Shares of Ampco-Pittsburgh Corporation AP have gained 6% since the company reported its earnings for the quarter ended June 30, 2026. This compares with the S&P 500 Index’s 0.3% rise over the same time frame. Over the past month, the stock gained 13.3% compared with the S&P 500’s 2.2% rise.
Ampco-Pittsburgh’s Earnings Snapshot
Ampco-Pittsburgh reported second-quarter 2026 net sales of $102.9 million, down 9% from $113.1 million a year earlier. Net income attributable to AP was $1.5 million, or 7 cents per share, against a year-ago loss of $7.3 million, or 36 cents per share. The prior-year quarter included $6.8 million of costs related to exiting U.K. operations.
Adjusted EBITDA rose 22.3% to $9.8 million, while the adjusted EBITDA margin expanded 240 basis points to 9.5%.
Forged and Cast Engineered Products (FCEP) sales declined 13.6% to $67.3 million, largely reflecting the closure of the U.K. plant, while adjusted operating income increased 15.1% to $7.8 million. Air and Liquid Processing (ALP) sales increased 1.2% to $35.6 million and adjusted operating income advanced 34.2% to $5.3 million.
AP’s Orders and Liquidity
Customer orders increased 50% year over year to $144 million, up from $124 million in the first quarter. Backlog reached $385.4 million as of June 30, increasing $39.9 million sequentially. ALP benefited from orders for commercial pumps serving power generation and U.S. Navy programs, along with strength in air handling. FCEP saw improved roll-product orders, particularly in North America.
Operating cash flow for the second quarter of 2026 improved to $0.3 million from a $2.3 million use of cash a year earlier. However, capital expenditures increased to $5.7 million from $1.5 million, contributing to negative free cash flow of $5.5 million compared with negative $3.8 million a year ago.
AP ended the quarter with $7 million in cash and cash equivalents and $29 million of liquidity. Net debt increased to $130.5 million as of June 30, 2026, from $124.7 million as of June 30, 2025.
Ampco-Pittsburgh’s Management Commentary
CEO Brett McBrayer said that improved customer activity and benefits from actions undertaken during the past year supported the quarter. Management cited recovering North American steel-market conditions, better manufacturing efficiency and productivity as the Sweden facility ramps up and healthy ALP demand.
ALP management said quarterly adjusted EBITDA increased 34% as manufacturing efficiencies improved margins. Its backlog rose $23.3 million, or 16%, during the quarter and was 39% above year-end 2025. Management pointed to data-center-driven power-generation demand, U.S. Navy programs and pharmaceutical and health care demand for custom air handlers.
Factors Influencing AP’s Results
The decline in consolidated sales primarily reflected the closure of the U.K. cast roll facility, while higher ALP sales provided a partial offset. Within FCEP, management said nearly all the year-over-year sales decline resulted from exits from the U.K. facility and AUP Distribution business. Profitability benefited from recovering U.S. large-roll shipments, the flow-through of higher-cost inventory from late 2025 and Sweden returning to profitability as productivity and utilization improved. Management also said tariff protections reduced imports and increased U.S. steel mill utilization, supporting roll demand.
Lower depreciation and amortization expense, primarily associated with the U.K. closure, also aided the year-over-year comparison. Other income and expense improved mainly because of lower foreign-exchange losses, partly offset by lower pension income.
Ampco-Pittsburgh’s Outlook
Ampco-Pittsburgh did not provide specific full-year revenue or earnings targets. Management said higher backlog and stronger customer order activity support its outlook, with ALP continuing to benefit from healthy demand and FCEP seeing improving steel-market activity.
Management cautioned that the third quarter will include the normal annual U.S. maintenance outage and summer shutdowns in Europe, but expects the second half of 2026 to be significantly stronger than the first half and remains optimistic about 2027.
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Ampco-Pittsburgh Corporation (AP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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