ALBANY INTERNATIONAL CORP /DE/AIN
ALBANY INTERNATIONAL CORP /DE/ Segments Disclosure
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
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 | ||||||||||||||||||||||||||
| (in thousands) | MC | AEC | Corporate | Total | ||||||||||||||||||||||
| Net revenues | $ | 708,066 | $ | 474,747 | $ | — | $ | 1,182,813 | ||||||||||||||||||
| Cost of goods sold | 384,334 | 554,559 | — | 938,893 | ||||||||||||||||||||||
| Gross profit | 323,732 | (79,812) | — | 243,920 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 131,175 | 46,449 | 40,702 | 218,326 | ||||||||||||||||||||||
| Technical and research expenses | 28,090 | 15,615 | 4,310 | 48,015 | ||||||||||||||||||||||
| Restructuring expenses, net | 8,255 | 3,259 | 2,168 | 13,682 | ||||||||||||||||||||||
| Operating income/(loss) | $ | 156,212 | $ | (145,135) | $ | (47,180) | $ | (36,103) | ||||||||||||||||||
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 | ||||||||||||||||||||||||||
| (in thousands) | MC | AEC | Corporate | Total | ||||||||||||||||||||||
| Net revenues | $ | 749,907 | $ | 480,708 | $ | — | $ | 1,230,615 | ||||||||||||||||||
| Cost of goods sold | 403,863 | 424,976 | — | 828,839 | ||||||||||||||||||||||
| Gross profit | 346,044 | 55,732 | — | 401,776 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 123,120 | 47,421 | 40,341 | 210,882 | ||||||||||||||||||||||
| Technical and research expenses | 29,832 | 16,265 | — | 46,097 | ||||||||||||||||||||||
| Restructuring expenses, net | 9,460 | 3,649 | 329 | 13,438 | ||||||||||||||||||||||
| Operating income/(loss) | $ | 183,632 | $ | (11,603) | $ | (40,670) | $ | 131,359 | ||||||||||||||||||
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 | ||||||||||||||||||||||||||
| (in thousands) | MC | AEC | Corporate | Total | ||||||||||||||||||||||
| Net revenues | $ | 670,768 | $ | 477,141 | $ | — | $ | 1,147,909 | ||||||||||||||||||
| Cost of goods sold | 339,210 | 384,981 | — | 724,191 | ||||||||||||||||||||||
| Gross profit | 331,558 | 92,160 | — | 423,718 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 118,196 | 48,833 | 47,886 | 214,915 | ||||||||||||||||||||||
| Technical and research expenses | 24,651 | 15,976 | — | 40,627 | ||||||||||||||||||||||
| Restructuring expenses, net | 282 | — | — | 282 | ||||||||||||||||||||||
| Operating income/(loss) | $ | 188,429 | $ | 27,351 | $ | (47,886) | $ | 167,894 | ||||||||||||||||||
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, | ||||||||||||||||||||
(in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating income/(loss) | $ | (36,103) | $ | 131,359 | $ | 167,894 | ||||||||||||||
Reconciling items: | ||||||||||||||||||||
Interest income | (5,159) | (4,064) | (6,566) | |||||||||||||||||
Interest expense | 25,764 | 16,613 | 20,167 | |||||||||||||||||
Other (income)/expense, net | 5,079 | 1,721 | (6,163) | |||||||||||||||||
Income before income taxes | $ | (61,787) | $ | 117,089 | $ | 160,456 | ||||||||||||||
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, | ||||||||||||||||||||
(in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Machine Clothing | 32,849 | 33,917 | 24,616 | |||||||||||||||||
Albany Engineered Composites | 53,731 | 54,228 | 50,764 | |||||||||||||||||
Corporate | 1,334 | 1,149 | 1,353 | |||||||||||||||||
Consolidated total | $ | 87,914 | $ | 89,294 | $ | 76,733 | ||||||||||||||
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.
The following table presents assets and capital expenditures by reportable segment:
As of December 31, | ||||||||||||||||||||
(in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
Segment assets | ||||||||||||||||||||
Machine Clothing | $ | 618,476 | $ | 600,603 | $ | 669,907 | ||||||||||||||
Albany Engineered Composites | 491,802 | 736,306 | 800,931 | |||||||||||||||||
Reconciling items: | ||||||||||||||||||||
Cash | 112,350 | 115,283 | 173,420 | |||||||||||||||||
Income taxes prepaid, receivable and deferred | 112,436 | 47,944 | 33,984 | |||||||||||||||||
Prepaid and Other assets | 89,862 | 148,560 | 156,772 | |||||||||||||||||
| Assets held for sale | 293,783 | — | — | |||||||||||||||||
Total assets | $ | 1,718,709 | $ | 1,648,696 | $ | 1,835,014 | ||||||||||||||
Capital expenditures and purchased software | ||||||||||||||||||||
Machine Clothing | $ | 30,770 | $ | 21,270 | $ | 25,917 | ||||||||||||||
Albany Engineered Composites | 39,098 | 58,121 | 57,404 | |||||||||||||||||
| Corporate | 1,637 | 1,816 | 1,108 | |||||||||||||||||
Total capital expenditures and purchased software | $ | 71,505 | $ | 81,207 | $ | 84,429 | ||||||||||||||
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, | ||||||||||||||||||||
(in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
Net revenues | ||||||||||||||||||||
| United States | $ | 638,064 | $ | 650,532 | $ | 649,500 | ||||||||||||||
| Switzerland | 110,775 | 109,751 | 115,207 | |||||||||||||||||
| Germany | 77,398 | 86,991 | 32,239 | |||||||||||||||||
| France | 76,360 | 81,141 | 77,573 | |||||||||||||||||
| China | 62,335 | 67,732 | 65,135 | |||||||||||||||||
| Brazil | 68,642 | 66,943 | 69,527 | |||||||||||||||||
| Mexico | 58,384 | 57,928 | 58,874 | |||||||||||||||||
| Other countries | 90,855 | 109,597 | 79,854 | |||||||||||||||||
Total Net revenues | $ | 1,182,813 | $ | 1,230,615 | $ | 1,147,909 | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||||||||
| United States | $ | 202,729 | $ | 299,370 | $ | 303,578 | ||||||||||||||
| China | 54,991 | 52,063 | 57,070 | |||||||||||||||||
| Germany | 48,858 | 46,033 | 52,934 | |||||||||||||||||
| Mexico | 45,844 | 38,762 | 46,759 | |||||||||||||||||
| France | 28,015 | 30,935 | 31,069 | |||||||||||||||||
| United Kingdom | 16,100 | 16,651 | 18,306 | |||||||||||||||||
| Canada | 16,194 | 14,313 | 15,318 | |||||||||||||||||
| Spain | 12,808 | 12,154 | 14,804 | |||||||||||||||||
| Other countries | 57,029 | 53,150 | 62,151 | |||||||||||||||||
Total Property, plant and equipment, net | $ | 482,568 | $ | 563,431 | $ | 601,989 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 14, 2019 | |
| 2017 | Feb 28, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.