base Cybersecurity Assessment Center (DIBCAC) assessment for any required Level 3 certification. The CMMC compliance requirements are complex, the costs are significant, and the DoD timelines for certifications are aggressive. To the extent that AEC is unable to achieve the required CMMC certifications within the timeframes required by the DoD, AEC may be unable to maintain or grow its business with the DoD and its prime customers.

***The Company continues to experience increasing raw material, energy, logistics, and labor costs due to supply chain constraints and inflationary pressures.***

The Company is a significant user of raw materials that are based on petroleum or petroleum derivatives. Increases in the prices of petroleum or petroleum derivatives, particularly in regions that are experiencing higher levels of inflation, could increase our costs, and we may not be able to fully offset the effects through price increases, productivity improvements, or cost-reduction programs.

There is a limited number of suppliers of polymer fiber and monofilaments, key raw materials used in the manufacture of machine clothing, and of carbon fiber and carbon resin, key raw materials used by AEC. In addition, there are a limited number of suppliers of some of the equipment used in each of the MC and AEC segments. The risks associated with limited suppliers increased as a result of the COVID-19 pandemic, which has put pressure on the supply chain in general, and on transportation companies that deliver raw materials to us and our products to customers. While we have been able to meet our raw material and equipment needs, the limited number of suppliers of these items creates the potential for disruptions in supply. AEC currently relies on single suppliers under contracts we have with SAFRAN to meet the carbon fiber and carbon resin requirements for the LEAP program. Lack of supply, delivery delays, or quality issues relating to supplied raw materials or for our key manufacturing equipment could harm our production capacity. Such issues could require the Company to attempt to qualify one or more additional suppliers, which could be a lengthy, expensive and uncertain process. These disruptions could make it difficult to supply our customers with products on time or at all, which could have a negative impact on our business, financial condition, and results of operations.

The Company also relies on the labor market to meet our operational requirements, advance our technology and differentiate our products. Low rates of unemployment in key geographic areas in which the Company operates can lead to high rates of turnover and loss of critical talent, which could in turn lead to higher labor costs.

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

The Company is relocating corporate staff working remotely or working in offices outside of New Hampshire to the Company's corporate headquarters in New Hampshire. If we lose critical personnel before transferring roles and responsibilities and fail to maintain an effective system of internal controls, we may be unable to accurately report our results of operations and meet our reporting obligations.

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

We believe our brand names and reputation are important corporate assets that help distinguish our products and services from those of our competitors and also contribute to our efforts to recruit and retain talented employees. However, our reputation is susceptible to material damage by events such as disputes with customers, suppliers, or competitors, cybersecurity incidents or service outages, internal control deficiencies, delivery failures, regulatory compliance violations, government investigations or legal proceedings. We may also experience reputational damage from employees, advocacy groups, regulators, investors or other stakeholders that disagree with the way we conduct our business. Similarly, our reputation could be damaged by actions or statements by current or former customers, suppliers, employees, competitors, joint venture partners, adversaries in legal proceedings, legislators or government regulators, as well as members of the investment community or the media, including social media influencers.

Our brand and reputation are also associated with our sustainability strategy, including our public commitments related to climate, the environment and other matters. Increasing stakeholder environmental, social and governance expectations, evolving sustainability and social regulation, contractual requirements, and policy requirements may pose risk to our brand and reputation. Our failure to meet stakeholder expectations could harm our reputation and adversely affect our relationships with customers and suppliers or our talent recruitment and retention efforts, which may impact our ability to achieve our long-term business objectives. In addition, positions we take or do not take on environmental or social issues may be unpopular with some of our employees, suppliers, customers or potential customers, which may in the future impact our ability to attract or retain employees, suppliers or customers. We also may choose not to conduct business with potential customers or suppliers or discontinue or not expand business with existing customers or suppliers due to these positions.

There is a risk that negative or inaccurate information about the Company, even if based on rumor or misunderstanding, could adversely affect our business. Damage to our reputation could be difficult, expensive and time-consuming to repair, could make potential or existing customers reluctant to select us for new opportunities or could negatively impact our relationships with existing customers and suppliers, resulting in a loss of business, and could adversely affect our talent recruitment and retention efforts. Damage to our reputation could also reduce investor confidence in the Company, materially adversely affecting our share price.

***Conditions in the paper industry have required, and could further require, the Company to reorganize its operations, which could result in significant expense and could pose risks to the Company's operations.***

We continue to engage in significant restructuring that has included the closing of manufacturing operations. These restructuring activities were intended to match manufacturing capacity to shifting global demand, and also to improve the efficiency of manufacturing and administrative processes. Future shifting of customer demand, the need to reduce costs, or other factors could cause us to determine in the future that additional restructuring steps are required. Restructuring involves risks such as employee work stoppages, slowdowns, or strikes, which can threaten uninterrupted production, maintenance of high product quality, meeting of customers' delivery deadlines, and maintenance of administrative processes. Increases in output in remaining manufacturing operations can likewise impose stress on remaining facilities as they undertake the manufacture of greater volume and, in some cases, a greater variety of products. Competitors can attempt to exploit these situations. Although we plan each step of the process carefully, and work to reassure customers who could be affected that their requirements will continue to be met, we could lose customers and associated revenues if we fail to execute properly on any restructuring.

***Natural disasters at one or more of our facilities could make it difficult for us to meet our supply obligations to our customers.***

AEC's production of LEAP engine components is currently located in three facilities. A natural disaster at any of these locations could have a significant adverse effect on AEC's ability to timely satisfy orders for LEAP components. Production of almost all of AEC's other legacy and growth programs is located primarily in facilities in Salt Lake City, Utah, Boerne, Texas, or Queretaro, Mexico.

Significant consolidation of manufacturing operations in our MC segment over the past decade has reduced the number of facilities available to produce our products, and increased utilization significantly at remaining facilities. Not all product lines are produced at, or are capable of being produced at, all facilities.

Based on our assessment of our manufacturing facilities for natural disaster risk, our three facilities in China and an office site in Switzerland are located in areas of high risk for flooding. Our facilities in Belgium, the U.S., and Mexico are at medium-high risk for flooding. Physical impacts of climate change such as increased frequency of severe and

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extreme weather events could materially impact our facilities and production continuity. We are unable to predict these events with certainty; however, we perform ongoing assessments of physical risk, including climate risk, to our business. Weather events such as more extreme and volatile temperatures, increased storm intensity and flooding, and more volatile precipitation leading to changes in lake and river levels may significantly impact our business.

A significant interruption in the operation of any one or more of our plants, whether as the result of a natural disaster or other causes, could significantly impair our ability to timely meet our supply obligations to customers being supplied from an affected facility. While the occurrence of a natural disaster or other business interruption event in an area where we have a facility may not result in any direct damage to the facility itself, it may cause disruptions in local transportation and public utilities on which such locations are reliant, and may also hinder the ability of affected employees to report for work. Although we carry property and business interruption insurance to help mitigate the risk of property loss or business interruption that could result from the occurrence of such events, such coverage may not be adequate to compensate us for all loss or damage that we may incur.

***The Company's insurance coverage may be inadequate to cover other significant risk exposures.***

The Company has been named as defendant in a large number of suits relating to the actual or alleged exposure to "asbestos-containing products." In addition to asbestos-related claims, the Company may be exposed to other liabilities related to cyber incidents and the products and services we provide. AEC is engaged in designing, developing, and manufacturing components for commercial jet aircraft and defense and technology systems and products. We expect this portion of the business to grow in future periods. Although we maintain insurance for the risks associated with our businesses, there can be no assurance that the amount of our insurance coverage will be adequate to cover all claims or liabilities. In addition, there can be no assurance that insurance coverage will continue to be available to us in the future at a cost that is acceptable. Any material liability not covered by insurance could have a material adverse effect on our business, financial condition, and results of operations. Also see "*The Company is subject to legal proceedings and legal compliance risks".*

***The Company has significant manufacturing operations outside of the U.S., which could involve many uncertainties.***

We currently have manufacturing facilities outside the U.S. which are subject to a number of risks and uncertainties, including: governments may impose withholding or other taxes on remittances and other payments from our non-U.S. operations, or the amount of any such taxes may increase; an outbreak or escalation of any insurrection or armed conflict may occur; governments may seek to nationalize our assets; or governments may impose or increase investment barriers or other restrictions affecting our business. In addition, emerging markets pose other uncertainties, including the protection of our intellectual property, pressure on the pricing of our products, and risks of political instability. The occurrence of any of these conditions could disrupt our business or prevent us from conducting business in particular countries or regions of the world.

The military invasion of Ukraine by Russia, and the ensuing sanctions are likely to continue to have an impact on our business. We have previously stopped shipping our products to Russia and abandoned a small joint venture in that country which supplied dryer fabrics to local papermakers, resulting in lost sales. Net assets were written-off in 2022 and the Company does not expect future write-offs in this country. However, we expect that there could be further indirect impacts. For instance, the conflict has caused disruption in the availability of shipping options between Asia and Europe. Supply chain disruptions could make it more difficult to find favorable pricing and reliable sources for the raw materials we need, putting upward pressure on our costs and increasing the risk that we may be unable to acquire the materials or services we need to continue to make and deliver certain products. Moreover, these same pressures could hinder our customers' ability to source materials needed for their own manufacturing efforts, thereby reducing or slowing their demand for our products. There can be no assurance that we will be able to pass through input cost increases to our customers or to fully offset them via operational efficiencies. If we are unsuccessful in managing such cost increases, they could have a material adverse effect on our business, financial position, results of operations, and liquidity.

Geopolitical tensions have heightened elsewhere as well, including between China and Taiwan. MC has significant manufacturing operations in China and vendors that support AEC import significant materials from China, and any escalation in this region could disrupt either segment of our business. These ongoing conflicts, along with other geopolitical uncertainties such as the current conflict in the Middle East, could have broader adverse impacts on macroeconomic factors that impact our business, cash flows, financial condition and results of operations.

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Changes in U.S. trade policy with foreign countries, or other changes in U.S. laws and policies governing foreign trade, as well as any responsive or retaliatory changes in regulations or policies by such countries, could have an adverse impact on our business, either directly or in the form of increased costs on our supply chain. While the direct impact to date of recent developments in global trade and tariff policy has not been significant, there is a risk that the impact of such developments on our supply chain will be reflected in higher costs from affected suppliers.

In addition, our global presence subjects us to certain risks, including controls on foreign exchange and the repatriation of funds. While we have been able to repatriate current earnings in excess of working capital requirements from certain countries in which we operate without substantial governmental restrictions, there can be no assurance that we will be able to cost effectively repatriate foreign earnings in the future.

***The implementation of trade tariffs could result in significant impacts on our business operations, financial condition, and overall market environment.***

In 2024, the Company imported over $100 million into the U.S. from other countries, of which approximately 45% of the imports were from Mexico and 29% of the imports were from Canada. Tariffs on imported goods may lead to higher costs for raw materials, components, or finished products that we procure from affected countries. These increased costs may not be fully absorbed or passed on to customers, thereby impacting our profit margins. Tariffs may lead to disruptions in our supply chain if suppliers face increased costs or decide to relocate production. Delays or shortages could also affect our ability to meet customer demand on time. Trade partners affected by these tariffs may impose retaliatory tariffs on goods exported from the United States. This could reduce demand for our products in international markets and limit our growth opportunities. Tariff-related policies could further create price volatility and uncertainty in global markets. This may lead to fluctuations in customer demand and difficulty in forecasting revenues. Higher costs stemming from tariffs could lead customers to seek alternative products or services from competitors in regions not affected by such trade policies. Navigating the complexities of new trade regulations and compliance requirements may increase administrative burdens and operational costs. We continue to monitor developments regarding trade tariffs and assess their potential impact on our business. While we are exploring strategies to mitigate these risks, the full extent of tariffs' impact on our operations remains uncertain and may vary depending on the scope and duration of the policies.

***Our growth strategy includes evaluating selected acquisitions, which entails certain risks to our business, and presents financial, managerial and operational challenges that may adversely affect our operating results and financial condition.***

Our growth strategy includes acquisitions. Acquisitions involve various inherent risks, such as our ability to assess accurately the fair value, strengths, weaknesses, internal controls, contingent and other liabilities and potential profitability of the acquired business. We cannot assure that all potential risks or liabilities are adequately discovered, disclosed, or understood in each instance. We may fail to achieve anticipated synergies and lose key employees of the acquired business. In addition, internal controls over financial reporting of acquired companies may not be compliant with required standards. Issues may exist that could rise to the level of significant deficiencies or, in some cases, material weaknesses, particularly with respect to foreign companies or non-public U.S. companies. Customer dissatisfaction or performance problems with an acquired business, technology, service or product could also have a material adverse effect on our reputation and business.

***We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses.***

We have a history of making acquisitions, entering new markets, and pursuing joint ventures and we expect to opportunistically seek to make acquisitions, invest in strategic growth initiatives including possible entry into new markets, or enter into joint ventures in the future. We are subject to numerous risks as a result of our growth strategy, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may invest time and capital pursuing acquisitions, joint ventures, or new products that do not materialize;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may incur costs and expenses associated with any unidentified or potential liabilities of the acquired companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not achieve anticipated revenue and cost benefits from the acquisitions, joint ventures, or new product development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may encounter unforeseen difficulties in integrating acquired operations, joint ventures, or new businesses into our existing operations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Even if integration is successful, the financial and operational results may differ materially from our assumptions and forecasts due to unforeseen expenses, delays, conditions and liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our past or future acquisitions, joint ventures, or new businesses might not ultimately improve our competitive position and business.

We also periodically evaluate, and have engaged in, the disposition of assets and businesses. Divestitures could involve difficulties in the separation of operations, services, products and personnel, the diversion of management's attention, the disruption of our business and the potential loss of key employees. After reaching an agreement with a buyer for the disposition of a business, the transaction may be subject to the satisfaction of pre-closing conditions, including obtaining necessary regulatory and government approvals, which, if not satisfied or obtained, may prevent us from completing the transaction. Divestitures may also involve continued financial involvement in or liability with respect to the divested assets and businesses, such as indemnities or other financial obligations, in which the performance of the divested assets or businesses could impact our results of operations. Any divestiture we undertake could adversely affect our results of operations.

We have previously announced the initiation of a strategic review of our structures assembly business which could include a potential sale of all or part of a production site in Salt Lake City, Utah. In connection with this review, we will incur costs and expenses and may not succeed in completing any strategic initiatives identified. A divesture of the business may not materialize or may not be completed without disruption. We may face additional risks related to such activities. For example, risks related to our ability to find appropriate buyers, obtain applicable contractual, regulatory, and/or governmental approvals, execute a transaction on favorable terms, separate divested business operations with minimal impact to our remaining operations, and effectively manage any transitional service arrangements. Further, any divestiture of the business may require us to recognize impairment charges. Any of these factors could materially and adversely affect our financial condition and operating results.

***We may fail to realize all of the anticipated benefits of the acquisition of Heimbach or those benefits may take longer to realize than expected.***

We continue to devote significant management attention to integrating the business practices and operations of Heimbach. We may experience disruptions to our business and, if integrated ineffectively, it could restrict the realization of the full expected benefits of the acquisition. The failure to meet the challenges involved in the integration process and to realize the anticipated benefits of the acquisition of Heimbach could cause an interruption or loss of momentum in our operations.

Difficulties in the integration of the acquired business may include rationalizing the operations, processes and systems of the acquired business, retaining and motivating key management and employees, and integrating existing business relationships with suppliers and customers. Even if integration is successful, the financial and operational results may differ materially from our assumptions and forecasts due to unforeseen expenses, delays, conditions and liabilities. In addition, we may incur unanticipated costs or expenses following an acquisition, including postclosing asset impairment charges, expenses associated with eliminating duplicate facilities, and other liabilities.

Furthermore, the acquisition of Heimbach may result in material unanticipated problems, expenses, charges, liabilities, competitive responses, loss of customers and other business relationships, and diversion of management's attention. Additional integration challenges may include difficulty in achieving anticipated cost savings, synergies, business opportunities and growth prospects from the acquisition; difficulties in the integration of operations and systems, including pricing and marketing strategies; and difficulties in conforming standards, controls, procedures, financial reporting and accounting and other policies, business cultures and compensation structures.

Many of these factors will be outside of our control and any one of them could result in increased costs, including restructuring charges, decreases in revenues and diversion of management's time and energy, which could adversely affect our business, financial condition and results of operations.

**Risks related to our contracts**

***AEC is subject to significant financial risk related to potential quality escapes that could cause customer recalls, or production shortfalls that could cause delays in customer deliveries.***

AEC manufactures critical aerospace parts and must meet increasingly demanding quality, delivery, and cost targets across a broad spectrum of programs and facilities. AEC's ability to realize its full financial objectives will depend on how effectively it meets these challenges. Failure to accomplish these customer quality, delivery, and cost targets on

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any key program could result in material losses to the Company and have a material adverse impact on the amount and timing of anticipated AEC revenues, segment operating income, and cash flows, which could in turn have a material adverse impact on our consolidated financial results.

***Long-term supply contracts in our AEC segment pose certain risks.***

AEC has a number of long-term contracts with fixed pricing, and is likely to enter into similar contracts in the future. While long-term contracts provide an opportunity to realize steady and reliable revenues for extended periods, they pose a number of risks, such as program cancellations, reductions or delays in orders by customers, the termination of such contracts or orders, changes in the customers' requirements that may not entitle AEC to additional compensation or payment, or the occurrence of similar events over which AEC has no or limited control.

Accounting for long-term contracts and related assets requires estimates and judgments related to our progress toward completion and the long-term performance on the contract. Significant judgments include potential risks associated with the ability and cost to achieve program schedule, including customer-directed delays or reductions in scheduled deliveries, and technical and other specific contract requirements including customer activity levels and variable consideration based upon that activity. Due to the size and long-term nature of many of AEC contracts, the estimation of total revenues and cost at completion is complex and subject to many variables. Management must make assumptions and estimates regarding contract revenue and cost (which may include estimates of variable consideration, including award fees and penalties), including, but not limited to, labor productivity and availability, complexity and scope of the work to be performed, availability and cost of materials, length of time to complete the performance obligation, availability and timing of funding from our customers, as well as overhead cost rates. In 2025, the Company recorded negative cumulative adjustments to the estimated profitability of long-term contracts in the amount of $165.8 million, primarily related to our CH-53K, Boeing waste tank, F-35, and Joint Strike Fighter programs. Because of the significance of management's judgments and estimation processes, it is likely that materially different estimates could be recorded in the future if we used different assumptions or if the underlying circumstances were to change. Changes in underlying assumptions, circumstances or estimates may adversely affect our future results of operations and financial condition.

Sales of components for a number of programs that are currently considered to be important to the future revenue-growth of AEC are pursuant to short-term purchase orders for a finite period or number of parts, or supply agreements with terms of one to four years. Such programs include airframe components for the F-35; forward fuselage frames for the Boeing 787; AFT assembly including skins and longerons, sponson assemblies, tail rotor pylon and the horizontal stabilizer for the CH-53K helicopter, and other long-term programs. As a result, while AEC reasonably expects to continue as a supplier on these programs for so long as it meets its obligations, there can be no assurance that this will be the case, or that, in programs where it is currently a sole supplier, this sole supplier status will continue. Even if AEC's status as a supplier is extended or renewed, there can be no assurance that such extension or renewal will be on the same or similar commercial or other terms. Any failure by AEC to maintain its current supplier status under these programs, or any material change in their commercial or other terms, could have a material adverse effect on AEC's future revenues and segment operating income.

***AEC derives a significant portion of its revenue from contracts related to U.S. Government Department of Defense, which are subject to unique risks.***

The funding of DoD programs is subject to congressional appropriations. Many of the DoD programs in which we participate may last several years, but they are normally funded annually. Changes in military strategy and priorities may affect future opportunities and/or existing programs. Long-term DoD contracts and related orders are subject to cancellation, delay or restructure if appropriations for subsequent performance periods are not made. The termination or reduction of funding for existing or new DoD programs could result in a material adverse effect on our earnings, cash flow and financial position.

Additionally, our business funded by the U.S. Government is subject to extensive federal and DoD agency acquisition regulations. As a result, specific business systems and processes, as well as our proposed contract costs, are subject to audits by U.S. Government agencies. U.S. Government representatives may audit our compliance with these required federal regulations, and such audits could result in adjustments to allowable contract costs. Any costs found to be improperly allocated to a specific contract will not be reimbursed, and such costs already reimbursed must be refunded. Certain business systems or processes found to be non-compliant to federal and agency regulations could result in a suspension of work until such compliance issues are corrected. If any audit uncovers improper or illegal activities, we may be subject to civil and criminal penalties and administrative sanctions, including termination of

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contracts, forfeiture of profits, suspension of payments, fines and suspension or prohibition from doing business with the U.S. Government. Realization of any of these risks could result in a material adverse effect on our earnings, cash flow and financial position.

See also *"The U.S. Government's Department of Defense ("DoD") Cybersecurity Maturity Model Certification ("CMMC") program introduces new and unique risks for DoD contractors."*

***The loss of one or more major customers could have a material adverse effect on Net revenues and profitability.***

In the AEC segment, our customer Safran accounted for approximately 37% of AEC's Net revenues in 2025, substantially all of which was under an exclusive long-term supply agreement relating to parts for the LEAP engine. Although we are an exclusive supplier of such parts, and although this is a cost-plus-fee arrangement, our customer is not obligated to purchase any minimum quantity of parts, and cancellation or significant reduction in demand for the LEAP program would have a material adverse impact on AEC's Net revenues and profitability.

LEAP engines are currently used on the Boeing 737 MAX, Airbus A320neo, Airbus A321neo and COMAC 919 aircraft. The LEAP long-term supply agreement contains certain events of default that, if triggered, could result in termination of the agreement by the customer, which would also have a material adverse impact on segment Net revenues and profitability.

A substantial portion of AEC's non-LEAP revenue in the near term, and revenue growth opportunity in the longer term, is dependent upon a small number of customers and programs. Unlike the 3D-woven composite components supplied by ASC, parts supplied for such non-LEAP programs are capable of being made by a number of other suppliers. Such programs include airframe components for the F-35, forward fuselage frames for the Boeing 787, and sponsons, tail-rotor pylons, horizontal stabilizers and struts for the CH-53K helicopter. Any failure by AEC to maintain its current supplier status under these programs, or any material change in their commercial or other terms, could have a material adverse effect on AEC's future Net revenues and operating income.

Our top ten customers in the MC segment accounted for a significant portion of our Net revenues in 2025. The loss of one or more of these customers, or a significant decrease in the amount of machine clothing they purchase from us, could have a material adverse impact on MC's Net revenues and profitability. We could also be subject to similar impacts if one or more such customers were to suffer financial difficulties and be unable to pay us for products they have purchased. While we normally enter into long-term supply agreements with significant MC customers, the agreements generally do not obligate the customer to purchase any products from us, and may be terminated by the customer at any time with appropriate notice.

**Risks related to information technology and cybersecurity**

***We are dependent on information technology networks, systems and cloud-based services to securely process, transmit and store electronic information and to communicate among our locations around the world and with our employees, customers and suppliers. The failure to prevent attacks on our operational systems and/or infrastructure or our cloud-based providers could result in disruptions to our businesses, loss or disclosure of regulated data, or the loss or disclosure of confidential and proprietary intellectual property or other assets.***

As the breadth and complexity of this infrastructure continues to grow, including the increasing reliance on, and use of, mobile technologies and cloud-based services, and as some of our global employees work remotely, the risk of security incidents and cyberattacks has increased. Cybersecurity threats are constantly expanding and evolving, becoming increasingly sophisticated and complex, increasing the difficulty of detecting and defending against them and maintaining effective security measures and protocols. The use of emerging technologies by organized cyber criminals, such as artificial intelligence and quantum computing, has increased the range of security threats faced by the Company. As AEC continues to perform aerospace and defense work, attacks from threat actors could become more persistent, including attacks from highly organized adversaries such as nation state actors, which target the defense industrial base and other critical infrastructure sectors. The improper conduct of our employees or others working on our behalf who have access to export controlled or other sensitive information could also adversely affect our business and reputation.

Our customers, suppliers, and subcontractors experience similar security threats and an incident at one of these entities could adversely impact our business. These entities are typically outside our control and may have access to

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our information with varying levels of security and cybersecurity resources, expertise, safeguards and capabilities. Breaches in our supply chain could compromise our data and adversely affect customer deliverables. We also rely on our supply chain to adequately detect and report cyber incidents, which could affect our ability to report or respond to cybersecurity incidents effectively or in a timely manner.

***Our information technology systems, processes, sites and cloud-based providers may suffer interruptions or failures, or we may experience disruptions or challenges arising from the implementation or upgrading of new information technology systems, which may affect our ability to conduct our business.***

Our information technology systems may be damaged or cease to function properly due to any number of causes, such as catastrophic events, power outages and security breaches (including destructive malware such as ransomware) resulting in unauthorized access or cyber-attacks. If our business continuity plans, incident response capabilities, and security controls do not function effectively, we may experience partial or complete interruptions in our operations, which may adversely impact our business, financial condition, results of operations and cash flows.

As part of our ongoing efforts to enhance operational efficiency and support our growth strategy, we implemented a significant upgrade to our Enterprise Resource Planning ("ERP") system by transitioning to a cloud-based platform. This upgrade is expected to streamline our business processes, improve data accessibility, and provide greater scalability. However, the implementation of a new ERP system involves substantial operational and internal controls risks. We cannot assure that all potential risks or liabilities are adequately discovered, disclosed, or understood in each instance. We may fail to achieve anticipated synergies. In addition, internal controls over financial reporting of acquired companies may not be compliant with required standards. Issues may exist that could rise to the level of significant deficiencies or, in some cases, material weaknesses.

***We face legal, reputational and financial risks from any failure to protect customer and/or Company data from security incidents or cyberattacks.***

Such incidents could lead to shutdowns or disruptions of or damage to our systems and those of our customers and suppliers, and unauthorized disclosure of sensitive or confidential information, potentially including personal data and proprietary business information. Unauthorized disclosure of, denial of access to, or other incidents involving sensitive or confidential Company, employee, customer or supplier data, whether through systems failure, employee negligence, fraud, misappropriation, or cybersecurity, ransomware or malware attacks, or other intentional or unintentional acts, could damage our reputation and our competitive positioning in the marketplace, disrupt our or our customer's business, cause us to lose customers and result in significant financial exposure and legal liability.

We are subject to numerous laws and regulations designed to protect this information, such as the European Union's General Data Protection Regulation ("GDPR") and the United Kingdom's GDPR, the Cybersecurity Law of the People's Republic of China, as well as various other U.S. federal and state laws governing the protection of privacy, health or other personally identifiable information and data privacy and cybersecurity laws in other regions. We are subject to U.S. federal procurement regulations such as the DFARS clause 252.204-7012, based on the NIST 800-171 framework whose goal is protecting controlled unclassified information in non-federal systems and organizations. In 2025, we achieved the U.S. DoW CMMC Level 2 certification through an accredited CMMC Third-Party Assessment Organization (C3PAO) in support of our AEC business segment. This will impact us in the coming years as it is formalized through the DFARS and those regulations are incorporated into our contracts for government programs.

These laws and regulations continue to evolve, are increasing in complexity and number and increasingly conflict among the various countries in which we operate, which has resulted in greater compliance risk and cost for us. Various privacy laws impose compliance obligations regarding the handling of personal data, including the cross-border transfer of data, and significant financial penalties for noncompliance. If any person, including any of our employees, negligently disregards or intentionally breaches our established controls with respect to Company, employee, customer or supplier data, or otherwise mismanages or misappropriates that data, we could be subject to significant litigation, monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions. These monetary damages might not be subject to a contractual limit of liability or an exclusion of consequential or indirect damages and could be significant. In addition, our liability insurance, which includes cyber insurance, might not be sufficient in type or amount to cover us against claims related to security incidents, cyberattacks and other related incidents.

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**Risks related to our liquidity and financial matters**

***Fluctuations in currency exchange rates could adversely affect the Company's business, financial condition, and results of operations.***

We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results. The effect of currency rate changes on gross profit in the MC segment can be difficult to anticipate because we use a global sourcing and manufacturing model. Under this model, while some non-U.S. Net revenues and associated costs are in the same currency, other non-U.S. Net revenues are denominated in currencies other than the currency in which most costs of such sales are incurred. At the same time, the geographic sources of materials purchased (and the currencies in which these purchases are denominated) can vary depending on market forces, and the Company may also shift production of its products between manufacturing locations, which can result in a change in the currency in which certain costs to produce such products are incurred.

Changes in exchange rates can result in revaluation gains and losses that are reflected in our Consolidated Statements of Income. Revaluation gains and losses occur when our business units hold financial assets or liabilities denominated in a currency other than their functional currency. Operating results can also be affected by the translation of Net revenues and costs from each non-U.S. subsidiary's functional currency to the U.S. dollar.

Changes in the value of foreign currencies relative to the U.S. dollar could impact the reported level, in U.S. dollars, of Net revenues and operating expenses which are denominated in those currencies. Changes in currency exchange rates could adversely affect the Company's business, financial condition or results of operations.

***We have a substantial amount of indebtedness. At December 31, 2025, the Company had outstanding long-term debt of $456 million.***

At December 31, 2025, our leverage ratio (as defined in our primary borrowing agreement) was 1.66 to 1.00, and we had borrowed $456 million under our $800 million revolving credit facility. While we feel that we generate sufficient cash from operations and have sufficient borrowing capacity to make required capital expenditures to maintain and grow our business, any decrease in our cash generation could result in higher leverage. Higher leverage could hinder our ability to make acquisitions, capital expenditures, or other investments in our businesses, pay dividends, or withstand business and economic downturns. Our primary borrowing agreement contains a number of covenants and financial ratios that the Company is required to satisfy. The most restrictive of these covenants pertain to prescribed leverage and interest coverage ratios and asset dispositions. Any breach of any such covenants or restrictions would result in a default under such agreement that would permit the lenders to declare all borrowings under such agreement to be immediately due and payable and, through cross-default provisions, could entitle other lenders to accelerate their loans. In such an event, the Company would need to modify or restructure all or a portion of such indebtedness. Depending on prevailing economic conditions at the time, the Company might find it difficult to modify or restructure the debt on attractive terms, or at all.

From time to time, we use interest rate swaps to manage the interest cost associated with our borrowings. Future changes in the interest rate benchmark could affect the Company's cost of borrowing and its cash flows, or the effectiveness of the hedges, which could have an effect on net income.

As of December 31, 2025, we had approximately $344 million of additional borrowing capacity under our $800 million revolving credit facility. The incurrence of additional indebtedness could increase the above-described risks associated with higher leverage. In addition, any such indebtedness could contain terms that are more restrictive than our current facilities.

***Significant changes in critical estimates and assumptions related to pension and other post-retirement benefit ("OPEB") costs and liabilities could affect our earnings and pension contributions in future periods.***

The determination of our pension and other post-retirement benefit plans' expense or income involves significant judgments, specifically related to our discount rate, long-term return on assets, and other actuarial assumptions. We establish our discount rate assumption annually and review whether to change our long-term return on assets assumption annually. These estimates and actuarial assumptions could change significantly as a result to changes in economic, legislative, and/or demographic profiles. Such changes could result in unfavorable changes to our pension and OPEB expense and funded status, and our cash contributions thereof, which could have a negative impact on our results of operations. Further, the difference between actual investment returns and our long-term return on asset assumptions would result in a change to our pension and OPEB expense, funded status, as well as our required

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contributions to the plans. We manage our plan assets in accordance with our investment management objectives, and they are subject to market volatility and other conditions. Differences may also arise due to changes in regulatory, accounting and other requirements applicable to pension plans.

***The Company is exposed to the risk of increased expense in health-care related costs.***

We are largely self-insured for some employee and business risks, including health care programs in the U.S. Losses under all of these programs are accrued based upon estimates of the ultimate liability for claims reported and an estimate of claims incurred but not reported, with assistance from third-party actuaries and service providers. However, these liabilities are difficult to assess and estimate due to unknown factors, including the severity of an illness and the number of incidents not reported. The accruals are based upon known facts and historical trends, and management believes such accruals to be adequate. The Company also maintains stop-loss insurance policies to protect against catastrophic claims above certain limits. If actual results significantly differ from estimates, our financial condition, results of operations, and cash flows could be materially impacted by losses under these programs, as well as higher stop-loss premiums in future periods.

***Goodwill and other intangible assets represent a significant portion of our assets, and any impairment of these assets could negatively impact our results of operations and financial conditions.***

Goodwill and other intangible assets that have indefinite useful lives must be evaluated at least annually for impairment. The specific guidance for testing goodwill and other non-amortized intangible assets for impairment requires management to make certain estimates and assumptions when allocating goodwill to reporting units and determining the fair value of reporting unit net assets and liabilities, including, among other things, an assessment of market conditions, projected cash flows, investment rates, cost of capital and growth rates, which could significantly impact the reported value of goodwill and other intangible assets. Changes in our estimates and assumptions could adversely impact projected cash flows and the fair value of reporting units. Fair value is generally determined using a combination of the discounted cash flow, market multiple and market capitalization valuation approaches. Absent any impairment indicators, we generally perform our evaluations annually, using available forecast information. If at any time we determine an impairment has occurred, we are required to reflect the reduction in value as an expense within operating income, resulting in a reduction of earnings and a corresponding reduction in our net asset value in the period such impairment is identified. In the event there is deterioration in business conditions or estimated cash flows beyond amounts previously or currently forecasted, there is a risk of impairments on our goodwill and indefinite-lived intangible balances.

***Unanticipated changes in tax laws or exposure to additional tax liabilities could affect our future profitability.***

We are subject to income taxes in both the U.S. and various non-U.S. jurisdictions. Unanticipated changes in foreign and domestic tax laws, regulations, or policies, or their interpretation and application by regulatory bodies, or exposure to additional tax liabilities could affect our future profitability and cash flows. Our domestic and international tax liabilities are dependent upon the distribution of income among these jurisdictions. Our future results of operations could be adversely affected by changes in the effective tax rate as a result of a change in the mix of earnings in countries with differing statutory tax rates, as well as changes in the overall profitability of the Company, tax legislation, and generally accepted accounting principles.

As of December 31, 2025, we have approximately $49.1 million of net operating loss ("NOL") carryforwards in various taxing jurisdictions. Our ability to utilize the NOL carryforward could be adversely impacted by several factors, including but not limited to significant changes to tax legislation and lower than expected future earnings.

We are subject to tax audits by various tax authorities in many jurisdictions. Following the acquisition of Heimbach, the open tax years in these jurisdictions range from approximately 2019 to 2024. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. The results of tax audits and examinations of previously filed tax returns or related litigation and continuing assessments of our tax exposures could materially affect our financial results.

**Risks related to our legal and regulatory environment**

***The Company may fail to adequately protect its proprietary technology or intellectual property, which would allow competitors or others to take advantage of its research and development efforts.***

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Proprietary trade secrets are a source of competitive advantage in each of our segments. If our trade secrets were to become available to competitors, it could have a negative impact on our competitive strength. We employ measures to maintain the confidential nature of these secrets, including maintaining employment and confidentiality agreements, maintaining clear policies intended to protect such trade secrets, educating our employees about such policies, clearly identifying proprietary information subject to such agreements and policies, and vigorously enforcing such agreements and policies. Despite such measures, our employees, consultants, and third parties to whom such information may be disclosed in the ordinary course of our business may breach their obligations not to reveal such information, and any legal remedies available to us may be insufficient to compensate our damages.

Our success depends on our ability to protect our intellectual property. We rely on a combination of patents, trade secrets, and contractual agreements to safeguard our intellectual property. However, there is a risk that these measures may not be sufficient to prevent the unauthorized use or infringement of our intellectual property rights. We may also face intellectual property disputes and litigation. These disputes could arise from allegations of infringement by third parties of our intellectual property or from claims that our operations infringe the intellectual property rights of others. Such litigation can be costly, time-consuming, and may divert management's attention and resources from other business operations. If we are unsuccessful in defending our intellectual property, or if our intellectual property rights are deemed invalid or unenforceable, we may lose valuable competitive advantages. This could result in a decline in market share, reduced revenue, and a material adverse effect on our business, financial condition, and results of operations. Furthermore, we may be required to license our technology to third parties or to license technology from third parties to settle intellectual property disputes. Such licenses may not be available on commercially reasonable terms, or at all, which could further harm our business and financial performance.

***The Company is subject to legal proceedings and legal compliance risks.***

We are subject to a variety of legal proceedings in multiple jurisdictions where we conduct business. Litigation is an inherently unpredictable process and unanticipated negative outcomes are always possible. An adverse outcome in any period could have an adverse impact on the Company's operating results for that period.

We are also subject to a variety of legal compliance risks. While we believe that we have adopted appropriate risk management and compliance programs, the global and diverse nature of our operations means that legal compliance risks will continue to exist and related legal proceedings and other contingencies, the outcome of which cannot be predicted with certainty, are likely to arise from time to time. Failure to resolve successfully any legal proceedings related to compliance matters could have an adverse impact on our results in any period.

***Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.***

We are subject to numerous, and sometimes conflicting, legal regimes on matters as diverse as anti corruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, sustainability and climate initiatives, human capital requirements, anti-competition, anti-money-laundering, data privacy and protection, government compliance, wage-and-hour standards, employment and labor relations and human rights. The global nature of our operations further increases the difficulty of compliance.

Compliance with diverse legal requirements is costly, time-consuming and requires significant resources. Violations of one or more of these regulations in the conduct of our business could result in significant fines, enforcement actions or criminal sanctions against us and/or our employees, prohibitions on doing business and damage to our reputation. Violations of these regulations in connection with the performance of our obligations to our customers also could result in liability for significant monetary damages, fines, enforcement actions and/or criminal prosecution or sanctions, unfavorable publicity and other reputational damage and restrictions on our ability to effectively carry out our contractual obligations and thereby expose us to potential claims from our customers. Due to the varying degrees of development of the legal systems of the countries in which we operate, local laws may not be well developed or provide sufficiently clear guidance and may be insufficient to protect our rights.

In particular, in many parts of the world, including countries in which we operate and/or seek to expand, practices in the local business community might not conform to international business standards and could violate anti corruption laws, or regulations, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010. The Company provides, and all employees must participate in, regular training activities with respect to the Company's business ethics standards and expectations. Our employees, subcontractors, suppliers, and agents, any companies we may acquire and their employees, subcontractors, suppliers and agents, and other third parties with which we associate,

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could take actions that violate policies or procedures designed to promote legal and regulatory compliance or applicable anti corruption laws or regulations. Violations of these laws or regulations by us, our employees or any of these third parties could subject us to criminal or civil enforcement actions (whether or not we participated or knew about the actions leading to the violations), including fines or penalties, disgorgement of profits and suspension or disqualification from work, including U.S. federal contracting, any of which could materially adversely affect our business, including our results of operations and our reputation.

***Our global operations are subject to increasing environmental, social and governance regulatory requirements, increasing operational and compliance costs, as well as the risk of noncompliance.***

Evolving sustainability and social regulation, contractual requirements, and policy requirements, including transition risks associated with climate change, may pose risk to our market outlook, brand and reputation, financial outlook, cost of capital, global supply chain, and production continuity, which may impact our ability to achieve long-term business objectives.

Changes in environmental and climate change laws or regulations could lead to additional operational restrictions and compliance requirements upon us or our products, require new or additional investment in product and packaging designs, result in carbon offset investments or otherwise could negatively impact our business and/or competitive position. Increasing industry performance standards, increasing sustainability disclosure requirements in the U.S. and globally, and requirements on manufacturing and product air pollutant emissions, especially GHG emissions, may result in increased costs or reputational risks and could limit our ability to manufacture and/or market certain of our products at acceptable costs, or at all. Increasing global chemical restrictions and bans, increasing regulation related to product end-of-life and packaging materials, and water and waste requirements may drive increased costs to us and our suppliers and impact our production continuity and data facilities.

Changes in laws and regulations could mandate significant and costly changes to the way we conduct our business, including increasing the cost of compliance, or could impose additional taxes. Changes in sustainability reporting requirements may also impact our global operations as we continue collecting information for reports to be published according to new standards.

We will face significant challenges in being able to implement separate but overlapping standard-setting initiatives, which may contain inconsistencies. We are devoting substantial resources to sustainability reporting to ensure compliance; however, the reporting landscape is highly dynamic and uncertainty remains. Implementing separate but overlapping newly introduced standard-setting initiatives in short timetables may result in inconsistencies and higher costs. Non-compliance could result in various penalties, including liability for significant monetary damages, fines, enforcement actions and/or sanctions. Given the reach of new and proposed regulations in the jurisdictions where we operate, there is the possibility that we may not be able to comply, or may not be able to comply in time. We also may not be able to ensure that relevant companies within our supply chain are compliant with applicable supply chain due diligence acts, which may require us to embark on new due diligence processes with other companies and in some cases parting ways with suppliers.

Changes to several international regulatory frameworks including the European Union's Corporate Sustainability Reporting Directive ("CSRD") and Corporate Sustainability Due Diligence Directive ("CSDDD") have increased thresholds and moved out compliance timeframes by several years. We continue to closely monitor developments in sustainability- and climate change-related laws, regulations and policies for their potential effect on our business, however, we are currently not able to accurately predict the materiality of any potential costs associated with such developments. In addition, climate change-related litigation and investigations have increased in recent years and any claims or investigations against us could be costly to defend, and our business could be adversely affected by the outcome.

***Certain provisions of our Certificate of Incorporation, our Bylaws and Delaware law could hinder, delay or prevent a change in control of us that you might consider favorable, which could also adversely affect the price of our Common Stock.***

Certain provisions under our Certificate of Incorporation, our Bylaws and Delaware law could discourage, delay or prevent a transaction involving a change in control of the Company, even if doing so would benefit our stockholders. These provisions could delay or prevent a change in control and could limit the price that investors might be willing to pay in the future for shares of our Common Stock.

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Our Certificate of Incorporation authorizes our Board of Directors to issue new series of preferred stock without stockholder approval. Depending on the rights and terms of any new series created, and the reaction of the market to the series, the rights or value of our Common Stock could be negatively affected. For example, subject to applicable law, our Board of Directors could create a series of preferred stock with superior voting rights to our existing common stock. The ability of our Board of Directors to issue this new series of preferred stock could also prevent or delay a third party from acquiring us, even if doing so would be beneficial to our stockholders.

***We may not pay cash dividends on our Common Stock.***

It is our current practice to pay cash dividends on our common stock. There can be no assurance, however, that we will pay dividends in the future in the amounts that we have in the past, or at all. Our Board of Directors may change the timing and amount of any future dividend payments or eliminate the payment of future dividends in its sole discretion, without any prior notice to our stockholders. Our ability to pay dividends will depend upon many factors, including our financial position and liquidity, results of operations, legal requirements, restrictions that may be imposed by the terms of our current and future credit facilities and other debt obligations and other factors deemed relevant by our Board of Directors. For example, we have a substantial amount of indebtedness and while we feel that we generate sufficient cash from operations and have sufficient borrowing capacity to make required capital expenditures to maintain and grow our business, any decrease in our cash generation could result in higher leverage. Higher leverage could hinder our ability to make acquisitions, capital expenditures, or other investments in our businesses, pay dividends, or withstand business and economic downturns.

In the future, we may also enter into other credit agreements or other borrowing arrangements or issue debt securities that, in each case, restrict or limit our ability to pay cash dividends on our common stock. In addition, since a significant portion of our cash is generated from operations of our subsidiaries, our ability to pay dividends is in part dependent on the ability of our subsidiaries – some of which are located outside of the U.S. – to make distributions to us. Such distributions will be subject to their operating results, cash requirements and financial condition, as well as our ability to repatriate cash held by non-U.S. subsidiaries. Any change in the level of our dividends or the suspension of the payment thereof could adversely affect the market price of our common stock.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.***

The trading market for our Class A Common Stock depends in part on the research and reports that securities or industry analysts publish about us or our business. If one or more of the analysts who covers us downgrades our Class A Common Stock or publishes inaccurate or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our Class A Common Stock could decrease, which could cause our stock price and trading volume to decline.

***Future sales of shares by us or our existing stockholders could cause our stock price to decline.***

Sales of substantial amounts of our common stock in the public market, or the perception that these sales could occur, could cause the market price of our common stock to decline or might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. As of February 19, 2026, we had 28.3 million shares of Class A Common Stock outstanding. In addition, shares of Common Stock are issuable upon the vesting of outstanding equity awards, and certain shares are reserved for future issuance under our equity compensation plans.

***Shareholder activism can have a significant impact on our operations, strategy, and overall performance.***

Activist shareholders may attempt to influence or enact changes in our corporate governance, business strategies, or financial decisions. This can lead to substantial disruptions and pose various risks. Activist campaigns can divert the attention of our management team and board of directors from executing our business strategy and managing day-to-day operations. The need to respond to shareholder activists' demands or proposals can be time-consuming and may detract from our ability to focus on long-term goals. Shareholder activists may propose changes to our board composition, executive compensation, or other governance practices. Proposed changes could lead to instability or conflict within our leadership, potentially affecting the company's strategic direction and decision-making processes. Shareholder activism often brings increased scrutiny from the media, investors, and analysts. Negative publicity or heightened market perception of instability could adversely affect our stock price, investor confidence, and overall market reputation. This could also lead to increased volatility in our stock and potential loss of shareholder value. Activist shareholders may push for changes in our business strategies, such as divestitures, acquisitions, cost-cutting

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measures, or shifts in focus. While some suggestions may align with broader market trends or opportunities, others may conflict with our long-term vision or operational capabilities, potentially leading to suboptimal business outcomes. Engaging with activist shareholders may also increase the risk of legal challenges or regulatory scrutiny. Activist campaigns can result in proxy battles, litigation, or regulatory investigations, which can be costly, time-consuming, and damaging to our reputation. Prolonged activist campaigns and the associated uncertainty can negatively affect employee morale and retention. Employees may become concerned about the stability of their positions or the overall direction of the company, potentially leading to decreased productivity and higher turnover rates. Implementing changes advocated by activists may involve substantial costs or capital expenditures, which could impact our financial position and operating results. We are vigilant in monitoring and addressing potential activism to safeguard our long-term interests and those of our shareholders.

**Item 1B.&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF COMMENTS**

None.

**Item 1C.&nbsp;&nbsp;&nbsp;&nbsp;CYBERSECURITY**

**<u>Risk Management and Strategy</u>**

Albany International Corp. views cybersecurity risk management as a cornerstone of our Enterprise Risk Management ("ERM") strategy, and we are committed to protecting our digital assets and sustaining investor confidence. Cybersecurity risks we face include data breaches, operational disruptions, reputational harm, and regulatory fines. Such incidents could lead to shutdowns or disruptions of or damage to our systems and those of our customers and suppliers, and unauthorized disclosure of sensitive or confidential information, potentially including personal data and proprietary business information. Unauthorized disclosure of, denial of access to, or other incidents involving sensitive or confidential Company, employee, customer or supplier data, whether through systems failure, employee negligence, fraud, misappropriation, or cybersecurity, ransomware or malware attacks, or other intentional or unintentional acts, could damage our reputation and our competitive positioning in the marketplace, disrupt our business or our customers' businesses, cause us to lose customers and result in significant financial exposure and legal liability.

These risks are identified, assessed and managed within the broader context of our ERM strategy, ensuring a comprehensive approach to organizational risk. We incorporate cybersecurity risk assessments into our overall enterprise risk assessment process. This integration ensures that cyber risks are evaluated and managed alongside other operational, financial, and strategic risks, offering a holistic view of our risk landscape. Our ERM strategy is overseen by an Enterprise Risk Management Committee, which is made up of representatives from our finance, legal, accounting, internal audit and global information systems functions, our business leaders and members of the Senior Leadership Team. It is led by our Chief Financial Officer and its actions are reported to our Board of Directors on a quarterly basis.

Our Chief Information Officer and Senior Director of Information Security, along with members of their respective teams, are responsible for identifying and managing cybersecurity risk. The Senior Leadership Team, the Board of Directors and the Board's Audit Committee receive regular updates and engage in regular strategic discussions relating to cybersecurity risk management as part of their overall oversight of risk management.

Our cybersecurity framework leverages internationally recognized standards, including the CIS 20 and the NIST SP 800-171 frameworks, and is required to comply with the Department of War Cybersecurity Maturity Model Certification (CMMC). We have policies and procedures in place designed to maintain compliance with relevant cybersecurity and data privacy laws and regulations in the jurisdictions in which we operate, such as the European Union GDPR and the California Consumer Privacy Act.

Our cybersecurity strategy includes policies, procedures, and technology that proactively safeguard our operations against cybersecurity threats. Internal teams and external experts regularly conduct risk assessments and audits to identify cybersecurity threats, ensure regulatory compliance, and adhere to control process best practices. Continuous monitoring of our networks and systems for threats and vulnerabilities is a key component of our strategy, supported by the analysis of threat intelligence from external sources. This multi-layered approach enables early detection and facilitates prompt response to potential cybersecurity threats. We regularly review and update our cybersecurity strategies, policies and procedures, taking into consideration the latest advancements in cybersecurity practices and changes to the threat landscape.

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We have a cybersecurity incident response and crisis management plan in place, which incorporates regular training and simulation exercises, including with senior management, to ensure readiness and efficacy in responding to cybersecurity incidents. Our incident response and crisis management plan coordinates the activities we will take to prepare for, detect, respond to and recover from cybersecurity incidents, which include processes to triage, assess severity for, escalate, contain, investigate, and remediate the incident, as well as to comply with potentially applicable legal obligations and mitigate reputational damage.

In addition, we provide regular security awareness education and training for all employees and consultants, conduct internal "phishing" testing and training for "clickers," require mandatory security training for all new hires and publish periodic cybersecurity newsletters to highlight any emerging or urgent security threats. We also carry insurance that provides protection against the potential losses arising from a cybersecurity incident.

We engage qualified third-party cybersecurity experts for in-depth cyber risk assessments, penetration tests, and compliance audits, which provide impartial perspective and insight into our cybersecurity posture and we engage consultants for the development and refinement of our cybersecurity strategy and maturity, drawing upon industry best practices and regulatory knowledge. These collaborations also include the refinement of our incident response and crisis management plan and employee training, emphasizing the transfer of knowledge for sustainable in-house capabilities.

Our cybersecurity risk management processes extend to the oversight and identification of threats associated with our use of third-party service providers. We set clear objectives for third-party service providers, and we assess cybersecurity practices and any history of security incidents before engaging any potential service providers. Our contracts explicitly include requirements relating to cybersecurity, including adherence to certain standards, to ensure compliance with our security protocols. Once engaged, we regularly monitor the cybersecurity posture of major providers through log reports and intelligent threat protection analysis.

Our business strategy, results of operations and financial condition have not been materially affected by risks from cybersecurity threats, including as a result of previous cybersecurity incidents, but we cannot provide assurance that they will not be materially affected in the future by such risks and any future material incidents. Based on our review of past cybersecurity incidents, we believe that all such incidents were addressed promptly and effectively. In the last fiscal three years, we have not experienced any material information cybersecurity incidents and the expenses we have incurred from any cybersecurity incidents were immaterial. See Item 1A, "Risk Factors" of this Annual Report on Form 10-K for more information on our cybersecurity-related risks.

**<u>Governance</u>**

*Board of Directors*

The Board of Directors oversees our risk management processes, including with respect to cybersecurity risk, and the Board considers cybersecurity risk management an enterprise priority. The Board has delegated primary responsibility for reviewing and discussing with management our strategies, initiatives and policies relating to cybersecurity to the Audit Committee, which regularly reports to the full Board regarding such review and discussions. In addition, in connection with its oversight of cybersecurity risks in relation to financial reporting and internal controls, the Audit Committee plays a crucial role in the Board's understanding and management of the financial and operational impacts of cybersecurity risks.

As part of their oversight of cybersecurity risk, the Board and Audit Committee regularly review detailed cybersecurity reports, which include analyses of the threat landscape, recent incidents, and the efficacy of our cybersecurity strategy. In addition, the Chief Information Officer and Senior Director of Information Security provide bi-annual updates to the Audit Committee and annual briefings to the full Board on our cybersecurity posture, strategy, and risk management. These reviews and updates are complemented by ongoing cybersecurity training for board members to enhance their decision-making and oversight effectiveness.

Regular active engagement in strategic discussions by the Board and Audit Committee ensures that cybersecurity considerations are effectively integrated into our overall business strategy and align with Company objectives and demonstrates the Board's commitment to proactive cybersecurity oversight.

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*Management*

Although the Board oversees our overall risk management, day-to-day management of cybersecurity risk is the responsibility of management. Management's critical role involves assessing and managing these risks through regular evaluations, deploying advanced security measures, and developing policies. Management integrates these strategies across all our operations, fostering a culture of cybersecurity awareness within the Company. This proactive stance is essential to safeguarding digital assets and ensuring operational resilience against evolving cyber threats.

Quarterly, the Chief Information Officer and Senior Director of Information Security present detailed cybersecurity reports to the Enterprise Risk Committee, focusing on strategic initiatives and evolving threats. The Enterprise Risk Committee, meeting quarterly, evaluates cybersecurity within the broader organizational risk context, ensuring consistent assessment and management.

The Chief Financial Officer chairs quarterly Enterprise Risk Management Committee meetings to review and evaluate various risk factors, including cybersecurity. The Chief Financial Officer's expertise in financial risk management, strategic planning, and organizational leadership is instrumental in guiding the committee's discussions and decisions. The Chief Financial Officer ensures that appropriate financial and operational implications of cybersecurity risk are considered and integrated into our Enterprise Risk Management Strategy.

The Chief Information Officer oversees our broader IT strategy, including cybersecurity, and presents quarterly to the Enterprise Risk Management Committee, bi-annually to the Audit Committee, and annually to the Board. The Chief Information Officer's expertise in information technology, cybersecurity, and strategic planning, forged over 25 years, 20 of which has been spent in leadership at global publicly traded companies, is integral to our approach to cybersecurity risk management. This expertise is crucial in aligning our cybersecurity initiatives with business objectives, ensuring that our strategies effectively support the Company's overall goals.

The Senior Director of Information Security, reporting to and collaborating with the Chief Information Officer, manages our Enterprise Cybersecurity team. Day-to-day responsibilities include the implementation of cybersecurity strategies, cybersecurity risk management, and enhancing defenses against evolving threats. Our Senior Director of Information Security has over 35 years of IT experience, 12 of which have been spent leading the Company's cybersecurity efforts. The Information Security plays a key role in shaping our cybersecurity strategy, ensuring alignment with industry standards and integration into our broader IT strategy.

Regular reporting channels between the Senior Director of Information Security, the Chief Information Officer, and the Chief Financial Officer facilitate a cohesive, well-informed approach to managing cybersecurity risks. These reports include detailed analyses of potential threats, incident response readiness, and the effectiveness of existing cybersecurity measures.

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES**

Our principal manufacturing facilities are located in Belgium, Brazil, Canada, China, France, Germany, Italy, Mexico, Spain, Sweden, the United Kingdom, and the United States. The aggregate square footage of our operating facilities in the United States is approximately 2.1 million square feet, of which 1.2 million square feet are owned and 0.9 million square feet are leased. Our facilities located outside the United States comprise approximately 4.5 million square feet, of which 4.0 million square feet are owned and 0.5 million square feet are leased. We consider these facilities to be in good condition and suitable for our purpose. The capacity associated with these facilities is adequate to meet production levels required and anticipated through 2026.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS**

The information set forth above is described in Note 21, *Commitments and Contingencies,* of the Notes to the Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES**

Not applicable.

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**PART II**

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp;MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES**

We have Class A Common Stock with a par value of $0.001. Our Class A Common Stock is principally traded on the New York Stock Exchange under the ticker symbol AIN. According to Broadridge Financial Solutions, Inc., as of December 31, 2025, there were approximately 70,000 beneficial owners of our Class A Common Stock. Dividends are paid on our Class A Common Stock. Our cash dividends, and the high and low prices per share of our Class A Common Stock, were as follows for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Quarter Ended** | **March 31** | **June 30** | **September 30** | **December 31** |
| **2025** |  |  |  |  |
| Cash dividends per share | $**0.27** | $**0.27** | $**0.27** | $**0.28** |
| Class A Common Stock prices: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;High | $**82.96** | $**70.94** | $**72.53** | $**60.44** |
| &nbsp;&nbsp;&nbsp;&nbsp;Low | $**69.04** | $**59.75** | $**52.80** | $**41.42** |
| **2024** |  |  |  |  |
| Cash dividends per share | $0.26 | $0.26 | $0.26 | $0.27 |
| Class A Common Stock prices: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;High | $97.34 | $91.16 | $94.16 | $87.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;Low | $85.76 | $79.75 | $81.29 | $67.92 |

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

The graph below compares the cumulative 5-Year total return of holders of Albany International Corp.'s Common Stock with the cumulative total returns of the Russell 2000 index and a customized peer group of seventeen companies which are: BWX Technolgies Inc, Curtiss-Wright Corp, Ducommun Inc, Enpro Inc, Esca Technologies Inc, Franklin Electric Co Inc, Graco Inc, Helios Technologies Inc, Hexcel Corp, Kadant Inc, Mercury Systems Inc, Mueller Water Products Inc, Nordson Corp, SPX Technologies Inc, Standex International Corp, Trimas Corp, Woodward Inc. The graph assumes that the value of the investment in our common stock, in each index, and in the peer group (including reinvestment of dividends) was $100 on December 31, 2020 and tracks it through December 31, 2025.

**COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN\***

![1441](ain-20251231_g1.jpg)

\*$100 invested on 12/31/20 in stock or index, including reinvestment of dividends.

Copyright© 2026 Russell Investment Group. All rights reserved.

Fiscal year ending December 31.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **December 31,** | **2020** | **2021** | **2022** | **2023** | **2024** | **2025** |
| **Albany International Corp.** | $100.00 | $121.62 | $136.90 | $137.89 | $113.65 | **$73.34** |
| **Russell 2000** | 100.00 | 114.82 | 91.35 | 106.82 | 119.14 | **134.40** |
| **Peer Group** | 100.00 | 111.36 | 103.77 | 131.72 | 149.51 | **198.27** |

---

*The stock price performance included in this graph is not necessarily indicative of future stock price performance.*

Restrictions on dividends and other distributions are described in Note 17, *Financial Instruments* of the Notes to the Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

Disclosures of securities authorized for issuance under equity compensation plans are included under Item 12, Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters, of this Annual Report on Form 10-K.

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In 2021, the Company's Board of Directors authorized the Company to repurchase shares of up to $200 million through open market purchases, privately negotiated transactions or otherwise, and to determine the prices, times and amounts. Under this plan, the Company repurchased 1,649,081 shares for a total cost of $136.2 million through February 21, 2025. Of this, 158,177 shares were repurchased in 2025 for $12.6 million.

On February 21, 2025, the Company's Board of Directors authorized the Company to repurchase shares up to $250 million (excluding any fees, commissions, taxes or other expenses related to such purchases), which supersedes the 2021 authorization. Share purchases may be made through open market purchases, privately negotiated transactions or otherwise. The program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company's discretion. The timing and amount of any share repurchases will be based on the Company's liquidity, general business and market conditions, debt covenant restrictions and other factors, including alternative investment opportunities and capital structure. Under this plan, the Company repurchased 2,682,859 shares in 2025 for a total cost of $173.3 million, including excise taxes and fees. As of December 31, 2025, we were authorized to repurchase shares up to $76.7 million.

**Issuer Purchases of Equity Securities during the three months ended December 31, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced program | Approx. dollar value of shares that may yet be purchased under the program (in thousands) |
| October 1 to October 31, 2025 |  | $— |  | $93445 |
| November 1 to November 30, 2025 | 206585 | 45.06 | 206585 | 84139 |
| December 1 to December 31, 2025 | 153682 | 48.72 | 153682 | 76648 |
| Total | 360267 |  | 360267 | $76648 |

---

**Item 6.&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED]**

**ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help the reader understand the results of operations and financial condition of the Company. MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and the accompanying Notes included under Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

The MD&A generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results or Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 26, 2025, incorporated herein by reference.

**Business Environment Overview and Trends**

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

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capacity that enable it to offer high quality specific part and assembly solutions that achieve its customers' application performance requirements.

<u>General</u>

Global, economic, and political conditions, changes in raw material and commodity prices and supply, labor availability and costs, inflation, interest rates, potential changes in U.S. government policy positions, including changes in Department of Defense policies or priorities, geopolitical conflicts and strained international relations, U.S. and non-U.S. tax law changes, foreign currency exchange rates, sanctions, tariffs, energy costs and supply, and the impact from natural disasters and weather conditions create uncertainties that could impact our businesses.

<u>Machine Clothing</u>

During 2025, the MC segment delivered a resilient performance, with several areas performing well despite uneven market dynamics. In Asia, softer demand—across Paper Machine Clothing & Engineered Fabrics—contributed to regional pressure, while EF also declined due to strategic divestment and planned plant consolidation in Europe. Packaging and Tissue continued to perform well, supported by growth across most regions. Publication grades remained under structural pressure, and the MC segment expects publication grade paper demand to continue declining into 2026 and beyond, offset by growing demand for tissue grade products. Looking ahead to 2026, we expect Packaging and Tissue to remain positive contributors, with sales in Europe and the Americas holding broadly stable, while Asia's trajectory remains uncertain.

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

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

In August, 2023, the Company acquired Heimbach, a privately-held manufacturer of paper machine clothing headquartered in Düren, Germany, which provides the MC segment with an increase in scale and complementary technology that further drives MC's differentiated manufacturing sales and service network. The Heimbach integration is a multi-year program that started with harmonizing Heimbach operations with our legacy MRP systems and establishing a new global customer and operations organization. There is a disciplined focus to realize not only the combined benefits from procurement and overhead, but also to leverage best practices in manufacturing and a deep realignment of our operational footprint.

During 2024, the Company announced several initiatives to further rationalize MC's operating footprint, including the closure of the South Korea facility, the consolidation of activities and facilities across the United Kingdom and the closure of Heimbach's Switzerland facility. The Company made progress and realized significant synergies from these efforts during 2025, and announced additional closures of engineered fabrics facilities in Italy, France and the United Kingdom.

<u>Albany Engineered Composites</u>

The AEC segment's strategy is to continue to build on its global brand by leveraging its industry leading performance to drive future growth through technology differentiation. This includes continued investment in AEC's proprietary 3D-woven technology to accelerate solutions that can be offered across a set of broader applications; and by leveraging the AEC's non-3D technology capabilities and capacity, on high-value aerospace (both commercial and defense) applications, and other emerging markets such as space and advance air mobility ("AAM"). The AEC segment provides longer-term growth potential for the Company as it ramps current production programs and captures new commercial and defense opportunities.

The AEC segment (including Albany Safran Composites, LLC ("ASC"), in which our customer SAFRAN Group owns a 10% noncontrolling interest) supplies a number of customers in the aerospace industry. AEC's largest aerospace

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customer is the SAFRAN Group ("SAFRAN") and sales to SAFRAN, through ASC, (consisting primarily of fan blades and cases for CFM International's LEAP engine) accounted for approximately 15% of the Company's consolidated Net revenues in 2025. The AEC segment, through ASC, also supplies 3D-woven composite fan cases for the GE9X engine. Outside of ASC, the AEC segment also supplies 3D-woven composite vanes for the F-35 Liftfan.

The AEC segment's current portfolio of non-3D programs includes components for the CH-53K helicopter, components for the F-35, missile bodies for Lockheed Martin's JASSM air-to-surface missiles, fuselage components for the Boeing 787 aircraft, vacuum waste tanks for Boeing commercial aircraft and components and structures for other commercial, defense, and space and AAM programs. In 2025, approximately 35% of AEC net revenues were related to U.S. government contracts or programs.

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

As a result of the higher costs and operational challenges, the AEC segment updated labor, material input and scrap assumptions and estimates for certain long-term programs that resulted in negative cumulative changes in estimated profitability in the amount of $165.8 million in 2025. This amount includes a $155.9 million change in estimated profitability associated with the performance of the CH-53K contracts, of which $147.3 million was recognized in the third quarter and was inclusive of a loss reserve adjustment of $98.0 million for greater than planned labor content and higher material inputs caused by inflation estimated for the duration of the contract. This adjustment represents the estimated full loss anticipated over the remaining eight year life of the program, and we are engaging with our CH-53K customer to discuss potential solutions. In spite of these ongoing discussions, subsequent to the end of the third quarter, we announced that we will commence a strategic review of the Amelia Earhart Drive facility in Salt Lake City. Such review could result in a sale of the facility and would include an exit of the structures assembly portion of our business, including the CH-53K contract work. As of December 31, 2025, we have determined that the assets of this group meet the held-for-sale criteria, and have been classified as such within our Consolidated Balance Sheet.

**Consolidated Results of Operations**

**Net Revenues and Gross Profit**

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

---

| | | | |
|:---|:---|:---|:---|
| | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
|<br>**Years ended December 31,** | **2025** | **2024** | **2023** |
| Net revenues | $**1182813** | $1230615 | $1147909 |
| Gross profit | **243920** | 401776 | 423718 |
| Gross profit margin | **20.6%** | 32.6% | 36.9% |
| % change in net revenues | **-3.9%** | 7.2% | 10.9% |

---

Consolidated Net revenues decreased 4% compared to 2024, driven by reduced demand for MC products in Asia and AEC revenue adjustments primarily related to the CH-53K program based on our long-term contract estimates. These decreases are partially offset by higher revenue on the AEC LEAP program.

The decrease in Consolidated Gross profit during 2025, as compared to 2024, was driven primarily by increased cost assumptions that adjusted the expected profitability of the AEC segments CH-53K long-term contracts. Gross profit as a percentage of revenues was 21%.

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**Operating Expenses**

The following table summarizes Consolidated Operating expenses by classification:

---

| | | | |
|:---|:---|:---|:---|
| | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
|<br>**Years ended December 31,** | **2025** | **2024** | **2023** |
| Selling, general and administrative expenses | $**218326** | $210882 | $214915 |
| Technical and research expenses | **48015** | 46097 | 40627 |
| Restructuring expenses, net | **13682** | 13438 | 282 |
| Total operating expenses | $**280023** | $270417 | $255824 |
| Total operating expenses as a % of net revenues | **23.7%** | 22.0% | 22.3% |

---

Consolidated SG&A expenses increased 3.5% as compared to 2024 and as a percentage of Net revenues, SG&A expenses increased from 17.1% in 2024 to 18.5% in 2025. The overall increase in Consolidated SG&A expenses was due to the net effect of a $4.4 million increase in personnel-related costs, an increase of $1.9 million in professional fees, and an increase of $3.2 million in global information system costs.

Consolidated Technical and research expenses increased 4.2% as compared to 2024 and as a percentage of Net revenues increased from 3.7% in 2024 to 4.1% in 2025. This change is primarily driven by increased activity within our New Business Ventures group.

In addition to the items discussed above affecting Gross profit, SG&A and Technical and research expenses, Operating income was affected by Restructuring expense, net, of $13.7 million in 2025, as compared to $13.4 million in 2024.

At MC, restructuring actions were taken throughout 2024 and 2025 in order to cease operations at several facilities. Prior year actions at the Company's MC forming fabric manufacturing facility in Chungju, South Korea, at the Company's Heimbach engineered fabric manufacturing facility in Rochdale, UK, and at the Company's Heimbach paper machine clothing facility in Olten, Switzerland, concluded in 2025. Additional actions were announced in 2025 to close engineered fabric facilities in Ballo, Italy and Saint Junien, France as well as a facility in Manchester, United Kingdom. These actions drove $8.3 million of restructuring charges during 2025, compared to $11.2 million in 2024, a decrease that is primarily due to the timing of the announced actions, workforce reductions, and related costs. We expect to incur additional restructuring expenses related to these actions into 2026.

At AEC, restructuring activities were related to reductions in the workforce at various AEC locations, which resulted in restructuring expenses of $3.3 million for the year ended 2025 and $3.6 million for the year ended 2024.

During the first quarter of 2025, the Company decided to consolidate headquarters in Portsmouth, NH. This change impacts approximately 100 employees and will continue through the first half of 2026. Through December 31, 2025, this has resulted in expenses of $2.0 million related to retention, relocation, severance, and professional costs.

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**Operating Income**

The following table summarizes operating income/(loss) by business segment:

---

| | | | |
|:---|:---|:---|:---|
| | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
|<br>**Years ended December 31,** | **2025** | **2024** | **2023** |
| Machine Clothing | $**156212** | $183632 | $188429 |
| Albany Engineered Composites | **(145135)** | (11603) | 27351 |
| Corporate | **(47180)** | (40670) | (47886) |
| Total operating income (loss) | $**(36103)** | $131359 | $167894 |
| % of net revenues | **-3.1%** | **10.7%** | **14.6%** |

---

See the Segment Results of Operations section of this Management Discussion and Analysis of Financial Condition and Results of Operations for significant drivers of Operating income/(loss) for each business segment.

**Other Earnings Items**

The following table summarizes other earnings items that are presented below Operating income:

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| | | | |
|:---|:---|:---|:---|
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|<br>**Years ended December 31,** | **2025** | **2024** | **2023** |
| Interest expense, net | $**20605** | $12549 | $13601 |
| Other (income)/expense, net | **5079** | 1721 | (6163) |
| Income tax (benefit)/expense | **(4828)** | 29034 | 48846 |
| Net income/(loss) attributable to the noncontrolling interest | **383** | 432 | 490 |

---

**Interest Expense, net**

Interest expense, net increased by $8.1 million over the prior year primarily due to higher average borrowings, in part offset by $1.1 million of greater interest income earned on cash equivalents during the current year. For more information, see Note 17, *Financial Instruments,* of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

**Other (income)/expense, net**

Other (income)/expense, net included foreign currency related transactions that resulted in losses of $8.9 million in 2025 as compared to $3.9 million of gains in 2024. In addition, changes in the fair value of derivative instruments included gains of $3.7 million in 2025 and losses of $3.5 million in 2024, driven by currency rate movements, most notably the Brazilian Real and Mexican Peso. See Note 6, Other (Income)/Expense, net*,* of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for additional information.

 **Income Taxes**

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| | | | |
|:---|:---|:---|:---|
| **Years ended December 31,**  | **2025** | **2024** | **2023** |
| Effective tax rate | 7.8% | 24.8% | 30.4% |

---

The effective tax rate represents the combined federal, state and foreign tax effects attributable to pretax earnings. For more information on income tax, see Note 7, *Income Taxes,* of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

The Company has continuously monitored its ability to realize deferred tax assets as it pertains to Heimbach GmbH due to their existing net operating loss carryovers. After reviewing the positive and negative evidence available as of December 31, 2025, we continue to assert that we will more likely than not be able to utilize the net deferred tax assets. Net operating losses, which make up the majority of the deferred tax assets, have an unlimited carryforward period in Germany and we expect continued improvements in the business post-acquisition due to synergies and efficiencies that will be realized in the near future. The current net deferred tax asset position at Heimbach GmbH as of December 31, 2025 is $16.5 million. If it was determined that a valuation allowance was required, a deferred tax

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expense of $16.5 million as of December 31, 2025 would be required to create a reserve against those net deferred tax assets. The assessment of the need for a valuation allowance could change in future periods if additional negative evidence is observed. The amount of the tax expense needed to book the valuation allowance could also change depending on additional activities.

The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% effective on January 1, 2024. While the U.S. has indicated that it will not adopt the Pillar Two framework at this time, various jurisdictions in which we operate have enacted, or are in the process of enacting, legislation to implement these rules. Based on their current design, the Pillar Two rules are expected to apply to our global operations. We have evaluated the impact of these rules and have determined that it did not materially increase our global tax costs in 2025. We will continue to monitor U.S. and global legislative action related to Pillar Two for potential impacts.

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**Segment Results of Operations**

***Machine Clothing Segment***

The MC segment accounted for 59.9% of our consolidated revenues during 2025. A summary of MC's selected financial results is as follows:

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| | | | |
|:---|:---|:---|:---|
| | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
|<br>**Years ended December 31,** | **2025** | **2024** | **2023** |
| Net revenues | $**708066** | $749907 | $670768 |
| % change | **-5.6%** | 11.8% | 10.1% |
| Gross profit | **323732** | 346044 | 331558 |
| % of net revenues | **45.7%** | 46.1% | 49.4% |
| SG&A expenses | **131175** | 123120 | 118196 |
| Technical and research expenses | **28090** | 29832 | 24651 |
| Restructuring expenses, net | **8255** | 9460 | 282 |
| Operating income | $**156212** | $183632 | $188429 |
| % of net revenues | **22.1%** | 24.5% | 28.1% |

---

**Net revenues**

Net revenues decreased 5.6% as compared to 2024, driven by reduced demand in Asia, most significantly in China, and by site consolidations, unplanned equipment downtime in one of our production facilities and lower than anticipated sales pricing. This decline is slightly offset by a strong performance within the European market, particularly related to the drying and pressing programs. Further, changes in currency translation rates had the effect of increasing Net revenues $1.2 million.

**Gross Profit**

Gross profit decreased by $22.3 million as compared to 2024, primarily driven by the volume declines noted above; with gross profit margin also decreasing slightly from 46.1% in 2024 to 45.7% in 2025.

**Operating Income**

Operating income decreased $27.4 million or 14.9% as compared to 2024, primarily as a result of gross profit declines and increased SG&A costs. Incremental SG&A expenses were primarily a result of increased revaluation losses on monetary operating assets.

**Backlog**

Backlog at MC can include certain unconfirmed customer indications that may be cancelled prior to release into production. Additionally, a significant amount of orders do not enter backlog due to short lead times. As such, we believe that the segment's backlog is not a strong indicator of expected future revenue.

***Albany Engineered Composites Segment***

The AEC segment accounted for 40.1% of our consolidated net revenues during 2025. AEC has contracts with certain customers, including its contract for the LEAP program, where revenue is determined by a cost-plus-fee agreement. Revenue earned under these arrangements accounted for approximately 39% of segment revenue for 2025 and 2024.

In addition, AEC has long-term contracts in which the selling price is fixed. In accounting for those contracts, we estimate the profit margin expected at the completion of the contract and recognize a pro-rata share of that profit during the course of the contract using a cost-to-cost approach. Changes in estimated contract profitability will affect revenue and gross profit when the change occurs, which could have a significant favorable or unfavorable effect on revenue and gross profit in any reporting period. For contracts with anticipated losses, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or

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administrative cost allocations, which are treated as period expenses. Expected losses on projects include losses on contract options that are probable of exercise, excluding profitable options that often follow.

A summary of AEC's selected financial results is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **(in thousands, except percentages)** | **(in thousands, except percentages)** | **(in thousands, except percentages)** |
|<br>**Years ended December 31,** | **2025** | **2024** | **2023** |
| Net revenues | $**474747** | $480708 | $477141 |
| % change | **-1.2%** | 0.7% | 12.2% |
| Gross profit | **(79812)** | 55732 | 92160 |
| % of net revenues | **-16.8%** | 11.6% | 19.3% |
| SG&A expenses | **46449** | 47421 | 48833 |
| Technical and research expenses | **15615** | 16265 | 15976 |
| Restructuring expenses, net | **3259** | 3649 |  |
| Operating income/(loss) | $**(145135)** | $(11603) | $27351 |
| % of net revenues | **-30.6%** | -2.4% | 5.7% |

---

**Net revenues**

Net revenues decreased 1.2%, primarily driven by $54.9 million of revenue adjustments to the CH-53K program based on our long-term contract estimates. These reductions are partially offset by higher activity levels on various programs including LEAP. Further, changes in currency translation rates had the effect of increasing Net revenues $1.4 million.

**Gross Profit**

Gross profit decreased $135.5 million as compared to last year, and Gross profit margin decreased from 11.6% in 2024 to (16.8)% in 2025. The reduction was driven primarily by approximately $155.9 million of increased life of contract cost assumptions surrounding the estimated profitability of our CH-53K long-term contracts.

**Operating Income/(Loss)**

Operating income decreased $133.5 million, principally due to reduced Gross profit as noted above. This was slightly offset by a decrease in SG&A expenses of $1.0 million, driven by a $0.7 million decrease in personnel-related costs. Technical and research expenses decreased $0.7 million as compared to 2024, driven by decreased research material and labor costs. Lastly, restructuring activities were related to reductions in the workforce at various AEC locations and resulted in restructuring expenses of $3.3 million, further reducing Operating income.

**Backlog**

Backlog at AEC represents the aggregate dollar value of products and services for the given term of our contracts with customers where we have enforceable rights, including both funded and unfunded contract scope, for which products have not been provided or services have not been performed, but excluding unexercised contract options and potential orders under ordering-type contracts. For new contract awards, the initial backlog recorded may only reflect a portion of the total value of the contract award, particularly for ordering-type contracts. Backlog may increase over time as the orders placed against a contract include enforceable rights. For our ASC LEAP contract with our partner Safran, our backlog reflects the agreed business plan values with Safran for the subsequent full twelve-month calendar year.

Orders included in our backlog may be modified, canceled, or rescheduled by our customers, although customers may incur cancellation penalties as defined in the terms of such customer contracts; and which such terms may vary from contract to contract. If any of our enforceable contracts were to be terminated, our backlog would be reduced by the expected value of the unfilled orders of such contracts.

Backlog differs from unsatisfied performance obligations for contracts disclosed in Note 3, *Revenue Recognition,* of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K, which excludes unsatisfied performance obligations with an original expected duration of one year or less.

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Backlog at AEC was $1.4 billion as of December 31, 2025.

**Working Capital, Liquidity and Capital Structure**

***Working Capital***

Payment terms granted to paper industry and other machine clothing customers reflect general competitive practices. Terms vary with product, competitive conditions, and the country of operation. In some markets, customer agreements require us to maintain significant amounts of finished goods inventory to assure continuous availability of our products.

In addition to supplying paper, paperboard, and tissue companies, the MC segment is a leading supplier to the nonwovens (which includes the manufacture of products such as diapers, personal care, and household wipes), building products, and tannery and textile industries. These non-paper industries have a wide range of customers, with markets that vary from industrial applications to consumer use products. The AEC segment primarily serves customers in the commercial and defense aerospace market through both engine and airframe applications. AEC's working capital levels rose steadily in the last several years in line with the segment's growth.

In the MC segment, the Chinese New Year, summer months, and the end of the year are often periods of lower production for some of our customers, which, in the past contributed to seasonal variation in sales and orders. In recent years, shorter order cycles and lower inventory levels throughout the supply chain have become a more significant factor in quarterly sales. The impact of these combined factors on any quarter can be difficult to predict, and can make quarterly comparisons less meaningful than annual comparisons. While seasonality is generally not a significant factor in the Albany Engineered Composites segment, the commercial terms of the supply agreement governing the LEAP program resulted in fourth quarter sales volatility in recent years.

***Cash Flow Summary***

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| | | | |
|:---|:---|:---|:---|
| | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|<br>**For the years ended December 31,** | **2025** | **2024** | **2023** |
| Net income | $**(56959)** | $88055 | $111610 |
| &nbsp;&nbsp;Depreciation and amortization | **87914** | 89294 | 76733 |
| &nbsp;&nbsp;Changes in working capital<sup>(a)</sup> | **10861** | 54321 | (44214) |
| &nbsp;&nbsp;Changes in long-term liabilities, deferred taxes and other credits | **(45865)** | (23033) | (11829) |
| &nbsp;&nbsp;&nbsp;Contract loss provision | **139665** |  |  |
| &nbsp;&nbsp;Other operating items | **16858** | 9804 | 15756 |
| Net cash provided by operating activities | **152474** | 218441 | 148056 |
| Net cash used in investing activities | **(68262)** | (80180) | (217899) |
| Net cash used in financing activities | **(96051)** | (183832) | (52641) |
| Effect of exchange rate changes on cash flows | **8906** | (12566) | 4128 |
| Increase/(decrease) in cash and cash equivalents | **(2933)** | (58137) | (118356) |
| Cash and cash equivalents at beginning of year | **115283** | 173420 | 291776 |
| Cash and cash equivalents at end of year | $**112350** | $115283 | $173420 |

---

_________________________

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

Net cash provided by operating activities during 2025 was $152.5 million, compared to $218.4 million in 2024. The decrease was primarily driven by slower working capital turns at both segments much of which is driven by higher levels of year-end shipments at AEC, as well as lower net income adjusted for non-cash items.

Net cash used in investing activities included capital expenditures totaling $71.5 million and $81.2 million during 2025 and 2024, respectively, which include investments in new aerospace programs and productivity enhancements in our MC segment. In addition to lower capital expenditures, the decrease from 2024 is due, in part, to proceeds from the sale of Arcari in April 2025.

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Net cash used in financing activities was $96.1 million during 2025 as compared to $183.8 million during 2024. The change in cash used in finance activities is a result of increased borrowings and a decrease in principal debt payments versus prior year, partially offset by increased share repurchases.

***Liquidity and Capital Structure***

We finance our business activities primarily with cash generated from operations and borrowings, largely through our revolving credit agreement as discussed below. Our subsidiaries outside of the United States may also maintain working capital lines with local banks.

Under our $800 million unsecured credit agreement, $455.7 million of borrowings were outstanding as of December 31, 2025. We believe cash flows from operations and the availability of funds under our Amended Credit Agreement will be adequate to fund our operations and business needs over the next twelve months.

As of December 31, 2025, we had cash and cash equivalents of $112.4 million and availability under our Credit Agreement of $344.3 million, for a total liquidity of approximately $456.7 million. For more information on the revolving credit agreement, see Note 17, *Financial Instruments,* of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

As of December 31, 2025, $91.6 million of our total cash and cash equivalents was held by non-U.S. subsidiaries. The Company has targeted for repatriation $122.2 million of current year and prior year earnings of the Company's foreign operations. The accumulated undistributed earnings of the Company's foreign operations not targeted for repatriation to the U.S. were approximately $132.1 million, and are intended to remain indefinitely invested in foreign operations. Our cash planning strategy includes repatriating current earnings in excess of working capital requirements from certain countries in which our subsidiaries operate. While we have been successful in such endeavor to date, there can be no assurance that we will be able to cost-effectively repatriate funds in the future. Repatriating such cash from certain jurisdictions, which is currently considered to be indefinitely reinvested in foreign operations, may also result in additional taxes.

We have also returned cash to shareholders through dividends and share repurchases. We paid dividends of $32.5 million and $32.5 million during 2025 and 2024, respectively. In total, the Company repurchased 2,841,036 shares in 2025 for a total cost of $187.9 million. On February 21, 2025, the Company's Board of Directors authorized the Company to repurchase shares up to $250 million, which replaces a prior authorization put in place in 2021. The Company has $76.7 million remaining under this authorization for future share repurchases.

The Company is party to certain off-balance sheet arrangements, including certain guarantees. The Company provides financial assurance, such as payment guarantee and letters of credit and surety bonds, primarily to support workers' compensation programs and customs clearance, of less than $12 million. There were no material changes in the Company's off-balance sheet arrangements during 2025.

<u>Other Sources/Uses of Capital</u>

We have contractual commitments to repay debt, make payments under leases, contribute to our pension and postretirement plans, and settle obligations related to agreements to purchase goods and services, income taxes, compensation plans, and as applicable, interest rate swaps. We estimate these contractual commitments amount to approximately $595.2 million as of December 31, 2025, of which we expect to pay $41.7 million within the next year. Interest payments on debt are expected to be approximately $17.6 million in 2026, $17.6 million in 2027, and $11.1 million in 2028, and principal payments on debt of $330.7 million are not due until 2028. For more information on the revolving credit agreement, see Note 17, *Financial Instruments*, for payments related to leases see Note 20, *Leases*, and for payments related to pension and postretirement plans see Note 4, *Pension, Postretirement, and Other Benefit Plans*, as included in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. Payments for these commitments are not representative of all our future cash requirements, which will vary based on future needs.

**Critical Accounting Policies**

For the discussion of our accounting policies, see Note 1, *Accounting Policies*, of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make assumptions and estimates that directly affect the amounts reported

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in the Consolidated Financial Statements. Each of these assumptions is subject to uncertainties and changes in those assumptions or judgments which can affect our results of operations. In addition to the accounting policies stated in Note 1, *Accounting Policies,* of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K, the financial statement amounts and disclosures are significantly influenced by market factors, judgments and estimates as described below.

**Revenue Recognition**

Contracts with customers in the MC segment have various terms that can affect the point in time when revenue is recognized. The contractual terms are closely monitored in order to ensure revenue is recognized in the proper period.

Products and services provided under long-term contracts represent a significant portion of net revenues in the AEC segment. AEC's largest source of revenue is derived from the LEAP contract under a cost-plus-fee agreement. The fee may vary within a narrow range based on our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred. Under this contract, there is judgment involved in determining applicable contract costs and the amount of revenue to be recognized.

We also have fixed price long-term contracts, for which revenue is generally recognized over time using an input method as the measure of progress. This method requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs.

AEC has long-term aerospace contracts under which there are two phases: a phase during which the production part is designed and tested, and a phase of supplying production parts. During the design and testing phases, we perform pre-production or nonrecurring engineering services, which are normally considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized in Other assets. The capitalized costs are amortized into cost of goods sold over the period which the asset is expected to contribute to future cash flows, including anticipated renewal periods. Accumulated capitalized costs are written-off when those costs are determined to be unrecoverable.

For contracts with anticipated losses, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract loss provisions include contract options that are probable of exercise, excluding any profitable options that might be expected to follow. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative costs, which are treated as period expenses. We are required to limit our estimate of contract values to the period of the legally enforceable contract. While certain contracts are expected to be profitable over the course of the program life when including expected renewals, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated renewals. In some cases, the contract period may result in a loss contract provision at the inception of the contract.

**Pension and Postretirement Liabilities**

We sponsor several pension and postretirement benefit plans. Our liabilities under these defined benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate, health care cost inflation rate and the long-term rate of return on plan assets. We review our actuarial assumptions on an annual basis and make modifications to the assumptions when appropriate.

*Discount Rate Selection*

We select a discount rate for purposes of measuring obligations under defined benefit plans by matching cash flows separately for each plan to the yields on high-quality zero-coupon bonds. We use the RATE: Link 60-90 model (the "RATE Link"). We believe the projected cash flows used to determine RATE Link provide a good approximation of the timing and amounts of our defined benefit payments under our plans and no adjustments to RATE Link has been made.

Measurement of our postretirement benefit obligations requires the use of several assumptions about factors that will affect the amount and timing of future benefit payments. The assumed health care cost trend rates are the most

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critical estimates for measurement of the postretirement benefit obligation. Changes in the health care cost trend rates have a significant effect on the amounts reported for the health care benefit obligation.

*Long-term Rate of Return on Plan Assets Assumption*

Our expected long-term rate of return on plan assets is derived from our asset allocation strategies and anticipated future long-term performance of individual asset classes. Our analysis gives consideration to recent plan performance and historical returns; however, the assumptions are primarily based on long-term, prospective rates of return. The weighted average long-term rate of return on plan assets for our defined benefit pension plans is 4.82% for 2025.

Based on information provided by actuaries and other relevant sources, the Company believes that the assumptions used to estimate expenses, assets and liabilities of pensions and postretirement benefits are reasonable; however, changes in these assumptions could impact the Company's financial position, results of operations or cash flows.

**Income Taxes**

We evaluate the realizability of deferred tax assets by assessing available positive and negative evidence, including the expected reversal of existing temporary differences and projections of future taxable income. If, based on the weight of available evidence, we believe that it is more likely than not some portion of the deferred tax asset will not be realized, a valuation allowance is established. The amount of a valuation allowance is based upon management's best estimate of deferred tax assets that are not expected to be realized.

Tax positions taken or expected to be taken in a tax return are recognized when it is more-likely-than-not, based on technical merits, to be sustained upon examination by taxing authorities. The amount of tax benefit recognized is measured as the largest amount of benefit that has a greater than 50% likely of being realized upon ultimate settlement, including resolution of any administrative appeals or litigation process, where applicable. These evaluations involve a high degree of uncertainty because they require us to make material assumptions about future events that are inherently difficult to predict. Key judgments include projections of future taxable income across multiple tax jurisdictions, interpretations of continually evolving tax laws and regulations, expectations regarding audit outcomes, and assessments of the timing and reversals of temporary differences. Changes in these assumptions or in actual outcomes could materially affect the amount of deferred tax assets we are able to realize, the valuation allowance recorded, and the recognition and measurement of uncertain tax positions

**Business Combinations**

As we enter into business combinations, we perform acquisition accounting requirements including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identifying the acquirer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Determining the acquisition date,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Recognizing and measuring the identifiable assets acquired and the liabilities assumed, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Recognizing and measuring goodwill, as applicable.

We complete valuation procedures and record the resulting fair value of the acquired assets and assumed liabilities in accordance with the acquisition method under ASC 805, Business Combinations. The acquisition methodology requires management to make assumptions and apply judgment to determine the fair value of assets acquired and liabilities assumed. If estimates or assumptions used to complete the enterprise valuation and estimates of the fair value of the acquired assets and assumed liabilities significantly differ from assumptions made, the resulting difference could materially affect the fair value of net assets.

In determining the fair value of the tangible assets, including property, plant and equipment, we consider the cost-approach and the market approach, which estimates the cost to replace the asset, less accrued depreciation resulting from physical deterioration, functional obsolescence and external obsolescence. In the determination of the fair value of the identified intangible assets, we use cash flow models following the income approach, specifically, a relief from royalty method methodology. Inputs include estimated revenue growth rates, gross margins, operating expenses, and estimated attrition, royalty and discount rates. Goodwill is recorded as the difference in the fair value of the acquired assets and assumed liabilities and the purchase price, as applicable.

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**Goodwill and Intangible assets**

Goodwill is not amortized, but is tested for impairment at least annually. Estimating the fair value of reporting units requires the use of estimates and significant judgments, including but not limited to revenue growth rates, operating margins, discount rates, and future market conditions. It is possible that these judgments and estimates could change in future periods. Impairment assessments inherently involve management judgments regarding a number of assumptions such as those described. Due to the many variables inherent in the estimation of a reporting unit's fair value and the relative size of our recorded goodwill, differences in assumptions could have a material effect on the estimated fair value of one or more of our reporting units and could result in a goodwill impairment charge in a future period.

The determination of the fair value of intangible assets acquired in a business acquisition is subject to many estimates and assumptions. Among such estimates and assumptions are royalties, discount rate and useful life. We review amortizable intangible asset groups for impairment whenever events and changes in circumstances indicate that the related carrying amounts may not be recoverable.

**Recent Accounting Pronouncements**

See *"Recent Accounting Pronouncements"* in Note 1, *Accounting Policies*, of the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K.

**Item 7A.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

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

**Foreign Currency Exchange Rate Risk**

We have manufacturing plants and sales transactions worldwide and, therefore, are subject to foreign currency risk. Our operational results can be materially impacted depending on the volatility and magnitude of foreign rate changes. This risk is composed of both potential losses from the translation of foreign currency financial statements and the remeasurement of foreign currency transactions. To manage this risk, we periodically enter into forward exchange contracts to provide an economic hedge against future cash flows. The total net assets of non-U.S. operations and long-term intercompany loans denominated in nonfunctional currencies subject to potential loss amount to approximately $602.4 million. The potential loss in fair value resulting from a hypothetical 10% adverse change in quoted foreign currency exchange rates amounts to $60.2 million. Furthermore, related to foreign currency transactions, we have exposure to various nonfunctional currency balances totaling $214.9 million. This amount includes, on an absolute basis, exposures to assets and liabilities held in currencies other than our local entities' functional currency. On a net basis, we had $137.9 million of foreign currency assets as of December 31, 2025. As currency rates change, these nonfunctional currency balances are revalued, and the corresponding adjustment is recorded in the income statement. A hypothetical change of 10% in currency rates could result in an adjustment to the income statement of approximately $13.8 million. Actual results may differ.

**Interest Rate Risk**

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

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On December 31, 2025, we had the following variable rate debt:

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| | |
|:---|:---|
| **(in thousands, except interest rates)** | |
| **Long-term debt:** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit agreement borrowings outstanding (net of fixed rate portion, due in 2028): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;USD borrowings (end of period all-in interest rate of 5.48%) | $225000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EUR borrowings (end of period all-in interest rate of 3.56%) | 52831 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign bank debt |  |
| **Total** | $277831 |

---

Assuming borrowings were outstanding for an entire year, an increase of one percentage point in weighted average interest rates would increase interest expense by $2.8 million. To manage interest rate risk, we may periodically enter into interest rate swap agreements to effectively fix the interest rates on variable rate debt to a specific rate for a period of time. (See Note 18, *Fair-Value Measurements*, of the Notes to the Consolidated Financial Statements, in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K).

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**Item 8.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| <u>[Report of Independent Registered Public Accounting Firm](#ib1b89345a4364fb69d7ce3189f67b705_85)</u> | <u>[49](#ib1b89345a4364fb69d7ce3189f67b705_85)</u> |
| <u>[Consolidated Statements of Income](#ib1b89345a4364fb69d7ce3189f67b705_88)[/(](#ib1b89345a4364fb69d7ce3189f67b705_88)[Loss](#ib1b89345a4364fb69d7ce3189f67b705_88)[)](#ib1b89345a4364fb69d7ce3189f67b705_88)[for the years ended December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_88)[5](#ib1b89345a4364fb69d7ce3189f67b705_88)[, 202](#ib1b89345a4364fb69d7ce3189f67b705_88)[4](#ib1b89345a4364fb69d7ce3189f67b705_88)[, and 20](#ib1b89345a4364fb69d7ce3189f67b705_88)[23](#ib1b89345a4364fb69d7ce3189f67b705_88)</u> | <u>[52](#ib1b89345a4364fb69d7ce3189f67b705_88)</u> |
| <u>[Consolidated Statements of Comprehensive Income](#ib1b89345a4364fb69d7ce3189f67b705_91)[/(Loss)](#ib1b89345a4364fb69d7ce3189f67b705_91)[for the years ended December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_91)[5](#ib1b89345a4364fb69d7ce3189f67b705_91)[, 202](#ib1b89345a4364fb69d7ce3189f67b705_91)[4](#ib1b89345a4364fb69d7ce3189f67b705_91)[, and 202](#ib1b89345a4364fb69d7ce3189f67b705_91)[3](#ib1b89345a4364fb69d7ce3189f67b705_91)</u> | <u>[53](#ib1b89345a4364fb69d7ce3189f67b705_91)</u> |
| <u>[Consolidated Balance Sheets as of December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_94)[5](#ib1b89345a4364fb69d7ce3189f67b705_94)[and 20](#ib1b89345a4364fb69d7ce3189f67b705_94)[24](#ib1b89345a4364fb69d7ce3189f67b705_94)</u> | <u>[54](#ib1b89345a4364fb69d7ce3189f67b705_94)</u> |
| <u>[Consolidated Statements of Cash Flows for the years ended December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_97)[5](#ib1b89345a4364fb69d7ce3189f67b705_97)[, 202](#ib1b89345a4364fb69d7ce3189f67b705_97)[4](#ib1b89345a4364fb69d7ce3189f67b705_97)[, and 20](#ib1b89345a4364fb69d7ce3189f67b705_97)[23](#ib1b89345a4364fb69d7ce3189f67b705_97)</u> | <u>[55](#ib1b89345a4364fb69d7ce3189f67b705_97)</u> |
| <u>[Notes to Consolidated Financial Statements](#ib1b89345a4364fb69d7ce3189f67b705_100)</u> | <u>[56](#ib1b89345a4364fb69d7ce3189f67b705_100)</u> |

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**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors

Albany International Corp.:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated balance sheets of Albany International Corp. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income (loss), comprehensive income (loss), and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement Schedule - Valuation and Qualifying Accounts (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 27, 2026 expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*Critical Audit Matter*

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Evaluation of estimated total contract costs at completion for Albany Engineered Composites revenue recognition for certain firm-fixed-price contracts*

As discussed in Note 3 to the consolidated financial statements, a portion of the Albany Engineered Composites (AEC) segment revenue is earned under firm-fixed-price orders that are placed under definitive agreements, with revenue recognized over time as costs are incurred. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue is recorded proportionally as costs are incurred.

We identified the evaluation of estimated total contract costs at completion for AEC revenue recognition for certain firm-fixed-price contracts as a critical audit matter. A high degree of auditor judgment was required to evaluate the

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estimates of total contract costs at completion because of the varied nature and inherent complexities of the contractual performance obligations.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the AEC revenue process. This included controls related to developing forecasted estimated total contract costs. For certain contracts, we compared the Company's historical estimates of costs to actual costs incurred to assess the Company's ability to estimate accurately. We read relevant agreements, including amendments, and inquired of financial and operational personnel of the Company to identify factors that should be considered within the cost to complete estimates. We inspected the Company's analysis of contract status, including forecasted costs, which we compared against historical costs.

/s/ KPMG LLP

We have served as the Company's auditor since 2014.

Boston, Massachusetts

February 27, 2026

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**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors

Albany International Corp.:

*Opinion on Internal Control Over Financial Reporting*

We have audited Albany International Corp. and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income (loss), comprehensive income (loss), and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement Schedule - Valuation and Qualifying Accounts (collectively, the consolidated financial statements), and our report dated February 27, 2026 expressed an unqualified opinion on those consolidated financial statements.

*Basis for Opinion*

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

*Definition and Limitations of Internal Control Over Financial Reporting*

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Boston, Massachusetts

February 27, 2026

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**Albany International Corp.**

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

**For the years ended December 31,** 

**(in thousands, except per share amounts)**

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| Net revenues | $**1182813** | $1230615 | $1147909 |
| Cost of goods sold | **938893** | 828839 | 724191 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | **243920** | 401776 | 423718 |
| Selling, general and administrative expenses | **218326** | 210882 | 214915 |
| Technical and research expenses | **48015** | 46097 | 40627 |
| Restructuring expenses, net | **13682** | 13438 | 282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income/(loss) | **(36103)** | 131359 | 167894 |
| Interest income | **(5159)** | (4064) | (6566) |
| Interest expense | **25764** | 16613 | 20167 |
| Other expense/(income), net | **5079** | 1721 | (6163) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income/(loss) before income taxes | **(61787)** | 117089 | 160456 |
| Income tax (benefit)/expense | **(4828)** | 29034 | 48846 |
| Net income/(loss) | **(56959)** | 88055 | 111610 |
| Net income attributable to the noncontrolling interest | **383** | 432 | 490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income/(loss) attributable to the Company | $**(57342)** | $87623 | $111120 |
| Earnings per share: |  |  |  |
| Basic earnings (loss) per share attributable to Company shareholders | $**(1.94)** | $2.81 | $3.56 |
| Diluted earnings (loss) per share attributable to Company shareholders | $**(1.94)** | $2.80 | $3.55 |
| Dividends declared per share | $**1.09** | $1.05 | $1.01 |
| Weighted average shares outstanding: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | **29566** | 31231 | 31171 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | **29566** | 31338 | 31276 |

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

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**Albany International Corp.**

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

**For the years ended December 31,** 

**(in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| Net income/(loss) | $**(56959)** | $88055 | $111610 |
| Other comprehensive income/(loss), before tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation and other adjustments | **60352** | (56551) | 18593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension settlement/curtailment | **(2002)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension/postretirement plan remeasurement | **(8361)** | 3888 | 4302 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of pension and postretirement liability adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior service credit | **(150)** | (150) | (4122) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net actuarial loss | **1151** | 613 | 1383 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments and amortization related to interest rate swaps included in earnings | **(269)** | (13547) | (15062) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative valuation adjustment | **(399)** | 1261 | 3512 |
| Income taxes related to items of other comprehensive income/(loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension settlement/curtailment | **422** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension/postretirement plan remeasurement | **1763** | (1283) | (673) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of pension and postretirement liability adjustments | **(210)** | (153) | 904 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments and amortization related to interest rate swaps included in earnings | **62** | 3419 | 3811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative valuation adjustment | **92** | (318) | (889) |
| Comprehensive income/(loss) | **(4508)** | 25234 | 123369 |
| Comprehensive income/(loss) attributable to the noncontrolling interest | **484** | (543) | 949 |
| Comprehensive income/(loss) attributable to the Company | $**(4992)** | $25777 | $122420 |

---

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

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**Albany International Corp.**

**CONSOLIDATED BALANCE SHEETS**

**At December 31, (in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**112350** | $115283 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | **235084** | 246688 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets, net | **87102** | 166557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | **121589** | 145845 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes prepaid and receivable | **43937** | 19187 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **34990** | 37132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | **293783** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | **928835** | 730692 |
| Property, plant and equipment, net | **482568** | 563431 |
| Intangibles, net | **21428** | 38127 |
| Goodwill | **162507** | 176261 |
| Deferred income taxes | **68499** | 28757 |
| Other assets | **54872** | 111428 |
| Total assets | $**1718709** | $1648696 |
| **Liabilities and Shareholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $**64499** | $66095 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | **139385** | 141904 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | **35090** | 18367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities held for sale | **203323** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | **442297** | 226366 |
| Long-term debt | **455663** | 318531 |
| Other noncurrent liabilities | **86850** | 138830 |
| Deferred taxes and other liabilities | **1797** | 16022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **986607** | 699749 |
| Commitments and Contingencies (Note 21) |  |  |
| Shareholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; issued 40,989,106 in 2025 and 40,917,539 in 2024 | **41** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | **460472** | 452933 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | **976373** | 1065763 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated items of other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Translation adjustments | **(119008)** | (181555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension and postretirement liability adjustments | **(23911)** | (14328) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative valuation adjustment | **(619)** | (106) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock (Class A), at cost; 12,685,782 shares in 2025 and 9,844,746 in 2024 | **(567139)** | (379210) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Company shareholders' equity | **726209** | 943538 |
| Noncontrolling interest | **5893** | 5409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | **732102** | 948947 |
| Total liabilities and shareholders' equity | $**1718709** | $1648696 |

---

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

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**Albany International Corp.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**For the years ended December 31,** 

**(in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| **OPERATING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;Net income | $**(56959)** | $88055 | $111610 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | **82712** | 82452 | 70374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | **5202** | 6842 | 6359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes and other liabilities | **(43315)** | (15331) | (2046) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of property, plant, equipment, and inventory | **(390)** | 2038 | 1773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest expense | **1029** | 1025 | 1404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract loss provision | **139665** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | **10060** | 4715 | 6936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision/(recovery) for credit losses from uncollected receivables and contract assets | **(139)** | 310 | 640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency remeasurement (gain)/loss on intercompany loans | **8883** | 81 | (2831) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustment on foreign currency options | **—** |  | (139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of assets | **(1566)** | (513) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities that provided/(used) cash, net of impact of business acquisition: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **(724)** | 31764 | (11038) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets | **(23189)** | 12289 | (32156) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **17627** | 14627 | 15093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **1865** | 4002 | 1530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes prepaid and receivable | **(25060)** | (8574) | (2897) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | **9172** | (3084) | (5672) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | **7975** | (1275) | (10441) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | **14507** | 6918 | (1988) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncurrent receivables | **—** | (780) | 3723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | **(2550)** | (7702) | (9783) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | **7669** | 582 | 7605 |
| Net cash provided by operating activities | **152474** | 218441 | 148056 |
| **INVESTING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of business, net of cash acquired | **—** |  | (133470) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment | **(69830)** | (80249) | (83560) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchased software | **(1675)** | (958) | (869) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds received from sale of assets | **3243** | 1027 |  |
| Net cash used in investing activities | **(68262)** | (80180) | (217899) |
| **FINANCING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from borrowings | **272003** | 145595 | 78040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on debt | **(147044)** | (279838) | (92274) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt acquisition costs | **—** |  | (4108) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of Treasury shares | **(186012)** | (14175) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid in lieu of share issuance | **(2521)** | (2931) | (3136) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | **(32477)** | (32483) | (31163) |
| Net cash used in financing activities | **(96051)** | (183832) | (52641) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash and cash equivalents | **8906** | (12566) | 4128 |
| (Decrease) in cash and cash equivalents | **(2933)** | (58137) | (118356) |
| Cash and cash equivalents at beginning of period | **115283** | 173420 | 291776 |
| Cash and cash equivalents at end of period | $**112350** | $115283 | $173420 |

---

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

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies**

**Basis of Consolidation and Presentation**

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and include the accounts of Albany International Corp. and its subsidiaries (the Company, Albany, we, us, or our) after elimination of intercompany transactions. Certain prior year amounts have been reclassified in order to conform to current year presentation. Global information system costs previously included in Corporate expenses are allocated to the segments. Management believes this presentation better reflects the performance of the segments and is how management will review segment performance on a going forward basis. See Note 3, *Reportable Segments and Geographical Data,* of the Notes to the Consolidated Financial Statements for more information on our segments.

On August 31, 2023, the Company completed the acquisition of Heimbach GmbH ("Heimbach"), a privately-held manufacturer of paper machine clothing and technical textiles, as further described in Note 24, *Business Combination*, of the Notes to the Consolidated Financial Statements of our 2023 Annual Report on Form 10-K*.* The financial results of the acquired company are included in the Machine Clothing reportable segment since the date of the acquisition.

The Company owns 90% of the common equity of Albany Safran Composites, LLC ("ASC") which is reported within the Albany Engineered Composites segment. The Company also previously owned 85% of Arcari, SRL ("Arcari") which was divested during the second quarter of 2025. Additional information regarding noncontrolling interest is included in Note 10, *Noncontrolling Interest*, of the Notes to the Consolidated Financial Statements.

**Estimates**

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used in the accounting for, among others, revenue recognition, contract profitability, allowances for doubtful accounts, rebates and sales allowances, inventory allowances, financial instruments, including derivatives, pension and other postretirement benefits, assets and liabilities held-for-sale, goodwill and intangible assets, contingencies, income taxes, and other accruals. Our estimates are based on historical experience and on various other assumptions, which are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may materially differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary.

**Revenue Recognition**

In our Machine Clothing ("MC") business segment, we recognize revenue at the point in time when we satisfy our performance obligations related to the manufacture and delivery of products. In our Albany Engineered Composites ("AEC") business segment, revenue from most long-term contracts is generally recognized over time using an input method as the measure of progress. The amount of revenue in excess of progress billings on long-term contracts is included in Contract assets, net, which represent rights to consideration that are conditional on something other than the passage of time, such as completion of remaining performance obligations.

For over time contracts, we are required to limit our estimate of contract values to the period of the legally enforceable contract. While certain contracts are expected to be profitable over the course of the program life when including expected renewals, our estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated renewals. This contract period may result in a loss contract provision at contract inception. Expected losses on projects include losses on contract options that are probable of exercise, excluding profitable options that may follow. For contracts with anticipated losses, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations, which are treated as period expenses.

Products and services provided under long-term contracts represent a significant portion of Net revenues in the AEC segment. We have contracts with certain customers for which revenue is recognized under a cost-plus-fee agreement. We also have fixed price long-term contracts, for which we use the percentage of completion (incurred cost to total estimated cost) method. That method requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs.

Additional accounting policies related to revenue from contracts with customers are set forth in Note 3, *Revenue Recognition*, of the Notes to the Consolidated Financial Statements.

We limit the concentration of credit risk in receivables by closely monitoring credit and collection policies. We record allowances for sales returns as a deduction in the computation of Net revenues. Such provisions are recorded on the basis of written communication with customers and/or historical experience. Any value added taxes that are imposed on sales transactions are excluded from Net revenues.

**Cost of Goods Sold**

Cost of goods sold includes the cost of materials, provisions for obsolete inventories, labor and supplies, shipping and handling costs, depreciation of manufacturing facilities and equipment, purchasing, receiving, warehousing, and other expenses. Cost of goods sold also includes provisions for loss contracts and charges for the write-off of inventories that result from an exit activity.

**Selling, General, and Administrative ("SG&A") Expenses**

Selling, general, and administrative expenses are primarily comprised of wages, incentive compensation, benefits, travel, professional fees, revaluation of trade foreign currency balances, global information system costs, and other costs, and are expensed as incurred. Selling expense includes costs related to contract acquisition and provisions for expected credit losses on financial assets measured at amortized cost.

**Technical and Research Expenses**

Technical and research expenses are charged to operations as incurred and consist primarily of compensation, supplies, and professional fees incurred in connection with intellectual property.

The AEC segment participates in both company-sponsored, and customer-funded research and development. Some customer-funded research and development may be on a cost-sharing basis and considered to be a collaborative arrangement, in which case both parties are active participants and are exposed to the risks and rewards dependent on the success of the activity. In such cases, amounts charged to the collaborating entity are credited against research and development expense. For customer-funded research and development in which we anticipate funding to exceed expenses, we include amounts charged to the customer in Net revenues, while expenses are included in Cost of goods sold.

**Restructuring Expense**

We may incur expenses related to exiting a line of business or restructuring of our operations or organizational structure, which could include employee termination costs, costs to consolidate or close facilities, or costs to terminate contractual relationships. Restructuring expenses may also include impairment of Property, plant and equipment, as described below under "Property, Plant and Equipment." Employee termination costs include severance pay and social costs for periods after employee service is completed. Termination costs related to an ongoing benefit arrangement are recognized when the amount becomes probable and estimable. Termination costs related to a one-time benefit arrangement are recognized at the communication date to employees. Costs related to contract termination, relocation of employees, outplacement and the consolidation or the closure of facilities, are recognized when incurred.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

**Income Taxes**

Deferred income taxes are recognized for the tax consequences of temporary differences and tax attributes by applying enacted statutory tax rates applicable for future years to differences between existing assets and liabilities for financial reporting and income tax return purposes. The effect of tax rate changes on deferred taxes is recognized in the income tax provision in the period that includes the enactment date. A valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. In the event it becomes more likely than not that some or all of the deferred tax asset valuation allowances will not be needed, the valuation allowance will be adjusted.

In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have determined the amount of the tax benefit to be recognized by estimating the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. We have not elected to reclassify stranded tax effects from Accumulated items of other comprehensive income (AOCI) to retained earnings.

**Earnings Per Share**

Basic net earnings or loss per share is computed using the weighted average number of shares of Class A Common Stock outstanding during each year. Diluted net income per share includes the effect of all potentially dilutive securities. If we report a net loss from continuing operations, the diluted loss per share is equal to the basic earnings per share calculation.

**Translation of Financial Statements**

Assets and liabilities of non-U.S. operations are translated at year-end rates of exchange, and the income statement accounts are translated at average monthly exchange rates. Gains or losses resulting from translating non-U.S. currency financial statements into U.S. dollars are recorded in other comprehensive income and accumulated in Shareholders' equity in the caption "Translation adjustments."

Selling, general, and administrative expenses include foreign currency gains and losses resulting from third party balances, such as receivables and payables, which are denominated in a currency other than the entity's functional currency. Gains or losses resulting from cash and short-term intercompany loans and balances denominated in a currency other than the entity's functional currency, and foreign currency options are generally included in Other expense, net. Gains and losses on long-term intercompany loans not intended to be repaid are recorded in other comprehensive income.

The following table summarizes foreign currency transaction gains and losses recognized in the income statement:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| (Gains)/losses included in: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative expenses | $**6252** | $(4495) | $4181 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income)/expense, net | **8883** | (3900) | (2916) |
| Total transaction (gains)/losses | $**15135** | $(8395) | $1265 |

---

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

**Cash and Cash Equivalents**

Cash and cash equivalents consist of cash and highly liquid short-term investments with maturities of three months or less at the date of acquisition by the company.

**Accounts Receivable**

Accounts receivable includes trade and other accounts receivables and Bank promissory notes. In connection with certain sales in Asia Pacific, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which is less than one year.

In accordance with ASC 326, Current Expected Credit Losses ("CECL"), the Company recognizes an allowance for expected credit losses on financial assets measured at amortized cost, such as Accounts receivable and Contract assets. The allowance is determined using a CECL model that is based on an historical average three-year loss rate and is measured by financial asset type on a collective (pool) basis when similar risk characteristics exist, at an amount equal to lifetime expected credit losses. The estimate reflects the risk of loss due to credit default, even when the risk is remote, and considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable expected future economic conditions.

See additional information set forth in Note 11, *Accounts Receivable*, of the Notes to the Consolidated Financial Statements.

**Contract Assets and Contract Liabilities**

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

See additional information set forth in Note 12, *Contract Assets and Liabilities*, of the Notes to the Consolidated Financial Statements.

**Inventories**

Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw materials inventory is valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. Write-downs of inventories are charged to Cost of goods sold. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories.

See additional information set forth in Note 3, *Revenue Recognition*, and Note 13, *Inventories*, of the Notes to the Consolidated Financial Statements.

**Leases**

We determine if an arrangement is a lease at inception. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we assess whether:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The contract involves the use of an identified asset. This may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset,

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The lessee has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The lessee has the right to direct the use of the asset, which is demonstrated when the lessee has decision-making rights that are most relevant to changing how and for what purpose the asset is used.

Judgment is required in the determination of whether a contract contains a lease, the appropriate classification, allocation of consideration, and the determination of the discount rate for the lease. Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term and (3) lease payments.

We have certain lease agreements with lease and non-lease components. For most of these leases, we account for the lease and non-lease components as a single lease component, in accordance with the practical expedient that is available for ongoing accounting. Additionally, for certain other leases, such as for vehicles, we apply a portfolio approach. Such new leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Expenses related to operating leases are recognized on a straight-line basis, while those determined to be finance leases are recognized following a front-loaded expense profile, in which interest and amortization are presented separately in the income statement.

Operating lease right of use asset ("ROU") assets are included in Other assets in the Consolidated Balance Sheets, while finance lease ROU assets are included in Property, plant, and equipment, net. Lease liabilities for both operating and finance leases are included in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets.

See additional information set forth in Note 20, *Leases*, of the Notes to the Consolidated Financial Statements.

**Debt**

The Company relies on bank financing as an important source of liquidity for business activities. Outstanding debt is classified as current or long-term based on the maturity of the Company's financing arrangements. See additional information set forth in Note 17, *Financial Instruments*, of the Notes to the Consolidated Financial Statements.

**Property, Plant and Equipment**

Property, plant and equipment are recorded at cost, or if acquired as part of a business combination, at fair value. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets for financial reporting purposes. In some cases, accelerated methods are used for income tax purposes. Significant additions or improvements extending assets' useful lives are capitalized; normal maintenance and repair costs are expensed as incurred. The cost of fully depreciated assets remaining in use is included in the respective asset and accumulated depreciation accounts. When items are sold or retired, related gains or losses are included in Net income.

Computer software purchased for internal use, at cost, is amortized on a straight-line basis over five to eight years, depending on the nature of the asset, after being placed into service, and is included in Property, plant, and equipment. We capitalize internal and external costs incurred related to the software development stage. Capitalized salaries, travel, and consulting costs related to the software development totaled $1.2 million in both 2025 and 2024.

We review the carrying value of property, plant and equipment and other long-lived assets for impairment whenever events and circumstances indicate that the carrying value of an asset group may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.

See additional information set forth in Note 14, *Property, Plant and Equipment, Net*, of the Notes to the Consolidated Financial Statements.

**Business Combinations**

The total purchase consideration for an acquisition is measured at the fair value of the assets acquired and liabilities assumed as of the acquisition date. Costs that are directly attributable to the acquisition are expensed as incurred.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

Identifiable assets acquired, liabilities assumed, and noncontrolling interests in an acquisition are measured initially at their fair values at the acquisition date. We recognize goodwill if the fair value of the total purchase consideration and any noncontrolling interest is in excess of the net fair value of the identifiable assets acquired and the liabilities assumed. We include the results of operations of the acquired business in the consolidated financial statements beginning on the acquisition date.

**Assets and Liabilities Held for Sale**

Disposal groups are classified as held-for-sale if their carrying amounts are expected to be recovered through a sale transaction rather than through continuing use. Disposal groups classified as held-for-sale are measured at the lower of their carrying amount or the fair value less costs of disposal. Disposal groups are classified as current if the sale is probable within one year of the balance sheet date. Depreciation or amortization of an asset ceases when it is classified as held-for-sale. When disposal groups are classified as held-for-sale, prior period amounts are not reclassified to reflect the current period presentation within the Consolidated Balance Sheet.

The determination of the fair value less costs of disposal involves the use of estimates and assumptions that tend to be uncertain. Determining the fair value of a disposal group quantitatively requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. For purposes of allocating goodwill to the disposal groups that represent a portion of a reporting unit, we determine the fair value of each disposal group based on income-based valuation techniques, utilizing projected discounted cash flows. Additionally, there may be adjustments in a future period related to resolution of uncertainties that arise from the terms of the disposal transaction, such as the resolution of purchase price adjustments and indemnifications, resolution of uncertainties that arise from and are directly related to the operations of the component before its disposal.

**Goodwill, Intangibles, and Other Assets**

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Intangible assets from acquired businesses are recognized at fair value on the acquisition date and consist of customer relationships, customer contracts, technology, intellectual property and other intangible assets. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually.

We perform an impairment test of our goodwill at least annually in the second quarter or more frequently whenever events or changes in circumstances indicate the carrying value of goodwill may be impaired. Such events or changes in circumstances may include a significant deterioration in overall economic conditions, changes in the business climate of our industry, a decline in our market capitalization, operating performance indicators, competition, reorganizations of our business, or the disposal of all or a portion of a reporting unit.

Our goodwill has been allocated to and is tested for impairment at a level referred to as the reporting unit, which is our business segment level or a level below the business segment. The level at which we test goodwill for impairment requires us to determine whether the operations below the business segment constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results.

We may use qualitative or quantitative approaches when testing goodwill for impairment. When we use the qualitative approach, we perform a qualitative evaluation of events and circumstances impacting the reporting unit to determine the likelihood of goodwill impairment. Based on that qualitative evaluation, if we determine it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further evaluation is necessary. Otherwise, we perform a quantitative impairment test. To perform the quantitative impairment test, we compare the fair value of a reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment loss is recognized in an amount equal to that excess.

Determining the fair value of a reporting unit quantitatively requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. To determine fair value, we utilize a market-based approach and an income approach. Under the market-based

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

approach, we utilize information regarding the Company, as well as publicly available industry information, to determine earnings multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.

Impairment assessments inherently involve management judgments regarding a number of assumptions such as those described above. Due to the many variables inherent in the estimation of a reporting unit's fair value and the relative size of our recorded goodwill, differences in assumptions could have a material effect on the estimated fair value of one or more of our reporting units and could result in a goodwill impairment charge in a future period. See additional information set forth in Note 15, *Goodwill and Other Intangible Assets*, of the Notes to the Consolidated Financial Statements.

**Other Assets**

For some AEC contracts, we perform pre-production or nonrecurring engineering services. These costs are normally considered a fulfillment activity, rather than a performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in the future, and are expected to be recovered, are capitalized to Other assets, which is classified as a noncurrent asset in the Consolidated Balance Sheets. The capitalized costs are amortized into Cost of goods sold over the period over which the asset is expected to contribute to future cash flows, which includes anticipated renewal periods.

Included in Other assets is $10.4 million in 2025 and $17.0 million in 2024 for defined benefit pension plans where plan assets exceed the projected benefit obligations. Other assets also include financial assets of $1.1 million in 2025 and $0.6 million in 2024. See additional information set forth in Note 18, *Fair-Value Measurements*, of the Notes to the Consolidated Financial Statements.

**Stock-Based Compensation**

We have incentive compensation plans that authorize the issuance of stock-based awards for key employees, which are designed to reward short and long-term contributions and provide incentives for recipients to remain with the Company. We issue stock-based awards in the form of restricted stock units and performance stock units that generally vest between one and five years from the grant date and can be settled in cash or shares. Expenses associated with these awards are recognized over each respective vesting period. Liability based awards are settled in cash, while equity-based awards are settled in stock. See additional information for stock-based compensation plans in Note 22, *Stock-Based Compensation*, of the Notes to the Consolidated Financial Statements.

**Derivatives**

From time to time, we use derivatives to mitigate potentially large adverse effects from changes in currency exchange rates and interest rates. We monitor our exposure to these risks and evaluate, on an ongoing basis, the risk of potentially large adverse effects versus the costs associated with hedging such risks.

We may use interest rate swaps in the management of interest rate exposures and foreign currency derivatives to manage foreign currency exposure related to assets and liabilities denominated in foreign currencies. When we enter into a derivative contract, we make a determination whether the transaction is deemed to be a hedge for accounting purposes. For those contracts deemed to be a hedge, we formally document the relationship between the derivative instrument and the risk being hedged. In this documentation, we specifically identify the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluate whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, we do not use hedge accounting for the derivative.

All derivative contracts are recorded at fair value, as a net asset or a net liability on the Consolidated Balance Sheets. The changes in fair values of derivative contracts are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of the hedged transaction. Gains and losses on derivative contracts reported in accumulated other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item. For transactions that are designated as an

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

effective hedge, we perform an evaluation of the effectiveness of the hedge on the date of inception and on an ongoing basis. The related gains and losses of derivative instruments, including those designated in hedge accounting relationships, are included as operating activities in the Consolidated Statements of Cash Flows.

For derivatives that are designated and qualify as hedges of net investments in subsidiaries located outside the U.S., changes in the fair value of derivatives are reported in other comprehensive income as part of Translation adjustments.

The Company does not engage in derivative instruments for speculative or trading purposes. See Note 17, *Financial Instruments,* of the Notes to the Consolidated Financial Statements for additional information.

**Pension, Postretirement, and Other Benefit Plans**

As described in Note 4, *Pension, Postretirement, and Other Benefit Plans*, of the Notes to the Consolidated Financial Statements, we have pension and postretirement benefit plans covering certain current and former employees.

The pension plans are generally trusteed or insured, and accrued amounts are funded as required in accordance with governing laws and regulations. The annual expense and liabilities recognized for defined benefit pension plans and postretirement benefit plans are developed from actuarial valuations. Inherent in these valuations are key assumptions, including discount rates and expected return on plan assets, which are updated on an annual basis. We consider current market conditions, including changes in interest rates, in determining these assumptions. Discount rate assumptions are based on the population of plan participants and a mixture of high-quality fixed-income investments with durations that match expected future payments. The assumption for expected return on plan assets is based on historical and expected returns on various categories of plan assets.

**Government Grants**

The Company recognizes government grants only when there is reasonable assurance that we will comply with the conditions attached to them and the grants will be received. Government grants are recognized in the Consolidated Statements of Income on a systematic basis over the periods in which we recognize as expenses the related costs for which the grants are intended to compensate. A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support with no future related costs is recognized in the Consolidated Statements of Income of the period in which it becomes receivable.

**Recent Accounting Pronouncements**

***New Accounting Standards Adopted***

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The adoption of this standard had an impact on the income tax disclosures presented in this Annual Report on Form 10-K, however, there was no impact to the results of operations, cash flows, and financial condition. We elected to adopt ASU 2023-09 prospectively as permitted by the guidance. See Note 7, *Income Taxes*, of the Notes to the Consolidated Financial Statements for additional information.

***New Accounting Standards Not Yet Adopted***

In September 2025, the Financial Accounting Standards Board (FASB) issued guidance to improve the accounting for costs related to internal-use software. The new guidance eliminates project stages and requires capitalizing software costs to begin when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. Additionally, disclosures for property, plant and equipment will be required for all capitalized software costs. The guidance is

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**1. Accounting Policies — (continued)**

effective in the first quarter of 2028 with early adoption permitted as of the beginning of an annual reporting period. Upon adoption, the guidance may be applied prospectively, retrospectively or using a modified transition approach. We are evaluating the impact of this guidance on our consolidated financial statements.

In November 2024, the FASB issued guidance to improve the disclosure of expenses in commonly presented expense captions. The new guidance requires a public entity to provide tabular disclosure, on an annual and interim basis, of amounts for the following expense categories: (1) purchases of inventory, (2) employee compensation, (3) depreciation and (4) intangible asset amortization, as included in each relevant expense caption. Additionally, on an annual and interim basis, a qualitative description is required for amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. A relevant expense caption is an expense caption presented on the face of the income statement that contains any of the expense categories noted. The guidance also requires certain amounts that are currently required to be disclosed to be included in the same tabular disclosure as these disaggregation requirements. Furthermore, on an annual and interim basis, a public entity is required to separately disclose selling expenses and annually, disclose a description of the selling expenses. The guidance is effective for 2027 annual reporting, and in the first quarter of 2028 for interim reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We are evaluating the impact of this guidance on our consolidated financial statements.

**2. Reportable Segments and Geographic Data**

The Company is organized based on the nature of its products and is composed of two reportable segments, Machine Clothing ("MC"), and Albany Engineered Composites ("AEC"), each overseen by a segment president. These segments are reflective of how the Company's Chief Executive Officer, who is its Chief Operating Decision Maker ("CODM"), reviews operating results for the purpose of allocating resources and assessing performance. Our CODM evaluates each segment's performance based on metrics such as net revenues, gross profit, and other key financial data, to assess performance and allocate resources that align with company-wide goals. The Company has not aggregated operating segments for purposes of identifying reportable segments.

The accounting policies of the segments are the same as those described in Note 1, *Accounting Policies*, of the Notes to the Consolidated Financial Statements. Corporate expenses include wages and benefits for corporate headquarters personnel, costs related to information systems development and support, and professional fees related to legal, audit, and other activities. Corporate expenses are not allocated to the reportable segments, except certain global information system costs discussed below, because the decision-making for these functions lies outside of the segments.

**Machine Clothing:**

The MC segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, pulp, nonwovens, fiber cement and several other industrial applications. We sell our MC products directly to customer end-users in countries across the globe. Our products, manufacturing processes, and distribution channels for MC are substantially the same in each region of the world in which we operate.

We design, manufacture, and market paper machine clothing (used in the manufacturing of paper, paperboard, tissue and towel) for each section of the paper machine and for every grade of paper. Paper machine clothing products are customized, consumable products of technologically sophisticated design that utilize polymeric materials in a complex structure.

**Albany Engineered Composites**:

The AEC segment provides highly engineered, advanced composite structures to customers in the commercial and defense aerospace industries. The segment includes Albany Safran Composites, LLC ("ASC"), in which our customer, SAFRAN Group ("Safran"), owns a 10% noncontrolling interest. AEC, through ASC, is the exclusive supplier to the LEAP program of advanced composite fan blades and fan cases under a long-term supply contract.

Other significant programs in AEC include the Sikorsky CH-53K, F-35, JASSM, and Boeing 787 programs. AEC also supplies vacuum waste tanks for Boeing commercial programs, and specialty components for the Rolls Royce lift fan

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**2. Reportable Segments and Geographic Data — (continued)**

on the F-35, as well as the fan case for the GE9X engine. In 2025, approximately 35% of AEC net revenues were related to U.S. government contracts or programs.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|<br>**(in thousands)** | **MC** | **AEC** | **Corporate** | **Total** |
| **Net revenues** | $**708066** | $**474747** | $**—** | $**1182813** |
| Cost of goods sold | **384334** | **554559** | **—** | **938893** |
| **Gross profit** | **323732** | **(79812)** | **—** | **243920** |
| Selling, general and administrative expenses | **131175** | **46449** | **40702** | **218326** |
| Technical and research expenses | **28090** | **15615** | **4310** | **48015** |
| Restructuring expenses, net | **8255** | **3259** | **2168** | **13682** |
| **Operating income/(loss)** | $**156212** | $**(145135)** | $**(47180)** | $**(36103)** |

---

For the year ended December 31, 2025, Selling, general and administrative expenses include global information systems costs of $17.3 million, $17.6 million and $0.2 million for MC, AEC and Corporate, respectively.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
|<br>**(in thousands)** | **MC** | **AEC** | **Corporate** | **Total** |
| **Net revenues** | $749907 | $480708 | $— | $1230615 |
| Cost of goods sold | 403863 | 424976 |  | 828839 |
| **Gross profit** | 346044 | 55732 |  | 401776 |
| Selling, general and administrative expenses | 123120 | 47421 | 40341 | 210882 |
| Technical and research expenses | 29832 | 16265 |  | 46097 |
| Restructuring expenses, net | 9460 | 3649 | 329 | 13438 |
| **Operating income/(loss)** | $183632 | $(11603) | $(40670) | $131359 |

---

Certain prior year amounts have been reclassified in order to conform to current year presentation. Global information system costs previously included in Corporate expenses are allocated to the segments. Management believes this presentation better reflects the performance of the segments and is how management will review segment performance on a going forward basis. For the year ended December 31, 2024, Selling, general and administrative expenses include global information systems costs of $15.2 million, $15.7 million and $1.0 million for MC, AEC and Corporate, respectively. Global information systems costs were previously included in Corporate expenses.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
|<br>**(in thousands)** | **MC** | **AEC** | **Corporate** | **Total** |
| **Net revenues** | $670768 | $477141 | $— | $1147909 |
| Cost of goods sold | 339210 | 384981 |  | 724191 |
| **Gross profit** | 331558 | 92160 |  | 423718 |
| Selling, general and administrative expenses | 118196 | 48833 | 47886 | 214915 |
| Technical and research expenses | 24651 | 15976 |  | 40627 |
| Restructuring expenses, net | 282 |  |  | 282 |
| **Operating income/(loss)** | $188429 | $27351 | $(47886) | $167894 |

---

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**2. Reportable Segments and Geographic Data — (continued)**

For the year ended December 31, 2023, Selling, general and administrative expenses include global information systems costs of $10.9 million, $14.2 million and $2.1 million for MC, AEC and Corporate, respectively. Global information systems costs were previously included in Corporate expenses.

The following table reconciles Operating income (loss) to Income before income taxes:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| Operating income/(loss) | $**(36103)** | $131359 | $167894 |
| Reconciling items: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | **(5159)** | (4064) | (6566) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **25764** | 16613 | 20167 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income)/expense, net | **5079** | 1721 | (6163) |
| Income before income taxes | $**(61787)** | $117089 | $160456 |

---

Interest income, Interest expense, and Other income/expense are not allocated to the business segments.

The following table summarizes depreciation and amortization by segment:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| **Depreciation and amortization** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Machine Clothing | **32849** | 33917 | 24616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Albany Engineered Composites | **53731** | 54228 | 50764 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | **1334** | 1149 | 1353 |
| Consolidated total | $**87914** | $89294 | $76733 |

---

Results for the years ended December 31, 2025, December 31, 2024, and December 31, 2023 include Heimbach, which was acquired August 31, 2023. Depreciation expense for Heimbach on Property, plant, and equipment, net was $10.9 million, $12.4 million, and $4.0 million in 2025, 2024, and 2023 respectively; and amortization expense on Intangibles, net was $1.0 million, $1.0 million, and $0.3 million in 2025, 2024, and 2023 respectively.

In the measurement of assets utilized by each reportable segment, we include Inventories, Accounts receivable, net, Contract assets, net, Property, plant and equipment, net, Intangibles, net and Goodwill. Assets held-for-sale have been removed from segment assets and presented as a reconciling item.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**2. Reportable Segments and Geographic Data — (continued)**

The following table presents assets and capital expenditures by reportable segment:

---

| | | | |
|:---|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| **Segment assets** |  |  |  |
| Machine Clothing | $**618476** | $600603 | $669907 |
| Albany Engineered Composites | **491802** | 736306 | 800931 |
| Reconciling items: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | **112350** | 115283 | 173420 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes prepaid, receivable and deferred | **112436** | 47944 | 33984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid and Other assets | **89862** | 148560 | 156772 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | **293783** |  |  |
| Total assets | $**1718709** | $1648696 | $1835014 |
| **Capital expenditures and purchased software** |  |  |  |
| Machine Clothing | $**30770** | $21270 | $25917 |
| Albany Engineered Composites | **39098** | 58121 | 57404 |
| Corporate | **1637** | 1816 | 1108 |
| Total capital expenditures and purchased software | $**71505** | $81207 | $84429 |

---

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**2. Reportable Segments and Geographic Data — (continued)**

The following table shows data by geographic area. Net revenues are based on the location of the operation recording the final sale to the customer. Net revenues recorded by our entity in Switzerland are derived from products sold throughout Europe and Asia, and are invoiced in various currencies.

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| **Net revenues** |  |  |  |
| United States | $**638064** | $650532 | $649500 |
| Switzerland | **110775** | 109751 | 115207 |
| Germany | **77398** | 86991 | 32239 |
| France | **76360** | 81141 | 77573 |
| China | **62335** | 67732 | 65135 |
| Brazil | **68642** | 66943 | 69527 |
| Mexico | **58384** | 57928 | 58874 |
| Other countries | **90855** | 109597 | 79854 |
| Total Net revenues | $**1182813** | $1230615 | $1147909 |
| **Property, plant and equipment, net** |  |  |  |
| United States | $**202729** | $299370 | $303578 |
| China | **54991** | 52063 | 57070 |
| Germany | **48858** | 46033 | 52934 |
| Mexico | **45844** | 38762 | 46759 |
| France | **28015** | 30935 | 31069 |
| United Kingdom | **16100** | 16651 | 18306 |
| Canada | **16194** | 14313 | 15318 |
| Spain | **12808** | 12154 | 14804 |
| Other countries | **57029** | 53150 | 62151 |
| Total Property, plant and equipment, net | $**482568** | $563431 | $601989 |

---

**3. Revenue Recognition**

We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Revenue is measured based on the consideration specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service, or a series of distinct goods or services, to the customer which occurs either at a point in time, or over time, depending on the performance obligation in the contract. A performance obligation is a promise in the contract to transfer a distinct good or service to the customer, and is the unit of account. "Control" refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from the product. A contract's transaction price is allocated to each material distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied.

In our MC segment, our primary performance obligation in most contracts is to provide solution-based, custom-designed fabrics and belts to the customer. We satisfy this performance obligation upon transferring control of the product to the customer at a specific point in time. Contracts with customers in the MC segment have various terms that can affect the point in time when revenue is recognized. Generally, the customer obtains control when the product has been received at the location specified by the customer, at which time the only remaining obligations under the

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*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**3. Revenue Recognition — (continued)**

contract may be fulfillment costs, in the form of shipping and handling, which are accrued when control of the product is transferred.

In the MC segment, contracts with certain customers may also obligate us to provide various product-related services at no additional cost to the customer. When this obligation is material in the context of the contract with the customer, we recognize a separate performance obligation and allocate revenue to those services on a relative estimated standalone selling price basis. The standalone selling price for these services is determined based upon an analysis of the services offered and an assessment of the price we might charge for such services as a separate offering. As we typically provide such services on a stand-ready basis, we recognize this revenue over time. Revenue allocated to such service performance obligations is the only MC revenue that is recognized over time.

In our AEC segment, we primarily enter into contracts to manufacture and deliver highly engineered advanced composite products to our customers. A significant portion of AEC revenue is earned under a mix of short duration and long duration, firm-fixed-price orders that are placed under master agreements that contain general terms and conditions applicable to all orders placed under the master agreements. We assess each contract at its inception to determine whether it should be combined with other contracts. When making this determination we consider factors such as whether two or more contracts were negotiated and executed at or near the same time or were negotiated with an overall profit objective. If combined, we treat the combined contracts as a single contract for revenue recognition purposes. We evaluate the products or services promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. For most AEC contracts, the nature of our promise (or our performance obligation) to the customer is to provide a significant service of integrating a complex set of tasks and components into a single project or capability, which will often result in the delivery of multiple highly interdependent and interrelated units.

At the inception of a contract, we determine the transaction price based on the consideration we expect to receive for the products or services being provided under the contract. For contracts where a portion of the price may vary, we estimate variable consideration at the most likely amount, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. We analyze the risk of a significant revenue reversal and if necessary, constrain the amount of variable consideration recognized in order to mitigate this risk.

We estimate the transaction price based on our current rights, and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Many AEC contracts are subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, we are able to conclude that such modifications are not distinct from the existing contract, due to the significant integration of the obligations, and the interrelated nature of tasks, provided for in the modification and the existing contract. Therefore, such modifications are accounted for as if they were part of the existing contract, and we accumulate the values of such modifications in our estimates of contract value.

Revenue is recognized over time for substantially all of our contracts in AEC as most of our contracts have provisions that are deemed to transfer control to the customer over time. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress toward completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of assets to the customer which occurs as we incur costs to produce the contract deliverables. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including profit, is recorded proportionally as costs are incurred. Accounting for long-term contracts requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When any adjustments of estimated contract revenue or costs are required, any changes from prior estimates are included in revenues or earnings in the period in which the change occurs.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**3. Revenue Recognition — (continued)**

The sum of net adjustments to the estimated profitability of long-term contracts decreased AEC revenue by $69.1 million and operating income by $165.8 million in 2025. The decrease in profitability was primarily driven by a few large complex programs, including adjustments of $155.9 million for various CH-53K programs, based on changes to estimated material input costs, labor hours, and future overhead rates over the remainder of the contract. Comparatively, adjustments in the estimated profitability of long-term contracts decreased operating income by $43.2 million and $4.1 million in 2024 and 2023 respectively. The unfavorable effects in 2024 related to higher labor, material, and scrap costs. The unfavorable effects in 2023 related to additional reserves taken on certain contracts and inflationary factors decreasing anticipated margins.

AEC's largest source of revenue is derived from the LEAP contract (see Note 10, *Noncontrolling Interest*, of the Notes to the Consolidated Financial Statements) under a cost-plus-fee agreement. The fee may vary within a narrow range based on our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred, with contract billings adjusted annually to reflect actual costs. Under this contract, there is judgment involved in determining applicable contract costs and expected margin, and therefore, in determining the amount of revenue to be recognized.

The LEAP engine is used on the Airbus A320neo, A321neo, Boeing 737 MAX, and COMAC 919 aircraft. AEC's largest aerospace customer is SAFRAN and sales to SAFRAN (consisting primarily of fan blades and cases for CFM's LEAP engine) accounted for approximately 15% of the Company's consolidated Net revenues in 2025. In 2025, SAFRAN leased manufacturing space from AEC for the GE9X program. Rent paid by SAFRAN under this lease amounted to $1.0 million in 2025 and $1.0 million in 2024. AEC sales to SAFRAN were $177.0 million in 2025, $178.1 million in 2024, and $187.6 million in 2023. The total of Accounts receivable and Contract assets due from SAFRAN amounted to $60.8 million and $78.5 million as of December 31, 2025 and 2024, respectively.

Payment terms granted to MC and AEC customers reflect general competitive practices. Terms vary with product, competitive conditions, and the country of operation.

The following table provides a summary of the composition of each business segment:

---

| | | | |
|:---|:---|:---|:---|
| **Segment** | **Product Group** | **Principal Product or Service** | **Principal Locations** |
| Machine Clothing (MC) | Machine Clothing | Paper machine clothing: Permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel, and pulp<br> Engineered fabrics: Belts used in the manufacture of nonwovens, fiber cement and several other industrial applications | World-wide |
| Albany Engineered Composites (AEC) | Albany Safran Composites (ASC)<br>Airframe and engine Components (Other AEC) | 3D-woven, injected composite components for aircraft engines<br> Composite airframe and engine components for military and commercial aircraft | Rochester, NH Commercy, France Queretaro, Mexico<br> Salt Lake City, UT Boerne, TX Queretaro, Mexico Kaiserslautern, Germany |

---

We disaggregate revenue earned from contracts with customers for each of our business segments and product groups based on the timing of revenue recognition, and groupings used for internal review purposes.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**3. Revenue Recognition — (continued)**

The following table presents disaggregated revenue for each product group by timing of revenue recognition:

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** |
|<br>**(in thousands)** | **Point in Time Revenue Recognition** | **Over Time Revenue Recognition** | **Total** |
| Machine Clothing | $**703980** | $**4086** | $**708066** |
| Albany Engineered Composites |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ASC | **—** | **173094** | **173094** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other AEC | **14128** | **287525** | **301653** |
| Total Albany Engineered Composites | **14128** | **460619** | **474747** |
| Total net revenues | $**718108** | $**464705** | $**1182813** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
|<br>**(in thousands)** | **Point in Time Revenue Recognition** | **Over Time Revenue Recognition** | **Total** |
| Machine Clothing | $745978 | $3929 | $749907 |
| Albany Engineered Composites |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ASC |  | 175888 | 175888 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other AEC | 19518 | 285302 | 304820 |
| Total Albany Engineered Composites | 19518 | 461190 | 480708 |
| Total net revenues | $765496 | $465119 | $1230615 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** |
|<br>**(in thousands)** | **Point in Time Revenue Recognition** | **Over Time Revenue Recognition** | **Total** |
| Machine Clothing | $666990 | $3778 | $670768 |
| Albany Engineered Composites |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ASC |  | 184184 | 184184 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other AEC | 20546 | 272411 | 292957 |
| Total Albany Engineered Composites | 20546 | 456595 | 477141 |
| Total net revenues | $687536 | $460373 | $1147909 |

---

The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical region to which the paper machine clothing was sold:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| Americas PMC | $**351211** | $341204 | $349544 |
| Eurasia PMC | **277226** | 301436 | 250048 |
| Engineered Fabrics | **79629** | 107267 | 71176 |
| Total Machine Clothing net revenues | $**708066** | $749907 | $670768 |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**3. Revenue Recognition — (continued)**

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the MC segment are generally for periods of less than a year. Most contracts in the AEC segment are a mix of short duration and long duration firm-fixed-price orders, many representing performance obligations with an original maturity of less than one year. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $1.0 billion as of December 31, 2025, $1.1 billion as of December 31, 2024, and $1.2 billion as of December 31, 2023, and related primarily to firm contracts in the AEC segment. Of the remaining performance obligations as of December 31, 2025, we expect to recognize as revenue approximately $166 million during 2026, $182 million during 2027, $154 million during 2028, and the remainder thereafter.

**4. Pension, Postretirement, and Other Benefit Plans**

**Voluntary Savings Plan**

The Company maintains a voluntary savings plan covering all employees in the United States. The Plan, known as the Prosperity Plus Savings Plan, is a qualified plan under section 401(k) of the U.S. Internal Revenue Code. The Company matches, in the form of cash, between 50% and 100% of employee contributions up to a defined maximum. The investment of employee contributions to the plan is self-directed. The Company's cost of the plan amounted to $8.5 million in 2025, $7.8 million in 2024, and $7.3 million in 2023.

The plan allows for discretionary matching contributions. The Company uses such discretion to provide profit sharing contributions to plan participants. Such contributions are based on Company performance and vary from year to year and contributions are generally made in the first quarter following the Company's fiscal year-end. The Company's profit-sharing plan covers all employees in the United States. After the close of each year, the Board of Directors reviews and approves the amount of the profit-sharing contribution. Company contributions to the plan are in the form of cash. The expense recorded for this plan was $3.2 million in 2025, $2.4 million in 2024, and $4.9 million in 2023.

**Pension and Postretirement Plans**

The Company has defined benefit pension and postretirement plans covering certain current and former U.S. and non-U.S. employees. The eligibility, benefit formulas, and contribution requirements for plans vary by location.

As of December 31, 2025, U.S. benefit obligations exist through the U.S. Supplemental Executive Retirement Plan ("SERP"), a frozen unfunded pension plan, and the U.S. postretirement welfare plan ("PRW"), a frozen plan which provides various medical, dental, and life insurance benefits. The U.S. Pension Plus Plan, a qualified defined benefit pension plan was terminated in 2021 and settled during 2022.

The Company recognizes the funded status of each defined benefit and other postretirement benefit plan. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. Company pension plan disclosures for U.S. and non-U.S. plans have been combined for both 2025 and 2024, except where indicated below.

The Company's pension and postretirement benefit costs and benefit obligations are based on actuarial valuations that are affected by many assumptions, the most significant of which are the assumed discount rate, expected rate of return on pension plan assets, and mortality. Each of the assumptions is reviewed and updated annually, as appropriate. The assumed rates of return for pension plan assets are determined for each major asset category based on historical rates of return for assets in that category and expectations of future rates of return based, in part, on simulated future capital market performance. The assumed discount rate is based on yields from a portfolio of currently available high-quality fixed-income investments with durations matching the expected future payments, based on the demographics of the plan participants and the plan provisions.

Gains and losses arise from changes in the assumptions used to measure the benefit obligations, and experience different from what had been assumed, including asset returns different than what had been expected. The Company amortizes gains and losses in excess of a "corridor" over the average future service of the plan's current participants. The corridor is defined as 10% of the greater of the plan's projected benefit obligation or market-related value of plan

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**4. Pension, Postretirement, and Other Benefit Plans — (continued)**

assets. The market-related value of plan assets is also used to determine the expected return on plan assets component of net periodic cost.

To the extent the Company's unrecognized net losses and unrecognized prior service costs, including the amount recognized through accumulated other comprehensive income, are not reduced by future favorable plan experience, they will be recognized as a component of the net periodic cost in future years.

The following table sets forth the plan benefit obligations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
|<br>**(in thousands, except percentages)** | **Pension plans** | **Other**<br>**postretirement benefits** | **Pension plans** | **Other postretirement benefits** |
| Benefit obligation, beginning of year | $**137111** | $**26715** | $158323 | $28684 |
| &nbsp;&nbsp;Service cost | **1156** | **40** | 1812 | 46 |
| &nbsp;&nbsp;Interest cost | **6013** | **1414** | 6114 | 1416 |
| &nbsp;&nbsp;Plan participants' contributions | **266** | **—** | 530 |  |
| &nbsp;&nbsp;Actuarial (gain)/loss | **3533** | **1235** | (3868) | (709) |
| &nbsp;&nbsp;Benefits paid | **(10464)** | **(2566)** | (9423) | (2651) |
| &nbsp;&nbsp;&nbsp;Acquisitions/Divestiture | **(374)** | **—** |  | **—** |
| &nbsp;&nbsp;Settlements and curtailments | **(15043)** | **—** | (7805) |  |
| &nbsp;&nbsp;Foreign currency changes | **12121** | **41** | (8572) | (71) |
| Benefit obligation, end of year | $**134319** | $**26879** | $137111 | $26715 |
| Accumulated benefit obligation | $**129003** | $**—** | $132198 | $— |
| Weighted average assumptions used to |  |  |  |  |
| determine benefit obligations, end of year: |  |  |  |  |
| &nbsp;&nbsp;Discount rate — U.S. plan | **4.84%** | **5.21%** | 5.44% | 5.61% |
| &nbsp;&nbsp;Discount rate — non-U.S. plans | **4.71%** | **4.95%** | 4.32% | 4.70% |
| &nbsp;&nbsp;&nbsp;Cash balance interest crediting rate - Switzerland pension plan | **1.20%** | **—** | 1.15% |  |
| &nbsp;&nbsp;Compensation increase — U.S. plan | **N/A** | **N/A** | N/A | N/A |
| &nbsp;&nbsp;Compensation increase — non-U.S. plans | **2.90%** | **2.75%** | 2.68% | 2.75% |

---

During 2025, pension benefit obligations decreased by $2.8 million, related to several factors including benefit payments made to participants of the plan which resulted in a decrease of $10.5 million, and settlement and curtailments which resulted in a decrease of $15.0 million, offset by foreign currency changes, with an increase of $12.1 million, as well as several other offsetting items. Other postretirement benefit obligations increased by $0.2 million in 2025, primarily driven by interest costs and actuarial losses.

During 2024, pension benefit obligations decreased by $21.2 million, related to several factors including benefit payments made to participants of the plan which resulted in a decrease of $9.4 million, and foreign currency changes which resulted in a decrease of $8.6 million, as well as several other offsetting items. Other postretirement benefit obligations decreased by $2.0 million in 2024, primarily driven by payments made by the Company to participants of the plan.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**4. Pension, Postretirement, and Other Benefit Plans — (continued)**

The following sets forth information about plan assets:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
|<br>**(in thousands)** | **Pension plans** | **Other postretirement benefits** | **Pension plans** | **Other postretirement benefits** |
| Fair value of plan assets, beginning of year | $**103137** | $**—** | $112688 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Actual return on plan assets, net of expenses | **668** | **—** | (408) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employer contributions | **5644** | **2566** | 8744 | 2651 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plan participants' contributions | **266** | **—** | 530 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits paid | **(10464)** | **(2566)** | (9423) | (2651) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | **—** | **—** |  | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlements | **(14767)** | **—** | (3811) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **—** | **—** |  | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency changes | **7127** | **—** | (5183) |  |
| Fair value of plan assets, end of year | $**91611** | $**—** | $103137 | $— |

---

The funded status of the plans was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
|<br>**(in thousands)** | **Pension plans** | **Other postretirement benefits** | **Pension plans** | **Other postretirement benefits** |
| Fair value of plan assets | $**91611** | $**—** | $103137 | $— |
| Benefit obligation | **134319** | **26879** | 137111 | 26715 |
| Funded status | $**(42708)** | $**(26879)** | $(33974) | $(26715) |
| Accrued benefit cost, end of year | $**(42708)** | $**(26879)** | $(33974) | $(26715) |
| Amounts recognized in the consolidated balance sheets consist of the following: |  |  |  |  |
| &nbsp;&nbsp;Noncurrent asset | $**10406** | $**—** | $16982 | $— |
| &nbsp;&nbsp;Current liability | **(5332)** | **(2727)** | (4915) | (2772) |
| &nbsp;&nbsp;Noncurrent liability | **(47782)** | **(24152)** | (46041) | (23943) |
| Net amount recognized | $**(42708)** | $**(26879)** | $(33974) | $(26715) |
| Amounts recognized in accumulated other comprehensive income consist of: |  |  |  |  |
| &nbsp;&nbsp;Net actuarial loss | $**28845** | $**2597** | $19529 | $1345 |
| &nbsp;&nbsp;Prior service cost/(credit) | **(93)** | **(237)** | (96) | (360) |
| Net amount recognized | $**28752** | $**2360** | $19433 | $985 |

---

The composition of the net pension plan funded status as of December 31, 2025 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)** | **U.S. plan** | **Non-U.S. plans** | **Total** |
| Pension plans with pension assets | $**—** | $**10406** | $**10406** |
| Pension plans without pension assets | **(3636)** | **(49478)** | **(53114)** |
| Total | $**(3636)** | $**(39072)** | $**(42708)** |

---

The underfunded balance in the U.S. relates to the Supplemental Executive Retirement Plan.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**4. Pension, Postretirement, and Other Benefit Plans — (continued)**

The composition of the net periodic benefit plan cost for the years ended December 31, 2025, 2024, and 2023, was as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Pension plans** | **Pension plans** | **Pension plans** | **Other postretirement benefits** | **Other postretirement benefits** | **Other postretirement benefits** |
|<br>**(in thousands, except percentages)** | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| Components of net periodic benefit cost: |  |  |  |  |  |  |
| Service cost | $**1156** | $1812 | $1478 | $**40** | $46 | $60 |
| Interest cost | **6013** | 6114 | 5151 | **1414** | 1416 | 1874 |
| Expected return on assets | **(4538)** | (5430) | (4347) | **—** |  |  |
| Amortization of prior service cost/(credit) | **(28)** | (26) | (32) | **(122)** | (124) | (4090) |
| Amortization of net actuarial loss | **1185** | 647 | 555 | **(34)** | (34) | 828 |
| Settlement | **2355** | (33) |  | **—** |  |  |
| Curtailment (gain)/loss | **(4356)** | (37) |  | **—** |  |  |
| Net periodic benefit cost | $**1787** | $3047 | $2805 | $**1298** | $1304 | $(1328) |
| Weighted average assumptions used to determine net cost: |  |  |  |  |  |  |
| &nbsp;&nbsp;Discount rate — U.S. plan | **5.44%** | 5.15% | 5.49% | **5.61%** | 5.21% | 5.55% |
| &nbsp;&nbsp;Discount rate — non-U.S. plans | **4.32%** | 4.05% | 5.15% | **4.70%** | 4.70% | 5.20% |
| &nbsp;&nbsp;Cash balance interest crediting rate - Switzerland pension plan | **1.15%** | 1.30% | 2.15% | **—** |  |  |
| &nbsp;&nbsp;Expected return on plan assets — U.S. plan | **N/A** | N/A | N/A | **N/A** | N/A | N/A |
| &nbsp;&nbsp;Expected return on plan assets — non-U.S. plans | **4.82%** | 4.98% | 5.21% | **N/A** | N/A | N/A |
| &nbsp;&nbsp;Rate of compensation increase — U.S. plan | **N/A** | N/A | N/A | **N/A** | N/A | N/A |
| &nbsp;&nbsp;Rate of compensation increase — non-U.S. plans | **2.68%** | 2.89% | 3.08% | **2.75%** | 2.75% | 2.75% |

---

Pretax (gains)/losses on plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2025, 2024, and 2023, was as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Pension plans** | **Pension plans** | **Pension plans** | **Other postretirement benefits** | **Other postretirement benefits** | **Other postretirement benefits** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| Settlements/curtailments | $**2002** | $70 | $— | $**—** | $— | $— |
| Asset/liability loss/(gain) | **7126** | (2023) | 4365 | **1235** | (709) | (6131) |
| Amortization of actuarial gain/(loss) | **(1185)** | (646) | (554) | **34** | 34 | (828) |
| Amortization of prior service cost/(credit) | **28** | 26 | 32 | **122** | 124 | 4090 |
| Currency impact | **1349** | (748) | 757 | **(16)** | 28 | (8) |
| Cost/(benefit) in Other comprehensive income | $**9320** | $(3321) | $4600 | $**1375** | $(523) | $(2877) |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**4. Pension, Postretirement, and Other Benefit Plans — (continued)**

*Investment Strategy*

Our investment strategy for pension assets differs for the various countries in which we have defined benefit pension plans. Some of our defined benefit plans do not require funded trusts and, in those arrangements, the Company funds the plans on a "pay as you go" basis. The largest of the funded defined benefit plans are in Canada and the United Kingdom.

For the countries in which the Company has funded pension trusts, the investment strategy may also be liability driven or, in other cases, to achieve a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions, and the timing of benefit payments and contributions.

*Fair-Value Measurements*

The following tables present plan assets as of December 31, 2025, and 2024, using the fair-value hierarchy, which has three levels based on the reliability of inputs used, as described in Note 18, *Fair-Value Measurements*, of the Notes to the Consolidated Financial Statements. Certain investments that are measured at fair value using net asset value ("NAV") as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. As of December 31, 2025 and 2024, there were no investments expected to be sold at a value materially different than NAV.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Assets at Fair Value as of December 31, 2025** | **Assets at Fair Value as of December 31, 2025** | **Assets at Fair Value as of December 31, 2025** | **Assets at Fair Value as of December 31, 2025** |
|<br>**(in thousands)** | **Quoted prices in active markets Level 1** | **Significant other observable inputs Level 2** | **Significant <br>unobservable inputs Level 3** | **Total** |
| Common Stocks and equity funds | $**—** | $**—** | $**—** | $**—** |
| Debt securities | **283** | **43281** | **—** | **43564** |
| Insurance contracts | **—** | **—** | **3998** | **3998** |
| Real Estate | **—** | **—** | **—** | **—** |
| Hedge Funds | **—** | **—** | **—** | **—** |
| Cash and short-term investments | **6643** | **—** | **—** | **6643** |
| Total investments in the fair value hierarchy | $**6926** | $**43281** | $**3998** | **54205** |
| Investments at net asset value: |  |  |  |  |
| Common Stocks and equity funds |  |  |  | **12689** |
| Fixed income funds |  |  |  | **24717** |
| Limited partnerships |  |  |  | **—** |
| Total plan assets |  |  |  | $**91611** |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**4. Pension, Postretirement, and Other Benefit Plans — (continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Assets at Fair Value as of December 31, 2024** | **Assets at Fair Value as of December 31, 2024** | **Assets at Fair Value as of December 31, 2024** | **Assets at Fair Value as of December 31, 2024** |
|<br>**(in thousands)** | **Quoted prices in active markets Level 1** | **Significant other observable inputs Level 2** | **Significant unobservable inputs Level 3** | **Total** |
| Common Stocks and equity funds | $— | $4241 | $— | $4241 |
| Debt securities |  | 49940 |  | 49940 |
| Insurance contracts |  |  | 3528 | 3528 |
| Real Estate |  |  | 3244 | 3244 |
| Hedge Funds |  |  | 836 | 836 |
| Cash and short-term investments | 5323 |  |  | 5323 |
| Total investments in the fair value hierarchy | $5323 | $54181 | $7608 | 67112 |
| Investments at net asset value: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Stocks and equity funds |  |  |  | 13124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed income funds |  |  |  | 22901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnerships |  |  |  |  |
| Total plan assets |  |  |  | $103137 |

---

The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **December 31, 2024** | **Net realized gains** | **Net unrealized gains** | **Net purchases, issuances<br>and settlements** | **Net transfers (out of) Level 3** | **December 31, 2025** |
| Insurance contracts - |  |  |  |  |  |  |
| total level 3 assets | $**7608** | $**—** | $**81** | $**(3691)** | $**—** | $**3998** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **December 31, 2023** | **Net realized gains** | **Net unrealized gains** | **Net purchases, issuances<br>and settlements** | **Net transfers (out of) Level 3** | **December 31, 2024** |
| Insurance contracts - |  |  |  |  |  |  |
| total level 3 assets | $7597 | $— | $58 | $(47) | $— | $7608 |

---

None of the Company's U.S. pension plans held assets during 2025 or 2024. The asset allocation for the Company's non-U.S. pension plans for 2025 and 2024, and the target allocation, by asset category, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Non-U.S. Plans** | **Non-U.S. Plans** | **Non-U.S. Plans** |
| | **Target<br>Allocation** | **Percentage of plan assets at plan measurement date** | **Percentage of plan assets at plan measurement date** |
|<br>**Asset category** | **Target<br>Allocation** | **2025** | **2024** |
| Equity securities | **12%** | **12%** | 15% |
| Debt securities | **31%** | **31%** | 70% |
| Real estate | **1%** | **1%** | 3% |
| Other<sup>(1)</sup> | **56%** | **56%** | 12% |
|  | **100%** | **100%** | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Other includes hedged equity and absolute return strategies, as well as private equity. The Company has procedures to monitor the performance of these investments and compares asset valuations to audited financial statements of the funds.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**4. Pension, Postretirement, and Other Benefit Plans — (continued)**

The targeted plan asset allocation is based on an analysis of the actuarial liabilities, a review of viable asset classes, and an analysis of the expected rate of return, risk, and other investment characteristics of various investment asset classes.

At the end of 2025 and 2024, the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with projected benefit obligation and an accumulated benefit obligation in excess of plan assets were as follows:

---

| | | |
|:---|:---|:---|
| | **Plans with projected<br>benefit obligation in<br>excess of plan assets** | **Plans with projected<br>benefit obligation in<br>excess of plan assets** |
|<br>**(in thousands)** | **2025** | **2024** |
| Projected benefit obligation | $**58331** | $55067 |
| Fair value of plan assets | **5217** | 4111 |

---

---

| | | |
|:---|:---|:---|
| | **Plans with accumulated<br>benefit obligation in<br>excess of plan assets** | **Plans with accumulated<br>benefit obligation in<br>excess of plan assets** |
|<br>**(in thousands)** | **2025** | **2024** |
| Accumulated benefit obligation | $**55260** | $52493 |
| Fair value of plan assets | **4463** | 3509 |

---

Information about expected cash flows for the pension and other benefit obligations are as follows:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **Pension plans** | **Other postretirement benefits** |
| Expected employer contributions and direct employer payments in the next fiscal year | $**5931** | $**2727** |
| Expected benefit payments |  |  |
| 2026 | **10324** | **2727** |
| 2027 | **9640** | **2626** |
| 2028 | **9707** | **2525** |
| 2029 | **9589** | **2423** |
| 2030 | **9810** | **2324** |
| 2031 to 2035 (expected, combined) | **46753** | **10126** |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**5. Restructuring**

At MC, restructuring actions were taken throughout 2024 and 2025 in order to cease operations at several facilities. Prior year actions at the Company's MC forming fabric manufacturing facility in Chungju, South Korea, at the Company's Heimbach engineered fabric manufacturing facility in Rochdale, UK, and at the Company's Heimbach paper machine clothing facility in Olten, Switzerland, concluded in 2025. Additional actions were announced in 2025 to close engineered fabric facilities in Ballo, Italy and Saint Junien, France as well as a facility in Manchester, United Kingdom. These actions drove $8.3 million of restructuring charges during 2025, compared to $9.5 million in 2024, a decrease that is primarily due to the timing of the announced actions. Restructuring expenses were a result of workforce reductions, fixed asset impairments, and related costs. The Company incurred an additional $0.3 million recorded in Costs of goods sold due to the write-off of inventory compared to $1.7 million in 2024. We expect to incur additional restructuring expenses related to these actions into 2026.

At AEC, restructuring activities were related to reductions in the workforce at various AEC locations, which resulted in restructuring expenses of $3.3 million for the year ended 2025 and $3.6 million for the year ended 2024.

Restructuring expenses incurred at MC and AEC during 2023 were not significant.

The following table summarizes charges reported in the Consolidated Statements of Income under "Restructuring expenses, net" and "Cost of goods sold":

---

| | | | |
|:---|:---|:---|:---|
| **Year ended December 31, 2025 (in thousands)** | **Total restructuring costs incurred** | **Termination and other costs - restructuring** | **Impairment of assets - Cost of goods sold** |
| Machine Clothing | $**8511** | $**8255** | $**256** |
| Albany Engineered Composites | **3259** | **3259** | **—** |
| Corporate | **2168** | **2168** | **—** |
| Total restructuring expense | $**13938** | $**13682** | $**256** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Year ended December 31, 2024 (in thousands)** | **Total restructuring costs incurred** | **Termination and other costs - restructuring** | **Impairment of assets - Cost of goods sold** |
| Machine Clothing | $11165 | $8298 | $2867 |
| Albany Engineered Composites | 3649 | 3649 |  |
| Corporate | 329 | 329 |  |
| Total restructuring expense | $15143 | $12276 | $2867 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Year ended December 31, 2023 (in thousands)** | **Total restructuring costs incurred** | **Termination and other costs** | **Impairment of assets - Cost of goods sold** |
| Machine Clothing | $282 | $282 | $— |
| Albany Engineered Composites |  |  |  |
| Corporate |  |  |  |
| Total restructuring expense | $282 | $282 | $— |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**5. Restructuring — (continued)**

The table below presents the changes in restructuring liabilities for 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in thousands)** | **December 31, 2024** | **Restructuring charges accrued** | **Payments and Other** | **December 31, 2025** |
| Total termination and other costs | $**4996** | $**13682** | $**(15912)** | $**2766** |

---

As of December 31, 2025, we expect that the total $2.8 million of Accrued liabilities for restructuring will be paid within one year.

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**(in thousands)** | **December 31, 2023** | **Restructuring charges accrued** | **Payments and Other** | **December 31, 2024** |
| Total termination and other costs | $**—** | $**12276** | $**(7280)** | $**4996** |

---

**6. Other (Income)/Expense, net**

The components of Other expense/(income), net, are:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| Currency transactions | $**8883** | $(3900) | $(2916) |
| Derivative instruments losses/(gains) | **(3735)** | 3459 | (351) |
| Components of net periodic pension and postretirement cost other than service | **3890** | 2493 | (61) |
| Other | **(3959)** | (331) | (2835) |
| Total other (income)/expense, net | $**5079** | $1721 | $(6163) |

---

Other (income)/expense, net included foreign currency related transactions associated with cash and intercompany balances which resulted in losses of $8.9 million during 2025 and gains of $3.9 million during 2024. In addition, changes in the fair value of derivative instruments included gains of $3.7 million during 2025 and losses of $3.5 million in 2024, driven by currency rate movements, most notably the Brazilian Real and Mexican Peso. Net periodic pension and postretirement costs, other than service costs, were $3.9 million during 2025 and $2.5 million during 2024. Other (income)/expense, net, also included 2025 bank fees, amortization of debt issuance costs, and gains or losses on the sale of assets.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**7. Income Taxes**

Provision for income taxes consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands)** | **2025** | **2024** | **2023** |
| Income before income taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. | $**(114505)** | $26660 | $68872 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. | **52718** | 90429 | 91584 |
|  | $**(61787)** | $117089 | $160456 |
| Income tax expense/(benefit) |  |  |  |
| Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $**1920** | $2682 | $17005 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | **2021** | 4724 | 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. | **27502** | 34053 | 34110 |
|  | $**31443** | $41459 | $53145 |
| Deferred: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $**(25281)** | $1699 | $(1700) |
| &nbsp;&nbsp;&nbsp;&nbsp;State | **(1731)** | (804) | 863 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. | **(9259)** | (13320) | (3462) |
|  | $**(36271)** | $(12425) | $(4299) |
| Total income tax expense | $**(4828)** | $29034 | $48846 |

---

Cash payments for taxes in 2025 consisted of the following:

---

| | |
|:---|:---|
|<br>**(in thousands)** | **Years ended December 31,**<br>**2025** |
| Income Taxes Paid: |  |
| Domestic |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $**2291** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | **2319** |
| Foreign |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brazil | **12588** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada | **4787** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;China | **6836** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;France | **2308** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mexico | **8166** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **3143** |
| Total | $**42438** |

---

Cash payments for taxes amounted to $47.3 million in 2024, and $54.5 million in 2023.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**7. Income Taxes — (continued)**

A reconciliation of the U.S. federal statutory tax rate to the Company's effective income tax rate is as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|<br>**(in thousands)** | **Amount** | **Percent** |
| &nbsp;&nbsp;**U.S. federal statutory income tax rate** | (12976) | 21.0% |
| &nbsp;&nbsp;**Domestic federal** |  |  |
| &nbsp;&nbsp;**Effect of changes in tax laws or rate enacted in the current period** |  | —% |
| &nbsp;&nbsp;**Effect of cross-border tax laws** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subpart F income | 552 | (0.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 73 | (0.1)% |
| &nbsp;&nbsp;**Tax credits** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research & Development Tax Credit | (1004) | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Tax Credit - Generation, Utilization, and Expiration | 1025 | (1.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (162) | 0.3% |
| **Changes in valuation allowances** | (1486) | 2.4% |
| **Nontaxable or nondeductible items** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Officer's compensation | 612 | (1.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (674) | 1.1% |
| **Changes in unrecognized tax benefits** | (581) | 0.9% |
| **Other** | (7) | —% |
| **State and Local Income Taxes, Net of Federal Tax Effect (a)** | 1048 | (1.7)% |
| **Foreign tax effects** |  |  |
| &nbsp;&nbsp;Brazil |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local (Social Contribution) | 3362 | (5.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Rate Differential | 1500 | (2.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (371) | 0.6% |
| &nbsp;&nbsp;Canada |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Rate Differential | (341) | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding tax | 1476 | (2.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local (Quebec & Ontario) | 545 | (0.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 233 | (0.4)% |
| &nbsp;&nbsp;China |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Rate Differential | 677 | (1.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding tax | 2414 | (3.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (84) | 0.1% |
| &nbsp;&nbsp;Spain |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local (Trade Tax) | (762) | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Rate Differential | (630) | 1.0% |
| &nbsp;&nbsp;UK |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return to provision | (664) | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Rate Differential | (157) | 0.3% |
| &nbsp;&nbsp;Other foreign jurisdictions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Rate Differential | 796 | (1.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding tax | 1188 | (1.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (430) | 0.7% |
| **Effective income tax rate** | (4828) | 7.8% |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**7. Income Taxes — (continued)**

---

| | | |
|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** |
| | **2024** | **2023** |
| U.S. federal statutory tax rate | 21.0% | 21.0% |
| State taxes, net of federal benefit | 2.3 | 1.9 |
| Non-U.S. local income taxes | 2.3 | 1.4 |
| U.S. permanent adjustments | 0.6 | 0.8 |
| Foreign permanent adjustments | 1.0 | 0.7 |
| Foreign rate differential | 2.1 | 2.0 |
| Net U.S. tax on non-U.S. earnings and foreign withholdings | 2.8 | 5.1 |
| Provision for/(resolution) of tax audits and contingencies, net | (1.3) | 0.3 |
| U.S. Pension Settlement - Release of Residual Tax Effect |  |  |
| Change in valuation allowances | 4.4 | (1.2) |
| Impact of Mexico net operating loss inflation revaluation | (2.2) |  |
| Establishment of deferred tax asset for Non-U.S. reserves | (4.3) |  |
| Impact of amended tax returns | (0.8) |  |
| Return to provision | (2.2) | (1.2) |
| Other adjustments | (0.9) | (0.4) |
| Effective income tax rate | 24.8% | 30.4% |

---

In 2024, the Company also recorded new valuation allowances totaling $6.7 million and released a valuation allowance of $6.3 million in a non-U.S. jurisdiction due to positive evidence indicating that a full valuation allowance was no longer required. The remaining increase in valuation allowance is due to increases in deferred tax assets in entities that already had established valuation allowances.

On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (OBBBA). The OBBBA retains the 21% corporate tax rate and makes permanent several tax provisions from the Tax Cuts and Jobs Act of 2017, including immediate expensing of domestic R&D, enhanced interest deductibility, and 100 percent bonus depreciation effective in 2025. Revisions to the international tax rules become effective in 2026. In the fourth quarter of 2025, we completed our assessment of the OBBBA, and the impacts were not material.

The Company has operations which constitute a taxable presence in 22 countries outside of the United States. The Company is subject to audit in the U.S. and various foreign jurisdictions. Our open tax years for major jurisdictions generally range from 2019-2024. We believe appropriate provisions for all outstanding tax issues have been made for all jurisdictions and all open years.

During the periods reported, income outside of the U.S. was heavily concentrated within Brazil (34% tax rate), and China (25% tax rate). As a result, the foreign income tax rate differential was primarily attributable to these tax rate differences.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**7. Income Taxes — (continued)**

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of certain assets and liabilities for financial reporting purposes and income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **U.S.** | **U.S.** | **Non-U.S.** | **Non-U.S.** |
| **For the year ended December 31**<br>**(in thousands)** | **2025** | **2024** | **2025** | **2024** |
| Deferred tax assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | $**667** | $502 | $**1466** | $1138 |
| &nbsp;&nbsp;&nbsp;Inventories | **2542** | 2473 | **1471** | 1636 |
| &nbsp;&nbsp;&nbsp;Incentive compensation | **2289** | 1453 | **1054** | 750 |
| &nbsp;&nbsp;&nbsp;Property, plant, equipment and intangibles, net | **—** |  | **—** |  |
| &nbsp;&nbsp;&nbsp;Pension, post retirement benefits - non-current | **6388** | 6440 | **4832** | 2202 |
| &nbsp;&nbsp;&nbsp;Tax loss carryforwards | **30** | 49 | **49776** | 32963 |
| &nbsp;&nbsp;&nbsp;Tax credit carryforwards | **3935** | 3602 | **238** | 29 |
| &nbsp;&nbsp;&nbsp;Leases | **13149** | 12192 | **2500** | 2205 |
| &nbsp;&nbsp;&nbsp;Reserves | **32871** | 2639 | **6999** | 7150 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | **—** |  |  |  |
| &nbsp;&nbsp;&nbsp;Other | **749** | 373 | **239** | 909 |
| Deferred tax assets before valuation allowance | **62769** | 29723 | **68575** | 48982 |
| Less: valuation allowance | **(340)** | (1826) | **(17135)** | (13670) |
| Total deferred tax assets | $**62429** | $27897 | $**51440** | $35312 |
| Deferred tax liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrepatriated foreign earnings | $**5744** | $4961 | $**—** | $— |
| &nbsp;&nbsp;&nbsp;Property, plant, equipment and intangibles, net | **9822** | 4626 | **17440** | 14483 |
| &nbsp;&nbsp;&nbsp;Basis difference in partner capital | **989** | 1420 | **—** |  |
| &nbsp;&nbsp;&nbsp;Basis difference in investment | **5732** | 5081 |  |  |
| &nbsp;&nbsp;&nbsp;Derivatives | **—** | 38 | **151** | 125 |
| &nbsp;&nbsp;&nbsp;Leases | **12201** | 11433 | **2303** | 2053 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | **279** | 380 | **2688** | 4663 |
| &nbsp;&nbsp;&nbsp;Other | **(11743)** |  | **(144)** |  |
| Total deferred tax liabilities | **23024** | 27939 | **22438** | 21324 |
| Net deferred tax (liability)/asset | $**39405** | $(42) | $**29002** | $13988 |

---

Deferred income tax assets, net of valuation allowances, are expected to be realized through the reversal of existing taxable temporary differences and future taxable income.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**7. Income Taxes — (continued)**

As of December 31, 2025, the Company's net operating loss, capital loss and tax credit carryforwards were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Expiration Period** | **Net Operating and Capital Loss Carryforwards** | **Tax Credit Carryforwards** |
| **(in thousands)**<br>**Jurisdiction** | **Expiration Period** | **Net Operating and Capital Loss Carryforwards** | **Tax Credit Carryforwards** |
| U.S. Federal | 2026 - 2045 | $**—** | $**2558** |
| U.S. State | 2035 - 2042 | **30** | **1010** |
| U.S. State | Indefinite |  | **367** |
| Non-U.S. | 2026 - 2040 | **3287** | **—** |
| Non-U.S. | Indefinite | **45806** | **—** |
| Balance at end of year |  | $**49123** | $**3935** |

---

The Company records the residual U.S. and foreign taxes on certain amounts of foreign earnings that have been targeted for repatriation to the U.S. These amounts are not considered to be indefinitely reinvested, and the Company accrued for the tax cost on these earnings to the extent they cannot be repatriated in a tax-free manner. The Company has targeted for repatriation $122.2 million of current year and prior year earnings of the Company's foreign operations. If these earnings were distributed, the Company would be subject to foreign withholding taxes of $5.2 million and U.S. income taxes of $1.3 million which have already been recorded.

The accumulated undistributed earnings of the Company's foreign operations not targeted for repatriation to the U.S. are intended to remain indefinitely invested in foreign operations.

No additional income taxes have been provided on the indefinitely invested foreign earnings at December 31, 2025. If these earnings were distributed, the Company could be subject to income taxes and additional foreign withholding taxes. Determining the amount of unrecognized deferred tax liability related to any additional outside basis difference in these entities is not practical due to the complexities of the hypothetical calculation.

The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits. If recognized, the $2.3 million would impact the effective tax rate as of December 31, 2025 as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** |
| Unrecognized tax benefits balance at January 1, | $**3142** | $2741 | $792 |
| Increase in gross amounts of tax positions related to prior years | **678** | 1102 | 2373 |
| Decrease in gross amounts of tax positions related to prior years | **—** | (224) |  |
| Increase in gross amounts of tax positions related to current years |  |  | 196 |
| Decrease due to settlements with tax authorities | **(1714)** | **(460)** |  |
| Increase (decrease) due to lapse in statute of limitations | **—** | 116 | (656) |
| Currency translation | **206** | (133) | 36 |
| Unrecognized tax benefits balance at December 31, | $**2312** | $3142 | $2741 |

---

The Company recognizes interest and penalties related to unrecognized tax benefits within its global operations as a component of income tax expense. The Company recognized $0.2 million, $0.4 million and $0.5 million interest and penalties related to the unrecognized tax benefits noted above, for the years 2025, 2024 and 2023, respectively.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**8. Earnings Per Share**

The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|<br>**(in thousands, except market price and earnings per share)** | **2025** | **2024** | **2023** |
| Net income attributable to the Company | $**(57342)** | $87623 | $111120 |
| **Weighted average number of shares:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average number of shares used in calculating basic net income/(loss) per share | **29566** | 31231 | 31171 |
| **Effect of dilutive stock-based compensation plans:** |  |  |  |
| &nbsp;&nbsp;Restricted stock units and multi-year awards<sup>(a)</sup> | **—** | 107 | 105 |
| Weighted average number of shares used in calculating diluted net income/(loss) per share | **29566** | 31338 | 31276 |
| **Net income/(loss) per share:** |  |  |  |
| &nbsp;&nbsp;Basic | $**(1.94)** | $2.81 | $3.56 |
| &nbsp;&nbsp;Diluted<sup>(a)</sup> | $**(1.94)** | $2.80 | $3.55 |

---

Shares outstanding, net of treasury shares, were 28.3 million as of December 31, 2025, 31.1 million as of December 31, 2024, and 31.2 million as of December 31, 2023.

<sup>(a)</sup> Restricted stock units and multi-year awards of 0.2 million were not included in the computation of diluted earnings per share, as their effects would be anti-dilutive as of December 31, 2025.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**9. Accumulated Other Comprehensive Income ("AOCI")**

The table below presents changes in the components of AOCI from January 1, 2023 to December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in thousands)** | **Translation adjustments** | **Pension and postretirement liability adjustments** | **Derivative valuation adjustment** | **Total Other Comprehensive Income** |
| **January 1, 2023** | $(146851) | $(15783) | $17707 | $(144927) |
| Other comprehensive income/(loss) before reclassifications | 21950 | (3357) | 2623 | 21216 |
| Pension/postretirement plan remeasurement, net of tax |  | 3629 |  | 3629 |
| Interest expense related to swaps reclassified to the Statements of Income, net of tax |  |  | (11251) | (11251) |
| Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax |  | (1835) |  | (1835) |
| Net current period other comprehensive income | 21950 | (1563) | (8628) | 11759 |
| **December 31, 2023** | $(124901) | $(17346) | $9079 | $(133168) |
| Other comprehensive income/(loss) before reclassifications | (56654) | 103 | 943 | (55608) |
| Pension/postretirement plan remeasurement, net of tax |  | 2605 |  | 2605 |
| Interest expense related to swaps reclassified to the Statements of Income, net of tax |  |  | (10128) | (10128) |
| Adjustment related to prior period change in opening valuation allowance |  | 310 |  | 310 |
| Net current period other comprehensive income | (56654) | 3018 | (9185) | (62821) |
| **December 31, 2024** | $(181555) | $(14328) | $(106) | $(195989) |
| Other comprehensive income/(loss) before reclassifications | **62547** | **(2195)** | **(307)** | **60045** |
| Pension/postretirement settlements and curtailments, net of tax | **—** | **(1580)** | **—** | **(1580)** |
| Pension/postretirement plan remeasurement, net of tax | **—** | **(6598)** | **—** | **(6598)** |
| Interest expense related to swaps reclassified to the Statements of Income, net of tax | **—** | **—** | **(207)** | **(207)** |
| Pension and postretirement liability adjustments reclassified to Statements of Income, net of tax | **—** | **791** | **—** | **791** |
| Net current period other comprehensive income/(loss) | **62547** | **(9582)** | **(514)** | **52451** |
| **December 31, 2025** | $**(119008)** | $**(23910)** | $**(620)** | $**(143538)** |

---

The components of our Accumulated Other Comprehensive Income that are reclassified to the Statement of Income relate to our pension and postretirement plans and interest rate swaps.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**9. Accumulated Other Comprehensive Income (AOCI) — (continued)**

The table below presents the expense/(income) amounts reclassified, and the line items of the Statement of Income that were affected for the years ended December 31, 2025, 2024, and 2023.

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** |
| **Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(Income)/Expense related to interest rate swaps included in Income before taxes<sup>(a)</sup> | $**(269)** | $(13547) | $(15062) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax effect | **62** | 3419 | 3811 |
| Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | $**(207)** | $(10128) | $(11251) |
| **Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service credit | $**(150)** | $(150) | $(4122) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of net actuarial loss | **1151** | 613 | 1383 |
| Total pretax amount reclassified<sup>(b)</sup> | **1001** | 463 | (2739) |
| Income tax effect | **(210)** | (153) | 904 |
| Effect on net income due to items reclassified from Accumulated Other Comprehensive Income | $**791** | $310 | $(1835) |

---

________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Reported as Interest expense, net in our Consolidated Statements of Income, are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 17, *Financial Instruments*, and Note 18, *Fair-Value Measurements*, of the Notes to the Consolidated Financial Statements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Reported as Other (income)/expense, net in our Consolidated Statements of Income, the accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4, *Pension, Postretirement, and Other Benefit Plans*, of the Notes to the Consolidated Financial Statements).

**10. Noncontrolling Interest**

Effective October 31, 2013, SAFRAN S.A. ("SAFRAN") acquired a 10% equity interest in a new Albany subsidiary, Albany Safran Composites, LLC ("ASC"). Under the terms of the transaction agreements, ASC will be the exclusive supplier to SAFRAN of advanced 3D-woven composite parts in accordance with agreed upon scope parameters defined between both companies, for use in aircraft and rocket engines, thrust reversers and nacelles, and aircraft landing and braking systems (the "SAFRAN Applications"). AEC may develop and supply parts other than advanced 3D-woven composite parts for all aerospace applications, as well as advanced 3D-woven composite parts for any aerospace applications that are not SAFRAN Applications (such as airframe applications) and any non-aerospace applications.

The agreement provides SAFRAN an option to purchase Albany's remaining 90% interest upon the occurrence of certain bankruptcy or performance default events, or if Albany's Engineered Composites business is sold to a direct competitor of SAFRAN. The purchase price is based initially on the same valuation of ASC used to determine SAFRAN's 10% equity interest, and increases over time as LEAP production increases.

In accordance with the operating agreement, Albany received a $28.0 million preferred holding in ASC which includes a preferred return based on the Company's revolving credit agreement. The common shares of ASC are owned 90% by Albany and 10% by SAFRAN.

On August 31, 2023, the Company acquired all the outstanding shares of Heimbach, a privately held manufacturer of paper machine clothing with headquarters in Düren, Germany. In July 2021, Heimbach acquired 85% of Arcari, SRL ("Arcari"). Arcari is a manufacturer of textile and plastic industrial technical products and conveyor belts.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**10. Noncontrolling Interest — (continued)**

On April 1, 2025, Heimbach sold its 85% controlling interest in Arcari to the minority shareholder and recorded a gain of $1.6 million included in Other (Income) expense on the sale. In connection with the sale, the corresponding value of the noncontrolling interest was reduced to zero. The Company did not retain any ownership in Arcari as a result of the sale and accordingly there was no impact on operating results during the fourth quarter of 2025.

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

---

| | | |
|:---|:---|:---|
| **ASC Noncontrolling Interest:**<br>**(in thousands, except percentages)** | **2025** | **2024** |
| Net income/(loss) of Albany Safran Composites (ASC) | $**6474** | $4759 |
| Less: Return attributable to the Company's preferred holding | **1799** | 1329 |
| Net income/(loss) of ASC available for common ownership | $**4675** | $3430 |
| Ownership percentage of noncontrolling shareholder | **10%** | 10% |
| Net income/(loss) attributable to noncontrolling interest | $**468** | $343 |
| Noncontrolling interest, beginning of year | $**4983** | $5423 |
| Net income/(loss) attributable to noncontrolling interest | **468** | 343 |
| Changes in other comprehensive income attributable to noncontrolling interest | **442** | (783) |
| ASC noncontrolling interest, end of year | $**5893** | $4983 |

---

---

| | | |
|:---|:---|:---|
| Arcari noncontrolling interest, end of year | $**—** | $426 |

---

---

| | | |
|:---|:---|:---|
| Total noncontrolling interest, end of year | $**5893** | $5409 |

---

**11. Accounts Receivable**

As of December 31, 2025 and 2024, Accounts receivable consisted of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **December 31,<br>2025** | **December 31,<br>2024** |
| Trade and other accounts receivable | $**221592** | $231136 |
| Bank promissory notes | **17844** | 19637 |
| Allowance for expected credit losses | **(4352)** | (4085) |
| Accounts receivable, net | $**235084** | $246688 |

---

Allowances for expected credit losses are recorded at the same time the financial asset is recorded. The Company monitors financial assets for credit impairment events to assess whether there has been a significant increase in credit risk since initial recognition, and considers both quantitative and qualitative information. The risk of loss due to credit default increases when one or more events occur that can have a detrimental impact on estimated future cash flows of that financial asset. Evidence that a financial asset is subject to greater credit risk includes observable data about significant financial difficulty of the customer, a breach of contract, such as a default or past due event, or it becomes probable that the customer will enter bankruptcy or other financial reorganization, among other factors. It may not be possible to identify a single discrete event, but rather, the combined effect of several events that may cause an increase in risk of loss.

The probability of default is driven by the relative financial health of our customer base and that of the industries in which we operate, as well as the broader macro-economic environment. A changing economic environment or forecasted economic scenario can lead to a different probability of default and can suggest that credit risk has changed.

------

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**11. Accounts Receivable— (continued)**

At each reporting period, the Company will recognize the amount of change in current expected credit losses as an allowance gain or loss in Selling, general, and administrative expenses in the Consolidated Statements of Income. Financial assets are written-off when the Company has no reasonable expectation of recovering the financial asset, either in its entirety, or a portion thereof. This is the case when the Company determines that the customer does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off.

The following tables present the (increases)/decreases in the allowance for credit losses for Accounts receivable:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **December 31,<br>2024** | **(Charge)/ benefit** | **Currency<br>translation** | **Other** | **December 31,<br>2025** |
| Specific customer reserves | $**(2934)** | $**81** | $**(314)** | $**(47)** | $**(3214)** |
| Incremental expected credit losses | **(1151)** | **(18)** | **(84)** | **115** | **(1138)** |
| Accounts receivable expected credit losses | $**(4085)** | $**63** | $**(398)** | $**68** | $**(4352)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **December 31, 2023** | **(Charge)/ benefit** | **Currency**<br>**translation** | **Other** | **December 31, 2024** |
| Specific customer reserves | $(2484) | $(541) | $128 | $(37) | $(2934) |
| Incremental expected credit losses | (2776) | 157 | 76 | 1392 | (1151) |
| Accounts receivable expected credit losses | $(5260) | $(384) | $204 | $1355 | $(4085) |

---

**12. Contract Assets and Liabilities**

Contract assets and Contract liabilities (included in Accrued liabilities) are reported in the Consolidated Balance Sheets in a net position, on a contract-by-contract basis at the end of each reporting period. Contract assets and contract liabilities are summarized as follows:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **December 31,<br>2025** | **December 31,<br>2024** |
| Contract assets | $**87573** | $167397 |
| Allowance for expected credit losses | **(471)** | (840) |
| Contract assets, net | $**87102** | $166557 |
| Contract liabilities | $**33397** | $6085 |

---

Contract assets, net decreased $79.5 million during the year ended December 31, 2025 primarily due to a decrease in unbilled revenue related to commercial and defense programs. There were no impairment losses related to our Contract assets during the year ended December 31, 2025 and 2024.

The following tables present the (increases)/ decreases in the allowance for credit losses for Contract assets:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **December 31,<br>2024** | **(Charge)/ benefit** | **Currency<br>translation** | **Other** | **December 31,<br>2025** |
| Contract assets expected credit losses | $**(840)** | $**76** | $**(17)** | $**310** | $**(471)** |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**12. Contract Assets and Liabilities— (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **December 31,<br>2023** | **(Charge)/ benefit** | **Currency**<br>**translation** | **Other** | **December 31,<br>2024** |
| Contract assets expected credit losses | $(908) | $52 | $16 | $— | $(840) |

---

Contract liabilities increased $27.3 million during the year ended December 31, 2025, primarily due to amounts invoiced to customers for contracts that were in a contract liability position exceeding the revenue recognition from satisfied performance obligations. Revenue recognized for the years ended December 31, 2025 and 2024 that was included in the Contract liability balance at the beginning of the year was $5.6 million and $4.3 million, respectively.

**13. Inventories**

As of December 31, 2025 and 2024, inventories consisted of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **December 31, 2025** | **December 31, 2024** |
| Raw materials | $**60311** | $76559 |
| Work in process | **46952** | 54917 |
| Finished goods | **14326** | 14369 |
| Total inventories | $**121589** | $145845 |

---

**14. Property, Plant and Equipment, net**

The table below sets forth the components of property, plant and equipment as of December 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **Estimated useful life** |
| Land and land improvements | $**31007** | $28161 | 25 years for improvements |
| Buildings | **296052** | 306273 | 15 to 40 years |
| Machinery and equipment | **1176690** | 1188661 | 5 to 15 years |
| Furniture and fixtures | **11176** | 11457 | 5 years |
| Computer and other equipment | **20096** | 25024 | 3 to 10 years |
| Software | **69475** | 69932 | 5 to 8 years |
| Capital expenditures in progress | **71517** | 75262 |  |
| Property, plant and equipment, gross | **1676013** | 1704770 |  |
| Accumulated depreciation and amortization | **(1193445)** | (1141339) |  |
| Property, plant and equipment, net | $**482568** | $563431 |  |

---

Depreciation expense was $82.7 million in 2025, $82.5 million in 2024, and $70.4 million in 2023. Software amortization is recorded in Selling, general, and administrative expense and was $2.1 million in 2025, $1.9 million in 2024, and $1.9 million in 2023.

Capital expenditures, including purchased software, were $71.5 million in 2025, $81.2 million in 2024, and $84.4 million in 2023. Unamortized software cost was $5.7 million, $5.4 million, and $6.6 million in each of the years ended December 31, 2025, 2024, and 2023, respectively. Expenditures for maintenance and repairs are charged to income as incurred and amounted to $30.7 million in 2025, $25.4 million in 2024, and $22.4 million in 2023.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**15. Goodwill and Other Intangible Assets**

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Goodwill and intangible assets with indefinite useful lives are not amortized, however, these assets are tested for impairment at least annually at the reporting unit level, using either a qualitative or quantitative approach. Impairment is the condition that exists when the carrying amount of a reporting unit, including goodwill, exceeds its fair value.

In the second quarter of 2025, the Company applied a qualitative assessment approach in performing its annual evaluation of goodwill and indefinite-lived trademark intangibles for the Company's Machine Clothing reporting unit and Engineered Composites reporting units. Based on the qualitative evaluation of the events and circumstances impacting the reporting units, management determined it is more likely than not that the fair value of each reporting unit exceeded its carrying amount, and no further evaluation was necessary.

In the third quarter of 2025, the Company revised its estimates and assumptions used in certain program estimates at completion of its AEC reporting unit, most significantly the CH-53K program. As a result of the changes in estimates, we performed a quantitative assessment of the AEC reporting unit's goodwill for impairment. As part of the quantitative assessment, management used the income and market approach to determine fair value by considering projected cash flows and market multiples for each reporting unit. Management performed the quantitative assessments and concluded that each reporting unit's fair value continued to significantly exceed its carrying value. Accordingly, no impairment charges were recorded.

In the second quarter of 2025, the Company wrote-off the remaining Finite-lived intangible assets balance at our Arcari, SRL location due to restructuring actions being taken to cease operations at the manufacturing facility. This decision resulted in a non-cash write-off of intangibles for $0.3 million.

In the fourth quarter of 2024, the Company wrote-off the remaining Finite-lived intangible assets balance at our Rochdale, UK location due to restructuring actions being taken to cease operations at the manufacturing facility. This decision resulted in a non-cash write-off of intangibles for $0.3 million, which is presented as other changes in the table below for intangible assets and goodwill in 2024.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**15. Goodwill and Other Intangible Assets — (continued)**

We amortize certain patents, trademarks and names, customer contracts, relationships and technology assets that have finite-lives. The changes in intangible assets and goodwill from December 31, 2023 to December 31, 2025, were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands, except for years)** | **Amortization life in years** | **Balance at December 31, 2024** | **Reclassified to Held for Sale** | **Other Changes** | **Amortization** | **Currency Translation** | **Balance at December 31, 2025** |
| **Finite-lived intangible assets:** | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Trademarks and trade names | 6-15 | $**11** | $**—** | $**—** | $**(11)** | $**—** | $**—** |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Technology | 10-15 | **2680** | **—** | **—** | **(616)** | **352** | **2416** |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Intellectual property | 15 | **828** | **—** | **—** | **(83)** | **—** | **745** |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Customer relationships | 8-15 | **21892** | **(13384)** | **—** | **(3504)** | **225** | **5229** |
| &nbsp;&nbsp;&nbsp;&nbsp;Heimbach Developed technology | 9 | **7004** | **—** | **(315)** | **(988)** | **881** | **6582** |
| Total Finite-Lived intangible assets, net |  | $**32415** | $**(13384)** | $**(315)** | $**(5202)** | $**1458** | $**14972** |
| **Indefinite-lived intangible assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Heimbach Trade name |  | $**5712** | $**—** | $**—** | $**—** | $**744** | $**6456** |
| &nbsp;&nbsp;&nbsp;&nbsp;MC Goodwill |  | **63988** | **—** | **—** | **—** | **5923** | **69911** |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Goodwill |  | **112273** | **(21829)** | **—** | **—** | **2152** | **92596** |
| Total Indefinite-lived intangible assets |  | $**181973** | $**(21829)** | $**—** | $**—** | $**8819** | $**168963** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands, except for years)** | **Amortization life in years** | **Balance at December 31,<br>2023** | **Acquisition** | **Amortization** | **Currency<br>Translation** | **Balance at December 31,<br>2024** |
| **Finite-lived intangible assets:** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Trademarks and trade names | 6-15 | $22 | $— | $(11) | $— | $11 |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Technology | 10-15 | 3426 |  | (569) | (177) | 2680 |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Intellectual property | 15 | 911 |  | (83) |  | 828 |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Customer relationships | 8-15 | 25485 |  | (3480) | (113) | 21892 |
| &nbsp;&nbsp;&nbsp;&nbsp;Heimbach Developed technology | 9 | 8732 | (289) | (953) | (486) | 7004 |
| Total Finite-Lived intangible assets, net |  | $38576 | $(289) | $(5096) | $(776) | $32415 |
| **Indefinite-lived intangible assets:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Heimbach Trade name |  | $6070 | $— | $— | $(358) | $5712 |
| &nbsp;&nbsp;&nbsp;&nbsp;MC Goodwill |  | 66873 |  |  | (2885) | 63988 |
| &nbsp;&nbsp;&nbsp;&nbsp;AEC Goodwill |  | 113308 |  |  | (1035) | 112273 |
| Total Indefinite-lived intangible assets |  | $186251 | $— | $— | $(4278) | $181973 |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**15. Goodwill and Other Intangible Assets — (continued)**

As of December 31, 2025, the gross carrying amount and accumulated amortization of Finite-lived intangible assets was $35.1 million and $20.1 million, respectively.

Amortization expense related to Finite-lived intangible assets was reported in the Consolidated Statement of Income as follows: $0.9 million in Cost of goods sold and $4.3 million in Selling, general and administrative expenses in 2025; $1.1 million in Cost of goods sold and $4.2 million in Selling, general and administrative expenses in 2024; and $0.4 million in Cost of goods sold and $4.1 million in Selling, general and administrative expenses in 2023.

Estimated amortization expense of intangibles for the years ending December 31, 2026 through 2030, is as follows:

---

| | |
|:---|:---|
| **Year** | **Annual amortization**<br>**(in thousands)** |
| 2026 | $**2000** |
| 2027 | **1900** |
| 2028 | **1900** |
| 2029 | **1800** |
| 2030 | **1200** |

---

**16. Accrued Liabilities**

Accrued liabilities as of December 31, 2025 and 2024 consist of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
| Salaries, wages and benefits | $**46403** | $57253 |
| Contract liabilities | **33397** | 6085 |
| Returns and allowances | **10787** | 9422 |
| Dividends | **7928** | 8431 |
| Pension and postretirement | **8059** | 8744 |
| Operating lease liabilities | **4274** | 7607 |
| Other tax | **5400** | 7329 |
| Contract loss reserve | **600** | 10524 |
| Freight | **2318** | 3256 |
| Professional fees | **5032** | 5539 |
| Restructuring | **2766** | 4996 |
| Other | **12421** | 12718 |
| Total accrued liabilities | $**139385** | $141904 |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**17. Financial Instruments**

Debt principally consists of a revolving credit agreement and foreign bank debt assumed in the acquisition of Heimbach. The following table represents our outstanding debt as of December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in thousands, except interest rates)** | **2025** | **2025** | **2024** | **2024** |
| Borrowings under the Amended Credit Agreement<sup>(1):</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;USD borrowings | **$** | **350000** | $| 225000 |
| &nbsp;&nbsp;&nbsp;&nbsp;EUR borrowings | **105663** | **105663** | 93485 | 93485 |
| Foreign bank debt | **—** | **—** | 46 | 46 |
| Total bank debt | **455663** | **455663** | 318531 | 318531 |
| Less: Current maturities of long-term debt | **—** | **—** |  |  |
| &nbsp;&nbsp;Long-term debt | **$** | **455663** | $| 318531 |
| <sup>(1)</sup> The credit facility matures in August 2028. At the end of the December 31, 2025 and December 31, 2024, the USD interest rate in effect was 5.56% and 5.77%, respectively, including the effect of interest rate swaps; at the end of December 31, 2025, the EURIBOR interest rate was 3.73% and 4.09% at the end of December 31, 2024, including the effect of interest rate swaps.  | <sup>(1)</sup> The credit facility matures in August 2028. At the end of the December 31, 2025 and December 31, 2024, the USD interest rate in effect was 5.56% and 5.77%, respectively, including the effect of interest rate swaps; at the end of December 31, 2025, the EURIBOR interest rate was 3.73% and 4.09% at the end of December 31, 2024, including the effect of interest rate swaps.  | <sup>(1)</sup> The credit facility matures in August 2028. At the end of the December 31, 2025 and December 31, 2024, the USD interest rate in effect was 5.56% and 5.77%, respectively, including the effect of interest rate swaps; at the end of December 31, 2025, the EURIBOR interest rate was 3.73% and 4.09% at the end of December 31, 2024, including the effect of interest rate swaps.  | <sup>(1)</sup> The credit facility matures in August 2028. At the end of the December 31, 2025 and December 31, 2024, the USD interest rate in effect was 5.56% and 5.77%, respectively, including the effect of interest rate swaps; at the end of December 31, 2025, the EURIBOR interest rate was 3.73% and 4.09% at the end of December 31, 2024, including the effect of interest rate swaps.  | <sup>(1)</sup> The credit facility matures in August 2028. At the end of the December 31, 2025 and December 31, 2024, the USD interest rate in effect was 5.56% and 5.77%, respectively, including the effect of interest rate swaps; at the end of December 31, 2025, the EURIBOR interest rate was 3.73% and 4.09% at the end of December 31, 2024, including the effect of interest rate swaps.  |

---

There are no principal payments on long-term debt until 2028, at which time the balance of $455.7 million is due. Cash payments of interest amounted to $24.6 million in 2025, $14.7 million in 2024 and $18.7 million in 2023.

<u>Amended Credit Agreement</u>

On August 16, 2023, we entered into a $800 million unsecured committed Five-Year Revolving Credit Facility Agreement, amended on June 28, 2024 (collectively, the "Amended Credit Agreement"), which matures in August of 2028.

The applicable interest rate for borrowings under the Amended Credit Agreement is based on both Term SOFR and EURIBOR plus a spread, which is based on our leverage ratio (as defined in the Amended Credit Agreement) at the time of a borrowing as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Leverage Ratio** | **Commitment Fee** | **ABR Spread** | **Term Benchmark/ Daily<br>Simple SOFR Spread** |
| <1.00:1.00 | 0.275% | 0.500% | 1.500% |
| ≥ 1.00:1.00 and < 2.00:1.00 | 0.300% | 0.625% | 1.625% |
| ≥ 2.00:1.00 and < 3.00:1.00 | 0.325% | 0.750% | 1.750% |
| ≥ 3.00:1.00 | 0.350% | 1.000% | 2.000% |

---

As of December 31, 2025, the applicable interest rate for borrowings under the Amended Credit Agreement was based on one-month term SOFR and one-month EURIBOR, plus the spread, which was 1.625%.

As of December 31, 2025, there was $456 million of borrowings outstanding under the Amended Credit Agreement and we had borrowings available of $344 million, based on our maximum leverage ratio and our consolidated EBITDA (as defined in the Amended Credit Agreement).

Under the Amended Credit Agreement, we are required to maintain a leverage ratio (as defined in the Amended Credit Agreement) of not greater than 3.75 to 1.00, or 4.25 to 1.00 after a significant acquisition. We are also required to maintain a minimum interest coverage ratio (as defined in the Amended Credit Agreement) of greater than 3.00 to 1.00. If our leverage ratio exceeds 3.50 to 1.00, we will be restricted in paying dividends to a maximum amount of $40 million in a calendar year.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**17. Financial Instruments — (continued)**

As of December 31, 2025, our leverage ratio was 1.66 to 1.00 and our interest coverage ratio was 8.30 to 1.00. As of December 31, 2025, we were in compliance with all applicable covenants. We anticipate continued compliance in each of the next four quarters while continuing to monitor future compliance based on current and future economic conditions.

The borrowings are guaranteed by certain of the Company's subsidiaries as defined in the Amended Credit Agreement. Our ability to borrow additional amounts under the Amended Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change (as defined in the Amended Credit Agreement). Indebtedness under the Amended Credit Agreement is ranked equally in right of payment to all unsecured senior debt.

In November, 2024, we entered into two interest rate swap agreements: A USD interest rate swap agreement and a EUR interest rate swap agreement. The USD interest rate swap agreement covers the period November 15, 2024 through November 15, 2026. This transaction has the effect of fixing the SOFR portion of the interest rate (before the credit spread) on $125 million of the US indebtedness drawn under the Amended Credit Facility. Under the terms of this transaction, the Company pays a fixed rate of 3.987% and our counterparty pays a floating rate based on the one-month SOFR rate at each monthly calculation date. The EUR interest rate swap agreement covers the period November 14, 2024 through November 15, 2026. This transaction has the effect of fixing the EURIBOR portion of the interest rate (before the credit spread) on EUR 45 million of the EUR indebtedness drawn under the Amended Credit Facility. Under the terms of this transaction, the Company pays a fixed rate of 2.277% and our counterparty pays a floating rate based on the one-month EURIBOR rate at each monthly calculation date.

These interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 18, *Fair-Value Measurements*, of the Notes to the Consolidated Financial Statements. No cash collateral was received or pledged in relation to the swap agreements.

**18. Fair-Value Measurements**

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

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

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

Level 3 - Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

We had no Level 3 financial assets or liabilities at December 31, 2025, or at December 31, 2024, other than certain pension assets (see Note 4, *Pension, Postretirement, and Other Benefit Plans*, of the Notes to the Consolidated Financial Statements).

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**18. Fair-Value Measurements — (continued)**

The following table presents the fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair value on a recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>**(in thousands)** | **Quoted prices in active markets**<br>**(Level 1)** | **Significant other observable inputs** <br>**(Level 2)** | **Quoted prices in active markets**<br>**(Level 1)** | **Significant other observable inputs**<br>**(Level 2)** |
| **Fair Value** | | | | |
| *Assets:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash equivalents | $**10584** | $**—** | $11273 | $— |
| &nbsp;&nbsp;&nbsp;Foreign currency option contracts |  | **—** |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency forward contracts |  | **—** |  |  |
| *Other Assets:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock of unaffiliated foreign public company <sup>(a)</sup> | **1098** | **—** | 631 |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | **—** | **768** |  | 149 |
| *Liabilities:* |  |  |  |  |
| *Other Non-Current Liabilities* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | **—** | **—** |  | (218) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Original cost basis $0.5 million

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

The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities in the Consolidated Balance Sheets. Unrealized gains and losses on the interest rate swaps flow through the caption Derivative valuation adjustment in the Shareholders' equity section of the Consolidated Balance Sheets. In November, 2024, the Company entered into a USD and EUR interest rate swap agreements (see Note 17, Financial Instruments, of the Notes to the Consolidated Financial Statements for additional information). As of December 31, 2025, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. Amounts accumulated in Other comprehensive income are reclassified as Interest expense/(income), net when the related interest payments (that is, the hedged forecasted transactions), affect earnings. Interest (income)/expense related to payments under the active swap agreements totaled $0.3 million in 2025, $13.4 million in 2024 and $(15.0) million in 2023.

We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results. From time to time, we enter into foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources. These instruments are measured using market foreign exchange prices and are recorded in the Consolidated Balance Sheets as Other assets and Accounts payable, as applicable. Changes in fair value of these instruments are recorded as gains or losses within Other (income)/expense, net.

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

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**18. Fair-Value Measurements — (continued)**

(Gains)/losses related to changes in fair value of derivative instruments that were recognized in Other (income)/expense, net in the Consolidated Statements of Income were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** | **2023** |
| Derivatives not designated as hedging |  |  |  |
| instruments: |  |  |  |
| Foreign currency hedging (gains)/losses | $**(3735)** | $3459 | $(351) |

---

**19. Other Noncurrent Liabilities**

As of December 31, 2025 and 2024, Other noncurrent liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **2025** | **2024** |
| Operating leases | $**7423** | $61062 |
| Postretirement benefits other than pensions | **24151** | 23943 |
| Pension liabilities | **47782** | 46041 |
| Incentive and deferred compensation | **2951** | 1908 |
| Other | **4543** | 5876 |
| Total other noncurrent liabilities | $**86850** | $138830 |

---

**20. Leases**

We are generally the lessee in our lease transactions. Lessees are required to recognize a lease liability and a right of use ("ROU") asset for leases with terms greater than 12 months, in accordance with the practical expedient that is available for ongoing accounting.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term, using the rate implicit in the lease. If that rate is not readily determinable, the rate is based on the Company's incremental borrowing rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease. Our ROU assets include the values associated with the additional periods when it is reasonably certain that we will exercise the option. We review the carrying value of ROU assets for impairment whenever events and circumstances indicate that the carrying value of an asset group may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.

We have entered into operating leases for offices, manufacturing facilities, warehouses, vehicles, and certain equipment. Our leases have remaining lease terms of one year to 14 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within one year.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**20. Leases — (continued)**

The components of lease expense were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **For the years ended** | **For the years ended** | **For the years ended** |
|<br>**(in thousands)** | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
| Operating lease: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed lease cost | **11576** | 10776 | 9591 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable lease cost | **1906** | 516 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term lease cost | **776** | 2170 | 2060 |
| Total lease expense | $**14258** | $13462 | $11759 |

---

The Company was not party to any leases classified as finance leases for the periods ending December 31, 2025, 2024, or 2023.

Supplemental cash flow information related to leases was as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **For the years ended** | **For the years ended** | **For the years ended** |
|<br>**(in thousands)** | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;Operating cash outflows from operating leases | $**11809** | $11204 | $10105 |
| Right-of-use assets obtained in exchange for lease obligations: |  |  |  |
| &nbsp;&nbsp;Operating leases | $**9746** | $17698 | $9114 |

---

The initial recognition of each ROU asset and lease liability at lease commencement is a noncash transaction that is excluded from amounts reported in the Consolidated Statements of Cash Flows.

Supplemental balance sheet information related to leases was as follows:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **December 31, 2025** | **December 31, 2024** |
| **Operating leases** | | |
| Right of use assets | $**11387** | $61671 |
| Lease liabilities included in |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | $**4274** | $7607 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | **7423** | 61062 |
| Total operating lease liabilities | $**11697** | $68669 |

---

Additional information for leases existing at December 31, 2025 and 2024 was as follows:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| **Weighted average remaining lease term** | | |
| Operating leases | **13 years** | 13 years |
| **Weighted average discount rate** |  |  |
| Operating leases | **5.8%** | 5.8% |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**20. Leases — (continued)**

Maturities of lease liabilities as of December 31, 2025 were as follows:

---

| | |
|:---|:---|
| **(in thousands)** | **Operating leases** |
| Year ending December 31, |  |
| 2026 | $**4809** |
| 2027 | **3600** |
| 2028 | **1692** |
| 2029 | **860** |
| 2030 | **408** |
| Thereafter | **2548** |
| Total lease payments | **13917** |
| Less imputed interest | **(2220)** |
| Total | $**11697** |

---

The above table excludes leases held by the disposal group for which the Company is the obligor. Payments for these leases are expected to be $6.2 million in 2026, $6.3 million in 2027, $5.3 million in 2028, $5.4 million in 2029, $5.5 million in 2030, and $57.1 million thereafter. Of these payments, $27.7 million is imputed interest at December 31, 2025.

**21. Commitments and Contingencies**

**Asbestos Litigation**

Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills.

We were defending 3,677 claims as of December 31, 2025.

The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended December 31,** | **Opening Number of Claims** | **Claims Dismissed, Settled, or<br>Resolved** | **New Claims** | **Closing Number of Claims** | **Amounts Paid (thousands) to<br>Settle or Resolve** |
| 2023 | 3598 | 19 | 27 | 3606 | $74 |
| 2024 | 3606 | 10 | 50 | 3646 | 13 |
| **2025** | **3646** | **28** | **59** | **3677** | **173** |

---

We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims and therefore we are unable to estimate a range of reasonably possible loss in excess of amounts already accrued for pending or future claims.

While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of December 31, 2025 we had resolved, by means of settlement or dismissal, 38,079 claims. The total cost of resolving all claims was $10.9 million. Of this amount, almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million of

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**21. Commitments and Contingencies — (continued)**

remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.

The Company's subsidiary, Brandon Drying Fabrics, Inc. ("Brandon"), is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against 7,675 claims as of December 31, 2025, only twelve claims have been filed against Brandon since January 1, 2012, and only $15,000 in settlement costs have been incurred since 2001. Brandon was acquired by the Company in 1999 and has its own insurance policies covering periods prior to 1999. Since 2004, Brandon's insurance carriers have covered 100% of indemnification and defense costs, subject to policy limits and a standard reservation of rights.

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

We currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results of operations, or cash flows.

**22. Stock-Based Compensation**

We have cash-based and stock-based incentive compensation plans that can be awarded for key employees, which are designed to reward short and long-term contributions and used as retention incentives for key senior management. We grant stock-based awards in the form of restricted stock units that are generally settled with the issuance of Class A shares. We grant performance phantom stock units that are treated as liability-based awards and are generally settled in cash. The vesting periods generally range between one and five years from the grant date. Expenses associated with these awards are recognized over each respective vesting period.

<u>Performance and Retention Awards</u>

The Albany International 2017 and 2023 Long-term Incentive Plans provide senior executive members of management with incentive compensation based on achieving certain performance or service measures. Awards can be settled in cash or shares of Class A Common Stock. If the settlement is in the form of Class A Common Stock, participants may elect to receive shares net of applicable income taxes.

*Multi-Year Performance Plan Awards* 

Long-term performance incentives were granted to executives as multi-year performance plan ("MPP") awards in each of 2023, 2024. Beginning in 2025, long-term performance incentive awards took the form of restricted stock unit award. Each of the MPP awards vests three years after the grant date, and the extent of payout is dependent upon the achievement of certain performance metrics during the three-year performance period, as defined by the Compensation Committee of the Board of Directors. Settlement of the awards are scheduled to occur no later than 90 days after the end of the performance period. If a participant terminates employment prior to the award becoming fully vested, the participant forfeits either their entire award or a pro rata portion of the MPP award. The grant date share price is determined when the awards are approved by the Compensation Committee of the Board of Directors each year and that price is used to measure the cost for the share-based portion of an award. MPP awards are generally settled in shares. Expense associated with these awards is recognized over the vesting period. and is adjusted quarterly based on estimated achievement of performance metrics. In connection with these awards, we recognized (income)/expense of ($2.1) million in 2025, $1.6 million in 2024 and $5.1 million in 2023. Based on current estimates of achievement of certain performance metrics, we anticipate recognizing $0.1 million of expense in 2026 and 2027.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**22. Stock-Based Compensation — (continued)**

*Restricted Stock Unit Awards* 

Long-term restricted stock unit awards ("RSU") were granted to executives and other eligible employees which vest annually and settle in shares no later than 90 days after the vesting period ends. The grant date share price is the date when the award is approved by the Compensation Committee of the Board of Directors and is used to measure the cost of the award. We recognized $6.5 million of expense in 2025 associated with RSU's, $2.6 million in 2024, and $4.2 million in 2023. Based on RSU's outstanding at December 31, 2025, we expect to record approximately $3.4 million of expense in 2026 and $1.4 million of expense in 2027.

As of December 31, 2025, there were 1,341,905 shares of Company stock authorized for the payment of awards under these plans. Information with respect to these plans is presented below:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands, except number of shares and weighted average grant date value per share)** | **Number of shares** | **Weighted average grant date value <br>per share** | **Year-end intrinsic value** |
| Shares potentially payable at January 1, 2023 | 135941 | $79.11 | $10754 |
| Forfeitures | (9035) | $92.02 |  |
| Payments | (112279) | $86.35 |  |
| Shares accrued based on 2023 performance | 124181 | $92.52 |  |
| Shares potentially payable at December 31, 2023 | 138808 | $84.41 | $11717 |
| Forfeitures | (14689) | $92.02 |  |
| Payments | (77782) | $89.44 |  |
| Shares accrued based on 2024 performance | 81468 | $91.80 |  |
| Shares potentially payable at December 31, 2024 | 127805 | $85.69 | $10952 |
| Forfeitures | **(39057)** | $**87.50** |  |
| Vesting | **(59180)** | $**87.62** |  |
| Grants | **195506** | $**72.45** |  |
| Shares accrued based on 2025 performance | **21226** | $**88.33** |  |
| Shares potentially payable at December 31, 2025 | **246300** | $**79.34** | $**19541** |

---

*Performance Phantom Stock*

Long-term cash retention incentives with a performance component were granted to members of management as Phantom Stock Plan ("PSP") awards. Awards under this plan vest over a 3 to 5 year period and are paid annually in cash based on current market prices of the Company's stock. Under this program, employees may earn more or less than the target award based on the Company's results in the year of the award. Expense recognized for this plan amounted to $3.3 million in 2025, $5.4 million in 2024, and $7.8 million in 2023. Based on awards outstanding at December 31, 2025, we expect to record approximately $2.3 million of compensation cost from 2026 to 2028. The weighted average period for recognition of that cost is approximately 1.4 years.

<u>Non-employee Director stock compensation</u>

The Company's independent Directors are paid an annual retainer, of which a certain amount is required to be paid in shares. The total number of shares paid to each independent Director is determined by the share closing price on the day of the Annual Meeting at which the election of Directors occurs. This resulted in compensation expense of $0.8 million in 2025, $1.2 million in 2024, and $1.1 million in 2023 in the form of shares.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**23. Shareholders' Equity**

We currently have one class of Common Stock, Class A Common Stock, with a par value of $0.001. Each share is entitled to one vote on all matters submitted to shareholders, and will receive dividends as approved by the Board of Directors.

The Company's Board of Directors authorized the Company to repurchase shares of up to $250 million through open market purchases, privately negotiated transactions or otherwise, and to determine the prices, times and amounts. The program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company's discretion. The share repurchase program does not have an expiration date. The timing and amount of any share repurchases will be based on the Company's liquidity, general business and market conditions, debt covenant restrictions and other factors, including alternative investment opportunities and capital structure. As of December 31, 2025, the Company has repurchased in total 2,682,859 shares under the current plan for a total cost of $173.3 million. We are currently authorized to repurchase shares up to $76.7 million under the current program. Further, shares were purchased in 2025 for $12.6 million under a now expired authorization. Repurchases made during 2025 are subject to excise taxes of $1.9 million, payable in 2026.

Activity in Shareholders' equity for 2023, 2024, and 2025 is presented below:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **Class A**<br>**Common Stock** | **Class A**<br>**Common Stock** | **Additional paid-in capital** | **Retained earnings** | **Accumulated items of other<br>comprehensive income** | **Class A**<br>**Treasury Stock** | **Class A**<br>**Treasury Stock** | **Noncontrolling Interest** | **Total Equity** |
| | **Shares** | **Amount** | **Additional paid-in capital** | **Retained earnings** | **Accumulated items of other<br>comprehensive income** | **Shares** | **Amount** | **Noncontrolling Interest** | **Total Equity** |
| January 1, 2023 | 40785 | $41 | $441540 | $931318 | $(144927) | 9675 | $(364923) | $4494 | $867543 |
| Net income |  |  |  | 111120 |  |  |  | 490 | 111610 |
| Compensation and benefits paid or payable in shares | 71 |  | 5851 |  |  |  |  |  | 5851 |
| Shares issued to Directors' |  |  | 827 |  |  | (13) | 258 |  | 1085 |
| Dividends declared on Class A Common Stock, $1.01 per share |  |  |  | (31496) |  |  |  |  | (31496) |
| Initial equity related to Noncontrolling Interest in Arcari |  |  |  |  |  |  |  | 509 | 509 |
| Cumulative translation adjustments |  |  |  |  | 21950 |  |  | 459 | 22409 |
| Pension and postretirement liability adjustments |  |  |  |  | (1563) |  |  |  | (1563) |
| Derivative valuation adjustment |  |  |  |  | (8628) |  |  |  | (8628) |
| December 31, 2023 | 40856 | $41 | $448218 | $1010942 | $(133168) | 9662 | $(364665) | $5952 | $967320 |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**ALBANY INTERNATIONAL CORP.**

**Notes to Consolidated Financial Statements**

**23. Shareholders' Equity — (continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Additional paid-in capital** | **Retained earnings** | **Accumulated items of other<br>comprehensive income** | **Class A<br>Treasury Stock** | **Class A<br>Treasury Stock** | **Noncontrolling Interest** | **Total Equity** |
| | **Shares** | **Amount** | **Additional paid-in capital** | **Retained earnings** | **Accumulated items of other<br>comprehensive income** | **Shares** | **Amount** | **Noncontrolling Interest** | **Total Equity** |
| January 1, 2024 | 40856 | $41 | $448218 | $1010942 | $(133168) | 9662 | $(364665) | $5952 | $967320 |
| Net income |  |  |  | 87623 |  |  |  | 432 | 88055 |
| Compensation and benefits paid or payable in shares | 51 |  | 3812 |  |  |  |  |  | 3812 |
| Shares issued to Directors' | 10 |  | 903 |  |  |  |  |  | 903 |
| Purchase of Treasury shares |  |  |  |  |  | 183 | (14545) |  | (14545) |
| Dividends declared on Class A Common Stock, $1.05 per share |  |  |  | (32802) |  |  |  |  | (32802) |
| Dividends paid to noncontrolling interests |  |  |  |  |  |  |  | (166) | (166) |
| Cumulative translation adjustments |  |  |  |  | (56654) |  |  | (809) | (57463) |
| Pension and postretirement liability adjustments |  |  |  |  | 3018 |  |  |  | 3018 |
| Derivative valuation adjustment |  |  |  |  | (9185) |  |  |  | (9185) |
| December 31, 2024 | 40917 | $41 | $452933 | $1065763 | $(195989) | 9845 | $(379210) | $5409 | $948947 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(in thousands)** | **Class A**<br>**Common Stock** | **Class A**<br>**Common Stock** | **Additional paid-in capital** | **Retained earnings** | **Accumulated items of other<br>comprehensive income** | **Class A**<br>**Treasury Stock** | **Class A**<br>**Treasury Stock** | **Noncontrolling Interest** | **Total Equity** |
| | **Shares** | **Amount** | **Additional paid-in capital** | **Retained earnings** | **Accumulated items of other<br>comprehensive income** | **Shares** | **Amount** | **Noncontrolling Interest** | **Total Equity** |
| January 1, 2025 | 40917 | $41 | $452933 | $1065763 | $(195989) | 9845 | $(379210) | $5409 | $948947 |
| Net income | **—** | **—** | **—** | **(57342)** | **—** | **—** | **—** | **383** | **(56959)** |
| Stock- based compensation | **61** | **—** | **9300** | **—** | **—** | **—** | **—** | **—** | **9300** |
| Stock issued under incentive compensation plans | **—** | **—** | **(1067)** | **—** | **—** | **—** | **—** | **—** | **(1067)** |
| Taxes paid in lieu of share issuance | **—** | **—** | **(1454)** | **—** | **—** | **—** | **—** | **—** | **(1454)** |
| Shares issued to Directors' | **11** | **—** | **760** | **—** | **—** | **—** | **—** | **—** | **760** |
| Purchase of Treasury shares | **—** | **—** | **—** | **—** | **—** | **2841** | **(187929)** | **—** | **(187929)** |
| Dividends declared on Class A Common Stock, $1.09 per share | **—** | **—** | **—** | **(31953)** | **—** | **—** | **—** | **—** | **(31953)** |
| Dividends paid to noncontrolling interests | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(88)** | **(88)** |
| Cumulative translation adjustments | **—** | **—** | **—** | **—** | **62547** | **—** | **—** | **101** | **62648** |
| Pension and postretirement liability adjustments | **—** | **—** | **—** | **—** | **(9583)** | **—** | **—** | **—** | **(9583)** |
| Derivative valuation adjustment | **—** | **—** | **—** | **(95)** | **(513)** | **—** | **—** | **88** | **(520)** |
| December 31, 2025 | **40989** | $**41** | $**460472** | $**976373** | $**(143538)** | **12686** | $**(567139)** | $**5893** | $**732102** |

---

------

**24. Held for Sale**

During the fourth quarter of 2025, the Company announced that it is exploring strategic alternatives for its structures assembly business as it is not aligned with our long-term strategy. Exiting this business will enable the AEC business segment to focus on higher-margin, advanced technology component opportunities where we have a strong record of execution, and differentiated material science, including our 3D woven technology. The structure assembly program operates within the AEC segment out of the Amelia Earhart Drive facility in Salt Lake City, and is part of Albany Aerostructures Composites, LLC, a wholly-owned subsidiary. In addition to the structure assembly work for the program, the site also manufactures advanced composite parts for the CH-53K and other commercial and defense programs.

The Company has assessed the held-for-sale accounting criteria and classified the assets and liabilities associated with Amelia Earhart Drive facility as held-for-sale at December 31, 2025. Management has also performed a quantitative assessment of the fair value of the disposal group less costs of disposal based on income-based valuation techniques, utilizing projected discounted cash flows. The result was that fair value exceeds the net carrying value, and no impairment charge has been recorded.

The carrying amounts of the assets and liabilities of the facility classified as held-for-sale in our Consolidated Balance Sheet were as follows:

---

| | |
|:---|:---|
| **(in thousands)** | **December 31, 2025** |
| Accounts receivable, net | $**27159** |
| Contract assets, net | **68550** |
| Inventories | **16422** |
| Prepaid expenses and other current assets | **697** |
| Property, plant and equipment, net | **93525** |
| Intangibles, net | **13384** |
| Goodwill | **21829** |
| Other assets | **52217** |
| Total assets held for sale | $**293783** |
| Accounts payable | $**16408** |
| Accrued liabilities | **115448** |
| Other noncurrent liabilities | **59724** |
| Deferred taxes and other liabilities | **11743** |
| Total liabilities held for sale | $**203323** |

---

**25. Subsequent Events**

The Company evaluated subsequent events occurring after the balance sheet date through the date these financial statements were issued and determined that no events occurred that would require adjustment to, or disclosure in, the financial statements.

------

**Item 9.**

**CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

**Item 9A.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

The Company, with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, has carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) as of December 31, 2025. Such disclosure controls and procedures are designed to ensure that information required to be disclosed in reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms, and to ensure that information required to be disclosed under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Based on and as of the date of this evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company's disclosure controls and procedures were effective as of such date.

**Management's Report on Internal Control over Financial Reporting**

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Company's internal control system is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Because of its limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Management, under the supervision of the Company's Chief Executive Officer and Chief Financial Officer, and oversight of the Board of Directors, conducted an assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2025 using the criteria set forth by the 2013 Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control – Integrated Framework.

Based on management's assessment, we have concluded that our internal control over financial reporting was effective at December 31, 2025. Our independent registered accounting firm has issued a report on the effectiveness of our internal control over financial reporting which is included under Item 8.

**Changes in Internal Control over Financial Reporting**

Management of the Company has evaluated the changes in the Company's internal controls over financial reporting during 2025. There were no changes in our internal control over financial reporting during our fourth fiscal quarter of 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

---

| | | |
|:---|:---|:---|
| <u>/s/ Gunnar Kleveland</u> | <u>/s/ Willard C. Station</u> | <u>/s/ Sean Valashinas</u> |
| Gunnar Kleveland | Willard C. Station | Sean Valashinas |
| President and<br>Chief Executive Officer<br>and Director | Executive Vice President and Chief Financial Officer | Vice President - Controller and Chief Accounting Officer |
| (Principal Executive Officer) | (Principal Financial Officer) | (Principal Accounting Officer) |

---

**Item 9B.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

*Securities Trading Plans of Directors and Executive Officers*

During the three months ended December 31, 2025, none of the members of our Board of Directors or Executive Officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Albany International Corp. securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement" as defined in Item 408(c) of Regulation S-K.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**PART III**

The information required by Items 10, 11, 12, 13, and 14 is set forth under the headings below and when applicable is incorporated herein by reference to the Company's 2026 Proxy Statement ("Proxy Statement") to be filed with the SEC within 120 days after December 31, 2025 in connection with the solicitation of proxies for the Company's 2025 annual meeting of shareholders.

**Item 10.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

&nbsp;&nbsp;&nbsp;&nbsp;a)<u>Directors</u>. The information set out in the section captioned "Election of Directors", will be filed within the Proxy Statement.

&nbsp;&nbsp;&nbsp;&nbsp;b)<u>Executive Officers</u>. Information about the officers of the Company is included in Item 1, Business, in Part I of this Annual Report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;c)<u>Significant Employees</u>. Same as Executive Officers in b) above.

&nbsp;&nbsp;&nbsp;&nbsp;d)<u>Nature of any family relationship between any director, executive officer</u>, person nominated or chosen to become a director or executive officer. The information is included in the section captioned "Certain Business Relationships and Related Person Transactions", filed within in the Proxy Statement.

&nbsp;&nbsp;&nbsp;&nbsp;e)<u>Business experience, during the past five years, of each director, executive officer, person nominated or chosen to become director or executive officer, and significant employees.</u> Information about the Company's Executive Officers is included in Item 1, Business, in Part I of this Annual Report on Form 10-K and the information about the Company's Directors is included in the section captioned "Election of Directors" in the Proxy Statement.

&nbsp;&nbsp;&nbsp;&nbsp;f)<u>Involvement in certain legal proceedings by any director, person nominated to become a director or executive officer</u>. The information, if any, is included in the section captioned "Election of Directors", filed within the Proxy Statement.

&nbsp;&nbsp;&nbsp;&nbsp;g)<u>Certain promoters and control persons</u>. None.

&nbsp;&nbsp;&nbsp;&nbsp;h)<u>Audit Committee Financial Expert.</u> The information is included in the section captioned "Corporate Governance at Albany International", filed within the Proxy Statement.

&nbsp;&nbsp;&nbsp;&nbsp;i)<u>Code of Ethics</u>. The Company has adopted a Code of Ethics that applies to all of its employees, directors, and officers, including the Chief Executive Officer, Chief Financial Officer and Vice President- Controller and Chief Accounting Officer. A copy of the Code of Ethics is filed as Exhibit 10(p) and is available at the Corporate Governance section of the Company's website (www.albint.com), within the investor materials section. A copy of the Code of Ethics may be obtained, without charge, by writing to: Investor Relations Department, Albany International Corp., 325 Corporate Drive, Portsmouth, New Hampshire 03801. Any amendment to the Code of Ethics will be disclosed by posting the amended Code of Ethics on the Company's website. Any waiver of any provision of the Code of Ethics will be disclosed by the filing of a Form 8-K.

&nbsp;&nbsp;&nbsp;&nbsp;j)<u>Insider Trading Policy</u>. The Company has adopted an insider trading policy governing the purchase, sale, and/or other dispositions of its securities by our directors, officers and employees that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations, and the exchange listing standards applicable to the Company. A copy of our Insider Trading Policy is filed as Exhibit 19. It is the Company's policy to comply with all applicable securities and state laws (including appropriate approvals by the Company's board of directors or appropriate committee, if required) when engaging in transactions in the Company's securities.

**Item 11.&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION**

The information required by this item is set forth in the sections of the Company's 2026 Proxy Statement captioned "2025 Executive Compensation Earned," "Summary Compensation Table," "CEO Pay Ratio," "Grants of Plan-Based Awards," "Outstanding Equity Awards At Fiscal Year-End," "Option Exercises and Stock Vested," "Pension Benefits," "Nonqualified Deferred Compensation," "Director Compensation," "Compensation Committee Report," "Compensation Discussion and Analysis," and "Compensation Committee Interlocks and Insider Participation" and is incorporated herein by reference.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**Item 12.&nbsp;&nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

The information required by this item is set forth in the section captioned "Share Ownership" in the Company's 2026 Proxy Statement and is incorporated herein by reference.

**Equity Compensation Plan Information**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Plan Category** | **Number of securities to be issued upon<br>exercise of outstanding options, warrants,<br>and rights** | | **Weighted average exercise price of<br>outstanding options, warrants, and rights** | **Number of securities remaining available<br>for future issuance under equity<br>compensation plans (excluding securities<br>reflected in column (a))** | |
| | **(a)** | | **(b)** | **(c)** | |
| Equity compensation plans approved by security holders | **—** | (1) | **—** | **1341905** | <sup>(1),(2),(3),(4),(5)</sup> |
| Equity compensation plans not approved by security holders | **—** |  | **—** | **—** |  |
| Total | **—** | (1) | **—** | **1341905** | <sup>(1),(2),(3),(4),(5)</sup> |

---

_______________________

(1)Does not include 46,318, 60,078, and 175,876 shares that have been granted and may be issued pursuant to 2023, 2024 and 2025, respectively, performance incentive awards granted to certain executive officers pursuant to either the 2017 Incentive Plan or the 2023 Incentive Plan. Nor does it include 10,416 shares that will be issued pursuant to non-employee director restricted stock units issued pursuant to the 2023 Incentive Plan (see footnote 5 below). In each case such awards are not "exercisable," but will be paid out to the recipients in accordance with their terms, subject to certain conditions. The ultimate number of shares actually issued pursuant to such awards may be higher or lower depending upon, among other things, forfeitures, cancellation, or, in the particular case of performance share unit awards, actual performance as measured against the performance award target goals.

(2)Reflects the number of shares that may be issued pursuant to future awards under the 2023 Incentive Plan. This includes the Common Stock that remained available for issuance under the 2017 Incentive Plan but which are now issuable under the 2023 Incentive Plan (see footnote 4 below).

(3)The 2017 Incentive Plan does not permit the Board of Directors to increase the number of shares that may be issued under the Plan without shareholder consent. Shares of Common Stock covered by awards granted under the 2017 Incentive Plan through 2023 are counted as used to the extent the awards are actually earned and settled in shares, including shares withheld to satisfy participant personal income tax requirements. If shares are issued subject to conditions that may result in the forfeiture, cancellation, or return of such shares to the Company, any shares forfeited, canceled, or returned shall be treated as not issued.

(4)The 2023 Incentive Plan does not permit the Board of Directors to increase the number of shares that may be issued under the Plan without shareholder consent. However, the 2023 Incentive Plan expressly provides that any shares remaining available for issuance under the 2017 Incentive Plan would be available for issuance under the 2023 Incentive Plan, in addition to the 1,000,000 shares authorized by shareholders with the approval of the 2023 Incentive Plan. Shares of Common Stock covered by awards granted under the 2023 Incentive Plan are counted as used to the extent the awards are actually earned and settled in shares, including shares withheld to satisfy participant personal income tax requirements. If shares are issued subject to conditions that may result in the forfeiture, cancellation, or return of such shares to the Company, any shares forfeited, canceled, or returned shall be treated as not issued.

(5)The Company's independent Directors are paid an annual retainer in the aggregate dollar amount of $220,000 for service as a member of the Company's Board of Directors (excluding additional fees for committee memberships), of which $135,000 is required to be paid in shares of Class A Common Stock. The total number of shares to be paid to each independent Director each year shall be determined by the closing price of a share of such stock on the day of the Annual Meeting at which the election of Directors for such year occurs ("the Valuation Price"), as such Valuation Price is reported for such day in the Wall Street Journal, rounded down to

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

the nearest whole number. Independent Directors are expected to hold shares with a value of $660,000 or three times the value of the annual retainer. Independent Directors may elect to receive, in stock, all of the retainer payable in shares of Common Stock. Beginning in 2024, the shares paid to independent Directors are paid from the pool of shares available pursuant to the 2023 Incentive Plan. In addition, beginning in 2024 Directors can elect to defer receipt of all or a portion of such shares until a future date, in which case they are granted a non-employee director restricted stock unit award, awarding restricted stock units in a number equal to the number of shares deferred.

**Item 13.&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE**

The information required by this item is set forth in the section captioned "Director Independence" and "Election of Directors" in the Company's 2026 Proxy Statement and is incorporated herein by reference.

**Item 14.&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTANT FEES AND SERVICES**

Our independent registered public accounting firm is KPMG LLP, Boston, MA, Auditor Firm ID: 185.

The information required by this item is included in Item 2, "Ratification of Independent Auditors" in the Company's 2026 Proxy Statement and is incorporated herein by reference.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**PART IV**

**Item 15.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

**(a)(1)&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| | **Page Number in Form 10-K** |
| See Item 8 of this Form 10-K setting forth the Report of the Independent Registered Public Accounting Firm (PCAOB ID 185) and our Consolidated Financial Statements. | <u>[49](#ib1b89345a4364fb69d7ce3189f67b705_85)</u> |

---

**(a)(2)&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENT SCHEDULES**

**ALBANY INTERNATIONAL CORP. AND SUBSIDIARIES**

**VALUATION AND QUALIFYING ACCOUNTS**

**(Amounts in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Column A</u>** | **Column B** | **Column C** | **Column D** | **Column E** |
| **<u>Description</u>** | **Balance at beginning of period** | **Charge to expense** | **Other (a)** | **Balance at end of the period** |
| Allowance for doubtful accounts |  |  |  |  |
| Year ended December 31: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2025 | $**4925** | $**(139)** | $**37** | $**4823** |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 | 6190 | 310 | (1575) | 4925 |
| &nbsp;&nbsp;&nbsp;&nbsp;2023 | 3984 | 640 | 1566 | 6190 |
| Allowance for sales returns |  |  |  |  |
| Year ended December 31: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2025 | $**9422** | $**6301** | $**(4936)** | $**10787** |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 | 10232 | 6253 | (7063) | 9422 |
| &nbsp;&nbsp;&nbsp;&nbsp;2023 | 9070 | 5499 | (4337) | 10232 |
| Valuation allowance deferred tax assets |  |  |  |  |
| Year ended December 31: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2025 | $**15496** | $**408** | $**1571** | $**17475** |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 | 9848 | 6855 | (1207) | 15496 |
| &nbsp;&nbsp;&nbsp;&nbsp;2023 | 9786 | (1381) | 1443 | 9848 |

---

__________________________

(a) Amounts acquired, sold, written off, or recovered, and the effect of changes in currency translation rates, are included in Column D.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
|<br>**Exhibit** <br>**Number** |<br>**Exhibit Description** |<br>**Filed Herewith** | **Form** | **Period Ending** | **Filing Date** |
| 3 (a) | <u>[Amended and Restated Certificate of Incorporation of Company](https://www.sec.gov/Archives/edgar/data/819793/000081979323000045/ain-20230518xex3a.htm)</u> |  | 8-K |  | 05/18/23 |
| 3.1 | <u>[Albany International Corp. By Laws, effective as of September 20, 2024.](https://www.sec.gov/Archives/edgar/data/819793/000081979324000062/ain-20240926xex31.htm)</u> |  | 8-K |  | 09/26/24 |
| 4.1 | <u>[Description of the Company's securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.](https://www.sec.gov/Archives/edgar/data/0000819793/000114036121027163/ny20000193x2_ex4-1.htm)</u> |  | 8-K |  | 08/05/21 |
| 4 (a) | <u>[Article IV of Certificate of Incorporation of Company](https://www.sec.gov/Archives/edgar/data/819793/000081979323000045/ain-20230518xex3a.htm)</u> |  | 8-K |  | 05/18/23 |
| 4 (b) | Specimen Stock Certificate for Class A Common Stock |  | S-1, No. 33-16254 |  | 09/30/87 |
| **Credit Agreements** | **Credit Agreements** |  |  |  |  |
| 10.1 | <u>[First Amendment to Amended and Restated Credit Agreement, dated as of June 28, 2024, between Albany International Corp. and JPMorgan Chase Bank, N.A., as Administrative Agent.](https://www.sec.gov/Archives/edgar/data/819793/000081979324000051/ain-20240630xex101.htm)</u> |  | 10-Q | 6/30/24 | 08/06/24 |
| 10(k)(xx) | <u>[$800 million Five-Year Revolving Credit Facility Agreement among Albany International Corp., the other Borrowers named therein, the Lenders Party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, dated as of August 16, 2023.](https://www.sec.gov/Archives/edgar/data/819793/000081979323000075/ain-20230816xexhibit10kxx.htm)</u> |  | 8-K |  | 08/16/23 |
| 10(k)(xx) | <u>[$700 Million Five-Year Revolving Credit Facility Agreement among Albany International Corp., the other Borrowers named therein, the Lenders Party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, dated as of October 27, 2020](https://www.sec.gov/Archives/edgar/data/819793/000115752320001363/a52315986ex10kxx.htm)</u> |  | 8-K |  | 10/29/20 |
| **Restricted Stock Units** | **Restricted Stock Units** |  |  |  |  |
| 10(l)(vi) | <u>[2003 Restricted Stock Unit Plan, as amended May 7, 2008](https://www.sec.gov/Archives/edgar/data/819793/000089109208002557/e31604ex10-l_vi.txt)</u> |  | 8-K |  | 05/13/08 |
| 10(l)(viii) | <u>[2011 Performance Phantom Stock Plan as adopted on May 26, 2011](https://www.sec.gov/Archives/edgar/data/819793/000089109211005229/e44779ex10iviii.htm)</u> |  | 10-Q | 6/30/11 | 08/09/11 |
| 10(l)(xi) | <u>[Form of Restricted Stock Unit Award for units granted on August 28, 2018](https://www.sec.gov/Archives/edgar/data/819793/000089109218006336/e2040ex10lix.htm)</u> |  | 8-K |  | 09/04/18 |
| 10(l)(xii) | <u>[Form of Restricted Stock Unit Award for units granted on April 1, 2019](https://www.sec.gov/Archives/edgar/data/819793/000089109219005173/e4939ex10lxii.htm)</u> |  | 10-Q | 3/31/19 | 05/01/19 |
| 10(l)(xiii) | <u>[Form of Restricted Stock Unit Award for units granted on November 4, 2019](https://www.sec.gov/Archives/edgar/data/819793/000089109220002167/ain10kex10lxiii.htm)</u> |  | 10-K | 12/31/19 | 02/28/20 |
| 10(l)(xiv) | <u>[Form of 2011 Performance Stock Bonus agreement](https://www.sec.gov/Archives/edgar/data/819793/000089109220002167/ain10kex10lxiv.htm)</u> |  | 10-K | 12/31/19 | 02/28/20 |
| 10(l)(xv) | <u>[Form of 2021 Restricted Stock Unit Award Agreement](https://www.sec.gov/Archives/edgar/data/0000819793/000081979321000019/ain-20210225xexx10lviiixre.htm)</u> |  | 8-K |  | 02/25/21 |
| 10(l)(xvi) | <u>[Form of 2024 Restricted Stock Unit Award Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979324000018/exhibit10lxvirestrictedsto.htm)</u> |  | 8-K |  | 02/29/24 |
| 10(l)(xvii) | <u>[Form of 2024 Non-Employee Director Restricted Stock Unit Award Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979324000018/exhibit10lxviinon-employee.htm)</u> |  | 8-K |  | 02/29/24 |
| 10(l)(xviii) | <u>[Form of](https://www.sec.gov/Archives/edgar/data/819793/000081979325000010/exhibit10lxviiiperformance.htm)[2025](https://www.sec.gov/Archives/edgar/data/819793/000081979325000010/exhibit10lxviiiperformance.htm)[Performance Stock Award Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979325000010/exhibit10lxviiiperformance.htm)</u> |  | 8-K |  | 02/27/25 |
| 10(l)(xix) | <u>[Form of](https://www.sec.gov/Archives/edgar/data/819793/000081979325000010/exhibit10lxixrestrictedsto.htm)[2025](https://www.sec.gov/Archives/edgar/data/819793/000081979325000010/exhibit10lxixrestrictedsto.htm)[Restricted Stock Unit Award Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979325000010/exhibit10lxixrestrictedsto.htm)</u> |  | 8-K |  | 02/27/25 |
| **Stock Options** | **Stock Options** |  |  |  |  |
| 10(m)(i) | 1992 Stock Option Plan |  | 8-K |  | 01/18/93 |
| 10(m)(vii) | <u>[1998 Stock Option Plan, as amended and restated as of August 7, 2003](https://www.sec.gov/Archives/edgar/data/819793/000110465903024902/a03-4759_1ex10dmvii.htm)</u> |  | 10-Q | 9/30/03 | 11/06/03 |
| **Executive Compensation** | **Executive Compensation** |  |  |  |  |
| 10(m)(xix) | <u>[Form of 2021 Multi-year Performance Bonus Agreement](https://www.sec.gov/Archives/edgar/data/0000819793/000081979321000019/ain-20210225xexx10mxixxmul.htm)</u> |  | 8-K |  | 02/25/21 |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
|<br>**Exhibit** <br>**Number** |<br>**Exhibit Description** |<br>**Filed Herewith** | **Form** | **Period Ending** | **Filing Date** |
| 10(m)(xx) | <u>[Form of Special Incentive Award Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979323000057/ain-20230614xex10mxx.htm)</u> |  | 8-K |  | 06/14/23 |
| 10(m)(xxi) | <u>[Form of 2024 Multi-Year Performance Bonus Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979324000018/exhibit10mxximulti-yearper.htm)</u> |  | 8-K |  | 02/29/24 |
| 10(l)(viii) | <u>[Form of Severance Agreement between the Company and certain corporate officers or key executives](https://www.sec.gov/Archives/edgar/data/819793/000089109216011149/e67649ex10l-viii.htm)</u> |  | 8-K |  | 01/04/16 |
| 10(n)(i) | <u>[Supplemental Executive Retirement Plan, adopted as of January 1, 1994, as amended and restated as of January 1, 2008](https://www.sec.gov/Archives/edgar/data/819793/000089109208000017/e29730ex10ni.txt)</u> |  | 8-K |  | 01/02/08 |
| 10(n)(ii) | <u>[2017 Incentive Plan](https://www.sec.gov/Archives/edgar/data/819793/000089109217002406/e72960def14a.htm)</u> |  | Def 14A |  | 03/29/17 |
| 10(n)(vii) | <u>[2023 Long Term Incentive Plan](https://www.sec.gov/ix?doc=/Archives/edgar/data/819793/000081979323000027/ain-20230330.htm#i6581d9b170be47b087940703dda70696_43)</u> |  | Def 14A |  | 03/30/23 |
| 10(n)(viii) | <u>[Form of 2024 Annual Performance Bonus Award Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979324000018/exhibit10nviiiannualperfor.htm)</u> |  | 8-K |  | 02/29/24 |
| 10(o)(iv) | <u>[Directors' Annual Retainer Plan, as amended and restated as of February 23, 2018](https://www.sec.gov/Archives/edgar/data/819793/000089109218002748/e77322def14a.htm)</u> |  | Def 14A |  | 03/28/18 |
| 10(p) | <u>[Code of Ethics](https://www.sec.gov/Archives/edgar/data/819793/000104746904007489/a2130113zex-10_p.htm)</u> |  | 10-K | 12/31/03 | 03/11/04 |
| 10(q) | <u>[Directors Pension Plan, amendment dated as of January 12, 2005](https://www.sec.gov/Archives/edgar/data/819793/000089109205000038/e20283ex10_q.txt)</u> |  | 8-K |  | 01/13/05 |
| 10(t) | <u>[Form of Indemnification Agreement](https://www.sec.gov/Archives/edgar/data/819793/000089109206000936/e23819ex_10t.txt)</u> |  | 8-K |  | 04/12/06 |
| 10(u)(x) | <u>[Voluntary Separation Agreement and General Release, dated May 16, 2025, between the Company and Robert Starr.](https://www.sec.gov/Archives/edgar/data/819793/000081979325000032/ain-20250630xex10ux.htm)</u> |  | 8-K |  | 07/30/25 |
| 10.2 | <u>[Amended and restated LLC operating agreement by and between Albany Engineered Composites and Safran Aerospace Composites, Inc. 10% equity interest in ASC for $28 million](https://www.sec.gov/Archives/edgar/data/819793/000089109214001589/e57527ex10-2.htm)</u> |  | 10-K | 12/31/13 | 02/26/14 |
| 10.3 | <u>[Employment agreement, dated September 1, 2023, between the Company and Gunnar Kleveland](https://www.sec.gov/Archives/edgar/data/819793/000081979323000078/ain-20230821xex103.htm)</u> |  | 8-K |  | 08/21/23 |
| 10.4 | <u>[Form of Special Incentive Award Agreement](https://www.sec.gov/Archives/edgar/data/819793/000081979323000078/ain-20230821xex104.htm)</u> |  | 8-K |  | 08/21/23 |
| 19 | <u>[Insider Trading Policy](ain-20251231xex191.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 21 | <u>[Subsidiaries of Company](ain-20251231xex211.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 23 | <u>[Consent of Independent Registered Public Accounting Firms](ain-20251231xex231.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 24 | <u>[Powers of Attorney](ain-20251231xex241.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 31(a) | <u>[Certification of Gunnar Kleveland required pursuant to Rule 13a-14(a) or Rule 15d-14(a)](ain-20251231xex31a1.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 31(b) | <u>[Certification of](ain-20251231xex31b1.htm)[Willard C. Station](ain-20251231xex31b1.htm)[required pursuant to Rule 13a-14(a) or Rule 15d-14(a)](ain-20251231xex31b1.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 32(a) | <u>[Certification of Gunnar Kleveland and](ain-20251231xex32a1.htm)[Willard C. Station](ain-20251231xex32a1.htm)[required pursuant to Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code](ain-20251231xex32a1.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 97 | <u>[Incentive Compensation Recovery Policy](ain-20251231xex971.htm)</u> | X | 10-K | 12/31/25 | 02/27/26 |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**The following information from the Registrant's Annual Report on Form 10-K for the year ended December 31, 2025, formatted in Inline XBRL (Extensive Business Reporting Language), filed herewith:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 101(i) | <u>[Consolidated Statements of Income for the years ended December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_88)[5](#ib1b89345a4364fb69d7ce3189f67b705_88)[, 2](#ib1b89345a4364fb69d7ce3189f67b705_88)[0](#ib1b89345a4364fb69d7ce3189f67b705_88)[2](#ib1b89345a4364fb69d7ce3189f67b705_88)[4](#ib1b89345a4364fb69d7ce3189f67b705_88)[, and 20](#ib1b89345a4364fb69d7ce3189f67b705_88)[23](#ib1b89345a4364fb69d7ce3189f67b705_88)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 101(ii) | <u>[Consolidated Statements of Comprehensive Income for the years ended December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_91)[5](#ib1b89345a4364fb69d7ce3189f67b705_91)[, 202](#ib1b89345a4364fb69d7ce3189f67b705_91)[4](#ib1b89345a4364fb69d7ce3189f67b705_91)[, and 202](#ib1b89345a4364fb69d7ce3189f67b705_91)[3](#ib1b89345a4364fb69d7ce3189f67b705_91)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 101(iii) | <u>[Consolidated Balance Sheets as of December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_94)[5](#ib1b89345a4364fb69d7ce3189f67b705_94)[and 20](#ib1b89345a4364fb69d7ce3189f67b705_94)[2](#ib1b89345a4364fb69d7ce3189f67b705_94)[4](#ib1b89345a4364fb69d7ce3189f67b705_94)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 101(iv) | <u>[Consolidated Statements of Cash Flows for the years ended December 31, 202](#ib1b89345a4364fb69d7ce3189f67b705_97)[5](#ib1b89345a4364fb69d7ce3189f67b705_97)[, 202](#ib1b89345a4364fb69d7ce3189f67b705_97)[4](#ib1b89345a4364fb69d7ce3189f67b705_97)[, and 20](#ib1b89345a4364fb69d7ce3189f67b705_97)[2](#ib1b89345a4364fb69d7ce3189f67b705_97)[3](#ib1b89345a4364fb69d7ce3189f67b705_97)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 101(v) | <u>[Notes to Consolidated Financial Statements](#ib1b89345a4364fb69d7ce3189f67b705_100)</u> | X | 10-K | 12/31/25 | 02/27/26 |
| 101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document | XBRL Taxonomy Extension Schema Document | XBRL Taxonomy Extension Schema Document | XBRL Taxonomy Extension Schema Document | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | XBRL Taxonomy Extension Calculation Linkbase Document | XBRL Taxonomy Extension Calculation Linkbase Document | XBRL Taxonomy Extension Calculation Linkbase Document | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | XBRL Taxonomy Extension Definition Linkbase Document | XBRL Taxonomy Extension Definition Linkbase Document | XBRL Taxonomy Extension Definition Linkbase Document | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | XBRL Taxonomy Extension Label Linkbase Document | XBRL Taxonomy Extension Label Linkbase Document | XBRL Taxonomy Extension Label Linkbase Document | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | XBRL Taxonomy Extension Presentation Linkbase Document | XBRL Taxonomy Extension Presentation Linkbase Document | XBRL Taxonomy Extension Presentation Linkbase Document | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover page formatted as Inline XBRL and contained in Exhibit 101 | Cover page formatted as Inline XBRL and contained in Exhibit 101 | Cover page formatted as Inline XBRL and contained in Exhibit 101 | Cover page formatted as Inline XBRL and contained in Exhibit 101 | Cover page formatted as Inline XBRL and contained in Exhibit 101 |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the 27th day of February, 2026.

---

| | |
|:---|:---|
| ALBANY INTERNATIONAL CORP. | ALBANY INTERNATIONAL CORP. |
| By | /s/ Willard C. Station |
| | Willard C. Station |
| | Executive Vice President and Chief Financial Officer |
| | (Principal Financial Officer) |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Company and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| \* | President and Chief Executive Officer and Director | February 27, 2026 |
| Gunnar Kleveland | (Principal Executive Officer) |  |
| /s/ Willard C. Station | Executive Vice President and Chief Financial Officer | February 27, 2026 |
| Willard C. Station | (Principal Financial Officer) |  |
| \* | Vice President - Controller and Chief Accounting Officer | February 27, 2026 |
| Sean Valashinas | (Principal Accounting Officer) |  |
| \* | Chairman of the Board and Director | February 27, 2026 |
| John R. Scannell |  |  |
| \* | Director | February 27, 2026 |
| Katharine L. Plourde |  |  |
| \* | Director | February 27, 2026 |
| Mark J. Murphy |  |  |
| \* | Director | February 27, 2026 |
| Kenneth W. Krueger |  |  |
| \* | Director | February 27, 2026 |
| J. Michael McQuade |  |  |
| \* | Director | February 27, 2026 |
| Christina M. Alvord |  |  |
| \* | Director | February 27, 2026 |
| Russell E. Toney |  |  |
| \* | Director | February 27, 2026 |
| Bonnie C. Lind |  |  |
| \*By /s/ Willard C. Station |  |  |
| Willard C. Station |  |  |
| Attorney-in-fact |  |  |

---

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

**CORPORATE INFORMATION**

**Investor Relations**

The Company's Investor Relations Department may be contacted at:

Investor Relations Department

Albany International Corp.

325 Corporate Drive

Portsmouth, NH 03801

Telephone: (603) 330-5800

E-mail: investor.relations@albint.com

**Transfer Agent and Registrar**

Computershare

PO box 43078

Providence, RI 02940-3078

Telephone (toll-free): 1-877-277-9931

Web: www.computershare.com/investor

**Shareholder Services**

As an Albany International shareholder, you are invited to take advantage of our convenient shareholder services.

Computershare maintains the records for our registered shareholders and can help you with a variety of shareholder-related services at no charge, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Change of name and/or address

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidation of accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Duplicate mailings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Dividend reinvestment enrollment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lost stock certificates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transfer of stock to another person

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional administrative services

Access *your investor statements online 24 hours a day, 7 days a week at Investor Center. For more information, go to www.computershare.com/investor.*

**Notice of Annual Meeting**

We will again hold our Annual Meeting virtually this year. The Annual Meeting of the Company's shareholders will be held virtually on Friday, May 15, 2026 at 9:00 a.m. EDT. Access details for the virtual meeting will be published in the Company's 2026 Proxy filed with the Securities and Exchange Commission.

**Equal Employment Opportunity**

Albany International, as a matter of policy, does not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, national origin, age, physical or mental disability, or status as a disabled or Vietnam-era veteran. This policy of nondiscrimination is applicable to matters of hiring, upgrading, promotions, transfers, layoffs, terminations, rates of pay, selection for training, recruitment, and recruitment advertising. The Company maintains affirmative action programs to implement its EEO policy.

------

*<u>[Index](#ib1b89345a4364fb69d7ce3189f67b705_7)</u>*

---

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

---

## Ex-19

---

| | | | | |
|:---|:---|:---|:---|:---|
| ![image_0.jpg](image_0.jpg) | Date Released: 01-JAN-2026 | Date Released: 01-JAN-2026 | Rev: B | Rev: B |
| ![image_0.jpg](image_0.jpg) | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; |
| ![image_0.jpg](image_0.jpg) | Function/Owner: Legal/Corporate Compliance | Policy Number: 10.17 | Policy Number: 10.17 | Policy Number: 10.17 |
| ![image_0.jpg](image_0.jpg) | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Page **1** of **6** |

---

**1.0 PURPOSE:** 

The purpose of this policy is to educate and ensure compliance with federal securities laws relating to

the trading of securities of publicly traded companies.

**2.0 SCOPE:** 

This policy applies to all employees, managers, officers of Albany International Corp. ("Albany" or the

"Company"), including those of Company subsidiaries wherever located.

**3.0 DEFINITIONS:** 

---

| | |
|:---|:---|
| **Term / Acronym** | **Definition** |
| N/A | N/A |

---

**4.0 POLICY:** 

Federal securities laws prohibit trading (or providing information to others who may trade) in the securities

of a publicly traded company such as Albany while in possession of material non-public information about

the company. The Company has adopted the following policies and procedures as part of its effort to

ensure compliance with such laws.

This policy is divided into two parts; the first part applies to all officers, directors and employees of the

Company. The second part imposes additional trading restrictions on officers, directors, and certain other

employees who have access to certain financial or other information about the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Part One (Applicable to All Officers, Directors, and Employees)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.1 Statement of Prohibitions**

No officer, director or employee of the Company may buy or sell any Company securities when in

possession of material non-public information about the Company. This prohibition extends to

activities that may not traditionally be thought of as purchases or sales, such as the pledge of

Company securities to secure a loan.

No officer, director or employee of the Company may buy or sell the securities of another company,

such as one of the Company's vendors or customers, if that person is in possession of material nonpublic information about the other company that has been obtained in the course of his or her

employment with, or other services performed for, the Company.

No officer, director or employee of the Company may make recommendations or express opinions

on the basis of material non-public information about trading in the securities of the Company or any

other company or disclose material non-public information about the Company to any third party,

including family or household members.

*Uncontrolled Document When Printed Unless Stamped with a Control Stamp*

This document contains proprietary, confidential, and/or trade secret information of Albany International Corporation ("AIC"). Possessing, using, copying or disclosing this document to or for the benefit of any third party without AIC's prior written consent may result in criminal and/or civil liability.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| ![image_0.jpg](image_0.jpg) | Date Released: 01-JAN-2026 | Date Released: 01-JAN-2026 | Rev: B | Rev: B |
| ![image_0.jpg](image_0.jpg) | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; |
| ![image_0.jpg](image_0.jpg) | Function/Owner: Legal/Corporate Compliance | Policy Number: 10.17 | Policy Number: 10.17 | Policy Number: 10.17 |
| ![image_0.jpg](image_0.jpg) | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Page **2** of **6** |

---

No officer, director or employee of the Company may engage in any speculative transactions in

Company securities or any other transaction (e.g., "day trading") that suggests an attempt to profit in

short-term increases or decreases in the market value of Company securities. It is contrary to this policy for any insider to engage in any short sale or "sale against the box" (i.e., sale of securities

owned but not delivered against the sale) of Company securities, or trade in publicly-traded options

such as puts or calls in Company securities or any similar investments.

No officer, director or employee of the Company is permitted to purchase or use, directly or indirectly,

through family members or other persons or entities, financial instruments (including prepaid variable

forward contracts, equity swaps, collars, and exchange funds) that are designed to offset or hedge

any decrease in market value of Company securities.

No officer, director or employee of the Company may establish or use a margin account with a broker-dealer for the purpose of buying or selling Company securities.

Every person subject to this policy has the individual responsibility to comply with this policy. Every

person subject to this policy is also responsible for ensuring that persons sharing their households

comply with this policy.

This policy applies to the transfer of funds into or out of the Company stock fund portion of an

employee's ProsperityPlus 401(k) account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.2 Material Non-Public Information**

It is not possible to define all categories of material information and the determination of whether

information is material is highly fact-intensive. Information that is material at one point in time may

also cease to be material at other point in time, and vice versa. The General Counsel, in consultation

as appropriate with the CEO, the CFO or other members of senior management of the Company, has

the authority to determine whether any information constitutes material non-public information for

purposes of this policy. In general, information should be regarded as material if there is a reasonable

likelihood that it would be considered important to an investor in making an investment decision

regarding the purchase or sale of Company securities.

While it may be difficult under this standard to determine whether particular information is material,

there are various categories of information that are particularly sensitive and, as a general rule, would

normally be considered material. Examples of such information include:

Financial results.

News of a pending or proposed merger.

News of the disposition or acquisition of significant assets or subsidiary.

Material impairments, write-offs or restructurings.

Creation of a material direct or contingent financial obligation.

Impending bankruptcy or financial liquidity problems.

*Uncontrolled Document When Printed Unless Stamped with a Control Stamp*

This document contains proprietary, confidential, and/or trade secret information of Albany International Corporation ("AIC"). Possessing, using, copying or disclosing this document to or for the benefit of any third party without AIC's prior written consent may result in criminal and/or civil liability.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| ![image_0.jpg](image_0.jpg) | Date Released: 01-JAN-2026 | Date Released: 01-JAN-2026 | Rev: B | Rev: B |
| ![image_0.jpg](image_0.jpg) | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; |
| ![image_0.jpg](image_0.jpg) | Function/Owner: Legal/Corporate Compliance | Policy Number: 10.17 | Policy Number: 10.17 | Policy Number: 10.17 |
| ![image_0.jpg](image_0.jpg) | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Page **3** of **6** |

---

Gain or loss of a substantial customer or supplier.

Changes in dividend policy.

Significant pricing changes.

Stock splits.

New equity or debt offerings.

Significant litigation exposure due to actual or threatened litigation.

Major changes in senior management.

Material agreements not in the ordinary course of business (or termination thereof).

Material termination or reduction of a business relationship with a customer that provides material revenue to the Company.

Either positive or negative information may be material and even matters that have a small

quantitative impact can be considered material, if there are qualitative considerations that would make

the information of particular interest to investors. Any questions about what is or could be considered

material should be directed to the General Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.3 Exceptions to the Policy**

Transactions under 10b5-1 Plans. This policy also does not apply to transactions effected under a 10b5-1 Plan that has been entered into with the approval of the General Counsel. A 10b5-1 plan is a written plan adopted by a company employee, officer or director at a time when he or she is not in possession of any material non-public information about the company, and during an Open Window Period. The plan instructs a broker to purchase or sell securities at prices and at times set forth in the plan. If entered into correctly, such a plan may make it easier for an insider subject to frequent Blackout Periods to execute a program of acquisition or divestiture of his or her company securities. Any employee, officer or director interested in pursuing such a plan should contact the General Counsel. In addition, this policy shall not apply to any stock used to pay the exercise price or withholding taxes related to an award of stock under an existing incentive compensation plan.

&nbsp;&nbsp;&nbsp;&nbsp;**4.2. Part Two (Applicable to Insiders of the Company)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.1 Applicability of the Policy**

This part of the policy applies to transactions in Company securities by "Insiders". Even if you are not an officer or director of the Company, you could be deemed as "Insider" under certain circumstances.

For the purposes of this policy, Insiders are:

Members of the Board of Directors;

Executive Officers (e.g., those officers who have been notified by the Company's General Counsel that they are subject to the reporting requirements of Section 16 Securities Exchange Act);

Other employees in the Company's legal, tax and finance department who have been notified of their Insider status;

*Uncontrolled Document When Printed Unless Stamped with a Control Stamp*

This document contains proprietary, confidential, and/or trade secret information of Albany International Corporation ("AIC"). Possessing, using, copying or disclosing this document to or for the benefit of any third party without AIC's prior written consent may result in criminal and/or civil liability.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| ![image_0.jpg](image_0.jpg) | Date Released: 01-JAN-2026 | Date Released: 01-JAN-2026 | Rev: B | Rev: B |
| ![image_0.jpg](image_0.jpg) | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; |
| ![image_0.jpg](image_0.jpg) | Function/Owner: Legal/Corporate Compliance | Policy Number: 10.17 | Policy Number: 10.17 | Policy Number: 10.17 |
| ![image_0.jpg](image_0.jpg) | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Page **4** of **6** |

---

Other employees with access to reports, data platforms or dashboards that allow them to determine segment or Company-wide monthly consolidated financial result,s sales or orders who have been notified of their Insider status; and

Members of the immediate families of each of the foregoing (as defined in the Company's Business Ethics Policy) as well as family trusts, partnerships, foundations and similar entities over which they or such other persons have control or whose assets are held for their benefit or the benefit of such other persons.

The Company may from time to time instruct other personnel that for certain periods they are Insiders

for purposes of this policy, and therefore must refrain from trading in Company securities otherwise

than in accordance with this policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.2 Trading Windows and Blackout Periods**

Insiders may only engage in transactions involving Company stock during an Open Window Period.

(The term "Blackout Period" is sometimes used to refer to any period that is not an Open Window

Period.) There is generally one Open Window Period per quarter, beginning on the second business

day following the Company's release of quarterly earnings, and ending on the 15th day of the last

month of the quarter (i.e, March, June, September or December).

The General Counsel may delay the opening of an Open Window Period, or close the Open Window Period early, for certain Insiders under certain circumstances. In such a case, the affected Insiders will be appropriately notified. Such circumstances could include, without limitation:

Such Insiders are involved in the negotiation of, or are otherwise aware of, a transaction that could be considered material.

A "pension fund blackout" period exists. Under applicable law, officers and directors of the Company may not engage in transactions involving Company stock during a period when 50% or more the participants in the Company's ProsperityPlus Plan are unable to conduct transactions in their accounts for more than three consecutive days. Such blackout periods typically occur when there is a change in the Plan's trustee, record keeper or investment manager.

The Company recognizes that, on rare occasions, an Insider may experience exceptional

circumstances that may necessitate a transaction during a Blackout Period. In that case, the Insider

must request permission to do so from the General Counsel. Permission to transact within a Blackout

Period is in the discretion of the General Counsel. Any denial of permission must be kept confidential

by the requesting party

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2.3 Pre-Clearance Requirements of Officers and Directors**

All Company officers and directors must obtain prior written clearance from the General Counsel

before engaging in any transactions involving Company securities, even those occurring during an

Open Window Period. This includes exercise of employee stock options and gifts of Company

least two days in advance of the proposed transaction. The General Counsel is under no obligation

*Uncontrolled Document When Printed Unless Stamped with a Control Stamp*

This document contains proprietary, confidential, and/or trade secret information of Albany International Corporation ("AIC"). Possessing, using, copying or disclosing this document to or for the benefit of any third party without AIC's prior written consent may result in criminal and/or civil liability.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| ![image_0.jpg](image_0.jpg) | Date Released: 01-JAN-2026 | Date Released: 01-JAN-2026 | Rev: B | Rev: B |
| ![image_0.jpg](image_0.jpg) | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; |
| ![image_0.jpg](image_0.jpg) | Function/Owner: Legal/Corporate Compliance | Policy Number: 10.17 | Policy Number: 10.17 | Policy Number: 10.17 |
| ![image_0.jpg](image_0.jpg) | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Page **5** of **6** |

---

to approve any trade and may refuse to do so in his or her discretion. Pre-clearance of any transaction

is valid only for a 48-hour period. If the transaction order is not placed within that period, pre-clearance

must be requested and approved in writing again. Requesting persons must treat denials of pre-clearance requests as confidential.

**5.0 &nbsp;&nbsp;&nbsp;&nbsp;CONSEQUENCES**

Persons who violate this policy are subject to disciplinary action, up to, and including, termination of

employment and ineligibility for participation in the Company's equity incentive plans, and may be subject

to civil and criminal penalties, imprisonment and other remedies.

**6.0&nbsp;&nbsp;&nbsp;&nbsp;FREQUENCY OF REVIEW AND UPDATE:**

The Legal Department and the General Counsel will be responsible for monitoring and assessing

organizational compliance with the policy. The General Counsel will periodically review this policy with

the Audit Committee of the Board of Directors.

Furthermore, the General Counsel will be responsible for:

Communication of this policy to officers, directors and employees as necessary;

Notifying affected Insiders regarding the delayed opening or early closing of Open Window Periods;

Performing periodic cross-checks of available materials which may include Forms 3, 4 and 5, Form 144, officers' and directors' questionnaires, and reports received from the Company's stock administrator and transfer agent to determine trading activity by insiders;

Assisting the Company in implementation of this policy, including monitoring relevant changes in law, regulation or best practices and making appropriate changes to this policy and related practices and procedures.

**7.0 ADDITIONAL POLICIES TO CONSIDER:**

Business Ethics Policy

*Uncontrolled Document When Printed Unless Stamped with a Control Stamp*

This document contains proprietary, confidential, and/or trade secret information of Albany International Corporation ("AIC"). Possessing, using, copying or disclosing this document to or for the benefit of any third party without AIC's prior written consent may result in criminal and/or civil liability.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| ![image_0.jpg](image_0.jpg) | Date Released: 01-JAN-2026 | Date Released: 01-JAN-2026 | Rev: B | Rev: B |
| ![image_0.jpg](image_0.jpg) | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; | Doc Title: Insider Trading&nbsp;&nbsp;&nbsp;&nbsp; |
| ![image_0.jpg](image_0.jpg) | Function/Owner: Legal/Corporate Compliance | Policy Number: 10.17 | Policy Number: 10.17 | Policy Number: 10.17 |
| ![image_0.jpg](image_0.jpg) | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Formerly: "Insider Trading Policy," 9/16/2021, Policy No. 10.17 | Page **6** of **6** |

---

**Albany International Corp.** 

INSIDER TRADING POLICY

**FORM OF TRADING CLEARANCE APPLICATION**

Name: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Title: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Proposed Transaction Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Type of Security to be traded: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Type of Transaction (Purchase/ Sale/ Entry into 10b5-1 Plan (if Plan, please attach)/ Gift): <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Number of Shares Involved (if applicable): <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

**CERTIFICATION**

**&nbsp;&nbsp;&nbsp;&nbsp;**I hereby certify that I am not in possession of any material non-public information about the Company and / or its subsidiaries. I understand that material non-public information is information concerning the Company that (a) is not generally known to the public; and (b) if publicly known, would be likely to affect either the market price of Company securities or a person's decision to buy, sell or hold Company securities. I understand that if I trade while in possession of material, non-public information, I may be subject to severe civil or criminal penalties and may be subject to discipline by the Company up to and including termination for cause.

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Date:

**REVIEW AND DECISION** 

&nbsp;&nbsp;&nbsp;&nbsp;The undersigned has reviewed the foregoing application and approves / prohibits (circle one) the proposed trade(s).

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Joseph M. Gaug

General Counsel

Date:

*Uncontrolled Document When Printed Unless Stamped with a Control Stamp*

This document contains proprietary, confidential, and/or trade secret information of Albany International Corporation ("AIC"). Possessing, using, copying or disclosing this document to or for the benefit of any third party without AIC's prior written consent may result in criminal and/or civil liability.

## Ex-21

**Exhibit 21**

**SUBSIDIARIES OF REGISTRANT**<br>

---

| | | | |
|:---|:---|:---|:---|
| **Affiliate** | **Percent Ownership** | **Percent Ownership** | **Country of Incorporation** |
| | **Direct** | **Indirect** | |
| Albany International Corp. |  |  | United States |
| AEC Advanced Programs, Inc. |  | 100% | United States |
| Albany Advanced Air Mobility, LLC |  | 100% | United States |
| Albany Aerostructures Composites, LLC |  | 100% | United States |
| Albany Engineered Composites, Inc. | 100% |  | United States |
| Albany International Holdings Two, Inc. | 100% |  | United States |
| Albany International Machine Clothing Corp. | 100% |  | United States |
| Albany International Research Co. | 100% |  | United States |
| Albany Safran Composites, LLC |  | 89% | United States |
| Brandon Drying Fabrics, Inc. |  | 100% | United States |
| Geschmay Corp. | 100% |  | United States |
| Geschmay Forming Fabrics Corp. |  | 100% | United States |
| Geschmay Wet Felts, Inc. |  | 100% | United States |
| Transglobal Enterprises, Inc. | 100% |  | United States |
| Albany Engineered Composites Ltd. |  | 100% | United Kingdom |
| Albany International Ltd. |  | 100% | United Kingdom |
| Heimbach UK Ltd. |  | 100% | United Kingdom |
| JSD Marathon Ltd. |  | 100% | United Kingdom |
| Marathon Belting Ltd. |  | 100% | United Kingdom |
| Heimbach Switzerland AG |  | 100% | Switzerland |
| Albany International Europe GmbH |  | 100% | Switzerland |
| Albany International Holding (Switzerland) AG |  | 100% | Switzerland |
| Albany International AB |  | 100% | Sweden |
| Albany International Holding AB |  | 100% | Sweden |
| Heimbach Ibérica S.A.U. |  | 100% | Spain |
| Albany International S.A. Pty. Ltd. |  | 100% | South Africa |
| Heimbach PMC Singapore Pte. Ltd. |  | 100% | Singapore |
| Albany International B.V. |  | 100% | Netherlands |
| Albany Engineered Composites Mexico, S.de R.L. de C.V. |  | 100% | Mexico |
| Albany Engineered Composites Services Company, S. de R.L. de C.V. |  | 100% | Mexico |
| Albany International de Mexico S.A. de C.V. | 100% |  | Mexico |
| Albany Mexico Services, S. de R.L. de C.V. | 100% |  | Mexico |
| Albany Safran Composites Mexico, S. de R.L. de C.V. |  | 89% | Mexico |
| Albany International Korea, Inc. |  | 100% | Korea |
| Albany International Japan Kabushiki Kaisha |  | 100% | Japan |
| Industrie Tessili Bresciane Srl |  | 100% | Italy |
| Albany International Italia Srl |  | 100% | Italy |
| Heimbach Filtration GmbH |  | 100% | Germany |
| Heimbach GmbH |  | 100% | Germany |
| Albany International Germany GmbH |  | 100% | Germany |

---

------

---

| | | |
|:---|:---|:---|
| Albany International Holding MC Germany GmbH | 100% | Germany |
| Albany Engineered Composites GmbH | 100% | Germany |
| Albany International France, S.A.S. | 100% | France |
| Albany Safran Composites, S.A.S. | 89% | France |
| Albany International Finland Oy | 100% | Finland |
| Albany International (China) Co., Ltd. | 100% | China |
| Albany International Engineered Textiles (Hangzhou) Co., Ltd. | 100% | China |
| Heimbach Fabrics (Suzhou) Co., Ltd. | 100% | China |
| Heimbach Chile Spa. | 100% | Chile |
| Albany International Canada Corp. | 100% | Canada |
| Heimbach Latinoamerica Ltda | 100% | Brazil |
| Albany International Tecidos Tecnicos Ltda. | 100% | Brazil |
| Heimbach Specialities AG | 100% | Belgium |
| Albany International Pty., Ltd. | 100% | Australia |

---

## Ex-23

**Exhibit 23**

---

| |
|:---|
| **Consent of Independent Registered Public Accounting Firm** |
| <br>We consent to the incorporation by reference in the registration statements (Nos. 333-272391, 333-218122, 333-218121, 333-195269, 333-190774, 333-140995, 333-76078, 333-90069, 033-60767) on Form S-8 and in the registration statement (No. 333-231776) on Form S-3ASR of our reports dated February 27, 2026, with respect to the consolidated financial statements of Albany International Corp. and subsidiaries and the effectiveness of internal control over financial reporting. |

---

<u>/s/ KPMG LLP</u>

Albany, New York

February 27, 2026

## Ex-24

**Exhibit 24** 

**Powers of Attorney**

I hereby constitute and appoint Gunnar Kleveland, Willard C. Station, Sean Valashinas, and Joseph M. Gaug, as my true and lawful attorney-in-fact and agent, with full power of substitution, for me and in my name, in any and all capacities, to sign on my behalf the Annual Report on Form 10-K of Albany International Corp. for the fiscal year ended December 31, 2025, and any amendment or supplement thereto; and to file such Annual Report on Form 10-K, and any such amendment or supplement, with the Securities and Exchange Commission and any other appropriate agency pursuant to applicable laws and regulations.

IN WITNESS WHEREOF, I have hereunto set my hand this 27th day of February, 2026.

---

| | |
|:---|:---|
| <u>/s/ John R. Scannell</u> | <u>/s/ Gunnar Kleveland</u> |
| John R. Scannell | Gunnar Kleveland |
| Chairman of the Board and Director | President and Chief Executive |
| | Officer and Director |
| | (Principal Executive Officer) |
| <u>/s/ Willard C. Station</u> | <u>/s/ Sean Valashinas</u> |
| Willard C. Station | Sean Valashinas |
| Executive Vice President and Chief Financial Officer | Chief Accounting Officer |
| (Principal Financial Officer) | (Principal Accounting Officer) |
| <u>/s/ Katharine L. Plourde</u> | <u>/s/ Kenneth W. Krueger</u> |
| Katharine L. Plourde | Kenneth W. Krueger |
| Director | Director |
| <u>/s/ Mark J. Murphy</u> | <u>/s/ J. Michael McQuade</u> |
| Mark J. Murphy | J. Michael McQuade |
| Director | Director |
| <u>/s/ Christina M. Alvord</u> | <u>/s/ Russell E. Toney</u> |
| Christina M. Alvord | Russell E. Toney |
| Director | Director |
| <u>/s/ Bonnie C. Lind</u> | |
| Bonnie C. Lind | |
| Director | |

---

## Ex-31.A

**Exhibit 31(a)**

**Certification of the Chief Executive Officer**

I, Gunnar Kleveland, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this report on Form 10-K of Albany International Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 27, 2026

---

| | |
|:---|:---|
| By | /s/ Gunnar Kleveland |
| | Gunnar Kleveland |
| | President and Chief Executive Officer |
| | (Principal Executive Officer) |

---

## Ex-31.B

**Exhibit 31(b)**

**Certification of the Chief Financial Officer**

I, Willard C. Station, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this report on Form 10-K of Albany International Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 27, 2026

---

| | |
|:---|:---|
| By | /s/ Willard C. Station |
| | Willard C. Station |
| | Executive Vice President and Chief Financial Officer |
| | (Principal Financial Officer) |

---

## Ex-32.A

**Exhibit 32(a)**

**Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

**Certification**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

**(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), Gunnar Kleveland, the President and Chief Executive Officer, and Robert D. Starr, the Executive Vice President and Chief Financial Officer, of Albany International Corp., a Delaware corporation ("the Company"), do each hereby certify, to such officer's knowledge, that the annual report on Form 10-K for the fiscal year ended December 31, 2025 ("the Form 10-K") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the report.

Dated: February 27, 2026

---

| | |
|:---|:---|
| By | /s/ Gunnar Kleveland |
| | Gunnar Kleveland |
| | President and Chief Executive Officer |
| | (Principal Executive Officer) |
| By | /s/ Willard C. Station |
| | Willard C. Station |
| | Executive Vice President and Chief Financial Officer |
| | (Principal Financial Officer) |

---

## Ex-97

**ALBANY INTERNATIONAL CORP. INCENTIVE COMPENSATION RECOVERY POLICY**

**(Adopted as of August 24, 2023)**

**Introduction**

The Compensation Committee (the "<u>Committee</u>") of the Board of Directors (the "<u>Board</u>") of Albany International Corp. (the "<u>Company</u>") believes that it is in the best interests of the Company and its stockholders to create and maintain a culture that emphasizes integrity and accountability and that reinforces the following compensation philosophy and objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Attain, retain and motivate qualified executive managers who are important to success of the Company with a straightforward, understandable compensation program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide strong financial incentives, at reasonable cost, for positive financial performance and enhanced value of a stockholders' investment in the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Create compensation packages which provide strong incentives for long-term success and performance.

The Committee has therefore adopted this policy which provides for the recoupment of certain incentive compensation (as defined below) in the event of an accounting restatement resulting from material noncompliance with financial reporting requirements under the federal securities laws (the "<u>Policy</u>"). This Policy is designed to comply with Section 10D of the Securities Exchange Act of 1934 (the "<u>Exchange Act</u>"). For purposes of this Policy, "Company" shall include any subsidiary or affiliate of the Company.

**Administration**

The Board will administer the Policy as recommended by the Audit and Compensation Committees of the Board. The Board may delegate this administrative responsibility to the Compensation Committee, in which case, any references herein to the Board shall be deemed references to the Compensation Committee.

**Covered Executives**

This Policy applies to the Company's current and former executive officers (the "<u>Covered</u> <u>Executives</u>"), as determined by the Board in accordance with Section 10D of the Exchange Act and the listing standards of the national securities exchange on which the Company's securities are listed, to wit: the New York Stock Exchange "<u>NYSE</u>").

------

**Recoupment; Accounting Restatement**

The Board is authorized to recoup from all Covered Executives in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)**Accounting Restatement.** In the event the Company is required to prepare an accounting restatement of its financial statements due to material non-compliance, the Board may require reimbursement or forfeiture of certain Incentive Compensation, granted, paid, delivered, awarded or otherwise received by a Covered Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)**Miscalculation of Performance Metric or Target.** Should the Compensation Committee determine that a financial metric underlying the grant of Incentive Compensation was calculated incorrectly, whether or not the Company is required to restate its financial statements and without regard to whether such miscalculation was due to fraud or intentional misconduct, the Board may require reimbursement or forfeiture of certain Incentive Compensation granted, paid, delivered, awarded or otherwise received by a Covered Executive. Further, the Board may require the cancellation of certain unpaid or unvested Incentive Compensation based upon determination of the correct performance metric or target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)**Detrimental Conduct.** To the extent that the Board determines, in its sole discretion after following the Recovery Process set forth herein, that one or more of the Covered Executives committed one or more willful acts of material fraud or material misconduct that directly or indirectly caused a Material Adverse Effect (as defined below), the Board may require reimbursement or forfeiture of certain Incentive Compensation granted, paid, delivered, awarded or otherwise received by a Covered Executive during the three-year period following the commission of the acts of fraud or misconduct and/or occurrence of a Material Adverse Effect, in either case, as determined by the Board in its sole discretion. Such forfeiture or reimbursement shall be sought, unless it is impracticable to do so or the Board otherwise determines, in its sole discretion, that such forfeiture or recovery would not be in the best interests of the Company. "Material Adverse Effect" means any event, change, development, or occurrence, individually or together with any other event, change, development, or occurrence, that the Board determines, in its sole discretion, is materially adverse to the finances, business, condition, assets, or results of operations of the Company. In addition to Incentive Compensation, if the Board determines during the Recovery Process that one or more of the Covered Executives committed one or more willful acts of material fraud or material misconduct that directly or indirectly caused a Material Adverse Effect, the Board may require reimbursement or forfeiture of certain equity awards which vest solely based on the passage of time.

**Incentive Compensation**

For purposes of this Policy, "<u>Incentive Compensation</u>" means incentive compensation granted or paid during the last three completed fiscal years (subject to the limitation described under the heading "Effective Date") including, but not limited to, annual performance bonuses

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(including any amounts deferred) and long-term incentive grants, including any of the following, provided that, such compensation is granted, earned or vested based wholly or in part on the attainment of a Financial Reporting Measure (as defined below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Annual bonuses and other short- and long-term cash incentives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Stock options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Stock appreciation rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Restricted stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Restricted stock units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Performance shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Performance units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Stock units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Any of the forms of compensation identified in the Company's then existing stockholder-approved stock incentive plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Any other form of compensation designated by the Board in writing as "Incentive Compensation" subject to this Policy.

In no event shall Incentive Compensation include a Covered Executive's wages or base salary. "<u>Financial Reporting Measures</u>" include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Company stock price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Total stockholder return;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Revenues or sales or revenue or sales growth measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net income or net income before taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ EBIT, EBITDA or net operating profit after tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Operating income, cash flow, gross profit, or gross profit return on investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Liquidity measures such as working capital or operating cash flow, or working capital as a percentage of sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Operational efficiency and cost of capital measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Return measures such as return on invested capital, return on assets, return on equity, return on total capital employed, return on net assets, return on net assets employed before interest and taxes or return and growth matrix measurements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Earnings measures such as basic or diluted earnings per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Economic value added measures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Any other derivative or similar financial performance measurement as is listed above, whether for the Company as a whole and/or for a business segment.

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**Excess Incentive Compensation: Amount Subject to Recovery**

In the case of an accounting restatement or miscalculation of a performance target or metric, the amount to be recovered will be the excess of the Incentive Compensation paid to the Covered Executive based on the erroneous data over the Incentive Compensation that would have been paid to the Covered Executive had it been based on the restated results, as reasonably determined by the Board.

If the Board cannot determine the amount of excess Incentive Compensation received by the Covered Executive directly from the information in the accounting restatement, then it will make its determination based on a reasonable estimate of the effect of the accounting restatement.

In the case of Detrimental Conduct, the amount of Incentive Compensation to be recovered from each Covered Executive will be determined in the Board's discretion in an amount up to but not to exceed all Incentive Compensation received by such Covered Executive during the three- year period following the commission of the acts of fraud or misconduct and occurrence of a Material Adverse Effect in either case, as determined by the Board in its sole discretion.

Subject to compliance with any applicable law, the Company may effect recovery of Incentive Compensation under the Policy from any amount otherwise payable to a Covered Executive, including, if permitted by law, amounts payable to such individual under any otherwise applicable Company plan or program. Any recovery pursuant to this Policy shall be in addition to any other remedies that may be available to the Company under applicable law including, but not limited to, disciplinary action up to and including termination of employment or other services.

**Recovery Process**

The amount of the recovery pursuant to this Policy will be determined pursuant to the following process:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Audit Committee of the Board will have the initial responsibility to investigate any restatement that could reasonably be expected to trigger a potential recovery of Incentive Compensation under the Policy. The Audit Committee will report its findings to the Compensation Committee of the Board and make recommendations to the Compensation Committee as to the recovery of Incentive Compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The Compensation Committee will review the Audit Committee's report and make a determination as to the Covered Executive(s) from whom recovery will be sought and the amount of the recovery. The Compensation Committee's determination(s) will be reported to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The Board will then make a final review and determination as to the amount of the recovery, if any, and the Covered Executive(s) from whom recovery is sought.

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In making any determination with respect to exercise of its authority hereunder, the Audit Committee, the Compensation Committee, and the Board may take into account any facts, documents, statements or other evidence that it determines to be necessary or appropriate for purposes of the Policy. Without limiting the generality of the immediately preceding sentence, the Audit Committee, the Compensation Committee, and the Board may take into account any and all factors that it determines to be appropriate and relevant under the circumstances, including the likelihood and costs of recovery, compliance with applicable law, the ability of the Covered Executive(s) to repay such amount, the tax consequences of the original payment and/or the recoupment to the Covered Executive(s) (including whether recoupment shall be on a pre-tax or post-tax basis) and any other potentially adverse consequences for the Company arising from seeking enforcement of the Policy.

It is expected that the Board will interpret the Policy as necessary to resolve any dispute, or correct any error or ambiguity, on an individual basis. The Board shall be under no obligation to treat Covered Executive(s) in a similar manner under this Policy whether or not such Covered Executive(s) are similarly situated, or to treat similar but unrelated recovery events under this Policy in a similar manner. Any determination by the Board under this Policy shall be final, binding and conclusive on all Covered Executives.

**Method of Recoupment**

The Board will determine, in its sole discretion, the method for recouping Incentive Compensation hereunder and such method may include, to the extent permitted by applicable law and Section 409A of the Internal Revenue Code, but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Reimbursement or repayment of cash Incentive Compensation previously paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Seeking recovery of any gain realized on the vesting, exercise, settlement, sale, transfer or other disposition of any equity-based awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Offsetting the recouped amount from any compensation otherwise owed by the Company to the Covered Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Cancelling all or a portion of outstanding vested or unvested equity awards (including any related dividend amounts paid or accrued with respect to such awards);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Reducing the amount of any current or future compensation that may be awarded or become due and owing to the Covered Executive; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Taking any other remedial and recovery action permitted by law, as determined by the Board, including, without limitation, requiring the return of shares or the reimbursement of any net proceeds received as a result of the sale of share.

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**No Indemnification**

The Company shall not indemnity any Covered Executive against the loss of any incorrectly awarded Incentive Compensation.

**Interpretation**

The Board is authorized to interpret and construe this Policy and to make all determinations necessary, appropriate, or advisable for the administration of this Policy. It is intended that this Policy be interpreted in a manner that is consistent with the requirements of Section 10D of the Exchange Act and any applicable rules or standards adopted by the Securities and Exchange Commission or any national securities exchange on which the Company's securities are listed.

If any provision of this Policy is or becomes or is deemed to be invalid or unenforceable in any jurisdiction or as to any Covered Executive, such provision shall be construed or deemed amended to the conform with applicable law.

This Policy shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to any conflicts of law principles thereof that would require the application of the laws of another jurisdiction.

**Effective Date**

This Policy shall be effective as of the date it is adopted by the Board (the "<u>Effective Date</u>") and shall apply to Incentive Compensation that is approved, awarded or granted to Covered Executives on or after that date.

**Amendment; Termination**

The Board may amend this Policy from time to time in its discretion, for any reason, and shall amend this Policy as it deems necessary to reflect the final regulations adopted by the Securities and Exchange Commission under Section 10D of the Exchange Act and to comply with any final rules or standards adopted by a national securities exchange on which the Company's securities are listed. The Board may terminate this Policy at any time.

**Other Recoupment Rights**

The Board intends that the Policy will be applied to the fullest extent of the law. The Board may require that any employment agreement, equity award agreement, or similar agreement entered into on or after the Effective Date shall, as a condition to the grant of any benefit thereunder, require a Covered Executive to agree to abide by the terms of this Policy. Any right of recoupment under this Policy is in addition to, and not in lieu of, any other remedies or rights of recoupment that may be available to the Company pursuant to the terms of any similar policy in any employment agreement, equity award agreement, or similar agreement and any other legal remedies available to the Company.

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**Impracticability**

The Board shall recover any excess Incentive Compensation in accordance with this Policy unless such recovery would be impracticable, as determined by the Board in accordance with, if applicable, Rule 10D-1 of the Exchange Act and the listing standards of the national securities exchange on which the Company's securities are listed.

**Successors**

This Policy shall be binding and enforceable against all Covered Executives and their beneficiaries, transferees, heirs, executives, administrators, or other legal representatives.

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