Ampco-Pittsburgh (AP) 17th Annual Southwest IDEAS Conference summary

Strategic initiatives and portfolio changes

• Exited all unprofitable businesses, including the U.K. facility and a non-core distribution site, resulting in a streamlined and profitable portfolio.

• Modernized equipment with $30 million in investments, improving reliability, efficiency, and capacity, especially for forged engineered products.

• Strengthened balance sheet with a focus on reducing leverage and improving free cash flow; U.S. pension plan is nearly fully funded.

• Projected step-change EBITDA improvement of $7–8 million annually from Q4 onward due to business exits.

• Realization of tax assets and liquidation proceeds expected to further reduce net debt.

Forged and cast products segment

• Maintains #1 market position in North America and Europe for rolling mill rolls, with 70% of sales in these regions.

• Benefiting from expanded tariffs (Section 232) and new European quota systems, creating barriers for imports and supporting domestic sales.

• Exited a European cast roll facility, reducing exposure to unprofitable operations and aligning production with market demand.

• End markets, including steel, aluminum, and construction, are projected to grow at mid-single-digit rates through 2030.

• Increased pricing power and margin improvement in U.S. forged rolls and FEP products, aided by tariffs and operational changes.

Air and liquid processing segment

• Achieved 55% revenue growth over three years, driven by custom heat exchangers, air handling units, and pumps for nuclear, pharmaceutical, and Navy markets.

• Significant barriers to entry in nuclear and Navy markets, with long-term growth supported by government funding and plant modernization.

• U.S. Navy funding $9 million in plant modernization; additional equipment arriving through 2026.

• Nuclear market growth fueled by plant restarts, life extensions, and emerging small modular reactors; first modular order received.

• Margins in this segment are higher than in forged and cast products, especially in nuclear and Navy aftermarket due to limited competition.