Detailed narrative
Overall Q2 Performance & Turnaround
Ampco-Pittsburgh achieved a significant turnaround in Q2 FY26, reporting positive net income of $1.5 million ($0.07 per share) compared to a loss in the prior year. Adjusted EBITDA increased 22% year-over-year to $9.8 million, with the margin expanding 240 basis points to 9.5% on net sales of $102.9 million.
The company saw a surge in customer orders, up 50% year-over-year to approximately $144 million, contributing to a total backlog of $385.4 million, an increase of $39.9 million from Q1.
Air & Liquid Systems Segment Highlights
The Air & Liquid Systems segment delivered record year-to-date Adjusted EBITDA, up 43% year-over-year, with Q2 Adjusted EBITDA increasing 34%. Q2 revenue was comparable to the prior year, while year-to-date revenue grew 9%. The segment's backlog increased by $23.3 million (16%) in Q2 and is 39% higher than year-end 2025.
This growth is fueled by strong demand from data centers (power generation), the U.S. Navy (fleet expansion), and the pharmaceutical and healthcare markets for custom air handlers.
Forged and Cast Engineered Products Segment Performance
The Forged and Cast Engineered Products segment reported Q2 net sales of $67.3 million, a decline from $77.9 million in Q2 2025, primarily due to the strategic exit from its U.K. facility and AUP distribution business. Despite this, segment adjusted EBITDA increased 15% year-over-year to $7.8 million and 36% sequentially.
The Sweden operations returned to profitability due to improved productivity and utilization, and demand has improved in North America, driven by reduced imports and higher U.S. steel mill utilization.
Financial Position and Liquidity
Total Q2 net sales were $102.9 million, down from $113.1 million in the prior year, mainly reflecting the U.K. facility closure. Year-to-date revenue was $211.2 million. Selling and administrative expenses remained relatively flat. Depreciation and amortization expense was lower by approximately $0.5 million in Q2 and $0.9 million year-to-date, also due to the U.K. facility closure.
The company's liquidity position at June 30, 2026, included $7 million in cash on hand and $29 million in undrawn availability on its revolving credit facility.
Capacity Expansion and Strategic Investments
The Air & Liquid Systems segment is actively expanding its manufacturing capacity to meet increasing demand. New manufacturing equipment installed in 2024 has already boosted capacity for the pump product line. Additional equipment from the Navy funding program arrived in early 2026 and is expected to begin production in the second half of 2026, with more equipment arriving at the end of July.
These investments are aimed at positioning the company for long-term growth in its key markets.