Ampco-Pittsburgh (AP) Small-Cap Virtual Conference summary

Business profile and portfolio actions

• Four distinct businesses serve separate customer bases; Forged and Cast Engineered Products generated two-thirds of 2025 revenue, with Air and Liquid Processing contributing one-third. 2025 revenue exceeded $430m.

• June backlog was ~$385m; adjusted EBITDA margin was 6.7%, and market capitalization was ~$180m.

• The U.K. cast-roll facility and a small U.S. distribution business closed in October 2025; their exit is expected to improve annualized EBIT by $7m-$8m, with the full P&L impact expected in Q4 2026.

• The U.S. pension became fully funded in Q1 2026; future positive free cash flow is intended for debt repayment.

Forged and cast engineered products

• Mill rolls are replacement consumables, representing 95% of production; the business is the leading North American supplier and remains a critical supplier in Europe.

• European safeguards effective July 1 halved tariff-free quotas, raised tariffs from 25% to 50%, and added melt-and-pour rules; management expects utilization to rise from 65% to above 80%, potentially within a year.

• 2026 revenue is expected to be similar to 2025; mid- to high-single-digit percentage growth is expected in 2027, alongside the $7m-$8m annual EBIT benefit from portfolio exits.

• Forged Engineered Products represented 6% of segment revenue in 2025 and is expected to move closer to 10%; growth is supported by tariffs and stronger U.S. manufacturing competitiveness.

• Flat-rolled imports fell over 40%; U.S. steel and aluminum investment, plus safeguards in Europe, Canada, and Mexico, supports a favorable demand backdrop.

Air and liquid processing growth

• Growth plans launched in 2022; management expects Air and Liquid to average 10%-12% annual growth over the next few years.

• Aerofin supplies heat exchangers to more than 90% of North American nuclear power plants; nuclear bookings are rising, and specialized welding capabilities create barriers to entry.

• Buffalo Air Handling serves pharmaceutical and healthcare projects, including clean rooms and operating rooms; demand is supported by U.S. pharmaceutical investment and hospital air-quality needs.

• Buffalo Pumps serves the U.S. Navy and commercial gas-turbine markets; Navy-funded capacity expansion supports greater supply, while data-center power demand is driving gas-turbine growth.

• Demand exceeds current capacity; increasing throughput is the priority, with bookings improving and shipments expected to accelerate. Air and Liquid orders typically convert in 6-12 months, with some commercial heat exchangers completed in six to seven weeks.