XML 18 R8.htm IDEA: XBRL DOCUMENT
v3.25.1

Reportable Segments and Revenue Recognition | 3 Months Ended
--- | ---
Mar. 31, 2025
Segment Reporting [Abstract] |
Reportable Segments and Revenue Recognition | Reportable Segments and Revenue Recognition 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. Annual incentive targets are established for the segment presidents based on these metrics, in addition to cash flows, which are reviewed in summary each month, and in more depth each quarter. The Company has not aggregated operating segments for purposes of identifying reportable segments. Effective December 31, 2024, the Company adopted provisions of ASU 2023-07, which expanded the content and frequency of segment disclosures required under ASC 280. Machine Clothing: The Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, tissue and towel products, nonwovens, fiber cement and for 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 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 manufacture of paper, paperboard, tissue and towel) for each section of the paper machine and for every grade of paper. Paper machine clothing products and technical textiles. Albany Engineered Composites: The Albany Engineered Composites 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, the SAFRAN Group (“SAFRAN”) owns a 10 percent 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, where revenue is determined by a cost-plus-fee agreement. The LEAP engine is used on the Airbus A320neo, A321neo, Boeing 737 MAX, and COMAC 919 aircraft. AEC's largest aerospace customer is the SAFRAN Group and sales to SAFRAN (consisting primarily of fan blades and cases for CFM International's LEAP engine). AEC net sales to SAFRAN were $39.4 million and $50.1 million in the first three months of 2025 and 2024, respectively. The total of Accounts receivable, Contract assets and Noncurrent receivables due from SAFRAN amounted to $74.0 million and $78.5 million as of March 31, 2025 and December 31, 2024, respectively. Other significant programs for AEC include the Sikorsky CH-53K, F-35, JASSM, and Boeing 787 programs. AEC also supplies vacuum waste tanks for the Boeing commercial programs, and specialty components for the Rolls Royce lift fan on the F-35, as well as the fan case for the GE9X engine. For the year ended December 31, 2024, approximately 36 percent of AEC's 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:
|  | Three Months Ended March 31, 2025
(in thousands) |  | MC |  | AEC |  | Corporate |  | Total
Net revenues |  | $ | 174,697 |  |  | $ | 114,077 |  |  | $ | — |  |  | $ | 288,774 |
Cost of goods sold |  | $ | 94,795 |  |  | $ | 97,493 |  |  | $ | — |  |  | $ | 192,288 |
Gross profit |  | $ | 79,902 |  |  | $ | 16,584 |  |  | $ | — |  |  | $ | 96,486 |
Selling, general and administrative expenses |  | $ | 32,881 |  |  | $ | 10,126 |  |  | $ | 10,805 |  |  | $ | 53,812 |
Technical and research expenses |  | $ | 7,243 |  |  | $ | 3,674 |  |  | $ | 979 |  |  | $ | 11,896 |
Restructuring expenses, net |  | $ | 1,347 |  |  | $ | 1,168 |  |  | $ | — |  |  | $ | 2,515 |
Operating income/(loss) |  | $ | 38,431 |  |  | $ | 1,616 |  |  | $ | (11,784) |  |  | $ | 28,263 |
|  | Three Months Ended March 31, 2024
(in thousands) |  | MC |  | AEC |  | Corporate |  | Total
Net revenues |  | $ | 185,217 |  |  | $ | 128,113 |  |  | $ | — |  |  | $ | 313,330 |
Cost of goods sold |  | $ | 100,562 |  |  | $ | 104,082 |  |  | $ | — |  |  | $ | 204,644 |
Gross profit |  | $ | 84,655 |  |  | $ | 24,031 |  |  | $ | — |  |  | $ | 108,686 |
Selling, general and administrative expenses |  | $ | 32,767 |  |  | $ | 11,540 |  |  | $ | 10,528 |  |  | $ | 54,835 |
Technical and research expenses |  | $ | 7,520 |  |  | $ | 5,145 |  |  | $ | — |  |  | $ | 12,665 |
Restructuring expenses, net |  | $ | 21 |  |  | $ | 2,188 |  |  | $ | — |  |  | $ | 2,209 |
Operating income/(loss) |  | $ | 44,347 |  |  | $ | 5,158 |  |  | $ | (10,528) |  |  | $ | 38,977 |
|  | Three months ended March 31,
(in thousands) |  |  | 2025 | 2024
Net revenues |  |  |  |
Machine Clothing |  |  | $ | 174,697 |  | $ | 185,217 |
Albany Engineered Composites |  |  | 114,077 |  | 128,113 |
Consolidated revenues |  |  | $ | 288,774 |  | $ | 313,330 |
Gross profit |  |  |  |
Machine Clothing |  |  | $ | 79,902 |  | $ | 84,655 |
Albany Engineered Composites |  |  | 16,584 |  | 24,031 |
Consolidated gross profit |  |  | $ | 96,486 |  | $ | 108,686 |
Depreciation and amortization |  |  |  |
Machine Clothing |  |  | $ | 7,706 |  | $ | 8,511 |
Albany Engineered Composites |  |  | 13,295 |  | 13,503 |
Corporate |  |  | 290 |  | 290 |
Consolidated depreciation and amortization |  |  | $ | 21,291 |  | $ | 22,304 |
Operating income/(loss) |  |  |  |
Machine Clothing |  |  | $ | 38,431 |  | $ | 44,347 |
Albany Engineered Composites |  |  | 1,616 |  | 5,158 |
Corporate |  |  | (11,784) |  | (10,528) |
Consolidated Operating income |  |  | $ | 28,263 |  | $ | 38,977 |
Reconciling items: |  |  |  |
Interest income |  |  | (1,638) |  | (1,123) |
Interest expense |  |  | 5,293 |  | 4,442 |
Other (income)/expense, net |  |  | 983 |  | (2,982) |
Income before income taxes |  |  | $ | 23,625 |  | $ | 38,640 |
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. F or the three months ended March 31, 2025, Selling, general and administrative expenses include global information system costs of $4.0 million, $3.9 million, and $0.5 million for MC, AEC and Corporate, respectively. For the three months ended March 31, 2024, Selling, general and administrative expenses include global information system costs of $3.8 million, $4.0 million, and $0.5 million for MC, AEC and Corporate, respectively. The following table presents assets by reportable segment:
(in thousands) | March 31, 2025 | December 31, 2024
Segment assets |  |
Machine Clothing | $ | 621,691 |  | $ | 600,603 |
Albany Engineered Composites | $ | 749,287 |  | $ | 736,306 |
Reconciling items: |  |
Cash | $ | 119,354 |  | $ | 115,283 |
Income taxes prepaid, receivable and deferred | 45,761 |  | 47,944 |
Prepaid and Other assets | 151,983 |  | 148,560 |
Consolidated total assets | $ | 1,688,076 |  | $ | 1,648,696 |
The following table presents capital expenditures by reportable segment:
| Three months ended March 31,
(in thousands) | 2025 | 2024
Capital expenditures and purchased software |  |
Machine Clothing | $ | 6,232 |  | $ | 6,357 |
Albany Engineered Composites | 9,365 |  | 20,523 |
Corporate expenses | — |  | — |
Total capital expenditures and purchased software | $ | 15,597 |  | $ | 26,880 |
Revenue Recognition: Products and services provided under long-term contracts represent a significant portion of revenues in the Albany Engineered Composites segment and we account for these contracts over time, primarily using the percentage of completion (actual cost to estimated cost) method. That method requires significant judgment and estimation, which could be materially 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. Changes in the estimated profitability of long-term contracts could be caused by increases or decreases in the contract value, revisions to customer delivery requirements, updated labor or overhead rates, material costs, factors affecting the supply chain, changes in the evaluation of contract risks and opportunities, or other factors. The cumulative changes in the estimated profitability of long-term contracts decreased operating income by $7.0 million for the first three months of 2025. The negative change in the estimated profitability in the first quarter of 2025 was driven by a few large complex programs, including approximately $2.0 million for various CH-53K programs, approximately $1.7 million on our Gulfstream program, approximately $0.9 million on our F-35 program, and $2.4 million, net, on all other programs. Adjustments in the estimated profitability of long-term contracts decreased operating income by $0.9 million for the first three months of 2024. 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. The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended March 31, 2025:
| Three months ended March 31, 2025
(in thousands) | Point in Time Revenue Recognition | Over Time Revenue Recognition | Total
Machine Clothing | $ | 173,676 |  | $ | 1,021 |  | $ | 174,697 |
Albany Engineered Composites: |  |  |
ASC | — |  | 38,920 |  | 38,920 |
Other AEC | 4,077 |  | 71,080 |  | 75,157 |
Total Albany Engineered Composites | 4,077 |  | 110,000 |  | 114,077 |
Total revenues | $ | 177,753 |  | $ | 111,021 |  | $ | 288,774 |
The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended March 31, 2024:
| Three months ended March 31, 2024
(in thousands) | Point in Time Revenue Recognition | Over Time Revenue Recognition | Total
Machine Clothing | $ | 184,235 |  | $ | 982 |  | $ | 185,217 |
Albany Engineered Composites: |  |  |
ASC | — |  | 49,739 |  | 49,739 |
Other AEC | 5,757 |  | 72,617 |  | 78,374 |
Total Albany Engineered Composites | 5,757 |  | 122,356 |  | 128,113 |
Total revenues | $ | 189,992 |  | $ | 123,338 |  | $ | 313,330 |
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:
|  | Three months ended March 31,
(in thousands) |  |  | 2025 | 2024
Americas PMC |  |  | $ | 82,846 |  | $ | 83,501 |
Eurasia PMC |  |  | 68,197 |  | 76,190 |
Engineered Fabrics |  |  | 23,654 |  | 25,526 |
Total Machine Clothing Net revenues |  |  | $ | 174,697 |  | $ | 185,217 |
We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the MC segment are generally for periods of less than a year and certain contracts in the AEC segment are relatively short duration firm-fixed-price orders. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $1.1 billion and $752 million as of March 31, 2025 and 2024, respectively, and related primarily to firm fixed price contracts in the AEC segment. Of the remaining performance obligations as of March 31, 2025, we expect to recognize as revenue approximately $117 million during 2025, $150 million during 2026, $142 million during 2027, and the remainder thereafter.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration