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 Data and Key Metrics Changes - The company reported net sales of $1.3 billion for Q3 2025, roughly flat compared to the same period a year ago, with organic sales declining by 6.7% [10][25] - Gross margin for the quarter was 31.2%, slightly down from 31.4% in the previous quarter and down from 33% a year ago [10][42] - Adjusted EBITDA decreased by 27.3% year-over-year to $93 million, with adjusted EBITDA margin declining from 10.2% to 7.4% [48][61] Business Line Data and Key Metrics Changes - Wallboard sales dollars were $501.7 million, down 3.6% year-over-year, with a 4.9% decline in volume partially offset by a 1.3% increase in price and mix [33] - Multifamily Wallboard volumes declined by 31.4%, while single-family Wallboard volumes were down 3.7% [34] - Complementary product sales grew 5.3% year-over-year, although organic sales decreased by 4.3% due to soft commercial and multifamily conditions [40] Market Data and Key Metrics Changes - US commercial revenues were down 7.8% organically compared to last year, with the Architectural Billings Index indicating a decline for 17 out of the last 18 months [13] - In Canada, housing sales data showed reductions in market inventory, and residential construction permits surged, indicating more positive conditions compared to the US [32][20] - The company expects single-family housing starts to remain muted for the calendar year due to affordability challenges and economic uncertainty [19] Company Strategy and Development Direction - The company is focusing on four strategic pillars: expanding share in core products, growing complementary products, expanding the platform, and driving improved productivity and profitability [21] - The company is implementing an additional estimated $20 million in annualized cost reductions, bringing total cost reductions to $50 million since the start of the fiscal year [22] - The company aims to maintain a balanced approach to capital allocation, investing in the business while also repaying debt and repurchasing shares [52] Management's Comments on Operating Environment and Future Outlook - Management indicated that the challenging demand backdrop is expected to continue through the end of the fiscal year and likely beyond, with no near-term catalysts for improvement [55] - The company remains optimistic about future growth as it navigates current uncertainties, expecting to be well-positioned when demand improves [62] - Management noted that the current macro conditions are anticipated to persist through most of calendar 2025, but they are confident in their strategy and operational adjustments [21][22] Other Important Information - The company recognized a $42.5 million non-cash goodwill impairment charge during the quarter, contributing to a GAAP net loss of $21.4 million compared to net income of $51.9 million in the prior year [46][47] - Cash provided by operating activities was $94.1 million, with free cash flow of $83.1 million, representing 89% of adjusted EBITDA for the quarter [50] Q&A Session Summary Question: Steel pricing outlook and expectations - Management acknowledged that while there may be some inflation in steel prices, it is expected to be post-quarter due to current demand conditions [67][68] Question: April quarter outlook and cost reductions - Management confirmed that the full run rate of the $20 million cost reductions will be realized in the first quarter of fiscal 2026, with some benefits expected in the current quarter [71][76] Question: Deterioration in commercial sectors - Management noted that commercial sectors are experiencing significant declines, particularly in retail and private financing projects, while data centers remain strong [82][84] Question: Ceiling pricing dynamics - Management indicated that the strong performance in ceiling pricing is due to a focus on architectural specialties and successful project closures [100][102] Question: Wallboard pricing and volume growth - Management stated that volume growth across any end market would be beneficial for pricing, with a particular emphasis on the importance of single-family housing for Wallboard demand [109][110] Question: Long-term EBITDA margin expectations - Management reaffirmed that long-term EBITDA margin expectations remain above 10%, with a target of around 9% for the current year despite current challenges [125][126]

Financial Data and Key Metrics Changes - The fourth quarter of 2024 showed improved consolidated results across all metrics compared to the previous year, primarily due to strong growth in the Solutions segment and increased margins in the Attachments segment [4][20] - Net sales were flat at $568.5 million, with gross profit increasing by 9% to $146.8 million, resulting in a gross margin increase of 220 basis points to 25.8% [21][22] - Net income rose to $56.2 million from $23.7 million, driven by a one-time gain from a sale leaseback transaction and improved profitability across both segments [23] Business Line Data and Key Metrics Changes - In the Attachments segment, sales decreased by 12% to $256 million, while adjusted EBITDA declined only 4% to $48.5 million, with an adjusted EBITDA margin improvement of 160 basis points to 18.9% [25] - The Solutions segment achieved record sales of $312.5 million, a 13% increase, and adjusted EBITDA increased by 76% to $30.9 million, with margins improving by 350 basis points to 9.9% [26] Market Data and Key Metrics Changes - Snowfall this winter has been regional, with above-average snowfall in some markets but insufficient snow in core markets like Chicago, New York, and Boston [12][13] - Dealer sentiment remains positive, and inventory levels are decreasing, indicating a strong financial footing for dealers [14] Company Strategy and Development Direction - The company aims to maintain its current dividend and is open to small and medium-sized acquisitions if suitable opportunities arise, while maintaining a disciplined approach [6][7] - The focus remains on long-term growth, with a strong emphasis on operational efficiency and adapting to market conditions [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the upcoming snow season, expecting it to be better than the previous year, which had significantly low snowfall [12][19] - The company anticipates net sales for 2025 to be between $610 million and $650 million, with adjusted EBITDA projected to range from $75 million to $95 million [31][32] Other Important Information - The company successfully executed a cost savings program in 2024, exceeding expectations and producing pre-tax savings of over $10 million [22] - The total backlog at the end of 2024 was $348 million, an increase of $52 million, driven by strong municipal bookings [24] Q&A Session Summary Question: Weather impact on sales in the South and Southeast - Management noted limited dealer presence in the Deep South but acknowledged some sales in those areas due to snowfall [38][39] Question: Update on private sector growth in the Solutions segment - Growth is primarily seen in the municipal sector, with some softness in the commercial side [40][41] Question: Free cash flow expectations for 2025 - Free cash flow is expected to be at or better than 2024 levels, with improvements in working capital and capital expenditures anticipated [44][45] Question: Regional distribution of snowfall and its impact - Key markets are primarily east of the Mississippi and north of Tennessee, with a strong presence in Canada [53] Question: Future margin improvement in the Solutions segment - Margins are expected to improve through increased throughput and ongoing efficiency initiatives [55]