Ampco-Pittsburgh's Q2 2025 Earnings Call: Unpacking Contradictions in Demand, Revenue, and Tariff Impacts

Demand and order patterns, U.K. facility closure impact on revenue, market demand and order patterns, demand in the U.S. and impact on orders, tariff impact on market dynamics are the key contradictions discussed in Ampco-Pittsburgh Corporation's latest 2025Q2 earnings call.



Impact of Tariffs and Pause in Orders:
- AMPCO-Pittsburgh Corporation reported adjusted EBITDA of $8 million for Q2 2025, negatively impacted by a pause in customer orders due to tariff uncertainties.
- The Forged and Cast Engineered Products group shut down production, resulting in a 3% increase in net sales to $77.9 million, with segment adjusted EBITDA down to $6.8 million due to reduced plant utilization and lower revenue from forged work rolls.

Strategic Shutdown of U.K. Operations:
- The company recorded $6.8 million in expenses related to the shutdown of its U.K. cash roll facility, with a planned minimum of $5 million annualized operating income improvement anticipated upon completion.
- The wind down aims to accelerate rightsizing of the portfolio, with the closure expected to wrap up product supply by Q1 2026.

Air & Liquid Processing Segment Performance:
- Air & Liquid Processing segment saw a 15% increase in adjusted EBITDA for Q2, reporting $3.9 million, marking the highest year-to-date adjusted EBITDA in the segment's history.
- Growth was driven by a better product mix, strong demand from nuclear, military, and pharmaceutical markets, and increased backlog.

Future Outlook and Tariff Impact:
- The company anticipates a full order book for its cast roll plant in Sweden post-U.K. operations closure, indicating a strong long-term outlook.
- The current baseline tariff on U.S. imports from Sweden and Slovenia stands at 15%, and the company has passed on all tariff costs to customers, affecting short-term North American demand.