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Revenue Recognition
 3 Months Ended
Mar. 31, 2026
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 C919 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 $48.3 million and $39.4 million for the three months ended March 31, 2026 and 2025, respectively. The total of Accounts receivable and Contract assets due from SAFRAN amounted to $57.1 million and $60.8 million as of March 31, 2026 and December 31, 2025, 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 increased revenue by $1.2 million and decreased operating income by $1.8 million during the first quarter of 2026. The decrease in profitability during the first quarter of 2026 was primarily driven by a few large complex programs, including adjustments of $3.1 million for various CH-53K programs, primarily based on changes to future overhead rates over the remainder of the contract. These negative impacts to profitability were offset by positive cumulative adjustments of $1.6 million on our F-35 program.
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 March 31, 2026:
Three months ended March 31, 2026
(in thousands)
Point in Time Revenue
Recognition
Over Time Revenue
Recognition
Total
Machine Clothing$164,900 $1,052 $165,952 
Albany Engineered Composites:
ASC— 47,109 47,109 
Other AEC3,009 95,263 98,272 
Total Albany Engineered Composites
$3,009 $142,372 $145,381 
Total revenues$167,909 $143,424 $311,333 
The following table disaggregates revenue for each product group by timing of revenue recognition for the three months ended March 31, 2025:
Three months ended March 31, 2025
(in thousands)
Point in Time Revenue
Recognition
Over Time Revenue
Recognition
Total
Machine Clothing$173,676 $1,021 $174,697 
Albany Engineered Composites:
ASC— 38,920 38,920 
Other AEC4,077 71,080 75,157 
Total Albany Engineered Composites
$4,077 $110,000 $114,077 
Total revenues$177,753 $111,021 $288,774 
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 March 31,
(in thousands)
20262025
Americas PMC$76,109 $82,846 
Eurasia PMC
69,756 68,197 
Engineered Fabrics20,087 23,654 
Total Machine Clothing Net revenues$165,952 $174,697 
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 March 31, 2026 and 2025, respectively, and related primarily to firm fixed price contracts in the AEC segment. Of the remaining performance obligations as of March 31, 2026, we expect to recognize as revenue approximately $120.9 million during 2026, $182.6 million during 2027, $153.4 million during 2028, and the remainder thereafter.