Ampco-Pittsburgh (AP) investor relations material

Executive summary

• Fourth quarter 2025 saw the removal of significant underperforming assets, including the exit from the UK facility and a small US steel distribution business, expected to improve adjusted EBITDA by $7–$8 million annually.

• Consolidated adjusted EBITDA for Q4 was $3.2 million, down from $6 million the prior year, mainly due to a pause in customer orders in the forged and cast segment after new global tariffs.

• Full year 2025 adjusted EBITDA was $29.2 million, an improvement over the prior year, with strong demand in the air and liquid processing segment achieving record revenue and income.

• Reported a GAAP net loss of $57.7 million for Q4 2025 and $66.1 million for FY 2025, driven by non-cash charges related to the UK exit and asbestos revaluation.

• Bookings for both operating segments accelerated in the first two months of 2026.

Financial highlights

• Q4 2025 net sales were $108.8 million, up $7.8 million year-over-year; full year net sales were $434.2 million, up $15.9 million.

• Q4 adjusted EBITDA was $3.2 million, lower than prior year due to reduced operating days in FCEP; full year adjusted EBITDA was $29.2 million, up $1.1 million year-over-year.

• Adjusted net loss for Q4 2025 was $3.4 million and for FY 2025 was $2.7 million, after excluding significant one-time charges.

• Total SG&A expenses declined $2.8 million (5%) for 2025, mainly from lower employee-related costs.

• Cash on hand at year-end was $10.7 million, with $25.5 million undrawn on the revolving credit facility.

Outlook and guidance

• Actions taken in Q4 are expected to drive improved profitability in 2026 as the steel market recovers.

• Margin expansion anticipated in the second half of 2026 and full year 2027, especially in FCEP as operational improvements in Sweden and tariff protections take effect.

• Air and Liquid Processing is well-positioned for long-term growth, with strong demand in nuclear, Navy, and AI data center markets.

• Management expects improved earnings power as steel market conditions recover.