Ampco-Pittsburgh Earnings Call Transcripts
Fiscal Year 2026
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Portfolio exits are expected to add $7m-$8m in annualized EBIT, while Air and Liquid targets 10%-12% annual growth over the next few years. Management targets adjusted EBITDA margin above 10% and net leverage of 3x or below.
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Q2 2026 saw a return to profitability with net income of $1.5M and adjusted EBITDA up 22% year-over-year, driven by strong demand and improved margins. Backlog and orders surged, and both segments reported operational improvements, setting up a strong outlook for the second half of 2026.
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The company has strengthened its portfolio by exiting non-core businesses, improving margins, and focusing on high-growth segments in forged/cast products and air/liquid processing. Strong market positions, high barriers to entry, and industry tailwinds support 5–10% growth targets for the next several years.
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Q1 2026 saw net sales rise 3.9% year-over-year, with ALP achieving record orders and EBITDA, while FCEP faced temporary timing and tariff issues but expects stronger performance ahead. Annual savings from facility closures and market consolidation are boosting outlook, with $8M–$10M debt reduction targeted.
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Management highlighted a completed business reset, strong growth in both segments, and favorable market trends driven by tariffs, modernization, and industry demand. EBITDA and leverage are improving, with further growth expected from end-market expansion and operational efficiencies.
Fiscal Year 2025
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Adjusted EBITDA improved year-over-year despite Q4 headwinds from tariffs and asset exits. Air and Liquid Processing set revenue and income records, while FCEP absorbed one-time charges but is positioned for margin expansion in 2026–2027.
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Exited all unprofitable businesses and invested in modernization, leading to improved margins and EBITDA. Forged and cast products benefit from tariffs and quota systems, while air and liquid processing sees robust growth in nuclear and Navy markets. Debt reduction and international expansion are key priorities.
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Q3 2025 saw strong financial improvement with Adjusted EBITDA up 35% year-over-year and strategic exits from underperforming assets. The U.K. facility closure and AUP exit are expected to boost profitability, while Air & Liquid Systems achieved record results and robust outlook.
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Q2 2025 saw a 2% sales increase and $8M adjusted EBITDA, but a $6.8M UK exit charge led to a net loss. Air & Liquid Systems achieved record profitability, while tariff uncertainty and the UK plant wind-down are expected to impact near-term results but improve future earnings.
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Q1 2025 saw EPS rise to $0.06 and adjusted EBITDA to $8.8M, with both segments improving margins despite a 5% sales decline year-over-year. Record order intake in Air & Liquid and tariff-driven growth in FEP are expected to support future performance.
Fiscal Year 2024
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Q4 and full-year 2024 saw improved operating income and strong cash flow despite lower sales, driven by record Air and Liquid Processing results and operational efficiencies. The U.K. plant remains a risk, with a formal review underway, while robust demand and backlog support a positive 2025 outlook.
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Q3 2024 saw lower sales but improved operating income due to pricing and efficiency gains, with backlog and cash flow strengthening. Air and Liquid and Forged and Cast Engineered Products segments both reported increased backlog and positive outlooks, supported by capital investments and market share gains.
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Q2 2024 saw strong sequential earnings growth, with net sales up 3.5% year-over-year and record performance in Air and Liquid Systems. Operational improvements and new equipment drove higher margins, while backlog and liquidity remain solid despite European market pressures.