Ampco-Pittsburgh (AP) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 EPS of $0.16 and full-year EPS of $0.02, marking a turnaround from prior year losses; net cash flow from operations was $7.5M in Q4 and $18M for the year.

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

• Full-year non-GAAP adjusted income from operations reached $8M, up $3.7M year-over-year, the highest in years.

• Initiated a formal collective consultation process for the underperforming U.K. plant, with potential outcomes ranging from government support to closure.

• Record sales in the Air and Liquid Processing segment, with 11% growth for the year.

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 2024 consolidated net sales declined 1% as record Air and Liquid Processing sales and higher pricing nearly offset weaker mill roll and forged product sales.

• Q4 2024 income from operations was $5.2M vs. a loss of $41.6M in Q4 2023; full-year income from operations was $12.2M vs. a loss of $34.6M in 2023.

• Adjusted income from operations (non-GAAP) was $1M for Q4 and $8M for 2024, both improved from prior year.

• Q4 2024 included a $4.2M net credit from asbestos liability revaluation and insurance proceeds; 2023 included a $40.7M asbestos-related charge.

Outlook and guidance

• Air and Liquid Processing segment expects continued strong demand, especially from Navy, nuclear, and pharmaceutical markets.

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

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

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

• 2025 capital expenditures expected to be similar to 2024, with some offset from grant funding.