Revenue Recognition

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition:

Products and services provided under long-term contracts represent a significant portion of revenues in the Albany Engineered Composites segment and we account for these contracts over time, primarily using the percentage of completion (actual cost to estimated cost) method. That method requires significant judgment and estimation, which could be materially different if the underlying circumstances were to change. When adjustments in estimated contract revenues or costs are required, any changes from prior estimates are included in earnings in the period the change occurs. Changes in the estimated profitability of long-term contracts could be caused by increases or decreases in the contract value, revisions to customer delivery requirements, updated labor or overhead rates, material costs, factors affecting the supply chain, changes in the evaluation of contract risks and opportunities, or other factors. The cumulative changes in the estimated profitability of long-term contracts decreased operating income by $7.2 million during the second quarter of 2025 and $14.2 million for the first six months of 2025. The negative cumulative change in profitability during the second quarter of 2025 was primarily driven by a few large complex programs, including $8.1 million for various CH-53K programs, $0.8 million on our F-35 program, offset by a gain of $1.6 million on our Gulfstream program and a $0.1 million, net gain on all other programs. The negative cumulative change in profitability during the six months ended June 2025 was driven by $10.1 million for various CH-53K programs, $2.1 million on our F-35 program, and $2.0 million, net on all other programs. Adjustments in the estimated profitability of long-term contracts decreased operating income by $5.0 million during the second quarter of 2024 and $7.6 million for the first six months of 2024.

We disaggregate revenue earned from contracts with customers for each of our business segments and product groups based on the timing of revenue recognition, and groupings used for internal review purposes.

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended June 30, 2025:

	Three months ended June 30, 2025
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	179,904	$	1,022	$	180,926
Albany Engineered Composites:
ASC	—		44,846		44,846
Other AEC	3,060		82,567		85,627
Total Albany Engineered Composites	$	3,060	$	127,413	$	130,473
Total revenues	$	182,964	$	128,435	$	311,399

The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended June 30, 2024:

	Three months ended June 30, 2024
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	192,596	$	982	$	193,578
Albany Engineered Composites:
ASC	—		50,292		50,292
Other AEC	6,008		82,116		88,124
Total Albany Engineered Composites	6,008		132,408		138,416
Total revenues	$	198,604	$	133,390	$	331,994

The following table disaggregates revenue for each product group by timing of revenue recognition for the six months ended June 30, 2025

	Six months ended June 30, 2025
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	353,580	$	2,043	$	355,623
Albany Engineered Composites:
ASC	—		83,766		83,766
Other AEC	7,137		153,647		160,784
Total Albany Engineered Composites	7,137		237,413		244,550
Total revenues	$	360,717	$	239,456	$	600,173

The following table disaggregates revenue for each product group by timing of revenue recognition for the six months ended June 30, 2024

	Six months ended June 30, 2024
(in thousands)	Point in Time Revenue Recognition		Over Time Revenue Recognition		Total
Machine Clothing	$	376,831	$	1,964	$	378,795
Albany Engineered Composites:
ASC	—		100,031		100,031
Other AEC	11,766		154,732		166,498
Total Albany Engineered Composites	11,766		254,763		266,529
Total revenues	$	388,597	$	256,727	$	645,324

The following table disaggregates MC segment revenue by significant product groupings (paper machine clothing ("PMC") and engineered fabrics); and for PMC, the geographical region to which the paper machine clothing was sold:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2025		2024		2025		2024
Americas PMC	$	87,488	$	88,533	$	170,334	$	172,034
Eurasia PMC	71,161		78,519		139,358		154,709
Engineered Fabrics	22,277		26,526		45,931		52,052
Total Machine Clothing Net revenues	$	180,926	$	193,578	$	355,623	$	378,795

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Contracts in the MC segment are generally for periods of less than a year and certain contracts in the AEC segment are relatively short duration firm-fixed-price orders. Remaining performance obligations on contracts that had an original duration of greater than one year totaled $1.0 billion and $1.1 billion as of June 30, 2025 and 2024, respectively, and related primarily to firm fixed price contracts in the AEC segment. Of the remaining performance obligations as of June 30, 2025, we expect to recognize as revenue approximately $84.6 million during 2025, $153.7 million during 2026, $142.1 million during 2027, and the remainder thereafter.