Albany International Corporation · NYSE:AIN
Albany International — Investor Presentation (June 2025)
46 slides from Albany International's investor presentation, June 2025
Slide 1: Investor Presentation 1H 2025
Investor Presentation 1H 2025 June 2025 | 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains certain items, such as earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted EBITDA Margins, Free Cash Flow and net debt, as well certain income and expense items on a per share basis, that could be considered ‘non-G
Slide 3: Strategy for Continued Growth
Strategy for Continued Growth August 2025 | 3 June 2023
Slide 4: Key Takeaways
KEY TAKEAWAYS Technology Experts 1 Serving Vital Industries Solid Execution Sets the 2 Foundation for Growth Secular Trends Support 3 Long-term Growth 4 Strategy for Layered Growth June 2025 | 4
Slide 5: Who Is Albany International?
WHO IS ALBANY INTERNATIONAL? Founded in 1895 Market Cap $2B Global operations across 13 countries $1,231M $232M $203M 20+ years ~5,400 2024 Revenue 2024 Adj. EBITDA 2024 Net Debt Consecutive dividend Employees globally payouts June 2025 | 5 June
Slide 6: Technology Experts Serving Vital Industries
TECHNOLOGY EXPERTS SERVING VITAL INDUSTRIES MACHINE CLOTHING ENGINEERED COMPOSITES Engineered product solutions for the Engineered product solutions for pulp & paper and other process industries the Aerospace and Defense industries • Consumable, continuous replenishment • Proprietary solutions • Pro
Slide 7: Global Operational Successes Delivering Powerful Results
GLOBAL OPERATIONAL SUCCESSES DELIVERING POWERFUL RESULTS Critical Customer Market Selection Innovation Operational Excellence Partnerships Geographic and end markets • Deep relationships • Multi-year strategic focus on • Continued investment • Long-term track record with customers the growing MC mar
Slide 8: Strategy for Continued Value Creation
STRATEGY FOR CONTINUED VALUE CREATION Positive/constructive customer Deep understanding of material relationships based on trust properties in application • Lead time, patience • Unmatched industrial scale • Proprietary next-gen customer weaving expertise technology collaboration & development Opera
Slide 9: Solutions Powering Global Travel
SOLUTIONS POWERING GLOBAL TRAVEL Our composite solutions not only make … but make the engines themselves more aircraft lighter, improving fuel efficiency… efficient, by reducing rotating weight Tail structures Fuselage frames Wing skins Wing components 3D-woven Fan cases composite blades Rods and st
Slide 10: Aerospace Segment Poised to Outgrow Global Recovery
AEROSPACE SEGMENT POISED TO OUTGROW GLOBAL RECOVERY Emerging Commercial Aviation Recovery Defense Priorities Opportunities Expect 787 & GE9X Albany's defense Increasing Bizjet growth & production to increase as programs align with DoD production rates for emerging sustainable recovery in internation
Slide 11: Well-Positioned to Take Advantage of Global Paper Demand Growth
WELL-POSITIONED TO TAKE ADVANTAGE OF GLOBAL PAPER DEMAND GROWTH Growing Global Non-Cyclical Tissue Sustainability & E-Commerce Middle Class Business Environmental Drivers Renewable paper products One component driving Per-capita consumption Tissue demand is resilient are an environmentally secular g
Slide 12: Well Defined Capital Priorities That Drive Strong Organic Growth
WELL DEFINED CAPITAL PRIORITIES THAT DRIVE STRONG ORGANIC GROWTH 1 2 Corporate capital Continuous Continuous Capital deployment primarily Investment in Reinvestment in focused on APPLIED RESEARCH BUSINESSES ORGANIC • Targeted business • Internal process & opportunities technology improvements GROWTH
Slide 13: Disciplined Acquisition Strategy
DISCIPLINED ACQUISITION STRATEGY ALBANY KEY M&A ATTRIBUTES ENGINEERED COMPOSITES MACHINE CLOTHING Strategy is Criteria for opportunistic, Customer positions that Technologies that Operational Potential complement/leverage complement/leverage efficiencies not dependent current customer mix current te
Slide 14: Delivering Solid Financial Performance
DELIVERING SOLID FINANCIAL PERFORMANCE REVENUE ADJ. EBITDA AND MARGIN (millions) (millions) $1,400 $300 30% $1,200 $250 25% $1,000 $200 20% $800 $150 15% $600 $100 10% $400 $200 $50 5% $- $- 0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Adj. EBI
Slide 15: Albany International's Highly Attractive Investment Opportunity
Long history Leader in PMC with of strong balance proprietary solutions sheet, solid delivering predictable execution, and and strong FCF ALBANY stability prudent capital management INTERNATIONAL’S HIGHLY ATTRACTIVE Differentiated INVESTMENT composites OPPORTUNITY business with ample opportunity to
Slide 16: Strong Cash Generation in Machine Clothing
Strong Cash Generation in Machine Clothing June 2025 | 16
Slide 17: Key Takeaways
KEY TAKEAWAYS Complex Systems and Robust 1 Technology Differentiators Global Trends are Opening 2 Up Future Opportunities Predictable, Strong, 3 Sustainable Growth and Cash Flow June 2025 | 17
Slide 18: What Is Machine Clothing Technology?
WHAT IS MACHINE CLOTHING TECHNOLOGY? FORMING PRESSING PROCESS BELTS DRYING • Produce consumable belts that enable production of every paper product in your life • Essential to paper machine operation • Operate continuously in a harsh environment CONSUMABLE PRODUCTS # POSITIONS AVERAGE LIFE HARSH ENV
Slide 19: Providing Highly-Tailored and Technically Demanding Solutions
PROVIDING HIGHLY-TAILORED AND TECHNICALY DEMANDING SOLUTIONS Custom Engineered Machine Clothing belts help produce a broad swath of paper products, including toilet paper, Belts for Process paper towels, cardboard, newspaper, tissue, Industries printing and writing paper, and others Our belts are a
Slide 20: Globally Positioned to Serve Tier One Customers
GLOBALLY POSITIONED TO SERVE TIER ONE CUSTOMERS MC Operations 21 13 8,200+ Plants Countries Paper machines worldwide Halmstad Cowansville Neu-Moresnet Manchester that are all unique and Perth Bury Düren Kaukauna St. Junien Zürich require customized solutions Homer Burgos Ballo di Mirano Suzhou Meron
Slide 21: Consumable Products Powered by Machine Clothing Technology
CONSUMABLE PRODUCTS POWERED BY MACHINE CLOTHING TECHNOLOGY Global share (#1) of fabrics and process belts MARKET LEADER used in the manufacture of all major paper ~37% grades, including tissue and towel, board and GLOBAL PAPER MACHINE CLOTHING MARKET SHARE packaging, and publication All Others Techn
Slide 22: Foundations of Success
FOUNDATIONS OF SUCCESS We continuously optimize Machine Clothing to maintain marketplace leadership Constant optimization Our optimized, global footprint Build stronger Leading products Investment to and LEAN principles provides us access customer relationships as a result of our modernize and to dr
Slide 23: Value to Customers = Consistent Quality, Greater Efficiency, Greater Profitability
VALUE TO CUSTOMERS = CONSISTENT QUALITY, GREATER EFFICIENCY, GREATER PROFITABILITY Design Design Design Design PAPER BETTER ENERGY REDUCE QUALITY RESOURCE UTILIZATION EFFICIENT OPERATIONS DOWNTIME Consistency Wood fiber utilization Sustainable processes Optimize labor Tailored to Lower water Reduced
Slide 24: Strategy for Sustained Growth
STRATEGY FOR SUSTAINED GROWTH TIER ONE ATTRIBUTES A focus on Tier One Customers while serving targeted Tier Two Customers in the right grades to capture further business Largest Machines OPERATIONAL R&D EXCELLENCE INVESTMENT Most Sophisticated • Eliminating non-value • New technologies for added act
Slide 25: Reliable, Growing Cash Flow Generation
RELIABLE, GROWING CASH FLOW GENERATION Adj. EBITDA and Adj. EBITDA Margin (Adj. EBITDA in millions) Adj. EBITDA (excl GIS) Adj. EBITDA (reported) Adj. EBITDA Margin (excl. GIS) Adj. EBITDA Margin (reported) Trendline growth in paper and AS THE $260 40% paperboard production sets MARKET $240 $220 35%
Slide 26: Value Creating Acquisition of Heimbach Group
VALUE CREATING ACQUISITION of HEIMBACH GROUP AUGUST 31, 2023 Broadens Leverages AIN Attractive returns and Utilized overseas cash manufacturing footprint, operating expertise and significant financial enhances sales and technology to drive benefits service network across performance upside geographi
Slide 27: Maintaining Our Profitable, Market-Leading Position
MAINTAINING OUR PROFITABLE, MARKET-LEADING POSITION 1 2 3 ~37% Market-leading presence MARKET + CUSTOMER + PRODUCT = Maintain a global Retain and grow with Accelerate launch of presence, but enhance our Tier One Partners innovative products in Low/Mid-30s% our regional capability and capture Tier Tw
Slide 28: Expanded Growth Opportunities for AEC
Expanded Growth Opportunities for AEC June 2025 | 28 June
Slide 29: Key Takeaways
KEY TAKEAWAYS 1 An Established A&D Supplier Winning New Customers and 2 Major Platforms Investing in R&D to Build 3 Lasting Technology Platform Strong Revenue Growth 4 Expected June 2025 | 29
Slide 30: Shared Technology Solutions Power AEC Growth
SHARED TECHNOLOGY SOLUTIONS POWER AEC GROWTH Through M&A, gained full range of composite process & material technologies Texas Composites (2006), Aztex (2006) Harris (2016), CirComp (2019) LEAP CH-53K Albany – Safran Joint Venture Innovative 3D woven technology F-35 787 Dedicated Research Developmen
Slide 31: Value Proposition Based on Key Differentiators
VALUE PROPOSITION BASED ON KEY DIFFERENTIATORS World class performance • Customer Intimacy • Application Understanding • Tools and R&D Team Technology • Highly Adaptable Solutions Driving Value • Intimate Knowledge AEC • High-Performance Team • Engineering Differentiators • Safety, Quality, LEAN • D
Slide 32: Successful Safran Partnership to Continue
SUCCESSFUL SAFRAN PARTNERSHIP TO CONTINUE LEAP Next Gen 20 Year Expanding Partnership, 2000 2021 2046 and Extending and Growing Partnership Exclusive, life-of-program supplier of composite fan blades, fan cases, and spacers for LEAP-1A/C and LEAP-1B Exclusive agreement covering GE9x fan case develop
Slide 33: Investing in Next-Gen Technologies for Future Growth
INVESTING IN NEXT-GEN TECHNOLOGIES FOR FUTURE GROWTH Leaders in Driving Advanced Revenue Potential in next 5yrs Composite Innovation Hypersonics • Thermal protection Moving 3D woven Investing in emerging systems development technology beyond LEAP technologies development • Technical collaboration wi
Slide 34: Top Priorities Based on Maximizing Shareholder Value
PRIORITIES BASED ON MAXIMIZING SHAREHOLDER VALUE 1 2 3 MAXIMIZING OUR CONTINUING TO TOP CUSTOMER SOLUTION OFFERING DRIVE TECHNOLOGY DIFFERENTIATION OPPORTUNISTIC M&A PRIORITIES Focus on providing the best value Proliferate 3D woven technology Accelerate readiness propositions and experience with acr
Slide 35: Operational Success Suggests Strong Financial Profile
Operational Success Suggests Strong Financial Profile June 2025 | 35 June2025
Slide 36: Key Takeaways
KEY TAKEAWAYS 1 Strong Historical Performance 2 Prudent Capital Allocation Strategy 3 Disciplined M&A Strategy 4 Targets / Goals / Outlook June 2025 | 36
Slide 37: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE ($M) ADJ. EBITDA & MARGINS FCF ($M) & CONVERSION* $1,400 $200 200% $1,200 $300 30% 150% $150 $1,000 $250 25% 100% $800 $200 20% $100 50% $600 $150 15% $50 0% $400 $100 10% $- -50% $200 $50 5% $- $- 0% $(50) -100% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 201
Slide 38: Historical Focus on Balance Sheet Strength
HISTORICAL FOCUS ON BALANCE SHEET STRENGTH NET DEBT* ($M) AND LEVERAGE $350 $332 2.5 $327 $303 $300 $283 2 1.96x $250 1.79x $228 $203 1.5 $200 1.43x $157 $147 $150 1.07x 1 0.86x 0.88x $100 0.62x 0.58x 0.5 $48 $50 0.19x $- 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net debt is defined as total pr
Slide 39: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Invest in 1 Disciplined M&A employees: Seek businesses we can take to the next talent, retention level in terms of sales and profitability & leadership Internal Investment – Remaining Capital Organic Growth Initiatives Continue re-investing in strategic projects 2 Return
Slide 40: Disciplined Approach to M&A
DISCLIPLINED APPROACH TO M&A Strategy is not dependent on FINANCIAL CHARACTERISTICS acquisitions; we can successfully execute our organic growth strategy without executing any transactions However, selective acquisitions can accelerate our organic growth strategies IRR > Maintain long-term Strategic
Slide 41: M&A Priorities
M&A PRIORITIES Driven by technology and effective market positioning MC TARGET CHARACTERISTICS Complementary market positions (strength in geographies or product areas with opportunities) Continued operational scale to drive market- leading cost position Technologies that could further enhance our p
Slide 42: Albany International's Highly Attractive Investment Opportunity
Long history Leader in PMC with of strong balance proprietary solutions sheet, solid delivering predictable execution, and and strong FCF ALBANY stability prudent capital management INTERNATIONAL’S HIGHLY ATTRACTIVE Differentiated INVESTMENT composites OPPORTUNITY business with ample opportunity to
Slide 43: Appendix
ALBANY EBNATIONAL APPENDIX
Slide 44: Heimbach Group: Leading Global PMC Supplier
Heimbach Group: Leading Global PMC Supplier Privately held supplier of paper machine clothing for production of all paper grades on all machine types NET SALES Headquartered in Düren, Germany By Region By Segment 9 7 ~1,200 €161 M Facilities Countries employees FY 2022 revenue ~10% Other 17% Technic
Slide 45: Significant Strategic Benefits
Significant Strategic Benefits Opportunity of Scale to Strengthen Customer Value Proposition FULLY ALIGNED W ITH M&A CRITERIA Complementary market Continued operational scale Technologies that further positions create differentiated to drive market-leading cost enhance our product manufacturing, sal
Slide 46: Significant Financial Benefits
Significant Financial Benefits Provides attractive Line of sight to expand Heimbach Group financial returns margins and drive combined efficiency gains • IRR well above cost of capital • 2022 EBITDA margin: • EPS accretive beginning in year 2 ‒ Heimbach 9% • Cash flow accretive beginning in year 2 ‒
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