AP Earnings Recap
Beat 0 of last 2 quarters
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Ampco-Pittsburgh's Air & Liquid segment is a direct beneficiary of the AI infrastructure buildout, with data center-driven power generation demand fueling growth in commercial pumps and nuclear heat exchangers. The company's record backlog and capacity expansion signal sustained demand for cooling and power infrastructure, reinforcing the buildout's impact on industrial suppliers.
Ampco-Pittsburgh reported Q2 net sales of $102.9 million, down from $113.1 million due to the U.K. facility closure, but adjusted EBITDA rose 22% to $9.8 million. Customer orders surged 50% to $144 million, driving backlog to $385.4 million. Air & Liquid achieved record adjusted EBITDA and backlog, while Forged and Cast Engineered Products saw improved profitability despite lower sales. The company highlighted the reversal of Q1 timing items and the positive impact of restructuring actions.
Management expects the second half of 2026 to be significantly stronger than the first half, despite normal seasonal maintenance outages in Q3. The Air & Liquid segment is adding capacity to meet record demand from data center-driven power generation, nuclear heat exchangers, and U.S. Navy fleet expansion. Forged and Cast Engineered Products sees improving demand in North America, supported by tariff protections and market consolidation, with optimism for 2027.
“The second quarter marked a clear turning point for Ampco-Pittsburgh.”
on Quarterly performance
“Data centers are causing increasing demand in the power generation market, which is fueling demand in both our commercial pump and nuclear heat exchanger products.”
on Demand drivers
“Tariff protections have reduced imports and lifted U.S. steel mill utilization, thereby increasing the number of rolls consumed.”
on Forged and Cast Engineered Products outlook
It looks like it was a pretty good quarter, a few hiccups over there. A couple of questions. Number one, back in March, you stated that the order book was up 38% and air and liquid was up 73%. And at the end of the quarter, the numbers were a little muted from there. So maybe you could explain that.
David Anderson explained that the comparison was between sequential and year-over-year figures, noting all positive and going in a good direction.
You had a lot of adjustments and a lot of restructuring costs that occurred in the fourth quarter and carried on into the first quarter. What's the total amount of all that as far as EBITDA goes?
David Anderson indicated the primary difference was in the FCEP segment, with timing issues totaling approximately $3 million in EBITDA, which are expected to reverse in coming quarters.
Now that you seem to have hit an inflection point. What are your thoughts on debt reduction overall?
David Anderson stated that debt reduction is a primary focus as the company moves towards positive cash flow, with an expected reduction of $8 million to $10 million in the balance of the year.