Albany International (AIN) 8-KAlbany International Updates Expectations for Aerospace Business

Following its regular quarterly review of program costs and estimates relative to certain large complex aerospace contracts the Company has updated its labor, material input and scrap cost assumptions over the duration of certain long-term contracts. These increased cost assumptions as well as the impact of suspended production at a key customer pending their union negotiations will result in an approximate $24 million negative Estimate-at-Completion (EAC) adjustment in the third quarter of 2024. Changes in other forecast assumptions are projected to lower second-half pre-tax earnings by an additional $8 million.

“We continue to see momentum in both Machine Clothing and Engineered Composites. The Heimbach integration remains on track, and Albany’s differentiated innovation is translating into robust demand across both segments,” said President and CEO, Gunnar Kleveland. “At the same time, growth in our aerospace programs is resulting in more complex projects, where the manufacturing learning curve and labor ramp are steeper.”

“Notwithstanding these changes, we expect AEC will maintain high-teen EBITDA margins that are well above peer averages. With Chris Stone’s recent appointment as President of AEC, I am also confident that we will successfully execute on the opportunities in our growing aerospace business, which are being created by Albany’s advanced technology and deep customer relationships. Combined with the Company’s continued strong cash flows and financial strength, Albany has a solid foundation for success and value creation. Significant new orders to date this year and our substantial backlog reinforce the financial upside available to the Company,” concluded Kleveland.

For the full year of 2024, the Company is updating its guidance as follows:

The unaudited financial and operational information presented in this press release is preliminary and may change. Albany’s International’s financial closing procedures with respect to the estimated financial information provided in this press release are not yet complete, and as a result, the Company’s final results may vary materially from the preliminary results included in this press release. The Company undertakes no obligation to update or supplement the information provided in this press release until the Company releases its financial statements for the three months ended September 30, 2024. The preliminary financial information included in this press release reflects the Company’s current estimates based on information available as of the date of this press release and has been prepared by Company management. This preliminary financial and operational information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and is not necessarily indicative of the results to be achieved for any future periods. This preliminary financial and operational information could be impacted by the effects of financial closing procedures, final adjustments, and other developments.

This release, including the conference call commentary associated with this release, contains certain non-GAAP measures, which should not be considered in isolation or as a substitute for the related GAAP measures. Such non-GAAP measures include EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin; and Adjusted diluted earnings per share (or Adjusted Diluted EPS). Management believes that these non-GAAP measures provide additional useful information to investors regarding the Company’s operational performance.

EBITDA (calculated as net income excluding interest, income taxes, depreciation, and amortization), Adjusted EBITDA, and Adjusted Diluted 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.

The Company defines Adjusted Diluted 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, and Adjusted Diluted EPS may not be comparable to similarly titled measures of other companies.

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

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.

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.