Ampco-Pittsburgh (AP) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $1.1 million ($0.06/share), a $3.8 million year-over-year improvement, with adjusted EBITDA rising to $8.8 million from $5.1 million.

• Both FCEP and ALP segments improved operating income and margins despite lower sales volumes.

• Income from operations increased to $3.9 million from $0.1 million in Q1 2024, driven by better pricing and operational efficiencies.

• Record order intake for Air & Liquid, especially in the nuclear, military, and pharmaceutical markets.

• Both segments faced inflationary and tariff pressures, with cost increases partially offset by price increases.

Financial highlights

• Net sales for Q1 2025 were $104.3 million, down 5.4% year-over-year but up 3% sequentially from Q4 2024.

• Gross margin improved to 21.3% from 16.1% year-over-year.

• Adjusted EBITDA margin rose to 8.43% from 4.63% year-over-year.

• Net cash used by operating activities was $5.3 million, mainly due to increased working capital.

• Liquidity included $7.1 million cash and $28.6 million undrawn credit facility at quarter-end.

Outlook and guidance

• Management expects continued inflationary and tariff pressures, with plans to pass costs to customers to protect margins.

• Losses at the U.K. facility are expected to be significantly reduced as the collective consultation process concludes.

• Air & Liquid expects record orders and shipments in the nuclear market for 2025.

• FEP sales and margins are projected to rise due to tariff-driven growth opportunities.

• The company is monitoring geopolitical and economic developments for potential impacts on demand and supply chain.