Albany International Corp. (NYSE:AIN) today reported operating results for its second quarter of 2026, which ended June 30, 2026.

Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, “Our second-quarter performance delivered the strongest Adjusted EBITDA we have achieved in the past two years and grew 11.5% year-over-year, despite modestly lower-than-expected revenue due to several discrete factors. This result reflects the progress we have made to build a more nimble company and underscores the strength of our operating model, our focus on profitable growth, and the dedication of the Albany team."

Kleveland continued, “In Engineered Composites, we are seeing the benefits of a refined operating model centered on our innovative technologies, which enable lighter-weight, more durable solutions for customers across commercial aerospace, defense, and space applications. Our recent participation at the Farnborough International Airshow reinforced the value of our business, as leading OEMs and government stakeholders engaged with us to explore solutions enabled by our innovative material science. In Machine Clothing, we are applying that same focus on innovation to expand opportunities for our high-value, performance-driven products across a broader range of uses.”

Consolidated Results

The Company’s net revenues were $329.5 million in the second quarter of 2026, compared to $311.4 million in the prior year. The increase was primarily driven by higher volume in the Engineered Composites business, offset by some end-market softness in Machine Clothing along with downtime related to an equipment failure in the Machine Clothing business.

Gross profit of $107.9 million in the second quarter of 2026 was 10.7% higher than $97.5 million reported for the same period of 2025, as a result of cost controls in Machine Clothing and a favorable mix of aerospace and defense programs in the Engineered Composites business.

Selling, general, and administrative expenses were $56.1 million in the second quarter of 2026, compared to $58.5 million in the same period of 2025, driven primarily by cost containment initiatives.

Operating income was $32.1 million, compared to $22.3 million in the prior year, an increase of 44.3%, primarily driven by stronger gross profit and cost containment initiatives.

The effective tax rate for the quarter was 32.0% compared to a 31.3% effective tax rate in the second quarter of 2025.

The net income attributable to the Company was $17.4 million, or $0.61 per share on a basic and diluted basis, compared to $9.2 million, or $0.31 per share in the second quarter of 2025.

Adjusted diluted earnings per share (or Adjusted EPS, a non-GAAP measure) was $0.82 per share, compared to $0.57 per share for the same period of last year.

Adjusted EBITDA (a non-GAAP measure) was $57.8 million, compared to $51.9 million in the second quarter of 2025, an increase of 11.5%, due to stronger revenue and operating profit. Adjusted EBITDA margin was 17.6% and 16.7% in the prior year, up 90 basis points as a result of stronger contribution from Engineered Composites.

Will Station, Albany International’s Chief Financial Officer, said, “We are pleased with our second-quarter performance, as disciplined execution and a more focused operating model drove meaningful year-over-year improvement in profitability. As we look to the balance of the year, we remain well positioned to maintain our growth trajectory. In Engineered Composites, we expect continued strength as multiple programs scale and we benefit from our focus on quality of earnings, while in Machine Clothing, we remain focused on execution and margin stability as we manage a fluid demand environment across the geographies we serve.”

Machine Clothing

Machine Clothing's net revenues decreased 2.4% after adjusting for currency translation, primarily driven by cyclical declines in the Americas and machine downtime in that region.

Machine Clothing’s adjusted EBITDA margin was 28.0%, compared to 28.9% in the second quarter of 2025. The margin decline is primarily impacted by foreign currency impacts related to a weaker U.S. dollar. On a constant currency basis, margins were up slightly at 29.0% despite lower volumes, driven by synergies and efficiency gains across the network.

Engineered Composites

Engineered Composites net revenues increased 14.2% after adjusting for currency translation, driven by strength across commercial and defense programs, most notably on the commercial side within the LEAP program, and on the defense side under the CH-53K and missile programs.

Adjusted EBITDA margin was 13.3%, compared to 8.5% in the second quarter of 2025. The increase in margin was driven by the continued focus on quality of earnings and the scaling of more profitable programs.

Capital Allocation Balance Sheet

Capital expenditures were $11.9 million, compared to $14.9 million in the second quarter of 2025, and were driven primarily by facility optimizations. Research and development expenses totaled $11.7 million, compared to $12.6 million in the second quarter of 2025, consistent with the Company’s commitment to advancing proprietary technologies and supporting long-term growth in both Machine Clothing and Engineered Composites.

Albany ended the quarter with cash and cash equivalents of $77.3 million and total debt of $450.7 million, resulting in a net debt position of $373.3 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders.

Outlook for the Third Quarter of 2026

  • Consolidated net revenue between $320 million and $330 million
  • Machine Clothing net revenue between $165 million and $170 million
  • Engineered Composite net revenue between $155 million and $160 million
  • Adjusted EPS between $0.60 and $0.70
  • Third-quarter effective tax rate of 31.5%

Second-Quarter 2026 Results Conference Call/Webcast

The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Tuesday, August 4, 2026. Interested parties are encouraged to listen to the live webcast via the Company’s Investor Relations website at investors.albint.com or by registering via the link . The event can also be accessed by dialing +1 (833) 461-5787 and using the Meeting ID: 487 159 842.

An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Tuesday, August 4, 2026.

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

 

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Net revenues

$

329,482

$

311,399

$

640,815

$

600,173

Cost of goods sold

221,581

213,892

433,120

406,180

Gross profit

107,901

97,507

207,695

193,993

Selling, general, and administrative expenses

56,068

58,502

114,367

112,314

Technical and research expenses

11,722

12,552

24,679

24,448

Restructuring expenses, net

7,973

4,183

11,138

6,698

Operating income

32,138

22,270

57,511

50,533

Interest expense, net

6,068

5,150

11,535

8,805

Other expense/(income), net

39

3,534

(3,154

)

4,517

Income before income taxes

26,031

13,586

49,130

37,211

Income tax expense

8,327

4,254

15,977

10,530

Net income

17,704

9,332

33,153

26,681

Net income attributable to the noncontrolling interest

290

149

458

143

Net income attributable to the Company

$

17,414

$

9,183

$

32,695

$

26,538

Earnings per share attributable to Company shareholders - Basic

$

0.61

$

0.31

$

1.15

$

0.87

Earnings per share attributable to Company shareholders - Diluted

$

0.61

$

0.31

$

1.14

$

0.87

Shares of the Company used in computing earnings per share:

Basic

28,361

29,928

28,341

30,373

Diluted

28,588

30,090

28,568

30,535

Dividends declared per Class A share

$

0.28

$

0.27

$

0.56

$

0.54

ALBANY INTERNATIONAL CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

June 30, 2026

December 31, 2025

Assets

Cash and cash equivalents

$

77,349

$

112,350

Accounts receivable, net

252,133

235,084

Contract assets, net

77,287

87,102

Inventories

146,158

121,589

Income taxes prepaid and receivable

41,191

43,937

Prepaid expenses and other current assets

40,402

34,990

Assets held for sale

306,722

293,783

Total current assets

$

941,242

$

928,835

Property, plant and equipment, net

467,424

482,568

Intangibles, net

19,667

21,428

Goodwill

160,552

162,507

Deferred income taxes

66,319

68,499

Other assets

56,161

54,872

Total assets

$

1,711,365

$

1,718,709

Liabilities and Shareholders' Equity

Accounts payable

$

75,075

$

64,499

Accrued liabilities

133,829

139,385

Income taxes payable

24,524

35,090

Liabilities held for sale

187,108

203,323

Total current liabilities

420,536

442,297

Long-term debt

450,669

455,663

Other noncurrent liabilities

85,983

86,850

Deferred income taxes

2,088

1,797

Total liabilities

959,276

986,607

Commitments and Contingencies

Shareholders' Equity:

Class A Common Stock, par value $0.001 per share; authorized 100,000,000 shares; 41,056,929 issued in 2026 and 40,989,106 in 2025

41

41

Additional paid in capital

464,148

460,472

Retained earnings

993,170

976,373

Accumulated items of other comprehensive income:

Translation adjustments

(121,743

)

(119,008

)

Pension and postretirement liability adjustments

(23,065

)

(23,911

)

Derivative valuation adjustment

131

(619

)

Treasury stock (Class A), at cost; 12,685,782 shares in 2026 and 12,685,782 in 2025

(566,993

)

(567,139

)

Total shareholders' equity

745,689

726,209

Noncontrolling interest

6,400

5,893

Total equity

752,089

732,102

Total liabilities and shareholders' equity

$

1,711,365

$

1,718,709

ALBANY INTERNATIONAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

Six Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net income

$

33,153

$

26,681

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

32,853

40,085

Amortization

1,294

2,957

Change in deferred taxes

2,179

(2,761

)

Loss/(gain) on disposal of property, plant and equipment

324

(66

)

Non-cash interest expense

515

513

Compensation and benefits paid or payable in Class A Common Stock

5,009

3,654

Provision/(recovery) for credit losses from uncollected receivables and contract assets

(101

)

1,021

Foreign currency remeasurement loss/(gain) on intercompany loans

(3,788

)

7,171

Changes in operating assets and liabilities that provided/(used) cash:

Accounts receivable

(12,899

)

(4,490

)

Contract assets

(8,778

)

(15,329

)

Inventories

(22,912

)

(8,179

)

Prepaid expenses and other current assets

(5,195

)

(2,565

)

Income taxes prepaid and receivable

2,769

743

Accounts payable

14,488

26,878

Accrued liabilities

(23,259

)

(23,314

)

Income taxes payable

(11,034

)

(17,191

)

Noncurrent receivables

(201

)

Other noncurrent liabilities

288

(2,927

)

Other, net

(1,914

)

3,719

Net cash provided by operating activities

2,992

34,833

Cash flows from investing activities:

Purchases of property, plant and equipment

(21,170

)

(29,526

)

Purchased software

(12

)

(1,005

)

Proceeds received from sale of assets

3,243

Proceeds from sale of investment

1,660

Net cash used in investing activities

(19,522

)

(27,288

)

Cash flows from financing activities:

Proceeds from borrowings

83,000

171,995

Repayment of borrowings

(85,000

)

(58,046

)

Purchase of Treasury shares

(120,448

)

Taxes paid in lieu of share issuance

(1,333

)

(1,316

)

Dividends paid

(15,867

)

(16,693

)

Net cash used in financing activities

(19,200

)

(24,508

)

Effect of exchange rate changes on cash and cash equivalents

729

8,369

Decrease in cash and cash equivalents

(35,001

)

(8,594

)

Cash and cash equivalents at beginning of period

112,350

115,283

Cash and cash equivalents at end of period

$

77,349

$

106,689

Supplemental disclosure of cash flow information:

Cash paid for interest, net

$

12,451

$

10,710

Cash paid for income taxes

$

23,056

$

26,278

The following table presents the reconciliation of Net revenues to net revenues excluding the effect of changes in currency translation rates, a non-GAAP measure:

(in thousands, except percentages)

Net revenues as reported, Q2 2026

(Decrease)/ increase due to changes in currency translation rates

Q2 2026 revenues on same basis as Q2 2025 currency translation rates

Net revenues as reported, Q2 2025

% Change compared to Q2 2025, excluding currency rate effects

Machine Clothing

$

178,710

$

2,137

$

176,573

$

180,926

(2.4

)%

Albany Engineered Composites

150,772

1,824

148,948

130,473

14.2

%

Consolidated total

$

329,482

$

3,961

$

325,521

$

311,399

4.5

%

(in thousands, except percentages)

Net revenues as reported, YTD 2026

(Decrease)/ increase due to changes in currency translation rates

YTD 2026 revenues on same basis as 2025 currency translation rates

Net revenues as reported, YTD 2025

% Change compared to 2025, excluding currency rate effects

Machine Clothing

$

344,662

$

8,279

$

336,383

$

355,623

(5.4

)%

Albany Engineered Composites

296,153

4,959

291,194

244,550

19.1

%

Consolidated total

$

640,815

$

13,238

$

627,577

$

600,173

4.6

%

The following table presents Gross profit and Gross profit margin:

(in thousands, except percentages)

Gross profit,

Q2 2026

Gross profit margin, Q2 2026

Gross profit,

Q2 2025

Gross profit margin, Q2 2025

Machine Clothing

$

80,947

45.3

%

$

83,759

46.3

%

Albany Engineered Composites

26,954

17.9

%

13,748

10.5

%

Consolidated total

$

107,901

32.7

%

$

97,507

31.3

%

Reconciliation of Net income/(loss) (GAAP) to Adjusted EBITDA (non-GAAP) for the current-year and comparable prior-year periods have been calculated as follows.

Three months ended June 30, 2026

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

34,705

$

11,429

$

(28,430

)

$

17,704

Interest expense/(income), net

6,068

6,068

Income tax expense

8,327

8,327

Depreciation and amortization expense

8,422

8,561

35

17,018

EBITDA (non-GAAP)

43,127

19,990

(14,000

)

49,117

Restructuring costs and other

6,389

1,584

7,973

Foreign currency revaluation (gains)/losses

503

175

(521

)

157

Strategic review and other transition expenses

20

109

739

868

Pre-tax loss/(income) attributable to noncontrolling interest

(289

)

(289

)

Adjusted EBITDA (non-GAAP)

$

50,039

$

19,985

$

(12,198

)

$

57,826

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.0

%

13.3

%

17.6

%

Three months ended June 30, 2025

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

37,702

$

(2,674

)

$

(25,696

)

$

9,332

Interest expense/(income), net

5,150

5,150

Income tax expense

4,254

4,254

Depreciation and amortization expense

7,973

13,455

323

21,751

EBITDA (non-GAAP)

45,675

10,781

(15,969

)

40,487

Restructuring costs and other

3,015

520

(918

)

2,617

Foreign currency revaluation (gains)/losses

3,467

21

5,449

8,937

Strategic review and other transition expenses

28

28

Pre-tax (income) attributable to noncontrolling interest

41

(228

)

(187

)

Adjusted EBITDA (non-GAAP)

$

52,198

$

11,122

$

(11,438

)

$

51,882

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.9

%

8.5

%

16.7

%

Six months ended June 30, 2026

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

66,657

$

20,027

$

(53,531

)

$

33,153

Interest expense/(income), net

11,535

11,535

Income tax expense

15,977

15,977

Depreciation and amortization expense

16,724

17,350

73

34,147

EBITDA (non-GAAP)

83,381

37,377

(25,946

)

94,812

Restructuring costs and other

9,065

2,073

11,138

Foreign currency revaluation (gains)/losses

85

(41

)

(2,631

)

(2,587

)

Strategic review and other transition expenses

541

109

2,493

3,143

Pre-tax (income) attributable to noncontrolling interest

(520

)

(520

)

Adjusted EBITDA (non-GAAP)

$

93,072

$

36,925

$

(24,011

)

$

105,986

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

27.0

%

12.5

%

16.5

%

 

Six months ended June 30, 2025

(in thousands)

Machine Clothing

Albany Engineered

Composites

Corporate expenses

and other

Total Company

Net income/(loss) (GAAP)

$

76,133

$

(1,058

)

$

(48,394

)

$

26,681

Interest expense/(income), net

8,805

8,805

Income tax expense

10,530

10,530

Depreciation and amortization expense

15,679

26,750

613

43,042

EBITDA (non-GAAP)

91,812

25,692

(28,446

)

89,058

Restructuring costs and other

4,617

1,688

(918

)

5,387

Foreign currency revaluation (gains)/losses

5,159

(144

)

8,508

13,523

Strategic review and other transition expenses

182

(412

)

40

(190

)

Pre-tax (income) attributable to noncontrolling interest

120

(299

)

(179

)

Adjusted EBITDA (non-GAAP)

$

101,890

$

26,525

$

(20,816

)

$

107,599

Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.7

%

10.8

%

17.9

%

The following table presents the reconciliation of Machine Clothing's Adjusted EBITDA Margin to Adjusted EBITDA Margin excluding the effect of changes in currency translation rates, a non-GAAP measure:

(in thousands, except percentages)

As reported, Q2 2026

(Decrease)/ increase due to changes in currency translation rates

Q2 2026 on same basis as Q2 2025 currency translation rates

As reported, Q2 2025

Machine Clothing Net revenues

$

178,710

$

2,137

$

176,573

$

180,926

Machine Clothing Adjusted EBITDA (non-GAAP)

50,039

(1,112

)

51,151

52,198

Adjusted EBITDA Margin (Adjusted EBITDA divided by net revenues) (non-GAAP)

28.0

%

29.0

%

28.9

%

 

Per share impact of the adjustments to earnings per share are as follows:

Three months ended June 30, 2026

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

7,973

$

2,551

$

5,422

$

0.19

Foreign currency revaluation (gains)/losses

157

50

107

Strategic review and other transition expenses

868

278

590

0.02

Three months ended June 30, 2025

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

2,617

$

845

$

1,772

$

0.06

Foreign currency revaluation (gains)/losses

8,937

2,887

6,050

0.20

Strategic review and other transition expenses

28

9

19

0.00

Six months ended June 30, 2026

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

11,138

$

3,620

$

7,518

$

0.26

Foreign currency revaluation (gains)/losses

(2,587

)

(841

)

(1,746

)

(0.06

)

Strategic review and other transition expenses

3,143

1,021

2,122

0.07

Six months ended June 30, 2025

(in thousands, except per share amounts)

Pre tax

Amounts

Tax

Effect

After tax

Effect

Per share

Effect

Restructuring costs and other

$

5,387

$

1,740

$

3,647

$

0.12

Foreign currency revaluation (gains)/losses

13,523

4,368

9,155

0.30

Strategic review and other transition expenses

(190

)

(61

)

(129

)

(0.01

)

 

The following table provides a reconciliation of Earnings per share attributable to the Company shareholders - Diluted (GAAP) to Adjusted earnings per share attributable to the Company shareholders - Diluted (non-GAAP):

Three months ended June 30,

Six months ended June 30,

Per share amounts (Diluted)

2026

2025

2026

2025

Earnings per share attributable to Company shareholders - Diluted (GAAP)

$

0.61

$

0.31

$

1.14

$

0.87

Adjustments, after tax:

Restructuring costs and other

0.19

0.06

0.26

0.12

Foreign currency revaluation (gains)/losses

0.20

(0.06

)

0.30

Strategic review and other transition expenses

0.02

0.07

(0.01

)

Adjusted earnings per share attributable to Company shareholders - Diluted (non-GAAP)

$

0.82

$

0.57

$

1.41

$

1.28

 

The calculations of net debt are as follows:

(in thousands)

June 30, 2026

December 31, 2025

June 30, 2025

Long-term debt

450,669

455,663

444,686

Total debt

450,669

455,663

444,686

Cash and cash equivalents

77,349

112,350

106,689

Net debt (non-GAAP)

$

373,320

$

343,313

$

337,997

 

Free cash flow is defined as GAAP "Net cash provided by operating activities" in a period less "Purchases of property, plant and equipment" and "Purchased software" in the same period. Management believes free cash flow provides an important perspective on our ability to generate cash from our business operations and, as such, that it is an important financial measure for use in evaluating the Company's financial performance. Management uses free cash flow internally to assess overall liquidity. The following table illustrates the calculation of free cash flow:

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Net cash provided by operating activities

$

(2,651

)

$

32,714

$

2,992

$

34,833

Purchases of property, plant and equipment

(11,880

)

(13,929

)

(21,170

)

(29,526

)

Purchased software

(12

)

(1,005

)

(12

)

(1,005

)

Free cash flow

$

(14,543

)

$

17,780

$

(18,190

)

$

4,302

 

About Albany International Corp.

Albany International is a leading developer and manufacturer of engineered components, using advanced materials processing and automation capabilities, with two core businesses.

  • Machine Clothing is the world’s leading producer of custom-designed, consumable belts essential for the manufacture of paper, paperboard, tissue and towel, pulp, non-wovens and a variety of other industrial applications.
  • Albany Engineered Composites is a growing designer and manufacturer of advanced materials-based engineered components for demanding aerospace applications, supporting both commercial and military platforms.

Albany International is headquartered in Portsmouth, New Hampshire, operates 25 facilities in 12 countries, employs approximately 5,700 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at .

Non-GAAP Measures

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, that should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include net revenues and percent change in net revenues, excluding the impact of currency translation effects; adjusted net revenues; Adjusted Gross profit/(loss); Adjusted Operating income/(loss);EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; Net debt; Net leverage ratio; Adjusted Net Income; and Adjusted Diluted earnings per share (or Adjusted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.

Presenting Net revenues and change in Net revenues, after currency effects are excluded, provides management and investors insight into underlying revenues trends. Net revenues, or percent changes in net revenues, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. These current year revenues converted at prior year rates are then compared to the U.S. dollar amount as reported in the prior period.

EBITDA (calculated as net income excluding interest, income taxes, depreciation and amortization), Adjusted EBITDA, and Adjusted EPS are performance measures that relate to the Company’s continuing operations. The Company defines Adjusted EBITDA as EBITDA excluding costs or benefits that are not reflective of the Company’s ongoing or expected future operational performance. Such excluded costs or benefits do not consist of normal, recurring cash items necessary to generate revenues or operate our business. Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of net revenues.

Adjusted Net Income is a supplemental measure of our performance that is not required by, or presented in accordance with U.S. GAAP. The company defines Adjusted Net Income to exclude costs related to the review of strategic alternatives for its structures assembly business, which could include a potential sale of that portion of the business. Such excluded adjustments to profitability to future contracts do not consist of items that are considered normal or recurring in the course of continued business operations.

The Company defines Adjusted EPS as diluted earnings per share (GAAP), adjusted by the after tax per share amount of costs or benefits not reflective of the Company’s ongoing or expected future operational performance. The income tax effects are calculated using the applicable statutory income tax rate of the jurisdictions where such costs or benefits were incurred or the effective tax rate applicable to total company results.

The Company’s Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted EPS may not be comparable to similarly titled measures of other companies.

Net debt aids investors in understanding the Company’s debt position if all available cash were applied to pay down indebtedness.

We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Forward-Looking Statements

This press release may contain statements, estimates, guidance or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” “guidance,” “guide,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Because forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q), actual results may differ materially from those expressed or implied by such forward-looking statements.

Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic conditions, including inflationary cost pressures, as well as global events, which include but are not limited to geopolitical events; paper-industry trends and conditions during 2026 and in future years; expectations in 2026 and in future periods of revenues, Adjusted Net Revenues, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net revenues), Adjusted Net Income, Adjusted EPS, income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the revenues growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.

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