v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 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 $53.8 million and $44.4 million for the three months ended June 30, 2026 and 2025, respectively and $102.1 million and $83.8 million for the six months ended June 30, 2026 and 2025. The total of Accounts receivable and Contract assets due from SAFRAN amounted to $53.4 million and $60.8 million as of June 30, 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 decreased revenue by $2.7 million during the second quarter of 2026 and $1.5 million for the first six months of 2026. The cumulative changes in the estimated profitability of long-term contracts increased operating income by $0.2 million during the second quarter of 2026 and decreased operating income by $1.6 million for the six months ended June 30, 2026. The increase in profitability during the second quarter of 2026 was primarily driven by a few large complex programs, including adjustments of $0.9 million for various CH-53K programs, primarily based on changes to future overhead rates over the remainder of the contract. The decrease in profitability during the six months ended June 30, 2026 was primarily driven by a few large complex programs, including adjustments of $2.2 million for various CH-53K programs, primarily based on changes to future overhead rates over the remainder of the contract.
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, 2026:
Three months ended June 30, 2026
(in thousands)
Point in Time Revenue
Recognition		Over Time Revenue
Recognition		Total
Machine Clothing$177,658 $1,052 $178,710 
Albany Engineered Composites:
ASC— 52,249 52,249 
Other AEC4,035 94,488 98,523 
Total Albany Engineered Composites
$4,035 $146,737 $150,772 
Total revenues$181,693 $147,789 $329,482 
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 AEC3,060 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 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:
Six months ended June 30, 2026
(in thousands)
Point in Time Revenue
Recognition		Over Time Revenue
Recognition		Total
Machine Clothing$342,558 $2,104 $344,662 
Albany Engineered Composites:
ASC— 99,358 99,358 
Other AEC7,044 189,751 196,795 
Total Albany Engineered Composites
$7,044 $289,109 $296,153 
Total revenues$349,602 $291,213 $640,815 
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 AEC7,137 153,647 160,784 
Total Albany Engineered Composites
$7,137 $237,413 $244,550 
Total revenues$360,717 $239,456 $600,173 

Three months ended June 30,Six months ended June 30,
(in thousands)
2026202520262025
Americas PMC$82,735 $87,488 $158,844 $170,334 
Eurasia PMC
77,294 71,161 147,050 139,358 
Engineered Fabrics18,681 22,277 38,768 45,931 
Total Machine Clothing Net revenues$178,710 $180,926 $344,662 $355,623 
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 $977.5 million related primarily to firm fixed price contracts in the AEC segment. Of the remaining performance obligations as of June 30, 2026, we expect to recognize as revenue approximately $81.7 million during 2026, $191.4 million during 2027, $153.4 million during 2028, and the remainder thereafter.