Albany International : Q1 2026 Albany International Corp Earnings Presentation

Published: 2026-04-30 07:37:01 ET AIN

Published on 04/30/2026 at 07:37 am EDT

PROPRIETARY C CONFIDENTIAL

Q1 202C EARNINgs UPDATE

April 30, 2026

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Two unique end markets from one shared expertise in weaving technology

M AC H I N E C LOT HI NG

E N G I N E E R E D CO M POSI TE S

Global leader in paper machine fabrics and

process belts

Leading position in engineered fabrics supporting a range of industrial applications

Proprietary technology for complex applications Long-term stability trending with GDP

Strong free cash flow generator

Long-term growth engine

Grew organically from weaving and composites manufacturing capabilities

Industrialized and Proprietary 3D weaving

technology - LEAP and GE9X

Beyond 3D weaving, our differentiated capabilities include; braiding, winding, and resin transfer molding for end markets that include engines, space, missiles, ceramic matrix composites, and titanium replacements

(Millions USD, except per share data)

Q1 2026

Q1 2025

Total Revenue*

$311.3

$288.8

Adjusted** EBITDA

$48.2

$55.7

Adjusted** EBITDA Margin

15.5%

19.3%

Adjusted** Diluted Earnings Per Share

$0.60

$0.73

** For a full reconciliation of GAAP to non-GAAP results, please refer to the appendix as well as the tables and

Basis of Presentation included in the earnings release dated April 30, 2026.

MACHINE CLOTHINg END MARKETs

Global stability with softness in Asia

G E O G R A P H Y

P A P E R G R A D E

AMERICAs

STABLE

Growth in Tissue partly impacted by industry consolidation largely impacting packaging

EUROPE

STABLE

Market stabilized, demand consistent

AsIA

STABLE

Overall demand has been stabilizing but near-term visibility is limited

TIssUE

Bright spot globally with planned new investments supporting

growing demand

PACKAgINg

Long-term secular trends remain stable; near-term industry consolidation negatively impacting demand

PUBLICATION

Declining trend continues across all regions

PULP

Remains stable amidst weakening US Dollar and tariffs

ENgINEERED FABRICs

Remains stable with some softness in Asia

Long-term stability driven by growing middle class, continued growth in e-commerce,

sustainability and renewable paper products

ENgINEERED COMPOsITEs END MARKETs

Broad portfolio performing; portfolio reshaping to enhance profitability

C O M M E R C I A L

D E F E N S E

AEROsPACE

GROWING

LEAP deliveries increasing with customer demand BETA certification underway and production ramping

Early development of next-generation aircraft technologies underway

ENgINEs

GROWING

New contract win with Pratt C Whitney and new OEM opportunities

driven by relationships and capabilities

ADVANCED AIR MOBILITY

EMERGING

Benefits of 3D Woven solutions garnering interest across industry

AEROsPACE

STABLE

F-35 program at rate

Focusing new business development on components and technology.

CONVENTIONAL MIssILEs

GROWING

JASSM and LRASM programs

Technology breadth and new CMC capabilities generating solid rocket

motor C motor case opportunities

HYPERsONIC MIssILEs

EMERGING

Titanium Replacement Opportunities In Work Across Industries

Core Business Strong / Growth Driven by Differentiated Technologies

US government funding continues to accelerate development. Engagement with multiple OEMs increasing

PRATT s WHITNEY AWARD

This award reflects AEC's ability to deliver high-volume, high-precision composite structures

Geared Turbofan Contract

AEC secured a long-term contract to supply advanced composite components for Pratt C Whitney's fuel-efficient commercial aviation Pratt C Whitney GTFTM engine

Advanced Composite Advantages

Composite materials offer high strength-to-weight, durability, and design flexibility essential for modern engine performance

Q1 MACHINE CLOTHINg FINANCIALs

(Millions USD)

Q1 2026

Q1 2025

Revenue*

$15G.8

$174.7

Adjusted* EBITDA

$45.1

$49.7

Adjusted* EBITDA Margin

28.2%

28.4%

* For a full reconciliation of GAAP to non-GAAP results, please refer to the appendix as well as the tables and Basis of Presentation included in the earnings release dated April 30, 2026.

Q1 ENgINEERED COMPOsITEs FINANCIALs

(Millions USD)

Q1 2026

Q1 2025

Revenue

$145.4

$114.1

Adjusted* EBITDA

$16.G

$15.4

Adjusted** EBITDA Margin

11.7%

13.5%

* For a full reconciliation of GAAP to non-GAAP results, please refer to the appendix as well as the tables and Basis of Presentation included in the earnings release dated April 30, 2026.

** Adjusted EBITDA impact on a constant currency basis for AEC is ~0

(Millions USD)

Q1 2026

Q1 2025

Free Cash Flow*

($3.6)

($13.5)

RCD Spend

$13.0

$11.9

Capex

$G.3

$15.6

* For a full reconciliation of GAAP to non-GAAP results, please refer to the appendix as well as the tables and Basis of Presentation included in the earnings release dated April 30, 2026.

Strong balance sheet and cash flow supports disciplined capital allocation

For the first-quarter ended March 30, 202C

$9.3M

CAPEX Spend

$446M

Liquidity Available as of 1Q26

$13M

RCD Spend

1.83X

Net Leverage Ratio as of 1Q26

$7.9M

Dividends to Shareholders

($3.6M)

*Free Cash Flow

Balanced capital allocation strategy directed toward organic growth through CAPEX and consistent RCD investment, along with return of cash to shareholders.

Complementary business segments optimize capital generation and investment:

Steady, predictable high-cash generation in Machine Clothing

High growth opportunities with 3D woven and advanced composites technologies in AEC

*For a full reconciliation of GAAP to non-GAAP results, please refer to the appendix as well as the tables and Basis of Presentation included in the earnings release dated February 24, 2026.

Q2 2026 broadly consistent with recent trends

Underlying trends persist into Q2

Machine Clothing

Americas strong progress was made towards recovery post an equipment failure in Q1, and anticipate full recovery by year

Stabilization in Europe

Stabilization in China, with limited visibility for the balance of the year Engineered Composites

LEAP continues to be a solid program with expected double digit growth over the next couple years

In Defense markets, momentum around ramp up for missile demand is

strong

Outlook for the Second Quarter of 2026:

Consolidated revenue between $335 million and $345 million

Machine Clothing revenue between $180 million and $185 million

Engineered Composite revenue between $155 million and $160 million

Adjusted EPS between $0.70 and $0.80

Second quarter effective tax rate of 31.5%

Focused on positioning for stronger long-term growth

PROPRIETARY C CONFIDENTIAL