Ampco-Pittsburgh (AP) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 earnings per share of $0.16 and full-year EPS of $0.02, with net cash flow from operations of $18.0M for the year, marking a significant turnaround from prior year losses.

• Net income attributable to shareholders was $3.1M for Q4 and $0.4M for the full year, compared to losses of $41.8M and $39.9M in 2023.

• Full year non-GAAP adjusted income from operations reached $8.0M, up $3.7M year-over-year, the highest in years, despite lower revenues.

• Air and Liquid Processing segment achieved record sales, up 11% year-over-year, and delivered its best quarter historically in Q4.

• Forged and Cast Engineered Product segment improved operating income by 38% to $10.5M for 2024, despite lower sales, aided by new equipment and strategic pricing.

Financial highlights

• Q4 2024 consolidated net sales were $100.9M, down 6.6% year-over-year, mainly due to lower mill roll shipments; full year sales were $418.3M, slightly below $422.3M in 2023.

• Adjusted income from operations was $1M for Q4 and $8M for the year, both improved from prior year despite lower demand.

• Net income for Q4 and full year was $3.1M ($0.16/share) and $4.04M ($0.02/share), respectively, both including a $0.20/share after-tax asbestos-related credit.

• Capital expenditures were $12.2M in 2024, down $8.2M from 2023 due to completion of plant modernization.

• Total backlog at year-end was $378.9M, flat year-over-year.

Outlook and guidance

• Air and Liquid Processing expects continued strong demand, driven by Navy and nuclear market activity, and sees long-term growth opportunities, including potential expansion outside North America.

• Forged and Cast Engineered Product segment anticipates increased U.S. demand if tariffs are implemented, with stable European demand and bullish North American sentiment for 2025.

• Exploring options to mitigate losses in underutilized cast roll operations, including a formal consultation at the U.K. facility.

• CapEx for 2025 expected to be similar to 2024, with grant funding helping to offset expenditures.

• Management highlights ongoing focus on operational efficiency and cost absorption, with partial-year benefits from new U.S. forged business equipment.