Albany International (AIN) 16th Annual Wells Fargo Industrials & Materials Conference summary

Business overview and strategic focus

• Core expertise in weaving and material science underpins both aerospace and engineered fabrics segments.

• Recent years marked by increased focus and discipline, consolidating operations and divesting non-core or underperforming assets.

• Strategic shift in aerospace to prioritize areas with competitive advantage, such as engines, missiles, and advanced composites.

• New leadership team with backgrounds from major OEMs, emphasizing execution and operational excellence.

• Ongoing commitment to continuous improvement and strategic business reviews.

Aerospace and defense growth initiatives

• Expansion into high-value applications like ceramic matrix composites and carbon-carbon for missiles and hypersonics.

• Significant growth opportunities in missile cases, with current production increases and potential to double or quadruple output.

• New contract with Pratt & Whitney marks entry into a new OEM relationship, expanding beyond Safran.

• Focused bidding strategy on programs that leverage proprietary technology and high-volume production capabilities.

• Emphasis on on-time delivery and reliability, with above 98% on-time performance driving customer retention.

Financial performance and margin outlook

• AEC segment revenue guidance raised to $155–$160 million, driven by strong demand and program execution.

• Growth in programs like LEAP, Boeing 787, and CH-53K, with improved performance and higher demand than anticipated.

• Strategic review of Salt Lake City site underway, aiming to divest non-core assembly operations and focus on core competencies.

• Targeting mid to upper teen margins for AEC post-divestiture, with ongoing cost discipline and stranded cost management.

• Capital allocation remains disciplined, prioritizing ROIC, dividends, and opportunistic share repurchases.