Ampco-Pittsburgh’s Earnings Call: Growth Amid Challenges

Ampco-Pittsburgh Corporation ((AP)) has held its Q3 earnings call. Read on for the main highlights of the call.

Ampco-Pittsburgh Corporation’s recent earnings call presented a balanced narrative of growth and challenges. The company reported significant growth in adjusted EBITDA and record performance in its Air and Liquid segment. However, it also faced hurdles such as tariffs and temporary disruptions in roll purchases.

Strong Consolidated Adjusted EBITDA Growth

Ampco-Pittsburgh Corporation reported a notable increase in its consolidated adjusted EBITDA for the third quarter of 2025, reaching $9.2 million. This marks a 35% growth compared to the previous year, highlighting the company’s robust financial performance.

Air and Liquid Segment Record Performance

The Air and Liquid segment achieved a historic milestone with a year-to-date adjusted EBITDA of $12.1 million, representing a 31% increase from the prior year. This record performance underscores the segment’s strong market position and operational efficiency.

Exit from Underperforming Assets

The strategic decision to accelerate the exit from the U.K. facility is expected to enhance the company’s full-year adjusted EBITDA by $7 million to $8 million. This move is part of the company’s broader strategy to streamline operations and focus on more profitable segments.

Positive Revenue Growth

Ampco-Pittsburgh reported net sales of $108 million for Q3 2025, marking a 12% increase compared to the same period in 2024. This growth in revenue reflects the company’s successful efforts to expand its market reach and improve sales performance.

Significant Improvement in Adjusted EPS

The company’s adjusted earnings per share for Q3 2025 increased by $0.14 from the previous year, reaching $0.04. This improvement in EPS is indicative of the company’s enhanced profitability and efficient cost management.

Impact of Tariffs on Operations

Tariffs on imports from Europe, particularly from Sweden and Slovenia, have posed challenges for Ampco-Pittsburgh’s operations. With tariffs as high as 50%, the company is navigating these obstacles while striving to maintain operational efficiency.

Closure and Liquidation Costs

The closure of the U.K. facility involved non-cash charges totaling $3.1 million in Q3 2025. This strategic move is part of the company’s efforts to optimize its asset portfolio and reduce operational costs.

Temporary Postponement of Roll Purchases

Some North American customers have postponed roll purchases due to uncertainty surrounding tariffs, impacting the dynamics of the roll market. Ampco-Pittsburgh is actively addressing these market fluctuations to stabilize its operations.

Forward-Looking Guidance

Ampco-Pittsburgh Corporation remains optimistic about its future growth prospects. The company anticipates continued positive performance, driven by strategic actions such as the exit from the U.K. facility and the winding down of a small steel distribution business. These initiatives are expected to boost full-year adjusted EBITDA by $7 million to $8 million. Despite tariff challenges, the company is confident in achieving long-term growth in key markets like automotive and construction.

In conclusion, Ampco-Pittsburgh Corporation’s earnings call painted a picture of strong financial growth tempered by external challenges. The company’s strategic initiatives and record performances in key segments highlight its resilience and adaptability in a dynamic market environment.