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]

Financial Performance - Record net sales for Q2 2025 reached $179.0 million, a 5.6% increase or $9.5 million compared to Q2 2024[101] - Record incoming orders for Q2 2025 were $188.0 million, up 15.7% or $25.5 million from Q2 2024[101] - Net sales for the six months ended June 30, 2025, were $343.0 million, a 4.3% increase or $14.2 million compared to the same period in 2024[104] - Adjusted EBITDA for Q2 2025 was $35.3 million, representing 19.7% of net sales[100] - Adjusted earnings per share for Q2 2025 were $0.60[100] - Adjusted EBITDA for the first six months of 2025 increased to $65.0 million, a 2.2% increase or $1.4 million from $63.6 million in 2024[104] Capital Structure and Dividends - Total debt decreased by $30 million in the first six months of 2025[109] - The company has a strong dividend track record with over 75 years of cash dividends and 52 consecutive years of increases[7, 117] - The current annualized dividend rate is $0.74 per share, yielding 2.0% as of June 30, 2025[118] International Sales - International sales represent approximately 25% of total company sales annually[75] - In 2024, international sales totaled $168 million, with $90 million exported from the USA and $78 million direct from international locations[76]