AP — Ampco-Pittsburgh Corporation

Summary of Ampco-Pittsburgh Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Consolidated Adjusted EBITDA: $8 million, down from $8.8 million year-over-year.
• Net Sales: $108.3 million, a 3.9% increase compared to Q1 2025.
• Air and Liquid Processing (ALP) Segment: Achieved record adjusted EBITDA and customer orders, with a 17% revenue increase.
• Forged and Cast Engineered Products (FCEP) Segment: Net sales of $70.8 million, down from $72.3 million in Q1 2025; adjusted EBITDA of $5.7 million, down from $8.3 million year-over-year.

2. Strategic Updates and Business Highlights

• ALP Segment: Strong demand in power generation and pharmaceutical markets, with a backlog increase of 19% and record customer orders. Manufacturing capacity is being expanded with new equipment from Navy funding.
• FCEP Segment: Despite a challenging quarter, the outlook is improving due to recovering demand for large rolls and market consolidation as competitors exit the market.
• Cost Management: The closure of the U.K. facility is expected to yield $7-$8 million in annual savings.

3. Forward Guidance and Outlook

• Positive Outlook for 2026: Management expects continued improvement in adjusted EBITDA, projecting an annual increase of $7-$8 million.
• Debt Reduction: Anticipated reduction of $8-$10 million in debt by year-end 2026 as cash flow improves.
• Market Conditions: Expected stabilization and growth in both segments, with a focus on increasing manufacturing capacity to meet rising demand.

4. Bad News, Challenges, or Points of Concern

• FCEP Segment Challenges: Experienced a weaker product mix and lower shipments of higher-margin products due to tariff uncertainties and production downtimes.
• Short-term Timing Issues: Temporary disruptions impacted Q1 results, with expectations that these will reverse in subsequent quarters.
• Tariff Landscape: Although some tariffs have been reduced, uncertainties remain regarding international trade policies and their impact on pricing and competitiveness.

5. Notable Q&A Insights

• Order Book Clarification: Management clarified that the reported order book increase was based on year-over-year comparisons, while Q1 figures were sequentially lower due to timing issues.
• EBITDA Adjustments: Approximately $3 million in extraordinary expenses affected Q1 EBITDA, with expectations for normalization in future quarters.
• Competitor Exits: Management noted opportunities for market share gain due to competitors exiting the market, particularly in Europe and South America.
• Tariff Benefits: Revised Section 232 tariffs have leveled the playing field, particularly benefiting the FCEP order book, which has seen a significant increase.

Overall, while Ampco-Pittsburgh faced challenges in Q1 2026, particularly in the FCEP segment, the company is optimistic about future growth driven by strong demand in the ALP segment and strategic operational improvements.