Ampco-Pittsburgh (AP) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating income was $1.97 million, with year-to-date operating income at $7.0 million, driven by improved margins in Forged and Cast Engineered Products and strong U.S. forged business performance.

• Net sales for Q3 2024 were $96.2 million, down from $102.2 million in Q3 2023, mainly due to lower shipment volumes and surcharge pass-throughs.

• Net loss for Q3 2024 was $2 million ($0.10 per diluted share), compared to net income of $0.8 million ($0.04 per share) in Q3 2023.

• Backlog increased to $383.6 million at September 30, 2024, with 71% expected to ship after 2024, supporting 2025 growth prospects.

• Management remains focused on restructuring, debt reduction, and operational improvements, targeting significant progress within 12–24 months.

Financial highlights

• Consolidated net sales for Q3 2024 were $96.2 million, down 5.9% year-over-year, with nine-month sales at $317.4 million, up from $314.2 million.

• Gross margin improved in Forged and Cast Engineered Products due to pricing and efficiency gains, with cost of products sold (excl. D&A) at 79.4% of sales in Q3 2024.

• Interest expense for Q3 2024 was approximately $3 million, up $0.5 million year-over-year, reflecting higher equipment financing and interest rates.

• Net cash flows from operating activities for the nine months ended September 30, 2024, were $10.6 million, compared to a use of $10.3 million in the prior year period.

• Liquidity at September 30, 2024: $11.8 million cash on hand and $20.5 million undrawn credit facility.

Outlook and guidance

• Backlog at September 30, 2024, was $383.6 million, up $4.6 million from year-end 2023, positioning for low to mid-single-digit volume growth in Forged and Cast Engineered Products in 2025.

• Forged and Cast Engineered Products expects improved utilization and shipments in 2025 as order intake recovers.

• Air and Liquid segment expects continued strong demand, especially from the pharmaceutical and nuclear markets, with additional U.S. Navy funding to further modernize production.

• Management anticipates further operational improvements and market share gains, particularly in the U.S. due to onshoring and trade actions.

• Sufficient liquidity from operations and credit facilities is expected to meet requirements and debt service.