Ampco-Pittsburgh (NYSE:AP) reported second-quarter 2026 net income of $1.5 million, or $0.07 per share, compared with a net loss of $7.3 million, or $0.36 per share, in the prior-year period, as restructuring actions and improved operating performance supported profitability.
Chief Executive Officer J. Brett McBrayer described the quarter as “a clear turning point” for the company. Adjusted EBITDA rose 22% from the prior year to $9.8 million, while adjusted EBITDA margin expanded 240 basis points to 9.5% on net sales of $102.9 million.
Orders and Backlog Increase
McBrayer said customer orders totaled approximately $144 million during the quarter, an increase of 50% from the prior-year period. Total backlog increased 12% during the quarter to $385.4 million, up from $339.9 million at the end of the first quarter.
The company said demand was accelerating across both of its operating segments. McBrayer said restructuring actions in the Forged and Cast Engineered Products business, including the U.K. facility closure, were beginning to contribute to financial results.
At June 30, Ampco-Pittsburgh had $7 million in cash and $29 million of undrawn availability under its revolving credit facility.
Air and Liquid Posts Record First-Half EBITDA
Air and Liquid Systems reported second-quarter revenue comparable with the prior-year period, while year-to-date revenue rose 9%. Segment adjusted EBITDA increased 34% in the second quarter and was up 43% year to date, reaching the highest level in the segment’s history, according to David G. Anderson, the company’s chief financial officer and president of Air and Liquid Systems.
Anderson attributed the improvement to manufacturing efficiencies, higher revenue and favorable product mix. The segment’s backlog rose 16% during the quarter to $23.3 million and was 39% above its level at the end of 2025.
The company cited growing power-generation demand related to data centers as a driver for its commercial pump and nuclear heat exchanger products. Its commercial pumps are used in gas turbines, while the company said it remains a dominant supplier of heat exchangers to the nuclear market.
Anderson also cited continued demand from the U.S. Navy and said the business expects that demand to continue as the Navy advances fleet expansion plans. Equipment installed in 2024 has increased capacity for the pump product line, while additional equipment funded through a Navy program arrived in early 2026 and is expected to begin production during the second half of the year. More Navy-funded equipment arrived at the end of July.
Demand for custom air handlers also remained strong, particularly in pharmaceutical and healthcare applications, Anderson said. The segment is adding equipment and employees and pursuing additional manufacturing-efficiency improvements to address rising demand and backlog.
Forged and Cast Segment Improves Profitability
Forged and Cast Engineered Products reported second-quarter sales of $67.3 million, down from $77.9 million in the second quarter of 2025. Sam C. Lyon, president of Union Electric Steel Corp., said nearly all of the decline resulted from the company’s exit from the U.K. operation and its Alloys Unlimited & Processing distribution business.
Despite the lower sales base, segment adjusted EBITDA increased 15% from a year earlier to $7.8 million and rose 36% sequentially from the first quarter.
Lyon said first-quarter timing effects reversed as expected. Large roll shipments in the U.S. recovered, higher-cost inventory from late 2025 moved through the profit-and-loss statement, and the Sweden operation returned to profitability as productivity and utilization improved.
Demand has improved particularly in North America, Lyon said. He attributed the stronger environment in part to tariff protections that reduced imports and increased U.S. steel mill utilization, leading to greater roll consumption. Orders and margins have improved, and backlog increased from year-end levels on orders scheduled for the second half of 2026 and 2027.
- Second-quarter Forged and Cast Engineered Products sales: $67.3 million
- Segment adjusted EBITDA: $7.8 million, up 15% year over year
- Air and Liquid Systems backlog: $23.3 million, up 16% in the quarter
- Total corporate liquidity at June 30: $36 million, including cash and revolver availability
Second-Half Outlook
Management said the third quarter will include normal annual maintenance outages in the U.S. as well as summer shutdowns in Europe. Even with those seasonal effects, Lyon said the company expects the second half of 2026 to be “significantly stronger” than the first half and remains optimistic about 2027.
McBrayer similarly said the company expects a stronger second half as demand builds across markets including power generation, U.S. Navy-related products and the North American roll market. No analyst questions were taken during the conference call.
About Ampco-Pittsburgh (NYSE:AP)
Ampco-Pittsburgh Corporation is a U.S.-based specialty metals manufacturer that produces cast and forged components for a range of industrial markets. The company’s primary offerings include custom-designed forged rolls, grinding rolls and specialty bars for the steel and metal processing industries. In addition, Ampco-Pittsburgh supplies precision couplings, gears and die components for original equipment manufacturers in sectors such as mining, power generation and heavy machinery.
The company operates multiple production facilities in North America, where it employs advanced melting, heat-treating and machining processes to deliver components with tight tolerances and enhanced wear resistance.
-logo-1200x675.png){kind=logo}
