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Ampco-Pittsburgh (AP)
NYSE:AP
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Ampco-Pittsburgh (AP) AI Stock Analysis

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AP

Ampco-Pittsburgh

(NYSE:AP)

Rating:69Neutral
Price Target:
$3.50
▲(8.36%Upside)
Ampco-Pittsburgh's overall score reflects a balanced view of its financial challenges and strategic initiatives. While financial performance is hindered by high leverage and revenue contraction, improvements in profitability, a new credit facility, and positive earnings call highlights suggest potential upside. Technical indicators show a neutral trend, and valuation is fair, supporting a cautious but optimistic stance.

Ampco-Pittsburgh (AP) vs. SPDR S&P 500 ETF (SPY)

Ampco-Pittsburgh Business Overview & Revenue Model

Company DescriptionAmpco-Pittsburgh Corporation is a diversified industrial company headquartered in the United States, primarily engaged in the production and sale of custom-engineered equipment and consumable specialty materials. The company operates through two main segments: the Forged and Cast Engineered Products segment, which provides products such as forged hardened steel rolls for cold rolling mills and cast rolls for hot strip mills, and the Air and Liquid Processing segment, offering air handling systems and centrifugal pumps.
How the Company Makes MoneyAmpco-Pittsburgh Corporation generates revenue through the manufacture and sale of its engineered products and materials. The Forged and Cast Engineered Products segment contributes significantly to the company's income by supplying essential components to the steel and aluminum industries, where their products are critical for hot and cold rolling processes. The Air and Liquid Processing segment adds to the revenue through sales of air handling and filtration systems, primarily serving the HVAC market, and centrifugal pumps used in various industries. The company's earnings are bolstered by strategic partnerships and long-term contracts with key industry players, ensuring a steady demand for its specialized products.

Ampco-Pittsburgh Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 12.94%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The call highlighted significant improvements in earnings per share and adjusted EBITDA, with record order intakes and improved product mix in the Air and Liquid Systems segment. However, it also noted a decline in net sales and concerns over tariffs and supply chain issues. Despite these challenges, the positive highlights slightly outweigh the lowlights.
Q1-2025 Updates
Positive Updates
Earnings Per Share Improvement
Ampco-Pittsburgh reported earnings per common share of $0.06 for Q1 2025, an improvement of $0.20 compared to the prior year quarter.
Adjusted EBITDA Growth
Adjusted EBITDA for the quarter was $8.8 million, compared to $5.1 million in Q1 2024, showing significant improvement.
Record Order Intake for Air and Liquid Systems
Air and Liquid Systems reported the highest order intake in its history, driven by the nuclear market and strong activity in military and pharmaceutical markets.
Improved Product Mix and Segment EBITDA
Air and Liquid Systems saw a better product mix, with adjusted EBITDA increasing to $3.8 million from $2.2 million in the prior year.
Negative Updates
Net Sales Decline
Consolidated net sales for Q1 2025 were $104.3 million, a decline of approximately 5% compared to the first quarter of 2024.
Supply Chain and Tariff Concerns
Concerns were raised about potential short-term supply chain issues due to tariffs, with some customer reluctance to accept tariff costs.
Decline in Forged and Cast Engineered Products Sales
The segment reported net sales of $72.3 million, down from $77.2 million in the first quarter of 2024, primarily due to lower volume and unfavorable exchange rates.
Company Guidance
During the Ampco-Pittsburgh Corporation's first-quarter 2025 earnings call, several key metrics were highlighted, showcasing the company's financial performance and strategic initiatives. The corporation reported earnings per common share of $0.06, marking a $0.20 improvement compared to the prior year quarter. Adjusted EBITDA rose to $8.8 million from $5.1 million in the first quarter of 2024, with both segments contributing to this improvement. Net sales for the quarter were $104.3 million, reflecting a 5% decline from the previous year but a 3% sequential increase from Q4 2024. The company experienced a record order intake in the Air and Liquid segment, particularly from the nuclear, military, and pharmaceutical markets. Despite challenges such as tariffs and market uncertainties, the company is focused on passing costs to customers to protect margins and anticipates continued growth in various sectors, including tool steel and nuclear power. The total backlog increased by 6% year-over-year to $368.5 million, indicating strong future order potential.

Ampco-Pittsburgh Financial Statement Overview

Summary
Ampco-Pittsburgh's financial statements reveal a mixed performance with steady profitability and cash generation capabilities, countered by challenges in revenue growth and high leverage. Improvements in ROE are positive, but high leverage and negative free cash flow are concerning.
Income Statement
72
Positive
The company's gross profit margin for TTM stands at 18.63%, indicating a reasonable ability to cover costs. The net profit margin improved to 1.04% from a prior year's 0.10%, showing enhanced profitability, albeit remaining low. Revenue decreased by 1.42% in the TTM compared to the previous year, suggesting a slight contraction. The EBIT and EBITDA margins are 3.87% and 9.43% respectively, reflecting stable operational efficiency. Overall, the income statement indicates modest profitability and stable margins, but revenue contraction is a concern.
Balance Sheet
65
Positive
The company's debt-to-equity ratio is 2.05, indicating high leverage, which could pose a risk in volatile market conditions. Return on equity (ROE) improved to 6.65% in the TTM, showing better returns to equity holders compared to negative returns in previous years. The equity ratio is 12.06%, suggesting a limited equity buffer to absorb potential shocks. While improvements in ROE are positive, high leverage remains a critical concern for financial stability.
Cash Flow
58
Neutral
The operating cash flow to net income ratio is 1.91, demonstrating strong cash generation relative to net income. However, free cash flow has turned negative in the TTM, indicating challenges in generating cash after capital expenditures. The free cash flow to net income ratio is -0.78, highlighting the inability to convert earnings into free cash flow. While operating cash flows are robust, the negative free cash flow trajectory indicates potential liquidity pressures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue418.31M422.34M390.19M344.92M328.54M
Gross Profit81.50M74.56M62.19M66.11M71.03M
EBITDA35.28M-12.26M28.40M20.48M31.39M
Net Income438.00K-39.93M3.42M-3.86M7.97M
Balance Sheet
Total Assets530.90M565.65M502.77M485.63M463.21M
Cash, Cash Equivalents and Short-Term Investments15.43M7.29M8.73M10.34M16.84M
Total Debt133.17M133.42M108.99M64.97M41.59M
Total Liabilities459.81M494.08M389.38M393.83M378.21M
Stockholders Equity58.88M60.94M104.33M82.57M76.56M
Cash Flow
Free Cash Flow5.83M-24.13M-43.90M-31.10M25.17M
Operating Cash Flow18.03M-3.69M-27.21M-15.87M33.63M
Investing Cash Flow-8.24M-19.68M-16.31M-14.73M-7.93M
Financing Cash Flow-1.35M21.69M42.59M24.40M-17.22M

Ampco-Pittsburgh Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.23
Price Trends
50DMA
3.18
Negative
100DMA
2.67
Positive
200DMA
2.37
Positive
Market Momentum
MACD
0.09
Positive
RSI
45.04
Neutral
STOCH
16.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AP, the sentiment is Negative. The current price of 3.23 is below the 20-day moving average (MA) of 3.30, above the 50-day MA of 3.18, and above the 200-day MA of 2.37, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AP.

Ampco-Pittsburgh Risk Analysis

Ampco-Pittsburgh disclosed 27 risk factors in its most recent earnings report. Ampco-Pittsburgh reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ampco-Pittsburgh Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$3.29B12.7023.85%0.65%1.70%684.20%
73
Outperform
$412.71M12.769.13%8.06%38.46%
72
Outperform
$111.46M9.3213.54%18.83%
69
Neutral
$64.91M15.027.11%-3.60%
65
Neutral
$335.56M15.199.40%-8.42%164.82%
64
Neutral
$10.64B16.526.24%2.15%3.01%-28.89%
58
Neutral
$304.17M40.06-1.05%0.24%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AP
Ampco-Pittsburgh
3.10
1.61
108.05%
AZZ
AZZ
106.32
32.41
43.85%
GIFI
Gulf Island Fabrication
6.87
0.74
12.07%
NWPX
Northwest Pipe Company
40.54
3.46
9.33%
TG
Tredegar
8.40
3.15
60.00%
MEC
Mayville Engineering Company
16.40
-1.16
-6.61%

Ampco-Pittsburgh Corporate Events

Delistings and Listing Changes
Ampco-Pittsburgh Series A Warrants Expire August 1
Neutral
Jul 18, 2025

On July 18, 2025, Ampco-Pittsburgh Corporation reminded warrant holders that its Series A warrants will expire on August 1, 2025, and will not be exercisable after this date. The NYSE has announced the suspension of trading in these warrants on July 31, 2025, to ensure trades settle in time for final exercises, impacting stakeholders by providing a deadline for action.

Private Placements and FinancingBusiness Operations and Strategy
Ampco-Pittsburgh Secures New Credit Facility Agreement
Positive
Jun 27, 2025

On June 27, 2025, Ampco-Pittsburgh Corporation announced the closing of an amended and restated revolving credit, term loan, and security agreement. This Credit Facility includes a $100 million asset-backed revolving line of credit and a $13.5 million term loan, with the term loan proceeds used to reduce borrowings on the revolving credit. The agreement aims to provide increased lending capacity and flexibility to support the company’s global working capital requirements. The facility is structured to offer greater financial support for Ampco-Pittsburgh’s operations, potentially impacting its liquidity and operational capabilities positively.

Executive/Board ChangesShareholder Meetings
Ampco-Pittsburgh Board Members Resign Ahead of May 15
Neutral
May 9, 2025

On May 8, 2025, Frederick D. DiSanto and Stephen E. Paul announced their resignation from the Ampco-Pittsburgh Corporation’s Board of Directors, effective May 15, 2025, leading to a reduction in the Board’s size from ten to eight members. Additionally, on March 6, 2025, the Board approved an amendment to the 2016 Omnibus Incentive Plan, increasing the shares available for equity-based awards by 500,000, which was subsequently approved by shareholders on May 8, 2025. This move is expected to enhance the company’s ability to offer competitive compensation packages.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025