Albany International Reports Third-Quarter 2026 Results
PORTSMOUTH, N.H.--( BUSINESS WIRE)--Albany International Corp. (NYSE:AIN) today reported operating results for its third quarter of 2026, which ended September 30, 2026.
Gunnar Kleveland, Albany International’s President and Chief Executive Officer, said, “I'm incredibly proud of the performance of the team in the third quarter. The team, with Engineered Composites leading the way, was able to favorably finalize the strategic review of our Amelia Earhart Drive facility in under a year and end the quarter with solid performance. We are now able to shift from addressing legacy challenges to focusing decisively on future opportunities across aerospace and defense; such as missiles, hypersonics, space, and next generation aircraft applications."
Kleveland continued, “In Machine Clothing, our team navigated a dynamic market environment and delivered sales at the high-end of expectations, reflecting the resilience of the business and the strength of our team. Taken together, our performance reflects the progress we have made to optimize Albany’s operating model and reduce risk across our portfolio. We are pleased with the performance across the organization and look forward to updating investors on our path forward at our upcoming investor day in December.”
Consolidated Results
Summary of adjustments related to the renegotiation of the CH-53K contract and the conclusion of the Amelia Earhart Drive Strategic Review in the third quarter of 2026, and the CH-53K loss reserve adjustment recorded in the third quarter of 2025.
$11,637
($46,007)
$33,393
($147,269)
$44,407
($147,269)
$0.88
($4.00)
1 Q3 2026 includes CH-53K impact of $44.4 million offset by catch-up of depreciation and amortization of $(11.0) million
2 Q3 2026 Diluted EPS impact includes a tax effect of $8.3 million
The Company’s net revenues were $349.5 million in the third quarter of 2026, compared to $261.4 million in the prior year. The increase was primarily driven by higher volume in the Engineered Composites business and approximately $11.6 million in positive program adjustments resulting from the renegotiation of the CH-53K contract.
Gross profit (loss) in the third quarter of 2026 was $140.4 million compared to $(49.9) million reported for the same period of 2025, which reflects the $33.4 million favorable adjustment following the contract modifications to the CH-53K program offset by the catch-up of depreciation and amortization, combined with higher volume and margin in Engineered Composites. These positive impacts were partially offset by lower volume, geographical mix, and lower fixed cost absorption in Machine Clothing. In the prior year, results were impacted by a $147.3 million unfavorable adjustment due to cost increases related to the CH-53K program. Selling, general, and administrative expenses were $61.5 million in the third quarter of 2026, compared to $51.9 million in the same period of 2025, driven primarily by increased compensation costs, and costs associated with the Strategic Review. In the third quarter of 2026, restructuring was higher than the prior year due to ongoing footprint optimization efforts in Machine Clothing.
Operating income was $59.4 million, compared with an operating loss of $(116.5) million in the prior year, primarily reflecting improved profitability on the CH-53K program, including the reversal of previously recognized loss provisions.
The effective tax rate for the quarter was 24.9% compared to a 20.0% effective tax benefit in the third quarter of 2025.
The net income (loss) attributable to the Company was $41.7 million, or $1.46 per share on a diluted basis, compared to $(97.8) million, or $(3.37) per share in the third quarter of 2025.
Adjusted diluted earnings (loss) per share (or Adjusted EPS, a non-GAAP measure) was $1.68 per share, compared to $(3.29) per share for the same period of last year. Adjusted results for the third quarter of 2026 exclude third-party costs related to the conclusion of the Strategic Review.
Adjusted EBITDA (a non-GAAP measure) was $100.1 million and had a $44.4 million benefit related to the conclusion of the Strategic Review which resulted in contract modifications to the CH-53K program as well as stronger revenue and operating profit in Engineered Composites. This compares to $(91.1) million in the third quarter of 2025 which was negatively impacted by $(147.3) million related to the CH-53K loss reserve adjustment recorded at the initiation of the Strategic Review. Adjusted EBITDA margin was 28.6% and (34.8)% in the prior year.
Sean Valashinas, Albany International’s Acting Chief Financial Officer, said, “As we look at the quarter following the conclusion of the Strategic Review, the underlying performance of the business was solid. In Engineered Composites, we continued to see strength across multiple programs, as production ramps and volumes scale. In Machine Clothing, we saw continued stability, with steady conditions in Asia, improving volumes in Europe, and market share holding firm as end markets adapted to current demand levels.”
Machine Clothing
Machine Clothing's net revenues decreased 3.0% after adjusting for currency translation, primarily driven by cyclical declines in the Americas.
Machine Clothing’s adjusted EBITDA margin was 27.2%, compared to 31.0% in the third quarter of 2025. The margin decline is primarily driven by volume and geographic mix.
Engineered Composites
Engineered Composites’ net revenues increased 107.0% 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 36.5%, compared to (155.5)% in the third quarter of 2025. The year-over-year change in segment Adjusted EBITDA margin largely reflects the impact of adjustments following the contract modification on the CH-53K program. The segment also benefited from higher underlying volume and improved efficiency.
Capital Allocation Balance Sheet
Free cash flow in the third quarter was approximately $36.5 million compared to approximately $25.7 million in the prior year. Capital expenditures were $12.2 million, compared to $18.3 million in the third quarter of 2025, and were driven primarily by efficiencies achieved through facility optimizations. Technical and research expenses totaled $12.2 million, compared to $11.5 million in the third 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 $79.1 million and total debt of $422.1 million, resulting in a net debt position of $343.0 million. The Company maintains significant financial flexibility and liquidity to support ongoing investment initiatives while continuing to return capital to shareholders.
Revised Outlook for the Fourth Quarter of 2026
Third-Quarter 2026 Results Conference Call/Webcast
The Company will host a webcast to discuss results at 9:00 a.m. Eastern Time on Thursday, October 29, 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 here. The event can also be accessed by dialing +1 (833) 461-5787 and using the Meeting ID: 551 970 689.
An archive of the webcast will be available for replay on the website at approximately noon Eastern Time on Thursday, October 29, 2026.
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
Net revenues
$
349,539
$
261,434
$
990,354
$
861,607
Cost of goods sold
209,161
311,372
642,281
717,552
Gross profit/(loss)
140,378
(49,938
)
348,073
144,055
Selling, general, and administrative expenses
61,501
51,905
175,868
164,219
Technical and research expenses
12,186
11,467
36,865
35,915
Restructuring expenses, net
7,293
3,197
18,431
9,895
Operating income/(loss)
59,398
(116,507
)
116,909
(65,974
)
Interest expense, net
5,337
5,897
16,872
14,702
Other expense/(income), net
(1,727
)
(347
)
(4,881
)
4,170
Income/(loss) before income taxes
55,788
(122,057
)
104,918
(84,846
)
Income tax expense/(benefit)
13,902
(24,419
)
29,879
(13,889
)
Net income (loss)
41,886
(97,638
)
75,039
(70,957
)
Net income attributable to the noncontrolling interest
189
122
647
265
Net income (loss) attributable to the Company
$
41,697
$
(97,760
)
$
74,392
$
(71,222
)
Earnings/(loss) per share attributable to Company shareholders - Basic
$
1.47
$
(3.37
)
$
2.62
$
(2.38
)
Earnings /(loss) per share attributable to Company shareholders - Diluted
$
1.46
$
(3.37
)
$
2.60
$
(2.38
)
Shares of the Company used in computing earnings per share:
Basic
28,377
29,012
28,353
29,914
Diluted
28,596
29,012
28,570
29,914
Dividends declared per Class A share
$
0.28
$
0.27
$
0.84
$
0.81
ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
September 30, 2026
December 31, 2025
Assets
Cash and cash equivalents
$
79,125
$
112,350
Accounts receivable, net
277,692
235,084
Contract assets, net
164,438
87,102
Inventories
165,537
121,589
Income taxes prepaid and receivable
34,803
43,937
Prepaid expenses and other current assets
42,439
34,990
Assets held for sale
—
293,783
Total current assets
$
764,034
$
928,835
Property, plant and equipment, net
544,559
482,568
Intangibles, net
30,411
21,428
Goodwill
182,011
162,507
Deferred income taxes
57,059
68,499
Other assets
107,543
54,872
Total assets
$
1,685,617
$
1,718,709
Liabilities and Shareholders' Equity
Accounts payable
$
87,394
$
64,499
Accrued liabilities
207,062
139,385
Income taxes payable
22,929
35,090
Liabilities held for sale
—
203,323
Total current liabilities
317,385
442,297
Long-term debt
422,087
455,663
Other noncurrent liabilities
142,450
86,850
Deferred income taxes
15,581
1,797
Total liabilities
897,503
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
466,578
460,472
Retained earnings
1,026,863
976,373
Accumulated items of other comprehensive income:
Translation adjustments
(125,373
)
(119,008
)
Pension and postretirement liability adjustments
(22,838
)
(23,911
)
Derivative valuation adjustment
3,387
(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
781,665
726,209
Noncontrolling interest
6,449
5,893
Total equity
788,114
732,102
Total liabilities and shareholders' equity
$
1,685,617
$
1,718,709
ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September 30,
2026
2025
Cash flows from operating activities:
Net income/ (loss)
$
75,039
$
(70,957
)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
61,218
61,577
Amortization
3,845
3,903
Change in deferred taxes
13,863
(21,864
)
Loss/(gain) on disposal of property, plant and equipment
616
(390
)
Non-cash interest expense
694
777
Contract loss provision (recovery)
(52,514
)
139,665
Compensation and benefits paid or payable in Class A Common Stock
7,750
9,882
Provision for credit losses from uncollected receivables and contract assets
110
553
Foreign currency remeasurement loss/(gain) on intercompany loans
(5,740
)
7,587
Gain on sale of assets
—
(1,566
)
Changes in operating assets and liabilities that provided/(used) cash:
Accounts receivable
(16,468
)
2,152
Contract assets
(9,169
)
(7,952
)
Inventories
(28,559
)
(5,105
)
Prepaid expenses and other current assets
(6,742
)
(3,286
)
Income taxes prepaid and receivable
9,010
(13,825
)
Accounts payable
6,568
18,684
Accrued liabilities
5,109
(22,887
)
Income taxes payable
(12,608
)
(13,022
)
Other noncurrent liabilities
(1,451
)
(4,307
)
Other, net
1,052
(847
)
Net cash provided by operating activities
51,623
78,772
Cash flows from investing activities:
Purchases of property, plant and equipment
(33,277
)
(47,559
)
Purchased software
(55
)
(1,250
)
Proceeds received from sale of assets
—
3,243
Proceeds from sale of investment
1,660
—
Other investing activities
1,119
—
Net cash used in investing activities
(30,553
)
(45,566
)
Cash flows from financing activities:
Proceeds from borrowings
172,000
231,999
Repayment of borrowings
(202,000
)
(82,044
)
Purchase of Treasury shares
—
(170,964
)
Taxes paid in lieu of share issuance
(1,644
)
(2,521
)
Dividends paid
(23,810
)
(24,738
)
Net cash used in financing activities
(55,454
)
(48,268
)
Effect of exchange rate changes on cash and cash equivalents
1,159
8,089
Decrease in cash and cash equivalents
(33,225
)
(6,973
)
Cash and cash equivalents at beginning of period
112,350
115,283
Cash and cash equivalents at end of period
$
79,125
$
108,310
Supplemental disclosure of cash flow information:
Cash paid for interest, net
$
18,144
$
17,333
Cash paid for income taxes
$
22,080
$
33,462
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, Q3 2026
(Decrease)/ increase due to changes in currency translation rates
Q3 2026 revenues on same basis as Q3 2025 currency translation rates
Net revenues as reported, Q3 2025
% Change compared to Q3 2025, excluding currency rate effects
Machine Clothing
$
169,802
$
84
$
169,718
$
174,950
(3.0
)%
Albany Engineered Composites
179,737
691
179,046
86,484
107.0
%
Consolidated total
$
349,539
$
775
$
348,764
$
261,434
33.4
%
(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
$
514,464
$
8,363
$
506,101
$
530,573
(4.6
)%
Albany Engineered Composites
475,890
5,650
470,240
331,034
42.1
%
Consolidated total
$
990,354
$
14,013
$
976,341
$
861,607
13.3
%
The following table presents Gross profit/ (loss) and Gross profit margin:
(in thousands, except percentages)
Gross profit,
Q3 2026
Gross profit margin, Q3 2026
Gross profit,
Q3 2025
Gross profit margin, Q3 2025
Machine Clothing
$
75,368
44.4
%
$
82,070
46.9
%
Albany Engineered Composites
65,010
36.2
%
(132,008
)
(152.6
)%
Consolidated total
$
140,378
40.2
%
$
(49,938
)
(19.1
)%
(in thousands, except percentages)
Gross profit,
YTD 2026
Gross profit margin, YTD 2026
Gross profit,
YTD 2025
Gross profit margin, YTD 2025
Machine Clothing
$
231,377
45.0
%
$
245,731
46.3
%
Albany Engineered Composites
116,696
24.5
%
(101,676
)
(30.7
)%
Consolidated total
$
348,073
35.1
%
$
144,055
16.7
%
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.
Prior-period non-GAAP results have been revised to conform to the current presentation by including the third-quarter CH-53K program contract reserve adjustment in operating results, reflecting the Company’s determination that the adjustment is part of the program’s underlying operating performance.
Three months ended September 30, 2026
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
31,158
$
43,346
$
(32,618
)
$
41,886
Interest expense/(income), net
—
—
5,337
5,337
Income tax expense
—
—
13,902
13,902
Depreciation and amortization expense
8,372
22,503
41
30,916
EBITDA (non-GAAP)
39,530
65,849
(13,338
)
92,041
Restructuring costs and other
6,827
—
466
7,293
Foreign currency revaluation (gains)/losses
(86
)
13
(2,095
)
(2,168
)
Strategic review and other transition expenses
—
55
3,192
3,247
Pre-tax loss/(income) attributable to noncontrolling interest
—
(316
)
—
(316
)
Adjusted EBITDA (non-GAAP)
$
46,271
$
65,601
$
(11,775
)
$
100,097
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)
27.2
%
36.5
%
—
28.6
%
Three months ended September 30, 2025
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
43,103
$
(148,012
)
$
7,271
$
(97,638
)
Interest expense/(income), net
—
—
5,897
5,897
Income tax expense
—
—
(24,419
)
(24,419
)
Depreciation and amortization expense
8,604
13,479
355
22,438
EBITDA (non-GAAP)
51,707
(134,533
)
(10,896
)
(93,722
)
Restructuring costs and other
1,960
113
1,124
3,197
Foreign currency revaluation (gains)/losses
541
92
(1,054
)
(421
)
Strategic review and other transition expenses
—
—
—
—
Pre-tax (income) attributable to noncontrolling interest
2
(160
)
—
(158
)
Adjusted EBITDA (non-GAAP)
$
54,210
$
(134,488
)
$
(10,826
)
$
(91,104
)
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)
31.0
%
(155.5
)%
—
(34.8
)%
Nine months ended September 30, 2026
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
97,815
$
63,373
$
(86,149
)
$
75,039
Interest expense/(income), net
—
—
16,872
16,872
Income tax expense
—
—
29,879
29,879
Depreciation and amortization expense
25,096
39,852
115
65,063
EBITDA (non-GAAP)
122,911
103,225
(39,283
)
186,853
Restructuring costs and other
15,892
—
2,539
18,431
Foreign currency revaluation (gains)/losses
(1
)
(28
)
(4,726
)
(4,755
)
Strategic review and other transition expenses
541
164
5,685
6,390
Pre-tax (income) attributable to noncontrolling interest
—
(836
)
—
(836
)
Adjusted EBITDA (non-GAAP)
$
139,343
$
102,525
$
(35,785
)
$
206,083
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)
27.1
%
21.5
%
—
20.8
%
Nine months ended September 30, 2025
(in thousands)
Machine Clothing
Albany Engineered
Composites
Corporate expenses
and other
Total Company
Net income/(loss) (GAAP)
$
119,236
$
(149,070
)
$
(41,123
)
$
(70,957
)
Interest expense/(income), net
—
—
14,702
14,702
Income tax expense
—
—
(13,889
)
(13,889
)
Depreciation and amortization expense
24,283
40,229
968
65,480
EBITDA (non-GAAP)
143,519
(108,841
)
(39,342
)
(4,664
)
Restructuring costs and other
5,011
1,801
206
7,018
Foreign currency revaluation (gains)/losses
5,700
(52
)
7,454
13,102
Strategic review and other transition expenses
182
(412
)
616
386
Pre-tax (income) attributable to noncontrolling interest
122
(459
)
—
(337
)
Adjusted EBITDA (non-GAAP)
$
154,534
$
(107,963
)
$
(31,066
)
$
15,505
Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) (non-GAAP)
29.1
%
(32.6
)%
—
1.8
%
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, Q3 2026
(Decrease)/ increase due to changes in currency translation rates
Q3 2026 on same basis as Q3 2025 currency translation rates
As reported, Q3 2025
Machine Clothing Net revenues
$
169,802
$
84
$
169,718
$
174,950
Machine Clothing Adjusted EBITDA (non-GAAP)
46,271
(441
)
46,712
54,210
Adjusted EBITDA Margin (Adjusted EBITDA divided by net revenues) (non-GAAP)
27.2
%
27.5
%
31.0
%
Per share impact of the adjustments to earnings per share are as follows:
Three months ended September 30, 2026
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs and other
$
7,293
$
1,816
$
5,477
$
0.19
Foreign currency revaluation (gains)/losses
(2,168
)
(540
)
(1,628
)
(0.06
)
Strategic review and other transition expenses
3,247
809
2,438
0.09
Three months ended September 30, 2025
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs and other
$
3,197
$
639
$
2,558
$
0.09
Foreign currency revaluation (gains)/losses
(421
)
(84
)
(337
)
(0.01
)
Strategic review and other transition expenses
—
—
0.00
Nine months ended September 30, 2026
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs and other
$
18,431
$
5,253
$
13,178
$
0.46
Foreign currency revaluation (gains)/losses
(4,755
)
(1,355
)
(3,400
)
(0.12
)
Strategic review and other transition expenses
6,390
1,821
4,569
0.16
Nine months ended September 30, 2025
(in thousands, except per share amounts)
Pre tax
Amounts
Tax
Effect
After tax
Effect
Per share
Effect
Restructuring costs and other
$
7,018
$
1,408
$
5,610
$
0.19
Foreign currency revaluation (gains)/losses
13,102
2,149
10,953
0.37
Strategic review and other transition expenses
386
63
323
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 September 30,
Nine months ended September 30,
Per share amounts (Diluted)
2026
2025
2026
2025
Earnings per share attributable to Company shareholders - Diluted (GAAP)
$
1.46
$
(3.37
)
$
2.60
$
(2.38
)
Adjustments, after tax:
Restructuring costs and other
0.19
0.09
0.46
0.19
Foreign currency revaluation (gains)/losses
(0.06
)
(0.01
)
(0.12
)
0.37
Strategic review and other transition expenses
0.09
—
0.16
0.01
Adjusted earnings per share attributable to Company shareholders - Diluted (non-GAAP)
$
1.68
$
(3.29
)
$
3.10
$
(1.81
)
The calculations of net debt are as follows:
(in thousands)
September 30, 2026
December 31, 2025
September 30, 2025
Long-term debt
422,087
455,663
480,631
Total debt
422,087
455,663
480,631
Cash and cash equivalents
79,125
112,350
108,310
Net debt (non-GAAP)
$
342,962
$
343,313
$
372,321
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
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
Net cash provided by operating activities
$
48,631
$
43,939
$
51,623
$
78,772
Purchases of property, plant and equipment
(12,107
)
(18,033
)
(33,277
)
(47,559
)
Purchased software
(43
)
(245
)
(55
)
(1,250
)
Free cash flow
$
36,481
$
25,661
$
18,291
$
29,963
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.
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 www.albint.com.
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.
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.