Ampco-Pittsburgh (AP) 16th Annual East Coast IDEAS Conference summary

Business overview and recent changes

• Operates in two segments: Forged and Cast Engineered Products (67% of revenue) and Air and Liquid Processing (33%).

• Exited non-core U.K. cast roll facility and steel distribution business, improving annual adjusted EBIT by $7–8 million.

• Backlog at end of Q1 was $346 million, with a market cap over $205 million.

• EBITDA margins improved to 6.7% in 2024, with a target of 10%+.

• Strategic focus on optimizing portfolio, right-sizing footprint, and paying down debt.

Market position and industry trends

• Holds leading market share in North America for forged and cast products, with top-tier status in Europe.

• Benefiting from industry consolidation and competitors exiting the market.

• Tariffs and new protectionist measures in North America and Europe are strengthening market position and margins.

• Customers are investing heavily in new steel and aluminum mills, supporting long-term demand.

• Barriers to entry remain high due to capital requirements and certifications.

Segment performance and growth drivers

• Forged and Cast segment operates plants in North America, Sweden, Slovenia, and a JV in China.

• Raw materials and energy costs are largely pass-through, mitigating inflation risk.

• Order book and backlog are strengthening post-tariff normalization.

• Air and Liquid Processing segment consists of three businesses: Aerofin (nuclear/industrial/HVAC), Buffalo Air (pharma/hospitals), and Buffalo Pumps (gas turbines/Navy).

• Aerofin dominates the North American nuclear heat exchanger market, with over 90% share and minimal competition.

• Buffalo Air and Buffalo Pumps are seeing strong demand from pharma, data centers, and Navy contracts.

• Navy has provided $9 million in funding for plant modernization, boosting capacity.