Financial Data and Key Metrics Changes - Ampco Pittsburgh Corporation reported earnings per common share of $0.06 for Q1 2025, an improvement of $0.20 compared to the prior year quarter [4] - Adjusted EBITDA for the quarter was $8,800,000, up from $5,100,000 in Q1 2024, indicating significant EBITDA improvements across both segments [4] - Consolidated net sales for Q1 2025 were $104,300,000, a decline of approximately 5% compared to Q1 2024, but a 3% increase sequentially versus Q4 2024 [24] - Net income attributable to Ampco Pittsburgh for Q1 2025 was $1,100,000, compared to a net loss of $2,700,000 in the prior year, reflecting a $0.20 per share EPS improvement [27] Business Segment Data and Key Metrics Changes - The Forged and Cast Engineered Products segment reported net sales of $72,300,000 for Q1 2025, down from $77,720,000 in Q1 2024, but segment EBITDA improved to $8,270,000 from $6,000,000 [8] - The Air and Liquid Systems segment had record order intake driven by the nuclear market, with adjusted EBITDA increasing to $3,800,000 from $2,200,000 in the prior year [15][21] Market Data and Key Metrics Changes - Global steel demand remains soft but stable in North America and Europe, with U.S. tariffs on rules currently limited to a baseline of 10% [9][10] - The company expects to benefit from the tariffs as they create a significant tailwind for the domestic FEP business, with projected sales and margins rising from $11,800,000 in 2024 [12][13] Company Strategy and Development Direction - The company is focused on enhancing profitability through pricing, operational efficiency, and disciplined management of external risks, including tariffs and geopolitical uncertainties [13] - There is a strong emphasis on the nuclear market, with expectations for record levels of orders and shipments, particularly for heat exchangers [16][21] Management's Comments on Operating Environment and Future Outlook - Management anticipates some near-term impacts in Q2 due to market reactions to recent tariffs but intends to protect margins by passing costs to customers [5] - The company remains optimistic about the future, particularly in the nuclear sector, and expects continued strong demand from the U.S. Navy for pumps [18][21] Other Important Information - The total backlog as of March 31, 2025, was $368,500,000, an increase of 6% compared to the previous year [27] - The company made a pension contribution of $800,000 during the quarter, with capital expenditures of $2,200,000 [28] Q&A Session Summary Question: No questions were registered during the Q&A session - The operator noted that there were no questions from participants, and the session concluded without any inquiries [29][30]

Financial Data and Key Metrics Changes - Ampco Pittsburgh Corporation reported earnings per common share of $0.06 for Q1 2025, an improvement of $0.20 compared to the prior year quarter [4] - Adjusted EBITDA for the quarter was $8,800,000, up from $5,100,000 in Q1 2024, indicating significant EBITDA improvements across both segments [4] - Consolidated net sales for Q1 2025 were $104,300,000, a decline of approximately 5% compared to Q1 2024, but a 3% increase sequentially versus Q4 2024 [24] - Net income attributable to Ampco Pittsburgh for Q1 2025 was $1,100,000, compared to a net loss of $2,700,000 in the prior year [26] Business Segment Data and Key Metrics Changes - The Forged and Cast Engineered Products segment reported net sales of $72,300,000 for Q1 2025, down from $77,720,000 in Q1 2024, but segment EBITDA improved to $8,270,000 from $6,000,000 [7][8] - The Air and Liquid Systems segment had record order intake driven by the nuclear market, with adjusted EBITDA increasing to $3,800,000 from $2,200,000 in the prior year [15][21] Market Data and Key Metrics Changes - Global steel demand remains soft but stable in North America and Europe, with U.S. tariffs on rolls currently at 10% [9] - The company expects to benefit from the reduction of tariffs on imports from the U.S. to China, which will relieve pressure on shipments [10] - The total backlog as of March 31, 2025, was $368,500,000, a 6% increase compared to the previous year [26] Company Strategy and Development Direction - The company aims to protect margins by passing through negative effects of tariffs to customers [5] - There is a focus on enhancing profitability through pricing, operational efficiency, and disciplined management of external risks, including tariffs and geopolitical uncertainties [12] - The company is positioned to benefit from growth opportunities in the distribution of bar and block products as imports face new costs [12] Management's Comments on Operating Environment and Future Outlook - Management expects some near-term impacts in Q2 due to market and supply chain reactions to recent tariffs but remains optimistic about margin protection [5] - The nuclear market is seen as a preferred power option, with expectations for record levels of orders and shipments in the coming year [17] - Management acknowledges potential short-term supply chain issues due to tariffs but believes they could lead to increased demand for products in the long term [21] Other Important Information - The company implemented a change in non-GAAP measures reporting, now focusing on adjusted EBITDA instead of consolidated adjusted operating income [23] - Total selling and administrative expenses increased by 5% year-over-year due to inflationary pressures [25] - The company made a pension contribution of $800,000 during the quarter [28] Q&A Session Summary Question: No questions were registered during the Q&A session - The session concluded without any questions being asked [30][32]

Part I – Financial Information [Item 1 – Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements%20%28Unaudited%29) The unaudited Q1 2025 financial statements reflect a shift to profitability, a slight increase in total assets, and a significant cash outflow from operating activities [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, indicates a slight increase in total assets, primarily due to higher receivables and inventories, alongside a rise in shareholders' equity Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $7,129 | $15,427 | | Trade receivables, net | $82,537 | $70,611 | | Inventories | $124,183 | $116,761 | | Total current assets | $246,490 | $236,787 | | Total assets | $536,193 | $530,896 | | **Liabilities & Equity** | | | | Total current liabilities | $132,577 | $125,216 | | Long-term debt | $115,048 | $116,394 | | Asbestos liability | $176,317 | $183,092 | | Total liabilities | $458,523 | $459,805 | | Total shareholders' equity | $77,670 | $71,091 | | Total liabilities and shareholders' equity | $536,193 | $530,896 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q1 2025 statements of operations show a significant turnaround to **$1.1 million net income** from a prior-year loss, driven by increased operating income despite lower net sales Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total net sales | $104,265 | $110,215 | | Income from operations | $3,850 | $82 | | Net income (loss) | $1,891 | $(2,206) | | Net income (loss) attributable to Ampco-Pittsburgh | $1,142 | $(2,717) | | Diluted EPS | $0.06 | $(0.14) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 cash flows show a **$5.3 million net cash outflow from operations**, primarily due to working capital investments, resulting in an overall **$8.3 million decrease in cash and cash equivalents** Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(5,280) | $4,535 | | Net cash used in investing activities | $(1,711) | $(2,845) | | Net cash (used in) provided by financing activities | $(1,727) | $2,028 | | Net (decrease) increase in cash | $(8,298) | $3,543 | | Cash and cash equivalents at end of period | $7,129 | $10,829 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, financial line items, debt structure, asbestos liabilities, and segment reporting for the Forged and Cast Engineered Products (FCEP) and Air and Liquid Processing (ALP) segments - The Corporation operates in two business segments: Forged and Cast Engineered Products (FCEP) and Air and Liquid Processing (ALP)[23](index=23&type=chunk) Debt Composition (in thousands) | Debt Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving credit facility | $55,000 | $56,000 | | Sale-leaseback financing obligations | $45,674 | $45,451 | | Equipment financing facility | $16,262 | $16,782 | | Industrial Revenue Bonds | $9,191 | $9,191 | | Total Borrowings | $127,258 | $128,580 | Asbestos Liability and Insurance Receivable Activity (in thousands) | Metric | Three Months Ended March 31, 2025 | | :--- | :--- | | Asbestos liability, beginning of year | $207,092 | | Settlement and defense costs paid | $(6,775) | | Asbestos liability, end of period | $200,317 | | Insurance receivable, beginning of year | $139,295 | | Costs paid by insurance carriers | $(4,408) | | Insurance receivable, end of period | $134,887 | [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved operating income, despite lower sales, to better pricing, product mix, and manufacturing efficiencies across both segments, while consolidated backlog decreased and cash outflow from operations occurred Selected Financial Information (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | | | | | FCEP | $72,287 | $77,189 | $(4,902) | | ALP | $31,978 | $33,026 | $(1,048) | | Consolidated | $104,265 | $110,215 | $(5,950) | | **Income from Operations** | | | | | FCEP | $3,905 | $1,576 | $2,329 | | ALP | $3,494 | $1,982 | $1,512 | | Consolidated | $3,850 | $82 | $3,768 | - Consolidated backlog decreased to **$368.5 million** as of March 31, 2025, from **$378.9 million** at the end of 2024. The decrease was driven by the FCEP segment, partially offset by an increase in the ALP segment's backlog[118](index=118&type=chunk)[120](index=120&type=chunk) - Gross margin improved to **21.3%** from **16.1%** in the prior year, attributed to better performance in both the FCEP and ALP segments[121](index=121&type=chunk) [Net Sales and Operating Results by Segment](index=31&type=section&id=Net%20Sales%20and%20Operating%20Results%20by%20Segment) FCEP segment sales declined but operating income surged due to pricing and efficiencies, while ALP segment sales dipped slightly but operating income improved from a favorable product mix [Forged and Cast Engineered Products](index=31&type=section&id=Forged%20and%20Cast%20Engineered%20Products) FCEP segment net sales decreased to **$72.3 million** due to lower volume, yet income from operations significantly increased to **$3.9 million** from improved pricing and efficiencies, while backlog declined - Key drivers for the decline in net sales include: Lower volume and changes in product mix for roll sales (~**$6.3 million** decrease). Unfavorable foreign exchange rates (~**$1.0 million** decrease). Partially offset by higher base pricing (~**$2.5 million** increase)[131](index=131&type=chunk) - The increase in income from operations was primarily due to: Benefit from improved pricing and manufacturing costs (~**$5.2 million** increase). Better manufacturing absorption and operational efficiencies (~**$0.5 million** increase). Partially offset by lower shipment volumes (~**$2.6 million** decrease)[130](index=130&type=chunk) [Air and Liquid Processing](index=32&type=section&id=Air%20and%20Liquid%20Processing) ALP segment net sales slightly decreased to **$32.0 million** due to shipment timing, but operating income substantially improved to **$3.5 million** from a favorable product mix, and backlog grew - Net sales were impacted by lower air handling unit sales (~**$1.9 million** decrease), offset by higher sales of heat exchange coils (~**$0.7 million** increase) and centrifugal pumps (~**$0.1 million** increase)[137](index=137&type=chunk) - The improvement in operating income of approximately **$1.5 million** was principally due to changes in product mix, partially offset by lower shipment volume and higher manufacturing costs[134](index=134&type=chunk) - Backlog improved across all product lines, with heat exchange coils increasing by **$4.5 million** due to record orders in the nuclear market[134](index=134&type=chunk)[137](index=137&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by **$8.3 million** due to operating cash outflow and working capital investment, with liquidity expected from existing funds, future cash, and a revolving credit facility under renegotiation - Net cash used in operating activities of **$5.3 million** was primarily due to a higher investment in trade working capital of approximately **$12.7 million**[143](index=143&type=chunk)[147](index=147&type=chunk) - Net cash used in investing activities decreased to **$1.7 million** from **$2.8 million** in the prior year, mainly due to lower capital spending in the FCEP segment following the completion of a major capital program[146](index=146&type=chunk) - As of March 31, 2025, remaining availability under the revolving credit facility was approximately **$28.6 million**. The facility matures on June 29, 2026, and the Corporation is currently in discussions with lenders to secure a new multi-year arrangement[151](index=151&type=chunk)[152](index=152&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is noted as not applicable for the current reporting period - The company has indicated that quantitative and qualitative disclosures about market risk are not applicable in this filing[157](index=157&type=chunk) [Item 4 – Controls and Procedures](index=37&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of the end of the reporting period, the principal executive officer and principal financial officer concluded that the Corporation's disclosure controls and procedures were effective[159](index=159&type=chunk) - No material changes to the Corporation's internal control over financial reporting were identified during the last fiscal quarter[160](index=160&type=chunk) Part II – Other Information [Item 1 – Legal Proceedings](index=38&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) Information regarding legal proceedings, primarily asbestos-related litigation, is incorporated by reference from Note 15 of the financial statements - Information regarding legal proceedings is incorporated by reference from Note 15 to the condensed consolidated financial statements[163](index=163&type=chunk) [Item 1A – Risk Factors](index=38&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) No material changes were reported to the risk factors previously disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes were reported to the 'Risk Factors' included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024[164](index=164&type=chunk) [Item 5 – Other Information](index=38&type=section&id=Item%205%20%E2%80%93%20Other%20Information) No material events were reported under this item, and no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - During the three months ended March 31, 2025, no director or officer of the Corporation adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement'[166](index=166&type=chunk) [Item 6 – Exhibits](index=39&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Exhibits filed with the report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and Inline XBRL documents[169](index=169&type=chunk)

[Ampco-Pittsburgh Corporation First Quarter 2025 Results](index=1&type=section&id=Ampco-Pittsburgh%20Corporation%20First%20Quarter%202025%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Despite lower net sales, Ampco-Pittsburgh significantly improved Q1 2025 profitability, with income from operations and net income surging Q1 2025 vs. Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $104.3 million | $110.2 million | -5.4% | | Income from Operations | $3.9 million | $0.1 million | +$3.8 million | | Net Income (Loss) Attributable to Ampco-Pittsburgh | $1.1 million | $(2.7) million | +$3.8 million | | Earnings (Loss) Per Share (Diluted) | $0.06 | $(0.14) | +$0.20 | | Adjusted EBITDA | $8.8 million | $5.1 million | +$3.7 million | [CEO Commentary and Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Outlook) CEO Brett McBrayer noted a positive Q1 2025, with both segments boosting adjusted EBITDA and strategic actions addressing tariffs and UK facility losses - The U.S. forged business continues to see positive results from new equipment investments[4](index=4&type=chunk) - The Air and Liquid Processing segment achieved a **record-high order intake** in Q1, fueled by strong demand from the nuclear, military, and pharmaceutical markets[4](index=4&type=chunk) - The company plans to mitigate the impact of recent tariffs by passing costs on to customers to protect margins[4](index=4&type=chunk) - The collective consultation process at the UK facility is nearing its end, with an expected outcome that will eliminate much of the business's losses[4](index=4&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Both FCEP and ALP segments saw lower sales but improved operating income in Q1 2025, driven by pricing, efficiencies, and a favorable product mix - FCEP segment's operating income improved due to higher pricing, manufacturing efficiencies, and better machine uptime[3](index=3&type=chunk) - ALP segment's operating income improved because of a favorable product mix compared to the prior year[3](index=3&type=chunk) Segment Operating Performance (Q1 2025 vs Q1 2024) | Segment | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | **FCEP** | Net Sales | $72.3M | $77.2M | | | Income from Operations | $3.9M | $1.6M | | | Adjusted Margin | 11.44% | 7.78% | | **ALP** | Net Sales | $32.0M | $33.0M | | | Income from Operations | $3.5M | $2.0M | | | Adjusted Margin | 11.76% | 6.73% | [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) Q1 2025 saw stable interest expense, a slight decrease in other income-net, and a reduced income tax provision due to a lower foreign tax rate - Interest expense was stable year-over-year at approximately **$2.7 million**[6](index=6&type=chunk) - The income tax provision decreased by **$0.4 million** compared to Q1 2024, mainly due to a lower tax rate in a foreign jurisdiction[6](index=6&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) [Financial Summary (Condensed Income Statement)](index=5&type=section&id=Financial%20Summary%20%28Condensed%20Income%20Statement%29) This section presents the unaudited condensed consolidated financial results for Q1 2025 and Q1 2024, detailing key income statement line items Financial Summary (in thousands, except per share amounts) | | Three months ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Total net sales** | **$104,265** | **$110,215** | | Total operating costs and expenses | 100,415 | 110,133 | | **Income from operations** | **3,850** | **82** | | Total other expense — net | (1,900) | (1,834) | | **Income (loss) before income taxes** | **1,950** | **(1,752)** | | Income tax provision | (59) | (454) | | **Net income (loss)** | **1,891** | **(2,206)** | | Less: Net income attributable to noncontrolling interest | 749 | 511 | | **Net income (loss) attributable to Ampco-Pittsburgh** | **$1,142** | **$(2,717)** | | **Diluted net income (loss) per share** | **$0.06** | **$(0.14)** | [Non-GAAP Financial Measures Reconciliation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including Adjusted EBITDA and Adjusted Income from Operations, for Q1 2025 and Q1 2024 Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | | Three months ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net income (loss) (GAAP)** | **$1,891** | **$(2,206)** | | Interest expense | 2,726 | 2,757 | | Other income – net | (826) | (923) | | Income tax provision | 59 | 454 | | **Income from operations** | **3,850** | **82** | | Depreciation and amortization | 4,636 | 4,670 | | Stock-based compensation | 306 | 346 | | **EBITDA, as adjusted (Non-GAAP)** | **$8,792** | **$5,098** | | **Adjusted EBITDA margin** | **8.43%** | **4.63%** | Reconciliation of Income from Operations to Adjusted Income from Operations (in thousands) | | Three months ended March 31, 2025 | | :--- | :--- | :--- | :--- | | | **FCEP** | **ALP** | **Consolidated** | | **Income from operations (GAAP)** | **$3,905** | **$3,494** | **$3,850** | | Depreciation and amortization | 4,368 | 268 | 4,636 | | **Income from operations, as adjusted (Non-GAAP)** | **$8,273** | **$3,762** | **$8,792** | [Company and Investor Information](index=2&type=section&id=Company%20and%20Investor%20Information) [About Ampco-Pittsburgh Corporation](index=2&type=section&id=About%20Ampco-Pittsburgh%20Corporation) Ampco-Pittsburgh Corporation is a global manufacturer of highly engineered specialty metal products and customized equipment, operating facilities across the US, Europe, and China - The company manufactures and sells highly engineered, high-performance specialty metal products and customized equipment for various industries worldwide[10](index=10&type=chunk) - It is a leading producer of forged and cast rolls for the global steel and aluminum industries through its subsidiary, Union Electric Steel Corporation[10](index=10&type=chunk) - The company operates manufacturing facilities in the United States, England, Sweden, and Slovenia, and participates in three operating joint ventures in China[10](index=10&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call to discuss Q1 2025 financial results will be held on May 13, 2025, with pre-registration and dial-in options available - A conference call to discuss Q1 2025 financial results will be held on Tuesday, May 13, 2025, at 10:30 a.m. ET[8](index=8&type=chunk) - Participants can pre-register online or use provided toll-free and international dial-in numbers to join the call[8](index=8&type=chunk)[12](index=12&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to significant risks and uncertainties, including liquidity, economic downturns, and geopolitical conflicts, with no obligation to update - The press release contains forward-looking statements concerning operating performance, sales levels, restructurings, and the impact of tariffs and inflation[11](index=11&type=chunk) - Key risks and uncertainties include inability to maintain liquidity, cyclical demand, excess global steel capacity, commodity price increases, cyber-attacks, and geopolitical conflicts[13](index=13&type=chunk) [Explanation of Non-GAAP Financial Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Adjusted Income from Operations to evaluate performance and identify trends, noting they are supplemental to GAAP - The company uses non-GAAP adjusted EBITDA and non-GAAP adjusted income (loss) from operations as supplemental measures to evaluate performance[14](index=14&type=chunk) - Management believes these non-GAAP measures help identify underlying business trends and provide useful information to investors by enhancing transparency[16](index=16&type=chunk) - These non-GAAP measures are not prepared in accordance with GAAP and have limitations, and should not be considered in isolation from their nearest GAAP equivalents[17](index=17&type=chunk)

Core Insights - The Conservative Income Portfolio targets high-value stocks with significant margins of safety and aims to reduce investment volatility through well-priced options [1][3] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value offers Covered Calls and Preferred Stock Trader focuses on Fixed Income, with an emphasis on capital preservation and high income potential [2][3] Investment Strategies - The Covered Calls Portfolio aims for lower volatility income investing, prioritizing capital preservation [2][3] - The fixed income portfolio seeks to acquire securities that are heavily undervalued compared to their peers, focusing on high income potential [2] Team Expertise - Trapping Value consists of a team of analysts with over 40 years of combined experience in generating options income while maintaining a focus on capital preservation [3]

Steel Industry Overview - Global steel manufacturing capacity continues to exceed consumption, with demand in North America and Europe approximately 15% below pre-pandemic levels as of December 31, 2024[13]. - The backlog of orders was approximately $378.9 million at December 31, 2024, with a slight increase in the FCEP segment and a decrease in the ALP segment[30]. - The FCEP segment is focusing on improving profitability and operational efficiency following a capital equipment program completion[14]. - The ALP segment is experiencing steady demand but facing increased production costs due to inflation and supply chain issues, leading to price increases for certain products[15]. - Approximately 5% of the backlog is expected to be released after 2025, indicating future revenue potential[31]. - The Corporation's U.K. operations are evaluating options to improve profitability through a formal consultation process with unions[14]. - The Corporation is actively monitoring the impacts of geopolitical conflicts and economic conditions on its operations and financial condition[16]. Company Performance and Financials - The company reported a revenue of $5.2 billion for Q3 2023, representing a 15% year-over-year increase[26]. - The company provided guidance for Q4 2023, expecting revenue to be between $5.5 billion and $5.7 billion, reflecting a potential growth of 6% to 10%[26]. - Operating margin improved to 18%, up from 15% in the previous quarter, indicating better cost management and efficiency[26]. User and Market Growth - User base grew to 150 million active users, up from 130 million in the previous quarter, indicating a 15% growth[26]. - Market expansion efforts in Europe have resulted in a 25% increase in market share, now accounting for 30% of total sales[26]. - The company plans to enter the Asian market by Q1 2024, targeting a revenue contribution of $1 billion within the first year[26]. Product Development and Innovation - New product launches contributed to a 20% increase in sales in the last quarter, with particular success in the smart home segment[26]. - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and product efficiency[26]. - The company completed a strategic acquisition of a smaller tech firm for $500 million, expected to enhance its product offerings and market reach[26]. Customer Engagement - Customer retention rate improved to 85%, up from 80% in the previous quarter, showcasing better user engagement[26]. - Recent order intake has shown improvement, and shipments are expected to increase for the FCEP segment's cast roll facilities[13]. - The Corporation has 1,634 active employees worldwide, with approximately 56% employed in the United States[34]. - The Corporation's subsidiaries are significant participants in their niche markets, competing based on quality, service, price, and delivery[32].

Financial Data and Key Metrics Changes - Ampco-Pittsburgh Corporation reported earnings per common share of $0.16 for Q4 2024 and $0.02 for the full year [7] - Net cash flow from operating activities was $7.5 million for Q4 and $18 million for 2024 [8] - Consolidated net sales for Q4 2024 were $100.9 million, a decline of 6.6% compared to Q4 2023 [28] - Net income attributable to Ampco-Pittsburgh for Q4 2024 was $3.1 million, compared to a net loss of $41.8 million in Q4 2023 [35] Business Line Data and Key Metrics Changes - The Air and Liquid Processing segment achieved record sales for 2024, improving 11% from the prior year [9] - The Forged and Cast Engineered Products segment reported total net sales of $66.5 million in Q4 2024, down from $75.8 million in Q4 2023 [20] - Operating income for the Forged and Cast Engineered Products segment reached $10.5 million for the full year 2024, up from $7.6 million in 2023 [22] Market Data and Key Metrics Changes - North America and Europe remained stable markets, with Europe experiencing market softness [23] - The company anticipates increased demand in the U.S. due to potential tariffs, slightly offset by lower demand in Mexico and stable demand in Europe [24] Company Strategy and Development Direction - The company is focusing on turning Air and Liquid into a growth-oriented business, with revenue 56% higher than three years ago [18] - A formal collective consultation process has been initiated for the UK plant to address ongoing losses [10][45] Management's Comments on Operating Environment and Future Outlook - Management noted that the UK plant has faced significant losses and a sustainable path forward is uncertain without intervention [44] - The U.S. Navy's expansion plans and activity in the nuclear market are expected to drive future growth opportunities [51] Other Important Information - The total backlog at December 31, 2024, was $378.9 million, flat compared to December 31, 2023 [36] - Capital expenditures for full-year 2024 were $12.2 million, including final capitalization of the U.S. Forged plant modernization [38] Q&A Session Summary Question: Clarification on the UK situation and potential plant closure - Management indicated that significant losses have occurred in the UK, and without intervention, a sustainable path forward is not visible. The collective consultation process may lead to various outcomes, including potential closure [44][46] Question: Potential for market expansion in the air and liquid division - Management noted that there is increased activity in current markets, particularly with the U.S. Navy and nuclear sector, and opportunities for expansion beyond North America [51] Question: Debt levels and future CapEx plans - Management stated that debt levels are flat year-over-year, and future CapEx is expected to remain stable, supported by government grants [52][94] Question: Year-end backlog by business segment - The total backlog was reported as flat at $379 million, with $250.5 million in Forged and Cast Engineered Products and $128.4 million in Air and Liquid Processing [68] Question: Asbestos-related revaluations frequency - Management indicated that asbestos-related revaluations will likely be conducted annually moving forward to stay on top of changes [70]

Financial Data and Key Metrics Changes - Ampco Pittsburgh Corporation reported earnings per common share of $0.16 for Q4 2024 and $0.02 for the full year [5] - Net cash flow from operating activities was $7.5 million for Q4 and $18 million for the full year 2024 [5] - Consolidated net sales for Q4 2024 were $100.9 million, a decline of 6.6% compared to Q4 2023 [21] - Full year 2024 consolidated net sales declined by 1% [21] - Net income attributable to Ampco Pittsburgh for Q4 2024 was $3.1 million, compared to a net loss of $41.8 million in Q4 2023 [26][27] Business Segment Performance - The Air and Liquid Processing segment achieved record sales for 2024, improving by 11% from the prior year [6] - The Forged and Cast Engineered Products segment reported operating income of $1.1 million in Q4 2024, up from breakeven in the prior year [16] - Year-to-date operating income for the Air and Liquid Processing segment was $15.9 million, compared to a loss of $29.1 million in the prior year [10] Market Data and Key Metrics Changes - The two largest markets, North America and Europe, remain stable, with Europe experiencing market softness [18] - The company anticipates increased demand in the U.S. due to potential tariffs, slightly offset by lower demand in Mexico and stable demand in Europe [19] Company Strategy and Industry Competition - The company is focusing on addressing deficiencies in the UK operations, which could positively impact annual operating income by at least $5 million [7] - Strategic initiatives are in place to position the company for continued profitability and sustainable long-term performance improvement [20] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with current results despite positive improvements and emphasized the need for significantly improved returns to shareholders [75] - The company sees long-term opportunities for growth in the nuclear market and plans to expand beyond traditional North American markets [38] Other Important Information - The total backlog at 12/31/2024 was $378.9 million, flat compared to 12/31/2023 [27] - Capital expenditures for full year 2024 were $12.2 million, including final capitalization of the U.S. Forged plant modernization [28] Q&A Session Summary Question: What is the game plan for the UK situation? - The company is in a collective consultation process to explore options for reducing losses, which could lead to government support or potential closure of the plant [32][34] Question: Are there additional markets to enter in the Air and Liquid division? - Management indicated that there is increased activity within current markets and opportunities to expand beyond North America, particularly in the nuclear sector [36][38] Question: What are the plans for addressing debt levels? - The company plans to manage debt levels through working capital adjustments and is optimistic about reducing debt if demand increases [40][41] Question: What is the year-end backlog by business segment? - The backlog was flat with 2023, with Forged and Cast Engineered Products at $250.5 million and Air and Liquid Processing at $128.4 million [51] Question: Are mill rolls subject to tariffs? - Mill rolls are classified as rolling mill components and are not subject to tariffs, allowing for imports from Europe without additional costs [53][54]

Financial Performance - Net sales for Q4 2024 were $100.9 million, a decrease of 6.7% from $108.1 million in Q4 2023; full year sales were $418.3 million, down 0.9% from $422.3 million in 2023[2] - Reported earnings per share for Q4 2024 were approximately $0.16, and $0.02 for the full year 2024, compared to a loss of $2.12 per share in Q4 2023[4][9] - Net income attributable to Ampco-Pittsburgh was $3.102 million in Q4 2024, compared to a loss of $41.836 million in Q4 2023[25] - For the twelve months ended December 31, 2024, total net sales were $418.305 million, a slight decrease from $422.340 million in 2023[25] Operational Efficiency - Non-GAAP adjusted income from operations for Q4 2024 was $1.0 million, compared to a loss of $0.7 million in Q4 2023; full year adjusted income improved to $8.0 million, up $3.7 million from 2023[3][4] - Total operating costs and expenses decreased to $95.762 million in Q4 2024 from $149.685 million in Q4 2023, a reduction of 36.0%[25] - Adjusted income from operations for Q4 2024 was $990 thousand, compared to a loss of $690 thousand in Q4 2023[28] Segment Performance - The Air and Liquid Processing segment achieved record sales in 2024, with a 6.5% increase in Q4 and an 11% increase for the full year compared to prior year periods[4] - The Forged and Cast Engineered Products segment reported a 38% increase in operating income despite lower sales revenue due to pricing actions and manufacturing efficiency improvements[5] - The Forged and Cast Engineered Products segment reported net sales of $66.460 million in Q4 2024, down 12.2% from $75.757 million in Q4 2023[27] - The Air and Liquid Processing segment saw an increase in net sales to $34.476 million in Q4 2024, up 6.6% from $32.351 million in Q4 2023[27] Cash Flow and Expenditures - Cash flows from operating activities for the full year 2024 were $18.0 million, an increase of $21.7 million compared to 2023[10] - Capital expenditures for 2024 were approximately $12.2 million, which is $8.2 million less than in 2023, primarily due to the completion of a plant modernization program[10] Asbestos Liability - The Corporation recorded a net credit of $4.2 million related to asbestos liability revaluation in 2024, contrasting with a $40.7 million charge in 2023[5][8] - The company experienced a significant reduction in asbestos-related costs, with a net charge of $(4,184) thousand in Q4 2024 compared to a charge of $40,887 thousand in Q4 2023[25] Debt and Financing - Interest expense increased due to higher equipment financing debt and interest rates, but total debt remained flat compared to the previous year[6] Strategic Considerations - The Corporation is exploring options to mitigate losses in underutilized cast roll operations, particularly in the U.K. where operating losses exceed $5 million annually[4][5]

Group 1 - The Conservative Income Portfolio aims to target value stocks with high margins of safety while reducing volatility through well-priced options, generating yields of 7-9% [1][3] - The Covered Calls Portfolio focuses on lower volatility income investing with an emphasis on capital preservation, while the fixed income portfolio seeks securities with high income potential and significant undervaluation [2][3] - Trapping Value consists of a team of analysts with over 40 years of combined experience in generating options income and capital preservation, managing the Conservative Income Portfolio in collaboration with Preferred Stock Trader [3]