Ampco-Pittsburgh(AP) - 2025 Q1 - Quarterly Results

Ampco-Pittsburgh Corporation First Quarter 2025 Results Financial Highlights 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 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] - 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] - The company plans to mitigate the impact of recent tariffs by passing costs on to customers to protect margins[4] - 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] Segment Performance 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] - ALP segment's operating income improved because of a favorable product mix compared to the prior year[3] 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 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] - 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] Financial Statements and Non-GAAP Reconciliations Financial Summary (Condensed Income Statement) 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 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 About Ampco-Pittsburgh Corporation 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] - 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] - The company operates manufacturing facilities in the United States, England, Sweden, and Slovenia, and participates in three operating joint ventures in China[10] Conference Call Information 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] - Participants can pre-register online or use provided toll-free and international dial-in numbers to join the call[8][12] Forward-Looking Statements 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] - Key risks and uncertainties include inability to maintain liquidity, cyclical demand, excess global steel capacity, commodity price increases, cyber-attacks, and geopolitical conflicts[13] Explanation of Non-GAAP Financial Measures 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] - Management believes these non-GAAP measures help identify underlying business trends and provide useful information to investors by enhancing transparency[16] - 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]