Core Viewpoint - The conference call is focused on the Q4 2025 earnings report of Allied Properties REIT, with an emphasis on the company's performance and future outlook [2][5]. Group 1: Company Performance - The call is led by Cecilia Williams, the President and CEO, indicating a leadership presence in discussing the company's financial results [2]. - The company will discuss non-IFRS financial measures to provide a clearer understanding of its performance trends [4]. Group 2: Forward-Looking Statements - The management will make forward-looking statements regarding future events and performance, which are based on current expectations and subject to various risks and uncertainties [3]. - Material assumptions underlying these forward-looking statements will be referenced in the 2025 annual report [3]. Group 3: Conference Call Structure - There will be no question-and-answer session during this call due to the concurrent equity offering announced by the company [5].

Ampco-Pittsburgh Conference Call Summary Company Overview - **Company Name**: Ampco-Pittsburgh - **Ticker**: AP - **Founded**: 1929 - **Segments**: - Forged and cast engineered products - Air and liquid processing - **2024 Revenue**: Approximately $400 million - **Employees**: About 1,500 [1][2] Core Business Insights Forged and Cast Engineered Products - **Market Position**: Global leader in forged and cast rolls for steel and aluminum rolling mills, primarily in North America and Europe [2][4] - **Revenue Contribution**: Revenue from rolling mill rolls is estimated at $250-$300 million, with the global market for rolling mill rolls around $2 billion annually [8][9] - **Customer Base**: Major customers include U.S. Steel, Steel Dynamics, and Cleveland-Cliffs [5][11] - **Production Facilities**: Operations in the U.S., Sweden, and Slovenia, with a joint venture in China [6][10] - **Market Dynamics**: The company expects $7-$8 million annual EBITDA improvement from the business reset, focusing on operational efficiencies and growth [3][16] Air and Liquid Processing - **Business Segments**: - Aerofin: Heat exchange products for nuclear power and industrial processes - Buffalo Air Handling: Custom air handling units for specialized environments - Buffalo Pumps: Centrifugal pumps primarily for the U.S. Navy and power generation [17][18] - **Growth**: 55% revenue growth over the last three years, with continued expansion expected [18][19] - **Strategic Importance**: Long-term supplier to the U.S. Navy, with significant investments to modernize facilities [20][21] Financial Performance - **EBITDA Improvement**: Anticipated annualized improvement of $7-$8 million from exiting underperforming assets [23][24] - **Debt Leverage**: Expected to improve as the company modernizes plants and exits unprofitable operations [23][24] - **Pension Plan**: Moving towards a fully funded status, which will positively impact financial health [24] Market Trends and Opportunities - **End Market Growth**: Major end markets projected to grow 3-5% over the next five years, contrasting with previous years of flat or declining growth [15][24] - **Tariff Impact**: Anticipated increase in demand due to tariff changes in Europe, potentially increasing demand by 10%-15% [14][28] - **Nuclear and Navy Markets**: Significant growth opportunities in the nuclear sector and U.S. Navy contracts, with barriers to entry providing competitive advantages [19][21] Risks and Challenges - **Market Demand Fluctuations**: Previous delays in roll purchases due to tariffs and market conditions, but signs of improvement are noted [28][29] - **Competitive Landscape**: Limited competition in the U.S. for rolling mill rolls, but ongoing monitoring of competitors like Villares is necessary [9][34] Conclusion - **Future Outlook**: Positive growth trajectory anticipated, with a focus on improving performance, reducing debt, and capitalizing on market opportunities in both segments [36]

Core Viewpoint - Ampco-Pittsburgh Corporation has shown significant stock performance, with a 155.8% increase over the past three months, outperforming both the industry and major indices [1][7]. Financial Performance - The company announced promising third-quarter 2025 results, reporting year-over-year revenue growth and improved profitability, driven by stronger demand and improved margins in the Air and Liquid Processing (ALP) segment [2]. - Performance was supported by pricing and shipments of forged engineered products, which helped offset softer roll volumes [2]. Market Conditions - Management noted steady demand across key end markets and easing supply-chain conditions, expecting recent portfolio rationalization actions to enhance profitability [3]. - Despite challenges such as tariff-related uncertainty and macroeconomic risks, the favorable share price movement suggests the company may maintain positive market momentum [8]. Business Segments - Ampco-Pittsburgh operates through its Forged and Cast Engineered Products and ALP segments, supplying a range of products to a diversified global customer base, with demand supported by various industrial sectors [9]. - The company is benefiting from strengthening demand in the ALP segment, particularly in pumps, heat exchangers, and custom air-handling systems, supported by nuclear power projects and U.S. Navy programs [12]. Strategic Actions - Ongoing portfolio rationalization and strategic exits from underperforming operations are expected to improve profitability and investor confidence [10][11]. - The company has implemented better product mix, pricing actions, and cost control initiatives, contributing to margin expansion and a stable financial outlook [13]. Challenges - Ampco-Pittsburgh faces challenges from tariff-related uncertainties and operational disruptions, which may lead to variability in performance despite supportive underlying demand [14]. Valuation - The company's trailing 12-month EV/Sales ratio of 0.5X is lower than the industry average of 1.9X, indicating that the market has not fully priced in the improving fundamentals [15][18]. - Comparatively, peers Friedman and TechPrecision have trailing 12-month EV/Sales ratios of 0.3X and 1.5X, respectively [16]. Investment Outlook - The company appears well-positioned for future growth, supported by operational improvements and a focused business portfolio, which may attract both existing and new investors [17][20].

Core Viewpoint - Ampco-Pittsburgh Corporation is transitioning from a multi-year reset with a streamlined business model, improved pricing discipline, and increased exposure to resilient end markets, leading to a fundamentally enhanced earnings base [1] Group 1: Business Strategy and Operations - The company has exited unprofitable operations, including the U.K. cast roll facility and a small steel distribution operation, which has improved its earnings outlook by eliminating recurring losses [4][5] - Management has successfully passed tariff-related costs to customers in the Forged and Cast Engineered Products segment, preserving margins despite trade policy uncertainties [2][3] - The Air and Liquid Processing (ALP) segment is benefiting from strong demand in pharmaceuticals, nuclear infrastructure, and defense, providing a more stable revenue mix [6][7] Group 2: Financial Performance and Valuation - Despite operational improvements, Ampco-Pittsburgh's stock valuation remains low compared to peers, trading at a fraction of peer multiples on sales and book value [9][10] - Pro-forma earnings indicate potential for significant growth in adjusted EBITDA as cost savings from exited businesses materialize and ALP performance strengthens [10] - The market has not yet fully recognized the durability of Ampco-Pittsburgh's reshaped portfolio, as valuation metrics have remained near historical lows [9][14] Group 3: Market Dynamics and Future Outlook - The company is positioned to deliver steadier earnings with reduced downside volatility, supported by a focused operating base and strong end-market demand [13][14] - The ALP segment's focus on engineered products tied to long-term investment cycles enhances the company's strategic direction and growth visibility [6][13]

Group 1 - Northbound Returns shows a strong interest in real assets, financials, and insurance sectors [1] - The company has a deep understanding of the Canadian investment universe, having worked for one of the largest Canadian banks in equity research [1]

Core Viewpoint - Ampco-Pittsburgh Corporation (AP) is facing financial challenges but shows potential for undervaluation based on its price-to-sales and enterprise value metrics [3][5]. Financial Performance - The company has a negative price-to-earnings (P/E) ratio of -9.69, indicating ongoing losses [3][5]. - The price-to-sales ratio stands at 0.12, suggesting the stock may be undervalued relative to its sales [3][5]. - The enterprise value to sales ratio is 0.41, further supporting the perspective of potential undervaluation [3][5]. Financial Health - The enterprise value to operating cash flow ratio is 28.99, indicating limited cash flow coverage for its enterprise value [4]. - The debt-to-equity ratio is 2.33, highlighting a significant reliance on debt [4][5]. - A current ratio of 1.84 suggests that the company has sufficient liquidity to meet its short-term obligations [4][5]. Insider Activity - Director McNair Darrell L purchased 3,000 shares at $2.52 each, increasing his total holdings to 63,912 shares, signaling confidence in the company [2][5].

Summary of Ampco-Pittsburgh Conference Call Company Overview - **Company Name**: Ampco-Pittsburgh Corporation - **Founded**: 1929 - **Employees**: Approximately 1,500 - **Annual Revenue**: Over $400 million - **Market Capitalization**: Over $50 million - **Segments**: - Forging, Casting, and Product Segment - Air and Liquid Processing Segment - **Market Position**: - Number one in North America and Europe for forging and casting products - Number one in North America for heat exchangers in nuclear power plants [2][3] Core Business Insights - **Strategic Focus**: - Exit unprofitable assets, resulting in improved EBITDA from $78 million to a stronger position [3] - Growth in Air and Liquid Processing and operational efficiencies [3] - **Market Presence**: - 90% of nuclear power plants in North America utilize their products [3] - Leading producer of pumps for the U.S. military [3] Segment Analysis Forging, Casting, and Product Segment - **Sales Distribution**: 70% of sales in North America and Europe [4] - **Product Types**: - Backup rolls, work rolls, and forged engineered products [4] - 90% of sales are rolls, with a market size of approximately $2 billion [8] - **Tariff Impact**: - Tariffs increased from 25% to 50%, creating barriers for imports and benefiting domestic sales [5][9] - **Competitors**: - Major competitors include Lehigh Heavy Forge, Superior Steel, and Villares [9] - **Market Growth**: - Anticipated growth in steel and aluminum markets will increase demand for rolls [7][13] Air and Liquid Processing Segment - **Key Businesses**: - Aerofin (custom heat exchangers), Buffalo Air Handling (air handling units), Buffalo Pumps (custom pumps) [15] - **Market Growth**: - 55% revenue growth over the last three years, with significant barriers to entry [16][17] - **Key Customers**: - Major clients include Eli Lilly, Merck, Johnson & Johnson, and the U.S. Navy [15][16] - **Nuclear Market**: - Growth driven by the restart of nuclear plants and the emergence of small modular reactors [19] Financial Performance - **Recent Developments**: - Exited underperforming businesses, including a facility in the U.K. [23] - Anticipated increase in adjusted EBITDA by $7-8 million due to the exit of underperforming assets [24] - **Balance Sheet Improvements**: - U.S. pension plan nearing 100% funding, with a roadmap to reduce leverage from 4.0 to 3.0 [26][27] - **Future Projections**: - Expected continued growth in adjusted EBITDA and margins [24][29] Market Trends and Opportunities - **European Market Changes**: - Europe is reducing import quotas and increasing tariffs, which will benefit Ampco-Pittsburgh [12][13] - **End Market Growth**: - Mid-single-digit growth projected in key end markets over the next five years [13] - **International Expansion**: - Active steps to expand into markets outside North America, including partnerships in Australia [38] Additional Insights - **Operational Efficiency**: - Investment of approximately $30 million in equipment modernization to enhance reliability and efficiency [11] - **Customer Base**: - Top 10 customers account for roughly half of revenue, indicating a concentrated customer base [10] - **Margin Improvements**: - Recent pricing increases in the U.S. market for forged rolls, with margins improving significantly [39] This summary encapsulates the key points discussed during the conference call, highlighting Ampco-Pittsburgh's strategic direction, market position, financial performance, and growth opportunities.

Core Viewpoint - Ampco-Pittsburgh Corporation (AP) has demonstrated significant financial improvement in its third-quarter 2025 results, with a notable stock performance that outpaced the S&P 500 Index, indicating strong market confidence in the company's strategic direction and operational efficiency [1][2]. Financial Performance - Net sales increased by 12.3% to $108 million from $96.2 million year-over-year, driven by higher shipment volumes in the Air and Liquid Processing (ALP) segment and improved pricing in the Forged and Cast Engineered Products (FCEP) segment [2]. - Adjusted EBITDA rose 34.9% to $9.2 million from $6.8 million, with the adjusted EBITDA margin expanding to 8.53% from 7.10% in the prior year [2]. - Adjusted earnings per share improved to $0.04, a $0.14 increase from a loss of $0.10 per share in the previous year [3]. Segment Performance - The ALP segment achieved a revenue increase of 26.2% to $36.5 million, with adjusted EBITDA rising 31% to $4.4 million, supported by strong demand in nuclear, naval, and pharmaceutical markets [4]. - In the FCEP segment, net sales were $71.5 million, a 6.3% increase from $67.2 million, although sequentially lower due to typical summer shutdowns [5]. Cost Management - Company-wide selling and administrative expenses decreased by 4.5% year-over-year, attributed to lower employee-related costs [6]. - Interest expenses remained stable, and the income tax provision decreased due to a reduced statutory tax rate in one foreign jurisdiction [6]. Management Insights - Management highlighted that the strengthened operating performance and strategic exit decisions position the company for sustainably higher profitability, with expectations of increased adjusted EBITDA by $7 million–$8 million from the U.K. exit [7]. - There is growing momentum in multiple end markets, particularly in nuclear power and pharmaceutical manufacturing, which are expected to drive long-term demand [7]. Future Outlook - The company anticipates gradual normalization in roll ordering patterns and expects to benefit from broader industrial trends, including construction spending and automotive production [8]. - The accelerated exit from the U.K. cast roll facility and the planned exit from a small steel distribution business are expected to materially improve profitability starting in the fourth quarter of 2025 [12]. Restructuring Actions - Key restructuring actions included placing the U.K. cast roll plant into administration to halt further losses and initiating the exit from the Alloys Unlimited steel distribution business [13]. - The liquidation of the U.K. facility is expected to generate $8 million–$9 million in proceeds to reduce revolver borrowings [13].

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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]