Albany International Corp. Q2 FY2025 earnings call

• Business is a transition year; second quarter results lagged due to timing and operational issues but confidence in recovery. • Monitored tariff situation, regional setup insulates from tariffs. • Machine Clothing delivered expected returns despite headwinds, with facility closures. • AEC had strong sequential growth, invested in operational excellence, CH-53K program progress, and completed S/4HANA upgrade. • Financials: Revenues $311M, adjusted EBITDA margin 16.7%, adjusted diluted EPS $0.57; returned capital to shareholders via dividend and share repurchase.

Machine Clothing: Revenues of $181 million, adjusted EBITDA margin of 28.8%. Impacted by timing and market headwinds but showed growth from Q1; initiated 2 facility closures. Engineered Composites (AEC): Revenues of $130 million, adjusted EBITDA margin of 8.5%. Sequentially grew, with investment in operational excellence, progress on CH-53K and LEAP programs, growth in Advanced Air Mobility, and progress with 3D woven technology.

• Reaffirmed full-year guidance; expects second half to be stronger with ramping programs at AEC, recovery at Machine Clothing, and operational efficiencies across both businesses.

• Tariff situation and secondary effects on regional market dynamics/customer behaviors. • Operational disruptions like unplanned equipment downtime in a U.S. facility during the second quarter.

Q: Talk about where Albany International is in terms of overall build rates in aerospace.

A: Ramping up with Boeing and LEAP program, reaching contractual inventory levels on LEAP and ramping with Boeing.

Q: Drivers behind not lowering guidance.

A: Heimbach synergies, growth in AEC from commercial and defense programs.

Q: Details on 3D woven composite parts replacing titanium.

A: Good reception at Paris Air Show, development ongoing, certification expected in 18 months, focus on new programs and beta customers.