Ampco-Pittsburgh Corporation Q2 FY2026 earnings call

• Overall Financial & Operational Turnaround

  • The second quarter of 2026 marked a clear turning point for the company after completed restructuring, including the 2025 closure of the UK Cass Roll facility
  • Q2 2026 net income was $1.5 million (7 cents per share), compared to a net loss of $7.3 million (36 cent per share loss) in the prior year period
  • Total customer orders reached ~$144 million, up 50% year-over-year; total backlog grew $39.9 million from Q1 2026 to $385.4 million, a 12% quarter-over-quarter increase
  • Adjusted EBITDA margin expanded 240 basis points year-over-year to 9.5%

• Air and Liquid Systems Segment Updates

  • Record adjusted EBITDA for the first half of 2026, driven by increased revenue, improved manufacturing efficiencies, and positive product mix
  • Segment backlog grew $23.3 million (16%) in Q2 2026, and is 39% higher than year-end 2025, with demand reaching record levels
  • Growing demand is driven by multiple end markets: data center expansion fueling demand for commercial pump and nuclear heat exchanger products; ongoing strong demand from the U.S. Navy tied to fleet expansion plans; sustained strong demand for custom air handlers from the pharmaceutical and healthcare sectors
  • Capacity expansion is underway: equipment installed in 2024 already increased pump product capacity, new Navy-funded equipment arrived in early 2026 (expected online H2 2026) and additional equipment arrived in late July 2026; the company is adding new equipment, increasing headcount, and improving efficiencies to meet rising demand

• Forged and Cast Engineered Products Segment Updates

  • Post-restructuring profitability improvements are materializing: the segment's Sweden operation returned to profitability via improved productivity and utilization, and cost headwinds from late 2025 have fully flowed through the income statement
  • Large roll shipments in the U.S. recovered after timing-related disruptions in Q1 2026
  • Tariff protections have reduced imports and lifted U.S. steel mill utilization, increasing demand for consumed rolls; segment orders and margins have improved, and backlog has grown for H2 2026 and 2027
  • Ongoing industry consolidation is creating new business opportunities for the segment

• Corporate Financial Position

  • Total selling and administrative expenses remained relatively flat year-over-year for Q2 and year-to-date
  • Depreciation and amortization is $0.5 million lower year-over-year in Q2, and $0.9 million lower year-to-date, due to the 2025 UK facility closure
  • As of June 30, 2026, the company held $7 million in cash and had $29 million in undrawn availability on its revolving credit facility, supporting healthy liquidity

Amco-Pittsburgh reported total Q2 2026 net sales of $102.9 million, down from $113.1 million in Q2 2025. Total adjusted EBITDA for Q2 2026 was $9.8 million, a 22% improvement year-over-year.

1. Air and Liquid Systems: Q2 2026 revenue was comparable to Q2 2025; year-to-date revenue increased 9% year-over-year. Q2 2026 adjusted EBITDA increased 34% year-over-year, with year-to-date adjusted EBITDA up 43% year-over-year. The segment contributed approximately 34.6% of total Q2 2026 net sales.
2. Forged and Cast Engineered Products: Q2 2026 net sales were $67.3 million, down from $77.9 million in Q2 2025, with the decline almost entirely from exiting the UK facility and AUP distribution business. Q2 2026 adjusted EBITDA was $7.8 million, up 15% year-over-year and 36% quarter-over-quarter. The segment contributed approximately 65.4% of total Q2 2026 net sales.

• The company expects the second half of 2026 to be significantly stronger than the first half of 2026, across both segments
• Q3 2026 will reflect normal seasonal impacts, including the annual maintenance outage at U.S. segment facilities and summer shutdowns at European facilities, with no change to the overall H2 2026 growth expectation
• Management is optimistic about 2027 performance, as demand continues to build across all core end markets
• The company is well positioned to capture long-term growth in its core high-demand end markets, including U.S. Navy defense contracting, nuclear power generation, and industrial steel rolling

• All forward-looking statements are inherently uncertain, and actual results may differ materially from projections due to a range of risk factors, many of which are outside of the company's control. Key risks are outlined in the company's most recently filed Form 10-K and subsequent SEC filings
• The company does not commit to updating or revising any forward-looking statements after this call

No investor questions were submitted during the open question-and-answer session, so this section has no content.