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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Goodwill and intangible assets with indefinite useful lives are not amortized, however, these assets are tested for impairment at least annually at the reporting unit level, using either a qualitative or quantitative approach. Impairment is the condition that exists when the carrying amount of a reporting unit, including goodwill, exceeds its fair value.
In the second quarter of 2025, the Company applied a qualitative assessment approach in performing its annual evaluation of goodwill and indefinite-lived trademark intangibles for the Company's Machine Clothing reporting unit and Engineered Composites reporting units. Based on the qualitative evaluation of the events and circumstances impacting the reporting units, management determined it is more likely than not that the fair value of each reporting unit exceeded its carrying amount, and no further evaluation was necessary.
In the third quarter of 2025, the Company revised its estimates and assumptions used in certain program estimates at completion of its AEC reporting unit, most significantly the CH-53K program. As a result of the changes in estimates, we performed a quantitative assessment of the AEC reporting unit's goodwill for impairment. As part of the quantitative assessment, management used the income and market approach to determine fair value by considering projected cash flows and market multiples for each reporting unit. Management performed the quantitative assessments and concluded that each reporting unit’s fair value continued to significantly exceed its carrying value. Accordingly, no impairment charges were recorded.
In the second quarter of 2025, the Company wrote-off the remaining Finite-lived intangible assets balance at our Arcari, SRL location due to restructuring actions being taken to cease operations at the manufacturing facility. This decision resulted in a non-cash write-off of intangibles for $0.3 million.
In the fourth quarter of 2024, the Company wrote-off the remaining Finite-lived intangible assets balance at our Rochdale, UK location due to restructuring actions being taken to cease operations at the manufacturing facility. This decision resulted in a non-cash write-off of intangibles for $0.3 million, which is presented as other changes in the table below for intangible assets and goodwill in 2024.
We amortize certain patents, trademarks and names, customer contracts, relationships and technology assets that have finite-lives. The changes in intangible assets and goodwill from December 31, 2023 to December 31, 2025, were as follows:
(in thousands, except for years)
Amortization life in years
Balance at December 31, 2024Reclassified to Held for Sale
Other Changes
Amortization
Currency Translation
Balance at December 31, 2025
Finite-lived intangible assets:
AEC Trademarks and trade names
6-15
$11 $— $— $(11)$— $— 
AEC Technology
10-15
2,680 — — (616)352 2,416 
AEC Intellectual property
15
828 — — (83)— 745 
AEC Customer relationships
8-15
21,892 (13,384)— (3,504)225 5,229 
Heimbach Developed technology
9
7,004 — (315)(988)881 6,582 
Total Finite-Lived intangible assets, net$32,415 $(13,384)$(315)$(5,202)$1,458 $14,972 
Indefinite-lived intangible assets:
Heimbach Trade name
$5,712 $— $— $— $744 $6,456 
MC Goodwill
63,988 — — — 5,923 69,911 
AEC Goodwill
112,273 (21,829)— — 2,152 92,596 
Total Indefinite-lived intangible assets
$181,973 $(21,829)$— $— $8,819 $168,963 

(in thousands, except for years)
Amortization life in yearsBalance at December 31,
2023
Acquisition
AmortizationCurrency
Translation		Balance at December 31,
2024
Finite-lived intangible assets:
AEC Trademarks and trade names
6-15
$22 $— $(11)$— $11 
AEC Technology
10-15
3,426 — (569)(177)2,680 
AEC Intellectual property
15
911 — (83)— 828 
AEC Customer relationships
8-15
25,485 — (3,480)(113)21,892 
Heimbach Developed technology
9
8,732 (289)(953)(486)7,004 
Total Finite-Lived intangible assets, net$38,576 $(289)$(5,096)$(776)$32,415 
Indefinite-lived intangible assets:
Heimbach Trade name
$6,070 $— $— $(358)$5,712 
MC Goodwill
66,873 — — (2,885)63,988 
AEC Goodwill
113,308 — — (1,035)112,273 
Total Indefinite-lived intangible assets
$186,251 $— $— $(4,278)$181,973 
As of December 31, 2025, the gross carrying amount and accumulated amortization of Finite-lived intangible assets was $35.1 million and $20.1 million, respectively.
Amortization expense related to Finite-lived intangible assets was reported in the Consolidated Statement of Income as follows: $0.9 million in Cost of goods sold and $4.3 million in Selling, general and administrative expenses in 2025; $1.1 million in Cost of goods sold and $4.2 million in Selling, general and administrative expenses in 2024; and $0.4 million in Cost of goods sold and $4.1 million in Selling, general and administrative expenses in 2023.
Estimated amortization expense of intangibles for the years ending December 31, 2026 through 2030, is as follows:
Year
Annual amortization
(in thousands)
2026$2,000 
20271,900 
20281,900 
20291,800 
20301,200