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Revenue Recognition
 9 Months Ended
Sep. 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.
The LEAP engine is used on the Airbus A320neo, A321neo, Boeing 737 MAX, and COMAC 919 aircraft. AEC's largest aerospace customer is the SAFRAN Group and sales to SAFRAN (consisting primarily of fan blades and cases for CFM International's LEAP engine) were $46.4 million and $40.9 million for the three months ended September 30, 2025 and 2024, respectively and $130.2 million and $142.2 million in the first nine months of 2025 and 2024, respectively. The total of Accounts receivable, Contract assets and Noncurrent receivables due from SAFRAN amounted to $67.6 million and $78.5 million as of September 30, 2025 and December 31, 2024, respectively.
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 projections, 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 revenue by $49.1 million and operating income by $150.9 million during the third quarter of 2025. Adjustments to the estimated profitability of long-term contracts decreased revenue by $67.6 million and operating income by $165.1 million for the first nine months of 2025. The decrease in profitability during the third quarter of 2025 was primarily driven by a few large complex programs, including adjustments of $147.3 million for various CH-53K programs, based on changes to material input costs, labor hours, and future overhead rates over the remainder of the contract. Additionally, we recorded negative cumulative changes in profitability of $0.2 million on our F-35 program, $0.9 million on our Gulfstream program and $2.6 million, net on all other programs. The negative cumulative change in profitability during the nine months ended September 30, 2025 was driven by $157.4 million for various CH-53K programs, $2.3 million on our F-35 program, and $5.5 million, net on all other programs. Adjustments in the estimated profitability of long-term contracts decreased operating income by $22.4 million during the third quarter of 2024 and $28.3 million for the first nine 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 September 30, 2025:
Three months ended September 30, 2025
(in thousands)
Point in Time Revenue
Recognition
Over Time Revenue
Recognition
Total
Machine Clothing$173,929 $1,021 $174,950 
Albany Engineered Composites:
ASC— 44,873 44,873 
Other AEC3,084 38,527 41,611 
Total Albany Engineered Composites
$3,084 $83,400 $86,484 
Total revenues$177,013 $84,421 $261,434 
The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended September 30, 2024:
Three months ended September 30, 2024
(in thousands)
Point in Time Revenue
Recognition
Over Time Revenue
Recognition
Total
Machine Clothing$182,050 $983 $183,033 
Albany Engineered Composites:
ASC— 40,115 40,115 
Other AEC4,142 71,096 75,238 
Total Albany Engineered Composites
$4,142 $111,211 $115,353 
Total revenues$186,192 $112,194 $298,386 
The following table disaggregates revenue for each product group by timing of revenue recognition for the nine months ended September 30, 2025
Nine months ended September 30, 2025
(in thousands)
Point in Time Revenue
Recognition		Over Time Revenue
Recognition		Total
Machine Clothing$527,509 $3,064 $530,573 
Albany Engineered Composites:
   ASC— 128,639 128,639 
   Other AEC10,221 192,174 202,395 
Total Albany Engineered Composites$10,221 $320,813 $331,034 
Total revenues$537,730 $323,877 $861,607 
The following table disaggregates revenue for each product group by timing of revenue recognition for the nine months ended September 30, 2024
Nine months ended September 30, 2024
(in thousands)Point in Time Revenue
Recognition		Over Time Revenue
Recognition		Total
Machine Clothing$558,881 $2,947 $561,828 
Albany Engineered Composites:
   ASC— 140,146 140,146 
   Other AEC15,908 225,828 241,736 
Total Albany Engineered Composites$15,908 $365,974 $381,882 
Total revenues$574,789 $368,921 $943,710 
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 September 30,Nine months ended September 30,
(in thousands)
2025202420252024
Americas PMC$92,171 $86,408 $262,505 $258,442 
Eurasia PMC
67,128 70,083 206,486 224,792 
Engineered Fabrics15,651 26,542 61,582 78,594 
Total Machine Clothing Net revenues$174,950 $183,033 $530,573 $561,828 
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 $1.1 billion and $1.1 billion as of September 30, 2025 and 2024, respectively, and related primarily to firm fixed price contracts in the AEC segment. Of the remaining performance obligations as of September 30, 2025, we expect to recognize as revenue approximately $51.0 million during 2025, $182.1 million during 2026, $165.5 million during 2027, and the remainder thereafter.