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Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q3 2025 was $9.2 million, up 35% from the prior year, driven by strong performance in the Air and Liquid segment [4] - Adjusted earnings per share for Q3 2025 were $0.04, an increase of $0.14 from the prior year [4][25] - Net sales for Q3 2025 were $108 million, a 12% increase compared to Q3 2024 [20] Business Line Data and Key Metrics Changes - In the Forged and Cast Engineered Products (FCEP) segment, net sales were $71.5 million, $6.4 million lower than Q2 2025 but $4.3 million higher than Q3 2024 [6] - FCEP segment-adjusted EBITDA was $7.1 million, $0.3 million higher than both Q2 and Q3 2024 [6] - Air & Liquid Systems Corporation reported a 26% increase in Q3 revenue compared to the prior year, with year-to-date revenue nearly 7% above the prior year [13] Market Data and Key Metrics Changes - Tariffs on imports from Europe are expected to have a neutral impact on roll demand in North America, while negatively affecting Canadian and Mexican customers [8] - The cast roll market in North America continues to exceed domestic capacity, indicating strong long-term demand [9] - Construction spending, automotive production, and canned sheet demand are expected to grow at mid-single-digit rates over the next five years [9] Company Strategy and Development Direction - The company is accelerating its exit from the U.K. facility, which is expected to improve full-year adjusted EBITDA by $7-$8 million [5][19] - The decision to wind down the Alloys Unlimited steel distribution business is aimed at improving profitability [10] - The company is focusing on addressing underperforming assets to enhance overall profitability [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong underlying performance and the strategic actions taken to transform the company [4] - The exit from the U.K. facility is expected to position the company for improved profitability moving forward [5] - Management highlighted the positive long-term growth potential in the nuclear market and strong demand from the U.S. Navy [14][16] Other Important Information - The company recorded charges totaling $3.1 million in Q3 2025 related to the exit of the U.K. cast roll business and Alloys Unlimited [18] - The liquidity position at September 30, 2025, included cash on hand of $15 million and undrawn availability on the revolving credit facility of $28.2 million [25] Q&A Session Summary Question: Clarification on U.K. closure and debt implications - Management confirmed that the insolvency process is exclusively related to the subsidiary and does not affect other segments of the company [27] Question: Pension plan evaluation - Management indicated that an evaluation of the pension plan will be conducted annually [30] Question: Capacity expansion and demand from pharmaceutical companies - Management stated that they can significantly increase throughput and are addressing this through various improvements [31] Question: Monetization from liquidation of properties - Management expects to receive approximately $8-$9 million in net proceeds from the liquidation process, which will reduce bank debt [35][36]

Financial Performance - Total net sales for Q3 2025 reached $108.009 million, a 12.5% increase from $96.166 million in Q3 2024[12] - Net loss attributable to Ampco-Pittsburgh for Q3 2025 was $2.211 million, compared to a net loss of $1.959 million in Q3 2024, reflecting a 12.9% increase in losses[12] - Operating costs for Q3 2025 were $106.886 million, a 13.4% increase from $94.296 million in Q3 2024[12] - The company reported a comprehensive loss of $2.936 million for Q3 2025, compared to a comprehensive income of $2.921 million in Q3 2024[14] - For the three months ended September 30, 2025, the net loss was $2,211 thousand, compared to a net loss of $1,959 thousand for the same period in 2024, indicating an increase in losses of approximately 12.8% year-over-year[23] - The comprehensive loss for the nine months ended September 30, 2025, was $6,484 thousand, compared to a comprehensive loss of $1,108 thousand for the same period in 2024, reflecting a significant increase in losses of approximately 584.5%[20] Assets and Liabilities - Total current assets increased to $249.539 million as of September 30, 2025, up from $236.787 million as of December 31, 2024, representing a 5.3% growth[10] - Total liabilities decreased to $449.854 million as of September 30, 2025, down from $459.805 million as of December 31, 2024, indicating a 2.3% reduction[10] - The company’s retained deficit increased to $(80.963) million as of September 30, 2025, compared to $(72.559) million as of December 31, 2024[10] - Total shareholders' equity rose to $74.559 million as of September 30, 2025, compared to $71.091 million as of December 31, 2024, reflecting a 4.0% increase[10] - Cash and cash equivalents decreased to $14.958 million as of September 30, 2025, from $15.427 million as of December 31, 2024, a decline of 3.0%[10] Cash Flow and Financing - Cash flows used in operating activities for the nine months ended September 30, 2025, were $(1,363) thousand, a decrease from cash flows provided by operating activities of $10,576 thousand in 2024[20] - The company reported net cash flows used in investing activities of $(4,507) thousand for the nine months ended September 30, 2025, compared to $(6,657) thousand in 2024, showing an improvement in cash outflows[20] - The company reported proceeds from the revolving credit facility of $27,931 thousand for the nine months ended September 30, 2025, compared to $18,396 thousand in 2024, indicating an increase of approximately 52.2%[20] - The balance of cash and cash equivalents at the end of the period on September 30, 2025, was $14,958 thousand, compared to $11,844 thousand at the end of September 30, 2024, representing an increase of approximately 26.5% year-over-year[20] Segment Performance - For the three months ended September 30, 2025, net sales for the FCEP segment were $71,467,000, an increase from $67,203,000 in the same period of 2024, representing a growth of approximately 3.4%[115] - The ALP segment reported net sales of $36,542,000 for the three months ended September 30, 2025, compared to $28,963,000 in 2024, indicating a significant increase of about 26.2%[119] - Total reportable segment net sales for the nine months ended September 30, 2025, reached $325,378,000, up from $317,369,000 in 2024, reflecting a growth of approximately 2.5%[115] - The FCEP segment incurred a loss from operations of $401,000 for the three months ended September 30, 2025, compared to a profit of $2,456,000 in the same period of 2024[119] - The ALP segment achieved a profit from operations of $4,160,000 for the three months ended September 30, 2025, an increase from $3,134,000 in 2024, representing a growth of about 32.8%[119] Pension and Employee Costs - Contributions to U.S. defined benefit pension plans were $2,488 for the nine months ended September 30, 2025, down from $4,641 in 2024[68] - The net periodic pension benefit income for U.S. defined benefit pension plans was $(533) for the three months ended September 30, 2025[69] - For the three months ended September 30, 2025, net benefit expense for foreign defined benefit pension plans was $100 million, a decrease from $153 million in the same period of 2024[70] - The company incurred a severance charge of $6,019,000 during the nine months ended September 30, 2025, which was not present in the same period of 2024[12] Impairments and Write-downs - The Corporation's investment in UES-UK was written down to an estimated fair value of approximately $0, with a non-cash impairment charge expected to range between $43,000 and $45,000 in Q4 2025[35] - The decision to exit UES-UK operations was a triggering event for evaluating potential impairments of property, plant, and equipment[39] - The Corporation expects future cash expenditures associated with the Structured Insolvency to be insignificant[35] Inventory and Assets - Total inventories as of September 30, 2025, amounted to $119,165, an increase from $116,761 as of December 31, 2024[36] - Contract assets at the end of the period were $8,905, up from $6,864 at the end of the previous year[37] - Property, plant, and equipment net value decreased to $141,285 as of September 30, 2025, from $148,056 at December 31, 2024[38] - Intangible assets net value increased to $4,609 as of September 30, 2025, compared to $4,255 at December 31, 2024[43] Debt and Borrowings - As of September 30, 2025, total outstanding borrowings amounted to $135,214, an increase from $128,580 as of December 31, 2024[48] - The Corporation's Revolving Credit Facility had outstanding borrowings of $50,530 with an average interest rate of 7.38% for the three months ended September 30, 2025[51] - The remaining availability under the Revolving Credit Facility was approximately $28,189 as of September 30, 2025[52] - The Corporation's long-term debt increased to $118,959 million as of September 30, 2025, compared to $116,394 million at the end of 2024[48] Other Financial Metrics - The balance of accumulated other comprehensive loss at September 30, 2025, was $(58,524) million, a decrease from $(67,649) million at the beginning of the year[75] - The Corporation's outstanding standby and commercial letters of credit and bank guarantees equaled $15,580 million, with more than half serving as collateral for the IRB debt[73] - The total asbestos liability at the end of the period was $186,233 million for the nine months ended September 30, 2025, down from $220,069 million in 2024, reflecting a reduction of 15.4%[103] - The insurance receivable for asbestos claims at the end of the period was $124,947 million, a decrease from $146,404 million in 2024, indicating a decline of 14.6%[104]

Core Viewpoint - Ampco-Pittsburgh Corporation will present at the IDEAS Investor Conference on November 19, 2025, in Dallas, Texas, highlighting its business and investment potential [1][3]. Company Overview - Ampco-Pittsburgh Corporation manufactures and sells high-performance specialty metal products and customized equipment for various industries globally. It operates through its subsidiary, Union Electric Steel Corporation, which is a leading producer of forged and cast rolls for the steel and aluminum industries [5]. - The company also produces open-die forged products for the steel distribution market, oil and gas industry, and aluminum and plastic extrusion industries. Additionally, it manufactures air and liquid processing equipment, including custom-engineered finned tube heat exchange coils and centrifugal pumps [5]. - Ampco-Pittsburgh operates manufacturing facilities in the United States, Sweden, and Slovenia, and has joint ventures in China, with sales offices across North America, Asia, Europe, and the Middle East [5]. Event Details - The presentation at the IDEAS Investor Conference is scheduled to begin at 7:55 am CT and will be webcasted, with an archive available on the company's website post-event [1][2]. - The IDEAS Investor Conferences aim to provide independent venues for quality companies to present their investment merits to investment professionals, with sponsors managing over $200 billion in assets [3][4].

Core Points - Ampco-Pittsburgh Corporation announced the election of David G. Anderson as the new CFO, effective January 1, 2026, succeeding Michael G. McAuley, who will transition to a Strategic Advisor role until his retirement on June 30, 2026 [1][2] - The transition is part of a succession planning process, with both McAuley and Anderson collaborating closely during this period [2] - Anderson has been with the company since 2010 and has over 35 years of experience in finance and operations leadership [2] Company Overview - Ampco-Pittsburgh Corporation manufactures and sells specialty metal products and customized equipment for various industries globally [3] - The company operates through its subsidiary, Union Electric Steel Corporation, which is a leading producer of forged and cast rolls for the steel and aluminum industries [3] - The corporation also produces air and liquid processing equipment and has manufacturing facilities in the U.S., Sweden, and Slovenia, along with joint ventures in China [3]

Market Overview - Investors are currently focused on big tech earnings, AI infrastructure spending, and the overall status of the bull market rally rather than the Federal Reserve's potential actions in December [2][3] - The market has experienced short-term volatility, but this has led to increased buying activity, particularly in the "buy the dip" strategy, which is expected to continue through the fourth quarter of 2025 [3] Bull Market Insights - The current bull market has reached its three-year anniversary, and historical trends suggest that bull markets typically continue for an average of eight years after this milestone, indicating potential for another five years of growth [4] - There is a need for a broadening of the rally to sustain the bull market, as the leaders of the past three years may not necessarily lead in the future [5] Company Spotlight: Amphenol - Amphenol, a global supplier of connectors and interconnected solutions, reported strong third-quarter results, beating earnings and revenue estimates with a year-over-year sales growth of 53% [7] - The company recently acquired Comop's cabling and connectivity solutions business for approximately $10.5 billion in cash [7] - Amphenol's stock has increased over 100% year-to-date and is currently trading at a reasonable forward price-to-earnings ratio of around 34 times [7]

[Introduction and Background](index=1&type=section&id=Introduction%20and%20Background) This section outlines the rationale for the Indemnification Agreement, emphasizing its role in attracting talent and mitigating litigation risks through contractual protection [Background and Rationale](index=1&type=section&id=Background%20and%20Rationale) The Indemnification Agreement aims to attract and retain qualified individuals by contractually protecting against litigation risks, supplementing existing inadequate safeguards - The Corporation aims to attract and retain qualified individuals by providing **adequate protection through indemnification** against risks of claims and actions[4](index=4&type=chunk)[6](index=6&type=chunk) - Existing protections (insurance, Articles of Incorporation, Bylaws) are deemed **inadequate or uncertain**, necessitating a contractual agreement[5](index=5&type=chunk)[8](index=8&type=chunk) - The agreement **supplements existing Bylaws and Articles of Incorporation**, not diminishing Indemnitee's rights[7](index=7&type=chunk) [Indemnification Provisions](index=3&type=section&id=1.%20Indemnification) This section details the conditions and scope under which the Corporation will indemnify the Indemnitee for various types of legal proceedings and expenses [Third Party and Derivative Proceedings](index=3&type=section&id=1.a.%20Third%20Party%20and%20Derivative%20Proceedings) The Corporation indemnifies the Indemnitee for expenses and liabilities in third-party or derivative proceedings if they acted in good faith and the Corporation's best interests, or without believing their conduct was unlawful in criminal cases - Indemnification covers **expenses** (e.g., attorneys' fees, court costs) and **liabilities** (e.g., judgments, penalties, fines, settlements) in civil, criminal, administrative, or investigative proceedings[9](index=9&type=chunk) - Indemnification is contingent on the Indemnitee acting in **good faith** and in a manner reasonably believed to be in, or not opposed to, the Corporation's best interests; for criminal proceedings, no reasonable cause to believe conduct was unlawful[9](index=9&type=chunk) - Termination of an action by judgment, order, settlement, or conviction does not automatically create a presumption of bad faith[9](index=9&type=chunk) [Proceedings by or in the Right of the Company](index=3&type=section&id=1.b.%20Proceedings%20by%20or%20in%20the%20Right%20of%20the%20Company) Indemnification for expenses in proceedings by or in the right of the Corporation requires good faith and acting in the Corporation's best interests, with court approval needed if the Indemnitee is adjudged liable - Indemnification covers **expenses incurred in defense or settlement** of proceedings by or in the right of the Corporation[10](index=10&type=chunk) - Indemnitee must have acted in **good faith** and in a manner reasonably believed to be in, or not opposed to, the Corporation's best interests[10](index=10&type=chunk) - If adjudged liable to the Corporation, indemnification is only permissible if a court determines it is **fair and reasonable**, despite the adjudication of liability[10](index=10&type=chunk)[11](index=11&type=chunk) [Mandatory Indemnification](index=4&type=section&id=1.c.%20Mandatory%20Indemnification) The Indemnitee is entitled to mandatory indemnification for expenses if successful on the merits or otherwise in defense of any proceeding, with settlements presumed successful - Indemnitee is mandatorily indemnified for expenses if '**successful on the merits or otherwise**' in defense of any proceeding[12](index=12&type=chunk) - Success includes termination, withdrawal, or dismissal without liability, or expiration of a reasonable period without institution of a proceeding[12](index=12&type=chunk) - A settlement or other disposition short of final judgment is **presumed successful**, with the burden of proof on the Corporation to overcome this presumption by clear and convincing evidence[12](index=12&type=chunk) [Indemnification for Expenses of a Witness](index=4&type=section&id=1.d.%20Indemnification%20for%20Expenses%20of%20a%20Witness) The Indemnitee will be indemnified for all reasonable expenses incurred when acting as a witness or responding to discovery requests in any proceeding where they are not a party, by reason of their Corporate Status - Indemnitee is indemnified for all actually and reasonably incurred expenses when serving as a witness or responding to discovery requests in a proceeding where they are not a party, due to their Corporate Status[13](index=13&type=chunk) [Limitation on Indemnification](index=4&type=section&id=1.e.%20Limitation%20on%20Indemnification) Indemnification is explicitly excluded if a court determines that the act or failure to act giving rise to the claim constituted willful misconduct or recklessness - Indemnification is not provided if a court determines the act or failure to act constituted **willful misconduct or recklessness**[14](index=14&type=chunk) [Expense Advancement and Procedures](index=4&type=section&id=2.%20Expenses%20and%20Indemnification%20Procedure) This section outlines the procedures for advancing expenses, repayment undertakings, notice requirements, payment processes, counsel selection, settlements, and provisions for changes in control [Advancement of Expenses](index=4&type=section&id=2.a.%20Advancement%20of%20Expenses) The Corporation will advance all reasonable out-of-pocket expenses incurred by the Indemnitee in connection with legal proceedings within ten days of request, including expenses for enforcing advancement rights, unless explicitly excluded - The Corporation shall advance all **reasonable out-of-pocket expenses** within ten (10) days of receiving a request[15](index=15&type=chunk) - Advances include expenses incurred pursuing the right of advancement itself[15](index=15&type=chunk) - This provision does not apply to claims excluded under Section 9[15](index=15&type=chunk) [Undertaking to Repay Expenses](index=4&type=section&id=2.b.%20Undertaking%20to%20Repay%20Expenses) The Indemnitee must repay advanced expenses if ultimately determined not entitled to indemnification, with all advances and undertakings being unsecured and interest-free - Indemnitee must repay advanced expenses if ultimately determined **not entitled to indemnification**[16](index=16&type=chunk) - Advances and repayment undertakings are **unsecured and interest-free**[16](index=16&type=chunk) [Notice and Cooperation by Indemnitee](index=4&type=section&id=2.c.%20Notice%2FCooperation%20by%20Indemnitee) The Indemnitee must provide timely written notice of any claim and cooperate, with failure to notify not relieving the Corporation of liability unless actual and material prejudice occurs - Indemnitee must provide **written notice** of any claim for indemnification as soon as practicable[17](index=17&type=chunk) - Failure to provide timely notice does not relieve the Corporation of liability unless it causes **actual and material prejudice**[17](index=17&type=chunk)[18](index=18&type=chunk) - Indemnitee must provide reasonable information and cooperation[18](index=18&type=chunk) [Procedure for Payment](index=5&type=section&id=2.d.%20Procedure) Indemnification payments must be made within 45 days of a documented request, with the Corporation bearing the burden of proof against the Indemnitee's conduct standards - Indemnification payments must be made within **45 days** of receiving a fully documented written request[19](index=19&type=chunk) - If payment is not made, Indemnitee may bring an action to recover and is entitled to expenses for such action (subject to Section 13)[19](index=19&type=chunk) - The Corporation bears the burden of proving Indemnitee did not meet conduct standards, and interim expense payments must be made unless a court finally adjudicates otherwise[19](index=19&type=chunk) [Notice to Insurers](index=6&type=section&id=2.e.%20Notice%20to%20Insurers) The Corporation must promptly notify D&O insurers of proceedings and take necessary actions to ensure payments under policies - The Corporation must promptly notify **D&O insurers** of proceedings if insurance is in effect[20](index=20&type=chunk) - The Corporation must take all necessary actions to cause insurers to pay amounts due[20](index=20&type=chunk) [Selection of Counsel](index=6&type=section&id=2.f.%20Selection%20of%20Counsel) The Corporation may assume defense with Indemnitee's consented counsel, or cover Indemnitee's reasonable counsel fees if there's a conflict, the Corporation fails to employ counsel, or in criminal proceedings - The Corporation may assume defense with Indemnitee's consented counsel, acknowledging its indemnification obligation and conducting defense diligently[21](index=21&type=chunk) - Indemnitee's reasonable counsel fees are covered by the Corporation if: (A) counsel was authorized, (B) a **conflict of interest** exists, or (C) the Corporation fails to employ counsel[21](index=21&type=chunk) - In criminal proceedings, the Indemnitee assumes defense, and the Corporation pays for separate counsel[21](index=21&type=chunk) [Settlements](index=6&type=section&id=2.g.%20Settlements) The Corporation is not liable for settlements without its written consent, and neither party can unreasonably withhold consent to a settlement providing a full release without penalty - The Corporation is not liable for settlements without its **written consent**[22](index=22&type=chunk) - Neither party will unreasonably withhold consent to a settlement that provides a **full, unqualified, and final release** of claims against Indemnitee and imposes no penalty or limitation[22](index=22&type=chunk) - The Corporation will use commercially reasonable efforts to settle joint claims on behalf of all named parties[22](index=22&type=chunk) [Change in Control](index=6&type=section&id=2.h.%20Change%20in%20Control) Upon a Change in Control, indemnification and advance determinations are made by a third party, with the Corporation bearing all associated fees and expenses - Upon a Change in Control, indemnification and advance determinations will be made by a **mutually agreed third party** or the Chief Judge of the Federal District Court for the Western District of Pennsylvania[23](index=23&type=chunk) - The Corporation will bear all fees and expenses of the third-party determination[23](index=23&type=chunk) - A 'Change in Control' is defined by existing agreements or, if none, by specific criteria including mergers/acquisitions of over **50% voting power** or shareholder approval of liquidation

Core Viewpoint - Ampco-Pittsburgh Corporation experienced a significant decline in stock performance following its earnings report, with a net loss attributed to restructuring costs and tariff-related uncertainties impacting order intake and production [1][9]. Financial Performance - For Q2 2025, Ampco-Pittsburgh reported net sales of $113.1 million, a 1.9% increase from $110.9 million year-over-year, driven by growth in forged engineered products and favorable foreign currency translation [2]. - The company posted a net loss of $7.3 million, or $0.36 per share, compared to a net income of $2 million, or $0.10 per share, in the prior year, primarily due to a $6.8 million charge related to the closure of its U.K. cast roll operations [2]. - Adjusted EBITDA for the quarter was $7.9 million, down 21.2% from $10.1 million, with margins contracting to 7.1% from 9.1% [3]. Segment Performance - The Forged and Cast Engineered Products segment generated $77.9 million in revenues, up 2.9% from $75.7 million, although margins were negatively impacted by lower forged roll demand [4]. - The Air and Liquid Processing (ALP) segment reported revenues of $35.2 million, a slight decrease of 0.2% from $35.3 million, but improved profitability was noted due to a stronger product mix and demand from nuclear and military markets [4]. Cost and Expense Analysis - Costs of products sold increased by 4.9% to $91.9 million from $87.7 million, driven by higher manufacturing costs and lower production rates [5]. - Selling and administrative expenses decreased by 4.3% to $12.9 million from $13.6 million, while depreciation rose due to accelerated write-downs associated with the U.K. plant closure [5]. Management Insights - CEO Brett McBrayer highlighted that tariff-related volatility significantly affected order intake and production, with customers in the roll market pausing orders due to uncertainty over U.S. tariff levels [7]. - CFO Michael McAuley noted that the restructuring charge masked underlying progress, particularly in the ALP segment, which achieved its highest year-to-date adjusted EBITDA [8]. Future Outlook - Management indicated an improved operating environment for 2026, citing tariff clarity and the benefits of restructuring, with expectations of at least a $5 million uplift to annual operating income post-U.K. exit [11]. - The decision to exit the U.K. cast roll business is projected to reduce revenue by approximately $20 million to $25 million annually, with plans to reallocate production to Sweden [12].

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $8 million for Q2 2025, a decline of $2.1 million compared to the prior year, primarily due to lower margins in the forged and cast engineered products segment [5][22] - Net sales for 2025 were $113.1 million, an increase of 2% compared to 2024, driven by higher sales of forged engineered products and favorable FX translation [21][22] - The net loss attributable to Ampco Pittsburgh for Q2 2025 was $7.3 million, or $0.36 per share, which includes $6.8 million related to the UK exit charge [24] Business Line Data and Key Metrics Changes - The Forged and Cast Engineered Products segment reported net sales of $77.9 million, a 3% increase compared to 2024, but adjusted EBITDA decreased by $1.5 million to $6.8 million [7][22] - The Air and Liquid Processing segment saw a 15% increase in adjusted EBITDA, reaching $3.9 million in Q2, with year-to-date adjusted EBITDA of $7.7 million, the highest in the segment's history [6][16] Market Data and Key Metrics Changes - Demand in North America and Europe for flat rolled products remains weak, with many U.S. customers postponing purchases due to tariff uncertainty [9][10] - The baseline tariff for U.S. imports from Sweden and Slovenia increased to 15%, impacting short-term expectations but not long-term fundamentals [10][12] Company Strategy and Development Direction - The company is winding down operations at its UK facility, expecting a minimum of $5 million improvement in operating income on an annualized basis once complete [6][21] - The company is focusing on reshoring opportunities in tool steel and distribution products, while maintaining pricing discipline and cost control measures [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the pause in customer orders was due to tariff clarity, but they expect improved order activity as uncertainties are resolved [30][46] - The long-term fundamentals remain strong, with expectations for growth in construction spending, automotive production, and can sheet demand at mid-single-digit rates over the next five years [11][12] Other Important Information - The company recorded $6.8 million in expenses related to the UK exit charge, impacting various expense line items on the consolidated P&L [21][24] - The company amended and extended its credit agreement, increasing available liquidity to support global working capital needs [25] Q&A Session Summary Question: Insights on the role market and potential demand - Management indicated that the second half of the year will see lighter shipments due to fewer days and holidays, but there has been a slight uptick in order activity from large customers [29][30] Question: Impact of UK facility closure on revenues - The closure is expected to reduce revenues by approximately $25 million to $30 million, with some offset from converting products [44]

[Ampco-Pittsburgh Corporation Q2 2025 Earnings Release](index=1&type=section&id=Ampco-Pittsburgh%20Corporation%20Q2%202025%20Earnings%20Release) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Ampco-Pittsburgh reported Q2 2025 net sales of $113.1 million, swinging to an operating and net loss primarily due to a $6.8 million U.K. exit charge [Overall Results (Q2 & H1 2025)](index=1&type=section&id=Overall%20Results%20%28Q2%20%26%20H1%202025%29) The company reported a slight increase in Q2 2025 net sales but swung to an operating and net loss, primarily due to a U.K. exit charge | Financial Metric | Three Months Ended June 30, 2025 ($ in millions) | Three Months Ended June 30, 2024 ($ in millions) | Six Months Ended June 30, 2025 ($ in millions) | Six Months Ended June 30, 2024 ($ in millions) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $113.1 | $111.0 | $217.4 | $221.2 | | (Loss) Income from Operations | ($3.1) | $5.0 | $0.8 | $5.1 | | Net (Loss) Income Attributable to Ampco-Pittsburgh | ($7.3) | $2.0 | ($6.2) | ($0.7) | | Diluted (Loss) Earnings Per Share | ($0.36) | $0.10 | ($0.31) | ($0.04) | - The Q2 2025 operating loss of **$3.1 million** was primarily driven by **$6.8 million** in costs associated with the exit of its U.K. cast roll operations[3](index=3&type=chunk) - Higher sales of forged engineered products and favorable foreign exchange translation were offset by weaker mill roll sales, while Air and Liquid Processing sales remained stable year-over-year[2](index=2&type=chunk) [Adjusted EBITDA](index=1&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA declined in Q2 2025 due to lower FCEP margins but improved year-to-date from ALP segment profitability | Period | Adjusted EBITDA ($ in millions) | Change from Prior Year ($ in millions) | | :--- | :--- | :--- | | Q2 2025 | $8.0 | -$2.1 | | H1 2025 | $16.8 | +$1.6 | - The decline in Q2 Adjusted EBITDA was attributed to lower margins in the Forged and Cast Engineered Products (FCEP) segment, which suffered from higher manufacturing costs, a weaker sales mix, and lower cost absorption[4](index=4&type=chunk) - The year-to-date improvement in Adjusted EBITDA was primarily due to improved profitability in the Air and Liquid Processing (ALP) segment[4](index=4&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management noted Q2 volatility from U.S. tariffs impacting results and backlog, expecting improvement in 2026 post-U.K. exit - CEO Brett McBrayer stated that volatility from U.S. tariff actions negatively impacted results and the order book in Q2[5](index=5&type=chunk) - Backlog in the Forged and Cast Engineered Products segment declined **9%** from March 31, 2025, as customers paused orders amid tariff uncertainty[5](index=5&type=chunk) - The company expects an improved environment in 2026 following the U.K. exit and greater clarity on trade policy[6](index=6&type=chunk) [Strategic Business Updates](index=1&type=section&id=Strategic%20Business%20Updates) The company is exiting its U.K. cast roll operations, incurring **$6.8 million** in Q2 2025 costs, expecting to improve annual operating income by at least **$5 million** [U.K. Cast Roll Operations Exit](index=1&type=section&id=U.K.%20Cast%20Roll%20Operations%20Exit) The company recorded **$6.8 million** in Q2 2025 costs to exit its U.K. cast roll operations, anticipating at least **$5 million** annual earnings improvement - In Q2 2025, the company recorded expenses of **$6.8 million** for severance, accelerated depreciation, and other costs to exit its U.K. cast roll operations[3](index=3&type=chunk)[5](index=5&type=chunk) - The exit is expected to improve annual earnings by at least **$5 million**[5](index=5&type=chunk)[6](index=6&type=chunk) - The net loss for Q2 and H1 2025 includes the **$6.8 million** charge, which equates to **$0.34 per share**[9](index=9&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) FCEP segment profitability declined in Q2 2025 due to higher costs and weaker sales mix, while ALP segment profitability improved from a better sales mix [Forged and Cast Engineered Products (FCEP)](index=1&type=section&id=Forged%20and%20Cast%20Engineered%20Products%20%28FCEP%29) FCEP segment margins were negatively impacted by higher manufacturing costs, a weaker sales mix, and lower cost absorption - FCEP segment margins were negatively affected by higher manufacturing costs relative to pricing, a weaker sales mix, and lower manufacturing cost absorption[4](index=4&type=chunk) | FCEP Segment | Q2 2025 ($ in millions) | Q2 2024 ($ in millions) | | :--- | :--- | :--- | | Net Sales | $77.9 | $75.7 | | Adjusted Income from Operations | $6.8 | $9.8 | | Adjusted Margin from Operations | 11.16% | 12.96% | [Air and Liquid Processing (ALP)](index=1&type=section&id=Air%20and%20Liquid%20Processing%20%28ALP%29) The ALP segment's profitability improved primarily due to a better sales mix, despite a slight decrease in adjusted margin - The ALP segment's profitability improved primarily due to a better sales mix[4](index=4&type=chunk) | ALP Segment | Q2 2025 ($ in millions) | Q2 2024 ($ in millions) | | :--- | :--- | :--- | | Net Sales | $35.2 | $35.3 | | Adjusted Income from Operations | $3.9 | $3.4 | | Adjusted Margin from Operations | 8.68% | 9.69% | [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) Detailed financial tables present Q2 2025 consolidated net loss of **$7.3 million** and reconciliations from GAAP to non-GAAP measures, including Adjusted EBITDA [Financial Summary (Consolidated)](index=5&type=section&id=Financial%20Summary%20%28Consolidated%29) The consolidated financial summary shows a Q2 2025 net loss of **$7.3 million**, a significant shift from prior year net income Consolidated Financial Summary (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total net sales | $113,104 | $110,988 | | (Loss) income from operations | $(3,078) | $5,043 | | Net (loss) income attributable to Ampco Pittsburgh | $(7,335) | $2,012 | | Diluted Net (loss) income per share | $(0.36) | $0.10 | [Reconciliation of Net Income to Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section reconciles GAAP net loss to Adjusted EBITDA, detailing adjustments for interest, taxes, depreciation, and exit costs Q2 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss) income (GAAP) | $(6,720) | $2,552 | | Adjustments: | | | | Interest expense | $2,825 | $3,017 | | Other income – net | $225 | $(1,389) | | Income tax provision | $592 | $863 | | Depreciation and amortization | $5,368 | $4,698 | | Severance and other exit costs | $6,096 | $0 | | Employee retention credits | $(735) | $0 | | Stock-based compensation | $332 | $388 | | **EBITDA, as adjusted (Non-GAAP)** | **$7,983** | **$10,129** | [Reconciliation of Income from Operations to Adjusted Income from Operations (by Segment)](index=7&type=section&id=Reconciliation%20of%20Income%20from%20Operations%20to%20Adjusted%20Income%20from%20Operations%20%28by%20Segment%29) This reconciliation details segment-level adjustments from GAAP income from operations to adjusted income from operations Q2 Adjusted Income from Operations Reconciliation (in thousands) | Segment | (Loss) Income from Operations (GAAP) | Adjustments | Income from Operations, as adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | FCEP | $(3,963) | $10,724 | $6,761 | | ALP | $3,922 | $(279) | $3,927 | | Corporate | $(3,037) | $332 | $(2,705) | | **Consolidated** | **$(3,078)** | **$11,061** | **$7,983** | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides investor details, including conference call logistics, corporate overview, forward-looking statements disclaimer, and non-GAAP financial measures explanation [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Details for the Q2 2025 financial results conference call are provided for investor access - A conference call to discuss Q2 2025 financial results was scheduled for Wednesday, August 13, 2025, at **10:30 a.m. Eastern Time (ET)**[10](index=10&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section explains the use of non-GAAP measures like Adjusted EBITDA to evaluate operating performance and identify trends - The company uses non-GAAP measures like Adjusted EBITDA and Adjusted Income from Operations to help management and investors evaluate operating performance and identify underlying business trends[18](index=18&type=chunk)[19](index=19&type=chunk) - For Q2 2025, key adjustments from GAAP measures include the exclusion of severance and other exit costs related to the U.K. operations and the inclusion of employee-retention credits[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various risks, including economic downturns and geopolitical conflicts - The report contains forward-looking statements regarding future performance, which are subject to various risks and uncertainties, including economic downturns, restructuring challenges, commodity price increases, and geopolitical conflicts[15](index=15&type=chunk)