ALBANY INTERNATIONAL CORP /DE/ Q4 FY2025 earnings call

• Introduced internal innovation awards program with 86 submissions across technical innovation, operational excellence, and customer service. • Machine Clothing is the backbone with stable global platform and strong margins; Engineered Composites is long-term growth engine using proprietary technologies and advanced materials. • Sharpened strategic focus on high-value applications, initiated strategic review of Amelia Earhart facility. • In January, equipment failure in North America facility impacted first quarter results, machine back online in February. • Completed corporate relocation to Portsmouth, NH. • Invested in capital expenditures and R&D, and returned capital to shareholders through dividends and share repurchases

Machine Clothing: Sales down mid-single digits year-over-year, driven by lower volumes in China; generally in line with expectations. Demand mixed across regions. Adjusted EBITDA for Machine Clothing was $48.6 million, with a margin of 27.4% compared to 28.5% in the prior year period. Engineered Composites: Sales were $143.7 million, up from $98.8 million in the prior year period. Adjusted EBITDA for the segment was $18.5 million, up from $6 million last year. Overall, consolidated sales were $321.2 million, up 12% year-over-year, with Adjusted EBITDA of $57.3 million, representing 17.8% of sales

• First quarter consolidated revenue expected in the range of $275 million to $285 million, with Adjusted EPS in the range of $0.50 to $0.60. • Effective tax rate for the first quarter expected to be approximately 27% and for the full year approximately 24.3%. • First quarter results expected to be the lowest of the year due to Machine Clothing facility downtime, expect to recover lost volume by end of year. • Machine Clothing expects stable demand in North America and Europe, with weakness in China persisting. • Engineered Composites expects continued growth on key platforms like LEAP and missile applications

• Equipment failure in North America facility unfavorably impacts first quarter results. • Mixed demand conditions for Machine Clothing, particularly in Asia with paper overcapacity. • Uncertainty around strategic review of Amelia Earhart facility. • Foreign currency revaluation impact leading to net expense. • Increase in effective tax rate due to expiration of Foreign Tax Credit and less favorable discrete tax adjustment

Q: Michael Ciarmoli on LEAP alignment, European exits; A: Aligned with production volumes, European exits were part of optimization and synergy with Heimbach.

Q: Ronald Epstein on CMCs, Salt Lake City facility; A: Investing in CMCs with proprietary 3D weaving, Salt Lake City facility has interest from private equity and strategics.

Q: Chigusa Katoku on AEC margins, CH-53K; A: Underlying margins for Engineered Composites in reasonable range, CH-53K issues resolved, aiming for mid to low teens margins after strategic review of Salt Lake City