Financial Data and Key Metrics Changes - The company reported revenues of $289 million for the first quarter, down 7.8% from $313 million in the same period last year [20] - Adjusted EBITDA margin was 19.3%, with adjusted diluted EPS at $0.73, compared to $0.90 in the prior year [7][23] - Consolidated gross profit was $96 million, or 33.4% of sales, down from $109 million or 34.7% of sales in the prior year [20][22] Business Line Data and Key Metrics Changes - Machine Clothing segment reported revenues of $175 million, a decrease of 5.7% year-over-year, with an adjusted EBITDA margin of 28.4% [9][23] - Engineered Composites segment revenues were $114 million, down 11% year-over-year, with an adjusted EBITDA margin of 13.5% [14][24] - The overall adjusted EBITDA for the company was $56 million, down from $65 million in the prior year [23] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries, but strong order flow indicates market strength [9] - Europe showed signs of recovery with good deliveries and strong orders, while Asia faced mixed results with some weakness in China [10] - The global empty order backlog remains strong with an order-to-sales ratio above one, providing confidence in the outlook for the year [10] Company Strategy and Development Direction - The company is focused on integrating Heimbach and expects benefits to accelerate in the second half of the year [6] - There is a strong emphasis on operational efficiency and process improvements across various programs [6][19] - The company is also upgrading its SAP system to improve operational efficiencies and analytics [19] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the markets, the company was not affected by tariffs or disruptions in the first quarter [6] - The outlook for the second half of the year is expected to be stronger due to ramping at AEC and the acceleration of Heimbach synergies [25] - Management remains confident in achieving original synergy targets with a 3.5 to 4 times effective purchase multiple [11] Other Important Information - The company repurchased $69 million worth of shares in the first quarter, with $193 million remaining under the latest share repurchase authorization [8] - The effective tax rate for the quarter was 26.6%, down from 29.2% in the prior year, mainly due to favorable discrete tax adjustments [22] Q&A Session Summary Question: Status of LEAP program and inventory management - Management indicated that they expect to meet Safran's production schedule and are monitoring inventory levels closely [27][41] Question: Opportunities for backlog growth - Management sees opportunities in space and missile programs, as well as ramping up across Boeing and Airbus engines [29] Question: Details on the new contract with Bell - The company has secured a seven-year contract with Bell, taking on complex parts and is optimistic about the potential returns [36][38] Question: LEAP revenue growth expectations - Management maintains a cautious outlook but sees potential for growth as Boeing and Airbus ramp up production [41] Question: Confidence in Machine Clothing segment growth - Management attributes the decline in organic growth to divestitures but remains confident due to strong backlog and order strength [59]

Financial Data and Key Metrics Changes - The company reported revenues of $289 million for Q1 2025, down 7.8% from $313 million in Q1 2024 [20] - Adjusted EBITDA margin was 19.3%, with adjusted diluted EPS at $0.73, compared to $0.90 in the same period last year [7][24] - GAAP net income attributable to the company was $17 million, down from $27 million last year, with GAAP diluted EPS at $0.56 compared to $0.87 [23] Business Line Data and Key Metrics Changes - Machine Clothing segment reported revenues of $175 million, a decrease of 5.7% year-over-year, with an adjusted EBITDA margin of 28.4% [20][24] - Engineered Composites segment revenues were $114 million, down 11% from the previous year, with an adjusted EBITDA margin of 13.5% [14][24] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries, but strong order flow indicates market strength [8] - Europe is showing signs of recovery with good deliveries and strong orders, while Asia is mixed with some weakness in China [8] Company Strategy and Development Direction - The company is focused on integrating Heimbach and expects to see benefits from this integration in the second half of the year [6][11] - The strategy includes enhancing operational efficiencies and regionalizing business operations to mitigate tariff impacts [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding market conditions, noting that the company was not significantly affected by tariffs in Q1 [6] - The outlook for the second half of 2025 is expected to be stronger due to ramping up at AEC and accelerating Heimbach synergies [26] Other Important Information - The company repurchased $69 million worth of shares in Q1 and has $193 million remaining under its share repurchase authorization [7] - The company is upgrading its SAP system to improve operational efficiencies and analytics [19] Q&A Session Summary Question: Status of LEAP program and inventory management - Management indicated that they are monitoring inventory levels and expect to meet Safran's production schedule, with potential upside in the second half of the year [28] Question: New opportunities for backlog growth - Management noted that there are opportunities in space and missile programs, as well as ramping up across Boeing and Airbus engines [30] Question: Details on the seven-year contract with Bell - Management expressed excitement about the contract, highlighting the opportunity to demonstrate capabilities and achieve projected returns in the high teens for AEC [38] Question: Confidence in Machine Clothing segment growth - Management attributed the decline in organic growth to divestitures but emphasized strong backlog and order strength for the upcoming quarters [56]

Financial Data and Key Metrics Changes - The company reported revenues of $289 million for the first quarter, down 7.8% from $313 million in the same period last year [20] - Adjusted EBITDA margin was 19.3%, with adjusted diluted EPS at $0.73, compared to $0.90 in the prior year [7][23] - Consolidated gross profit was $96 million, or 33.4% of sales, down from $109 million or 34.7% of sales in the prior year [20][22] Business Line Data and Key Metrics Changes - Machine Clothing segment reported revenues of $175 million, a decrease of 5.7% year-over-year, with an adjusted EBITDA margin of 28.4% [9][23] - Engineered Composites segment revenues were $114 million, down 11% from the previous year, with an adjusted EBITDA margin of 13.5% [14][24] Market Data and Key Metrics Changes - North America experienced a slight decline in deliveries, but strong order flow indicates market strength [9] - Europe showed signs of recovery with good deliveries and strong orders, while Asia faced mixed results with some weakness in China [10] Company Strategy and Development Direction - The company is focused on integrating Heimbach and expects to see benefits from this integration accelerate in the second half of the year [6][11] - The strategy includes enhancing operational efficiencies and regionalizing business operations to mitigate tariff impacts [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the markets but noted that tariffs did not materially impact performance in the first quarter [6] - The company reaffirmed its full-year guidance, expecting stronger performance in the second half of 2025 due to ramping up at AEC and Heimbach synergies [25] Other Important Information - The company repurchased $69 million worth of shares in the first quarter, with $193 million remaining under the current share repurchase authorization [8] - The balance sheet remains strong with a cash balance of over $119 million and $384 million of borrowing capacity [24] Q&A Session Summary Question: Status of LEAP program and inventory management - Management indicated that they are monitoring inventory levels and expect to meet Safran's production schedule, with potential upside in the second half of the year [27][41] Question: Opportunities for backlog growth - Management noted that there are new opportunities in space and missile programs, and they are selective about the projects they pursue [28][39] Question: Details on the new contract with Bell - The company has secured a seven-year contract with Bell, taking over complex parts production, which is seen as an opportunity to demonstrate capabilities [36][38] Question: LEAP revenue growth expectations - Management maintained their plan for the year but noted potential for upside as demand from Boeing and Airbus increases [41] Question: Confidence in Machine Clothing segment growth - Management attributed the decline in organic growth to divestitures but expressed confidence in strong backlog and order strength for the upcoming quarters [59]