Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors

You're looking at Ampco-Pittsburgh Corporation (AP) and seeing a classic mixed signal: revenue is up, but the GAAP net loss is still there, and you need to know which number to trust for your investment thesis. Honestly, the headline numbers for the third quarter of 2025 tell a story of strategic pain for long-term gain, which is a tough spot for any investor. For the quarter, the company reported net sales of $108.0 million, a solid increase, but still posted a net loss of $2.2 million, or $0.11 per share, due to non-cash charges related to exiting its U.K. cast roll operations. But here's the quick math that matters: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a cleaner view of core operations, surged to $9.2 million, a 35% jump year-over-year, and management expects this strategic cleanup to deliver a permanent $7 to $8 million annual Adjusted EBITDA improvement. So, is this a deep-value turnaround play or a struggling industrial name? We need to look past the temporary loss and focus on what that improving operational cash flow means for the balance sheet and future earnings power.

Revenue Analysis

You want to know where Ampco-Pittsburgh Corporation (AP) is actually making its money, and the short answer is that the revenue picture is a classic tale of two segments, with a strategic clean-up underway. The company's top line is growing, but it's heavily weighted toward its industrial products, and a major restructuring is about to change the underlying cost structure defintely.

For the third quarter of 2025, Ampco-Pittsburgh Corporation reported total net sales of $108.01 million, which is a solid 12.3% increase year-over-year from the same period in 2024. This growth is a good sign, but the real story is what's driving it. Over the first nine months of 2025, total sales reached $325.4 million, showing a consistent, albeit modest, upward trend in the core business.

Here's the quick math on where that revenue came from in Q3 2025, broken down by its two main operating segments:

• Forged and Cast Engineered Products (FCEP): $71.47 million
• Air and Liquid Processing (ALP): $36.54 million

The FCEP segment is the clear revenue engine, contributing roughly 66.17% of the total Q3 sales, while ALP brings in the remaining 33.83%. This split shows Ampco-Pittsburgh Corporation's reliance on its heavy industrial products-mill rolls for the steel industry and forged engineered products-as its primary revenue source.

The primary revenue sources within these segments are quite distinct. FCEP's Q3 2025 performance was specifically boosted by two factors: higher net roll pricing and increased shipments of its forged engineered products. This indicates pricing power and strong demand in the specialized markets it serves. In contrast, the ALP segment's growth came from higher shipment volumes, reflecting robust demand for its industrial processing systems, which serve sectors like nuclear and military.

To be fair, while the 12.3% revenue growth in Q3 2025 is strong, you can't ignore the major strategic changes that are about to hit the numbers. Ampco-Pittsburgh Corporation is actively exiting non-core operations, specifically its U.K. cast roll facility and a domestic steel distribution business.

This restructuring is a significant, near-term change to the revenue base. It's expected to be completed in the fourth quarter of 2025, and while it might slightly reduce the absolute top-line revenue going forward, the company projects it will deliver a substantial $7 million to $8 million per year improvement in Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). That's a clear action to maximize profitability, even if sales volume shifts. You can read more about the strategic direction in the Mission Statement, Vision, & Core Values of Ampco-Pittsburgh Corporation (AP).

Here is the segment contribution for Q3 2025:

The key takeaway is that the growth in 2025 is driven by pricing power in FCEP and volume in ALP, but the real financial benefit for 2026 will come from the strategic exits that cut out lower-margin business.

Profitability Metrics

You're looking at Ampco-Pittsburgh Corporation (AP) and seeing a mixed signal: revenue is up, but the bottom line is still in the red. The key takeaway for the first nine months of 2025 is that while gross operational efficiency is strong relative to the industry, significant one-time restructuring costs are masking the underlying business improvement.

For the nine months ended September 30, 2025, Ampco-Pittsburgh reported Net Sales of $325.4 million, an increase from the prior year. However, the company's GAAP (Generally Accepted Accounting Principles) profitability metrics show a razor-thin operating margin and a net loss, primarily due to the strategic exit from non-core businesses. That's a classic case of taking a short-term hit for long-term gain.

Here is the quick math on profitability for the nine months ended September 30, 2025, compared to the industry median for the Primary Metal Industries sector (2024 data is the closest benchmark):

The company's trailing twelve months (TTM) Gross Profit Margin sits at approximately 20.2%. This is a strong indicator of operational efficiency, actually outperforming the Primary Metal Industries median of 17.2%. This tells you the core manufacturing process-turning raw material into specialty metal products and equipment-is working well and is cost-competitive.

The problem isn't the cost of goods sold (COGS); it's the operating expenses. The GAAP Operating Profit Margin of a mere 0.58% is crushed by $9.8 million in one-time, exit-related costs over the nine-month period, which include accelerated depreciation and severance from exiting the U.K. cast roll and domestic steel distribution businesses. If you strip out these charges, the underlying operational performance looks much healthier. The CEO expects these strategic exits to deliver an annual adjusted EBITDA improvement of $7 million to $8 million starting in early Q4 2025.

This restructuring is defintely the story here. The widening Net Loss of -$8.4 million for the nine months ended September 30, 2025, is a direct result of those non-recurring charges. You are essentially seeing the cost of streamlining the business reflected in the 2025 numbers, which is why the stock market often looks at adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for companies in transition. For a deeper look at the balance sheet and cash flow implications of this restructuring, you should check out the full post at Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors.

The Air and Liquid Processing segment is a bright spot, showing improved profitability due to a better sales mix and higher shipment volumes, which is a key factor in the overall Adjusted EBITDA improvement of $3.9 million year-to-date to $26.0 million. Pay close attention to its performance in Q4 2025 and Q1 2026; that's where the benefits of the restructuring should really start to show up.

Debt vs. Equity Structure

You're looking at Ampco-Pittsburgh Corporation (AP) and trying to figure out if their growth is built on a solid foundation or a mountain of debt. The quick takeaway is that AP is highly leveraged, relying much more on debt than shareholder equity to fund its operations, which introduces significant financial risk.

As of the second quarter of 2025, Ampco-Pittsburgh Corporation's balance sheet showed a total debt load of approximately $135.45 million. This is a substantial figure for a company with a comparatively small equity base. Breaking it down, the company is carrying $115.8 million in long-term debt, plus another $19.65 million in current debt (short-term obligations). That long-term figure is the one that really anchors their capital structure.

Here's the quick math on why this matters: Ampco-Pittsburgh Corporation's Debt-to-Equity (D/E) ratio stood at an alarming 2.23 as of November 2025. This means for every dollar of equity capital, the company has taken on $2.23 in debt. To be fair, capital-intensive industries often run higher D/E ratios, but this is still a major outlier. The median D/E ratio for the Primary Metal Industries sector, where AP operates, is closer to 0.80.

Compare Ampco-Pittsburgh Corporation's D/E to its industry peers:

• Ampco-Pittsburgh Corporation (AP) D/E: 2.23
• Primary Metal Industry Median D/E: 0.80
• Industrial Machinery & Supplies Average D/E: 0.50

A ratio over 2.0 suggests a heavy reliance on debt financing (leverage), placing the company in what financial analysts call the 'distress zone,' especially when coupled with its low interest coverage ratio. This is defintely a red flag on solvency.

The company hasn't been sitting still; it's actively managing this debt. In a key move on June 25, 2025, Ampco-Pittsburgh Corporation completed a major refinancing, entering into a $100 million Revolving Credit and Term Loan Agreement. This was a necessary step to restructure their obligations and maintain liquidity, but it also underscores the continuous need to manage a high debt load.

The balance between debt financing and equity funding at Ampco-Pittsburgh Corporation is clearly skewed toward debt. This strategy can amplify returns when business is booming, but it also magnifies losses and financial distress during downturns. The recent strategic exits from non-core operations, like the U.K. cast roll business, are aimed at improving adjusted EBITDA by an expected $7 to $8 million annually post-exit, which is a direct effort to improve their debt-servicing capability, not necessarily to reduce the absolute debt number. They are trying to grow into their debt, but that's a risky bet that hinges on operational improvements. You can read more about the company's full financial picture in Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors.

Here is a summary of the core solvency metrics as of Q2 2025:

Liquidity and Solvency

You want to know if Ampco-Pittsburgh Corporation (AP) can cover its short-term bills, and the answer is yes, but you defintely need to watch the cash flow. The company's liquidity position is adequate, showing a healthy buffer of current assets, but the negative operating cash flow in the most recent quarter is a clear yellow flag that needs attention.

The core of any liquidity check is the Current Ratio, which compares current assets to current liabilities. For the third quarter of 2025 (Q3 2025), Ampco-Pittsburgh Corporation reported a Current Ratio of 1.84. That means for every dollar of short-term debt, the company has $1.84 in assets it expects to convert to cash within a year. A ratio above 1.0 is the baseline for safety, so 1.84 is solid for an industrial manufacturer.

But a better test is the Quick Ratio (or Acid-Test Ratio), which strips out inventory-often the least liquid current asset. Ampco-Pittsburgh Corporation's Quick Ratio for the most recent quarter was 0.84. This number is less than the ideal 1.0, which tells us the company relies on selling its inventory to cover its immediate, non-negotiable short-term obligations. It's not a crisis, but it shows a reliance on inventory turnover.

Here's the quick math on working capital (current assets minus current liabilities): As of Q3 2025, Ampco-Pittsburgh Corporation had working capital of approximately $113.79 million ($249.54 million in current assets minus $135.75 million in current liabilities). This positive balance is a strength, but the trend in working capital management is what matters more. In 2024, the company significantly improved its operating cash flow by $21.7 million, largely due to a lower investment in trade working capital, which is a smart move to free up cash. Still, you have to look at the Q3 2025 cash flow statement for the near-term picture.

The cash flow statement overview for Q3 2025 reveals a mixed bag, which is typical for a company undergoing strategic restructuring, like the planned exit from the U.K. cast roll and domestic steel distribution businesses. The operations side is where the pressure is right now.

• Operating Cash Flow: $-1.36 million
• Investing Cash Flow: $-4.51 million
• Financing Cash Flow: $4.60 million

The negative cash flow from operations (CFO) of $-1.36 million in Q3 2025 is the primary liquidity concern. A company needs positive CFO to sustain itself, so this means operations burned cash, forcing them to turn to other sources. The negative cash flow from investing activities (CFI) of $-4.51 million is a capital expenditure outflow, which is expected for an industrial firm. The positive cash flow from financing activities (CFF) of $4.60 million indicates the company raised cash, likely through debt or equity, to cover the operational and investing shortfalls. This financing activity is what bridged the gap and kept the cash balance stable for the quarter.

The key takeaway is that while the Current Ratio is healthy, the Quick Ratio and negative operating cash flow point to a tight spot. The future liquidity strength hinges on the success of the strategic exits, which management expects to deliver an annual Adjusted EBITDA improvement of $7 million to $8 million. If you are looking for a deeper dive into the company's performance, you can read the full analysis here: Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking for a clear signal on Ampco-Pittsburgh Corporation (AP), and the valuation metrics are giving us a mixed picture, which is often the case with industrial turnaround stories. The quick takeaway is that while the Price-to-Book (P/B) and EV/EBITDA ratios suggest it's trading cheaply relative to its assets and operating cash flow, the negative trailing twelve-month (TTM) earnings mean the stock is technically overvalued on a traditional Price-to-Earnings (P/E) basis.

To be fair, the company's recent Q3 2025 net loss of $2.2 million or $0.11 per share makes the P/E ratio tricky. The TTM P/E sits at a negative -9.38 as of November 14, 2025, because of that loss, which tells you investors are paying for a company that isn't currently profitable on a GAAP (Generally Accepted Accounting Principles) basis. But, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which is a cleaner look at operating performance before debt and capital structure, is a low 5.00. Here's the quick math: an EV/EBITDA this low often signals a potential value play, especially when compared to peers in the specialty metals and engineered products space.

The Price-to-Book (P/B) ratio is also compelling at 0.70. A P/B below 1.0 means you are buying the company for less than the value of its net assets (assets minus liabilities) on the balance sheet. This suggests a deep value opportunity, but you must factor in the risk of those assets being less liquid or productive than expected. Still, you're buying a dollar of book value for only 70 cents.

Looking at the stock price trend, Ampco-Pittsburgh Corporation (AP) has been volatile but showed a significant move over the last year. The stock closed at $2.46 on November 14, 2025, representing a 43.86% increase over the last 12 months. That's a massive jump, but it's still trading well below its 52-week high of $3.99. The company does not currently pay a dividend, so your total return is purely based on share price appreciation. Honestly, a 0.00% dividend yield and $0.00 TTM dividend payout means you're betting entirely on the restructuring plan to drive earnings growth.

• Stock Price (Nov 14, 2025): $2.46
• 52-Week Range: $1.61 to $3.99
• 1-Year Price Change: +43.86%
• Dividend Yield: 0.00%

The Street's view is cautious. The analyst consensus is a clear Sell rating, based on the one Wall Street analyst who has issued a rating in the last 12 months. This is defintely a contrarian signal. The market is waiting for the strategic initiatives-like the exit from the U.K. cast roll operations, which is expected to improve annual adjusted EBITDA by $7 million to $8 million-to fully materialize into sustainable net income. The valuation is cheap, but the analyst sentiment is poor. This is a classic value trap versus turnaround play decision. For a deeper dive, check out Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Ampco-Pittsburgh Corporation (AP) and seeing a company in the middle of a major operational pivot, but you need to understand the immediate risks that come with that change. The direct takeaway is that while management is taking aggressive action to cut underperforming assets, the company still faces significant financial and legal headwinds that are clearly visible in the 2025 fiscal year data.

The core challenge is a leveraged balance sheet combined with major non-core exit costs. For the nine months ended September 30, 2025, Ampco-Pittsburgh Corporation reported a net loss of $8.4 million, even with net sales climbing to $325.4 million. This loss is largely due to the strategic, yet costly, restructuring efforts. It's a classic case of short-term pain for long-term gain, but the near-term execution risk is defintely high.

Operational and Strategic Transition Risks

The most immediate and controllable risk stems from the exit of the U.K. cast roll operations and a non-core steel distribution facility. This is a necessary move to right-size the operating footprint, but it's expensive and complex. The total exit charges recorded year-to-date in 2025 hit $9.8 million, including $6.0 million in severance costs and $3.1 million in accelerated depreciation. This is money out the door right now.

The administration of the UES-UK subsidiary in October 2025 also exposes the company to potential asset recovery and creditor risks. The carrying value for that subsidiary was approximately $23 million as of September 30, 2025, a substantial figure that could be impaired. Still, the mitigation plan is clear: management expects this restructuring to deliver an annual Adjusted EBITDA improvement of $7 million to $8 million once complete, which is a material boost given the year-to-date Adjusted EBITDA of $26.0 million. They are betting big on a leaner organization.

Financial and Liquidity Pressures

Ampco-Pittsburgh Corporation operates with a significant debt load, which heightens the risk profile, especially in an elevated interest rate environment. As of September 30, 2025, the company's total debt stood at $135.2 million. With net cash used in operating activities at $(1.4) million year-to-date, maintaining adequate liquidity to fund operations and meet debt obligations is a constant concern. Here's the quick math on their liquidity picture:

The remaining availability on their revolving credit facility is just $28.189 million, which means the margin for error is thin. Liquidity management is the number one financial task for the executive team right now.

External Market and Contingency Risks

Beyond the internal restructuring, the company is exposed to the cyclical and competitive nature of the global steel and aluminum industries. Key external risks include:

• Industry overcapacity and demand volatility for mill rolls.
• Tariff volatility impacting roll demand, order intake, and production.
• Increases in commodity prices (like steel) that can squeeze margins in the Forged and Cast Engineered Products (FCEP) segment.

Plus, there is the ever-present, large-scale legal contingency: ongoing asbestos litigation. At the end of Q3 2025, there were 5,683 total claims pending, and the company has already paid $20.9 million in settlements and defense costs year-to-date. The uncertainty around future litigation costs and the adequacy of insurance recovery is a major, unpredictable liability that sits on the balance sheet.

To get a deeper dive into the company's valuation and strategic positioning, read the full post: Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for a clear path forward for Ampco-Pittsburgh Corporation (AP), and the story is simple: their growth hinges on a decisive strategic cleanup. Management is right-sizing the operational footprint, and the financial benefits are already starting to show up in the numbers, even with a sluggish steel cycle still in play. This focus is defintely the right call for long-term value.

The most immediate and impactful driver is the divestiture of non-core, lower-margin businesses. The company accelerated and completed the exit from its U.K. cast roll facility in mid-October 2025 and plans to exit a small steel distribution business by year-end. This restructuring is projected to deliver an annual improvement in Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of between $7 million and $8 million post-U.K. exit, starting in early the fourth quarter of 2025. Here's the quick math: that's a significant boost to the bottom line without needing a massive revenue surge.

The second major growth engine is the strength in the Air and Liquid Processing (ALP) segment, which is a key competitive advantage. This segment is less reliant on the volatile steel market and is capitalizing on consistent demand in high-barrier-to-entry sectors. ALP's Adjusted EBITDA grew by a remarkable 35% year-over-year in Q3 2025, driven by higher shipment volumes and a favorable product mix. They are successfully reallocating products across the global Union Electric Steel Corporation (UES) network to maximize efficiency.

• Demand is strong in the nuclear market.
• Growth is robust from military and defense contracts.
• The pharmaceutical sector provides stable, high-margin orders.

For the Forged and Cast Engineered Products (FCEP) segment, growth is being driven by operational improvements. Even with softer roll shipments due to trade policy uncertainty, the company saw higher net roll pricing and increased shipments of forged engineered products. This is a direct result of enhanced manufacturing efficiencies and improved machine uptime, which helped the segment report Q3 2025 net sales of $71.5 million.

The strategic moves are already translating into better financial performance for the 2025 fiscal year. For the nine months ended September 30, 2025, Ampco-Pittsburgh Corporation reported net sales of $325.4 million. The third quarter alone saw net sales of $108.0 million, a 12.3% increase year-over-year. More importantly, Q3 2025 Adjusted EPS (Earnings Per Share) was $0.04, a significant turnaround from a loss in the prior year period.

To be fair, the company still faces risks, particularly from ongoing tariff volatility impacting the FCEP segment's order book. But the strategic shift toward core competencies, especially the profitable ALP segment, positions them for sustainable elevated profitability as trade policies clarify and the benefits of the operational exits fully materialize in 2026. For a deeper dive into the balance sheet and liquidity, you can check out the full analysis at Breaking Down Ampco-Pittsburgh Corporation (AP) Financial Health: Key Insights for Investors.