Ampco-Pittsburgh Corporation Q4 FY2025 earnings call

• Initiated and completed removal of significant underperforming assets, expecting adjusted EBITDA to improve by $7 million to $8 million annually.
• Air and Liquid achieved record revenue and income in 2025, with strong demand in multiple markets including nuclear, U.S. Navy, commercial pumps, and pharmaceutical.
• FCEP reported net sales of $292.6 million in 2025, with strategic transformation of footprint, focusing on optimizing Sweden facility and dealing with headwinds like currency and production days.

Air and Liquid Processing segment: 2025 was a record-breaking year, with Q4 revenue 10% higher than prior year and full-year revenue 7% above prior year. Full-year adjusted EBITDA was $15.4 million, the highest in history and a 21% increase over prior year. Forged and Cast Engineered Products (FCEP) segment: 2025 total net sales were $292.6 million. Full-year adjusted EBITDA was $24.4 million. Q4 adjusted results were $2.2 million compared to $5.5 million in prior year.

• Anticipates adjusted EBITDA to improve by $7 million to $8 million annually from asset removal actions.
• Bookings for both operating segments accelerated in the first two months of 2026.
• Roll market showing recovery in 2026 and shutdown costs behind us.

• Headwinds from unfavorable product mix in Air and Liquid in Q4.
• Currency headwinds for FCEP due to difference in cost and revenue currencies.
• European market softness and impact of tariffs on roll demand.

Q: Delve into Air and Liquid Processing margins mix dynamic in Q4 and full-year.

A: Q4 was unusual mix, full year more representative; margins good in growth markets like nuclear and Navy with limited competition.

Q: Help understand inflection from headwinds in 2025 to strong orders in 2026 for forged and cast rolls.

A: Tariffs caused pause in orders as calculated, now digested with U.S. pricing increase and others following model.

Q: Regarding costs in euros and revenues in dollars for Sweden.

A: Pricing to be adjusted in 2027, with some recovery already seen.

Q: Inquire about involvement with Westinghouse's AP1000 reactors.

A: Involved in supplying heat exchangers, usually fit early in order cycle, nuclear market active.

Q: Lead time and inquiry on Westinghouse AP1000s.

A: Lead time early, still some distance but nuclear market active.