Ampco-Pittsburgh 2025 Q3 Earnings Revenue Surges 12.3% Despite Widening Net Loss

Ampco-Pittsburgh (AP) reported Q3 2025 results that exceeded revenue expectations but fell short in profitability. The company’s $108.01 million revenue beat the prior year by 12.3%, though net losses expanded to $1.66 million. Guidance highlighted $7–8 million annual EBITDA gains post-UK exit, aligning with strategic cost-cutting but underscoring near-term challenges in steel demand.

Revenue

Ampco-Pittsburgh’s total revenue surged 12.3% year-over-year to $108.01 million in Q3 2025, driven by robust performance in its Forged and Cast Engineered Products segment, which accounted for $71.47 million. The Air and Liquid Processing segment contributed $36.54 million, reflecting strong demand in industrial processing. With no corporate costs reported, the combined segmental revenue fully accounted for the year-over-year growth, signaling operational efficiency in core business lines.

Earnings/Net Income

The company’s financial performance deteriorated despite revenue gains, with a net loss widening to $1.66 million, or $0.11 per share, compared to $1.45 million, or $0.10 per share, in Q3 2024. This 13.8% increase in losses highlights margin pressures, exacerbated by exit costs and accelerated depreciation tied to the U.K. operations. The EPS of -$0.11 and net loss of $1.66 million indicate a deterioration in profitability compared to the prior year.

Price Action

The stock price of Ampco-Pittsburgh has experienced a 6.83% decline in the latest trading day, with a 13.57% drop month-to-date, reflecting investor skepticism about near-term profitability.

Post-Earnings Price Action Review

The strategy of buying Ampco-Pittsburgh shares on the earnings release date and holding for 30 days yielded a cumulative return of 17.5% over three years, with an average annual gain of 5.8%. While modest, these returns outperformed market benchmarks, suggesting the strategy effectively balanced risk and reward. The absence of significant volatility underscores its stability, making it a viable option for long-term investors seeking to capitalize on earnings announcements.

CEO Commentary

CEO Brett McBrayer emphasized progress in “right-sizing” the operating footprint, with the U.K. exit projected to yield $7–8 million in annual adjusted EBITDA improvements. He expressed optimism about 2026 profitability, contingent on trade policy clarity for steel customers, while acknowledging near-term challenges in the steel cycle.

Guidance

The company aims to complete its U.K. cast roll and steel distribution exits by year-end 2025, with expected annual EBITDA gains post-exit. Forward-looking guidance hinges on operational efficiency and favorable market conditions, positioning Ampco-Pittsburgh for elevated profitability by 2026.

Additional News

Ampco-Pittsburgh recently announced the appointment of David Anderson as CFO, effective January 1, 2026, marking a strategic leadership shift. The company accelerated its U.K. operations exit, incurring a $43–45 million non-cash charge but anticipating $7–8 million annual EBITDA improvements. Additionally, it secured an amended $100 million credit facility, enhancing liquidity and flexibility for global operations.