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    AP
    Earnings call· Jun 2026(Q2 FY26)

    AMPCO PITTSBURGH Q2 FY26 earnings call AP

    Aug 11, 2026 Source

    Executive summary

    Ampco-Pittsburgh Q2 FY26 — Strong Turnaround Driven by Record Air & Liquid Performance and Restructuring Benefits

    Ampco-Pittsburgh reported a significant turnaround in Q2 FY26, achieving positive net income and strong adjusted EBITDA growth, primarily driven by record performance in its Air & Liquid segment and the positive impact of prior restructuring efforts in Forged & Cast. The company is experiencing accelerating demand across its markets, leading to substantial order and backlog growth, and anticipates a significantly stronger second half of 2026.

    Highlights

    5

    • Net income turned positive to $1.5 million ($0.07/share) from a loss of $7.3 million ($0.36/share) in the prior year.

    • Adjusted EBITDA increased 22% year-over-year to $9.8 million, with margin expanding 240 basis points to 9.5%.

    • Customer orders surged 50% year-over-year to approximately $144 million, driving total backlog growth of $39.9 million from Q1 to $385.4 million.

    • Air & Liquid segment delivered record adjusted EBITDA, up 34% in Q2 and 43% year-to-date, fueled by strong demand in data centers, U.S. Navy, and healthcare markets.

    • Forged and Cast Engineered Products segment adjusted EBITDA increased 15% year-over-year to $7.8 million, benefiting from restructuring actions and improved North American demand.

    Concerns

    2

    • Q2 net sales declined to $102.9 million from $113.1 million in the prior year, primarily due to the strategic exit from the U.K. facility and AUP distribution business.

    • The Forged and Cast segment anticipates normal seasonal outages in Q3, including annual maintenance in the U.S. and summer shutdowns in Europe.

    Guidance & targets

    2
    CategoryTargetConfidence
    Second Half 2026 Performance
    Significantly stronger than the first half
    high materiality
    High
    Full Year 2027 Outlook
    Optimistic
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Air & Liquid Systems
    Strong demand from data centers, power generation, U.S. Navy, pharmaceutical and healthcare markets. Manufacturing capacity expanding with new equipment, including Navy funding program equipment.
    Adjusted EBITDA Q2: up 34% YoYAdjusted EBITDA YTD: up 43% YoY (highest level in history)Backlog: up $23.3 million (16%) in Q2Backlog: 39% higher than year-end 2025
    		Comparable with prior year (Q2), $211.2 million (YTD)9% (YTD revenue)——
    Forged and Cast Engineered Products
    Revenue decline primarily due to exit from U.K. facility and AUP distribution business. Improved demand in North America due to reduced imports and higher U.S. steel mill utilization. Backlog grew for H2 2026 and 2027.
    Adjusted EBITDA: $7.8 millionAdjusted EBITDA Q2: up 15% YoYAdjusted EBITDA Q2: up 36% sequentiallySweden profitability: returned to profitability
    		$67.3 million (Q2)———

    Operational metrics

    10
    Adjusted EBITDA
    $9.8 millionup 22% YoY, up 22% sequentially
    Q2 FY26

    Company-wide.

    Customer Orders
    $144 millionup 50% YoY
    Q2 FY26

    Company-wide.

    Net Income
    $1.5 millionvs. loss of $7.3 million prior year
    Q2 FY26

    Company-wide.

    Depreciation and Amortization Expense
    lower by $0.5 millionYoY
    Q2 FY26

    Primarily due to the closure of the U.K. facility in 2025.

    Other Income and Expense
    improvedYoY
    Q2 FY26

    Partially offset by lower pension income.

    Pension Income
    lowerYoY
    Q2 FY26
    Cash on Hand
    $7 million
    June 30, 2026

    Part of liquidity position.

    Undrawn Revolving Credit Facility
    $29 million
    June 30, 2026

    Part of liquidity position.

    Manufacturing Capacity Expansion
    —
    2024-2026

    Aimed at meeting long-term growth in power generation and U.S. Navy markets.

    Headcount
    increasing
    Q2 FY26

    To meet increasing demand and improve manufacturing efficiencies.

    Industry KPIs

    1
    MetricValueDetails
    Growth project CAPEX first production—

    Orderbook & backlog

    3
    Total Backlog$385.4 millionQ2 FY26 end

    up $39.9 million from Q1

    Air & Liquid Systems Backlogup $23.3 millionQ2 FY26

    up 16% in Q2; 39% higher than year-end 2025

    Forged and Cast Engineered Products BackloggrewQ2 FY26 end

    from year-end

    Orders for H2 2026 and 2027

    Deals & partnerships

    1
    nullClosure of U.K. facility and exit from AUP distribution business

    The closure of the U.K. cast roll facility occurred in the second half of 2025. The exit from the AUP distribution business also contributed to the decline in Forged and Cast segment sales.

    Capital programs

    1
    Navy Funding Program Equipmentunderway
    Funding: Navy funding program
    Start: early 2026

    Benefit: Increased manufacturing capacity for pump product line

    Equipment arrived early 2026 and at the end of July, expected to begin producing products in the second half of 2026.

    Risks & headwinds

    2
    Seasonal Maintenance Outages and Summer ShutdownsQ3 FY26

    null

    Mitigation: Management expects the second half of the year to be significantly stronger than the first half despite these normal seasonal outages.

    Revenue Decline from Strategic ExitsQ2 FY26

    Q2 net sales of $102.9 million compared to $113.1 million in prior year

    Mitigation: These actions (closure of U.K. facility, exit from AUP distribution) are now flowing through to the bottom line, positively impacting adjusted EBITDA.

    What to watch in Q3 FY26

    4

    Second Half 2026 Performance

    H2 FY26
    CurrentQ2 FY26 net income $1.5M, Adjusted EBITDA $9.8M
    TargetSignificantly stronger than H1 FY26

    Why it matters

    Verifies the company's turnaround narrative and the positive impact of restructuring and demand acceleration.

    While the third quarter reflects our normal summer maintenance outages, we expect a significantly stronger on half of 2026.

    2 min read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.