Ampco-Pittsburgh(AP) - 2025 Q4 - Annual Results

Financial Performance - Ampco-Pittsburgh reported net sales of $108.8 million for Q4 2025, up from $100.9 million in Q4 2024, and $434.2 million for the full year 2025, compared to $418.3 million in 2024, driven by higher shipment volumes in the Air and Liquid Processing segment [2]. - Total net sales for Q4 2025 reached $108.8 million, a 7.3% increase from $100.9 million in Q4 2024 [20]. - For the full year 2025, total net sales were $434.2 million, a 3.5% increase from $418.3 million in 2024 [20]. - The adjusted margin from operations for the year ended December 31, 2025, was 8.32%, compared to 6.72% in 2024, indicating an improvement of 2.6 percentage points [29]. - The adjusted margin from operations for the three months ended December 31, 2025, was 3.17%, compared to 2.92% in the same period of 2024, showing a positive trend in operational efficiency [29]. Loss and Charges - The company recorded a net loss of $57.7 million, or $2.85 per share, for Q4 2025, which included a $42.4 million deconsolidation charge and a $11.9 million non-cash asbestos revaluation charge [3]. - Net loss attributable to Ampco-Pittsburgh for Q4 2025 was $57.7 million, compared to a net income of $3.1 million in Q4 2024 [22]. - The net loss attributable to Ampco-Pittsburgh for the year 2025 was $66.1 million, compared to a net income of $438,000 in 2024 [24]. - The company incurred an asbestos-related charge of $11.9 million in 2025, which was a significant factor in the adjusted net loss [24]. - The company reported a deconsolidation charge of $41.4 million in Q4 2025, which significantly impacted the financial results [20]. - The company incurred a deconsolidation charge of $41.424 million for the year ended December 31, 2025, which may affect future financial stability [29]. - The company reported a loss from operations of $54.479 million for the year ended December 31, 2025, compared to a loss of $14.183 million in 2024, highlighting challenges in operational profitability [29]. Operational Efficiency - Adjusted EBITDA for Q4 2025 was $3.2 million, down from $6.0 million in Q4 2024, while full year adjusted EBITDA increased by 4% to $29.2 million compared to the previous year [4]. - The adjusted EBITDA has risen by 54% over the last three years, indicating a positive trend in operational performance [6]. - The adjusted EBITDA for Q4 2025 was $3.2 million, with an adjusted EBITDA margin of 2.92%, down from 5.96% in Q4 2024 [26]. - Income from operations, as adjusted (Non-GAAP), for the year ended December 31, 2025, was $29.161 million, a significant increase from a loss of $10.594 million in 2024 [29]. - The company is focusing on restructuring efforts to enhance its operational footprint and improve earnings power moving forward [6]. - The company plans to continue focusing on operational efficiency and cost management to improve future performance [21]. Costs and Expenses - The cost of products sold (excluding depreciation and amortization) increased to $93.5 million in Q4 2025, up from $80.2 million in Q4 2024, reflecting a 16.4% rise [20]. - The company reported a depreciation and amortization expense of $21.785 million for the year ended December 31, 2025, compared to $18.611 million in 2024, reflecting an increase of 11.6% [29]. - Severance and other exit costs for the year ended December 31, 2025, amounted to $7.463 million, which is a notable expense impacting the overall financial performance [29]. - Stock-based compensation for the year ended December 31, 2025, was $1.351 million, slightly lower than $1.478 million in 2024, suggesting a potential reduction in equity-based incentives [29]. Market Conditions - The company experienced lower demand due to tariff impacts on the steel market and a ramp-up of the Sweden facility, which affected overhead absorption [5]. - Ampco-Pittsburgh's Air and Liquid Processing business showed growth potential, with full year revenue increasing for the fourth consecutive year and adjusted operating income reaching a record high in 2025 [4]. - Other income for Q4 2025 declined due to lower pension income and foreign exchange gains compared to the previous year [7]. - Interest expenses for Q4 2025 were $2.8 million, consistent with the previous year, while total interest expenses for the full year were $11.4 million [6]. - The exit from the UK cast roll facility is expected to yield an annual positive EBITDA improvement of $7 million to $8 million [4].