Ampco-Pittsburgh (AP) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were $113.1 million, up $2.1 million year-over-year, with year-to-date sales at $217.4 million.

• Q2 2025 saw a net loss of $7.3 million, or $0.36 per share, compared to net income of $2.0 million, or $0.10 per share, in Q2 2024, driven by a $6.8 million U.K. exit charge.

• Adjusted EBITDA for Q2 2025 was $8.0 million, down $2.1 million year-over-year, with year-to-date adjusted EBITDA at $16.8 million, up from prior year.

• Air and Liquid Processing (ALP) segment achieved record profitability and improved operating income, while Forged and Cast Engineered Products (FCEP) was impacted by restructuring and market softness.

• Backlog at June 30, 2025 was $351.3 million, down $27.6 million from year-end, with 37% expected to ship after 2025.

Financial highlights

• Q2 2025 consolidated operating loss was $3.1 million, compared to $5.0 million operating income in Q2 2024.

• Adjusted EBITDA margin for Q2 2025 was 7.06%, down from 9.13% in Q2 2024.

• Cash and cash equivalents at June 30, 2025 were $9.9 million; undrawn revolving credit facility availability was $34.2 million.

• Interest expense for Q2 2025 was $2.8 million, with a year-over-year decrease due to lower average rates and capitalized interest.

• Employee retention credits of $0.7 million benefited both segments in Q2 2025.

Outlook and guidance

• At least $5 million annual operating income improvement is expected post-U.K. exit, with a full order book anticipated for 2026 at the Swedish cast roll plant.

• Tariff-related hesitation is expected to cause a temporary shortfall in North American roll demand in the second half of 2025, but long-term fundamentals remain strong.

• ALP segment anticipates continued strong demand, with record orders in the nuclear market and ongoing Navy and pharmaceutical sector strength.

• Management expects sufficient liquidity from operations and credit facility to meet obligations, including U.K. severance and capital expenditures.

• Improved business environment anticipated in 2026 following the U.K. exit and recent E.U. trade deal.