Ampco-Pittsburgh 2025 Q2 Earnings Net Loss Widens Significantly

Ampco-Pittsburgh (AP) reported its fiscal 2025 Q2 earnings on Aug 12th, 2025, with results showing a sharp deterioration in profitability despite a modest revenue increase. The company swung to a loss of $0.36 per share, a dramatic 460% negative change from a profit of $0.10 per share in the same period last year, highlighting significant operational challenges.

Revenue
Total revenue for the quarter rose by 1.9% year-over-year to $113.10 million, driven by its Forged and Cast Engineered Products (FCEP) segment, which generated $77.91 million in revenue. The Air and Liquid Processing segment contributed $35.20 million, while corporate costs were reported as $0. These figures reflect the company’s reliance on its core segments, with the FCEP segment maintaining the bulk of the revenue.

Earnings/Net Income
Ampco-Pittsburgh posted a net loss of $-6.72 million for the quarter, a 363.3% deterioration from the net income of $2.55 million in Q2 2024. The significant drop in profitability signals heightened cost pressures and operational disruptions. The earnings per share performance was notably negative, underscoring a challenging operating environment. This decline in earnings is a major concern for investors, as it indicates a substantial deviation from profitability.

Price Action
The stock price of Ampco-Pittsburgh has exhibited mixed short-term performance. As of the latest trading day, the stock edged up 1.34%, but it dropped 0.29% over the most recent full trading week. However, the stock has bounced 8.97% month-to-date, showing some investor optimism despite the earnings miss.

Post-Earnings Price Action Review
The performance of a strategy that involves buying Ampco-Pittsburgh shares following a positive earnings surprise and holding for 30 days has been ineffective over the past three years. This strategy showed a CAGR of 0.00% and an excess return of -46.32%, underperforming the benchmark by the same magnitude. The lack of positive returns and the absence of drawdowns suggest a risk-free but unprofitable strategy.

CEO Commentary
CEO Brett McBrayer attributed the Q2 performance to U.S. tariff volatility, which led to a 9% decline in FCEP backlog from March to June as customers paused orders. In response, the company reduced roll production and initiated the U.K. cast roll exit, a difficult but necessary decision aimed at long-term savings. McBrayer expressed optimism about potential earnings improvements of at least $5 million annually post-exit and expects a more stable operating environment in 2026 due to the EU trade agreement and the completion of the U.K. exit.

Guidance
Ampco-Pittsburgh anticipates earnings improvements by at least $5 million annually following the U.K. cast roll exit and expects a more favorable business environment in 2026 due to reduced trade policy uncertainty from the EU deal. However, no other specific financial guidance was provided for the remainder of the fiscal year.

Additional News
Within the three weeks following Ampco-Pittsburgh’s Q2 earnings release on August 12, 2025, several notable non-earnings related developments emerged. Among the top three most-discussed news items:

1. C-Level Change in Automotive Sector: A leading automaker announced the appointment of a new CEO, signaling a strategic pivot toward electric vehicle production and sustainability initiatives. The move is expected to influence industry dynamics in the coming year.

2. M&A Activity in Industrial Manufacturing: A major industrial equipment manufacturer announced a $2.4 billion acquisition of a smaller competitor, aiming to expand its global footprint and enhance supply chain efficiency. The deal has sparked significant investor interest.

3. Dividend Announcements in Energy Sector: Several major energy firms, including a top oil and gas producer, announced higher-than-expected dividend payouts for 2025, reflecting strong cash flows despite volatile market conditions. This has led to a positive reception from income-focused investors.