Ampco-Pittsburgh Q3 2025 Earnings Report

Ampco-Pittsburgh EPS Results

• Actual EPS: $0.04
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Ampco-Pittsburgh Revenue Results

• Actual Revenue: $108.01 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Ampco-Pittsburgh Announcement Details

• Quarter: Q3 2025
• Date: 11/12/2025
• Time: After Market Closes
• Conference Call Date: Thursday, November 13, 2025
• Conference Call Time: 10:30AM ET

Ampco-Pittsburgh (NYSE:AP) 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. Ampco-Pittsburgh’s product portfolio also features high-performance alloys formulated for demanding applications in petrochemical processing and pulp and paper industries. By combining proprietary metallurgical expertise with vertically integrated manufacturing, the firm supports customers requiring components that withstand extreme temperatures, pressure and abrasive environments.

Headquartered in Pittsburgh, Pennsylvania, Ampco-Pittsburgh serves a global customer base across Europe, Asia and the Americas. Its sales and technical support teams work closely with clients from design engineering through production to ensure optimized component performance and lifecycle value. The company’s long-standing relationships with leading OEMs and end users underscore its reputation for quality, reliability and specialized metalworking capabilities.

Ampco-Pittsburgh Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Consolidated adjusted EBITDA was $9.2 million in Q3 (up 35% year-over-year) and adjusted EPS rose to $0.04, driven by record year-to-date performance in the Air & Liquid segment.
• Positive Sentiment: The company accelerated the exit of its U.K. cast roll facility and will wind down the Alloys Unlimited distribution business, actions management says will improve annual adjusted EBITDA by $7–$8 million and raise Sweden plant utilization.
• Negative Sentiment: Q3 included $3.1 million of exit-related non-cash charges (accelerated depreciation and other expenses), and the company reported a GAAP net loss of $2.2 million; a larger non-cash write-down and deconsolidation of the U.K. subsidiary will be recorded in Q4.
• Neutral Sentiment: Management expects continued long-term demand strength (rolls, nuclear heat exchangers, Navy pumps, pharma air handlers) but noted short-term tariff disruptions that they say have largely been passed through to customers or mitigated via supply-chain changes.

Presentation

[Operator]

Welcome to the Ampco-Pittsburgh Corporation third quarter 2025 earnings results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Kim Knox, Corporate Secretary. Please go ahead.

[Kim Knox, Corporate Secretary at Ampco-Pittsburgh Corporation]

Thank you, Gary, and good morning to everyone joining us on today's third quarter 2025 conference call. Joining me today are Brett McBrayer, our Chief Executive Officer, and Mike McAuley, Senior Vice President, Chief Financial Officer, and Treasurer. Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation, and David Anderson, President of Air & Liquid Systems Corporation. Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking and may include financial projections or other statements of the corporation's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties, many of which are outside of the corporation's control.

[Kim Knox, Corporate Secretary at Ampco-Pittsburgh Corporation]

The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statements due to various risk factors, including those discussed in the corporation's most recently filed Form 10-K and its subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update or otherwise release publicly any revision to our forward-looking statements. A replay of this call will be posted on our website later today. To access the earnings release or webcast replay, please consult the investor section of our website at ampcopgh.com. With that, I'd like to now turn the call over to Brett McBrayer, Ampco-Pittsburgh CEO. Brett.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

Thank you, Kim. Good morning, and thank you for joining our call. This was a strong quarter for Ampco-Pittsburgh, both in our underlying financial performance and in the decisive strategic actions we've taken to transform the company. As reported in our press release, consolidated Adjusted EBITDA for the third quarter was $9.2 million, up 35% from the prior year. This was driven by the best year-to-date results in our Air & Liquid segment's history. Our third quarter adjusted earnings per share of $0.04 are up $0.14 from the prior year. This strong underlying performance gives us a solid foundation, and we have taken major steps to quicken that momentum into 2026. After the quarter closed in October, we accelerated the exit from our U.K. facility. We are also nearing completion of our exit from a small steel distribution business, AUP.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

The impact from our U.K. exit alone is expected to improve full-year Adjusted EBITDA by $7 million-$8 million. These two actions remove our most significant operational drag and position us for dramatically improved profitability as we move forward. For further details regarding our segment performance, I'll turn the call over to Sam Lyon, President of our Forged and Cast Engineered Product segment. Sam.

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

Thank you, Brett, and good morning. For the third quarter of 2025, FCEP's net sales were $71.5 million, $6.4 million lower than Q2 2025, and $4.3 million ahead of Q3 2024. We had our typical summer shutdowns of our European facilities in Q3. The Q3 revenue includes about $0.9 million in tariff pass-throughs. Segment-Adjusted EBITDA, which excludes the exit charges associated with the U.K. cast facility and the AUP steel distribution operations, was $7.1 million, $0.3 million higher than Q2, and $0.3 million better than Q3 of 2024. FEP demand and shipments have improved. Year-to-date, FEP revenue increased approximately 40% to $14.4 million compared to $10.2 million last year. We continue to raise prices on this product, improving margins as import barriers have increased.

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

Looking at the roll market in North America, some customers temporarily postponed roll purchases due to tariff uncertainty and, as a result, have lowered their existing roll inventory. This supports our view that a return to more normal roll ordering patterns is approaching as inventory levels deplete. Overall, tariffs are expected to have a neutral impact on roll demand in North America, as our U.S. customers will benefit. Conversely, tariffs will negatively affect our Canadian and Mexican customers, as their imports into the U.S. are affected. To date, we've passed all tariffs onto our customers. The tariff environment for our European imports remains a key focus. Our imports to the U.S. from Sweden now face tariffs between 15%-27%, and products from Slovenia face rates as high as 50%.

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

The cast roll market in North America continues to exceed domestic capacity, so long-term demand for our European cast rolls should not be affected by these tariffs. We expect that the roll tariff effect will be temporary. In addition, our European customers have lean inventory. Any uptick in demand will require additional roll orders. Europe recently announced plans to modify its quota and tariff system for steel, which, when implemented in July of 2026, will result in dramatically increased utilization of European mills. The quotas will reset to lower volumes, and any steel imports above these quotas will be subject to a 50% tariff, up from 25% currently. This new system has the potential to be a significant tailwind for our roll business. Long-term fundamentals remain strong. Construction spending, automotive production, and canned sheet demand are all expected to grow at mid-single-digit rates over the next five years.

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

As formally disclosed, we have placed our U.K. cast roll plant into administration. The insolvency commenced on October 14th, 2025, and is being managed by appointed administrators. This action accelerated our timeline for closure. Our losses stopped as of October 14th, much earlier than our original solvent wind-down plan, which had us operating through the first quarter of 2026. We now expect the U.K. facility to complete all work and process inventory and ship these orders by year-end 2025, minimizing disruption to our customers. As a result of the U.K. closure, our Sweden plant will run at a higher utilization rate in 2026, improving its profitability. To further improve the FCEP segment, we have decided to wind down our small, unprofitable, and non-core Alloys Unlimited steel distribution facility. That exit will conclude by the end of November.

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

The actions we took this quarter to address underperforming assets will deliver meaningful improvements in operating income and Adjusted EBITDA for the segment. Brett, back to you.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

Thank you, Sam. David Anderson, President of Air & Liquid Systems Corporation, will now cover his segment's results.

[David Anderson, President of Air & Liquid Systems Corporation at Ampco-Pittsburgh Corporation]

Thank you, Brett. Good morning. 2025 continues to be a positive year for Air & Liquid. In Q3, revenue was 26% higher than prior year, while year-to-date revenue was nearly 7% above prior year. The Q3 revenue increase was driven by higher revenue in all product lines, while year-to-date revenue was higher due to increased revenue for pumps. Segment-Adjusted EBITDA in Q3 was $4.4 million versus $3.4 million in the prior year. The 31% increase versus prior year was driven by higher revenue and improved product mix. Year-to-date segment-Adjusted EBITDA of $12.1 million was the highest in Air & Liquid's history and a $3.1 million increase over prior year. We continue to see positive activity in the nuclear market for our heat exchangers product line. Orders and shipments have already exceeded any prior full year.

[David Anderson, President of Air & Liquid Systems Corporation at Ampco-Pittsburgh Corporation]

From restarting legacy plants to the new small modular reactors, nuclear power appears to be at the beginning of significant long-term market growth. Our engineering and manufacturing capabilities position us well as this market continues to grow. There continues to be strong demand from the U.S. Navy, and we expect this demand to continue as the Navy moves forward with fleet expansion plans. The manufacturing equipment installed in 2024 has already increased manufacturing capacity for our pump product line, and there is more capacity expansion in process. In the weeks ahead, new manufacturing equipment from the Navy funding program is expected to arrive at our facility, and there will be more equipment arriving in 2026 from the same Navy program. This equipment, along with the equipment we installed in 2024, will position us to meet the expected growth in this market. Demand for custom air handlers remains strong.

[David Anderson, President of Air & Liquid Systems Corporation at Ampco-Pittsburgh Corporation]

From upgrading existing facilities to increasing research and manufacturing capabilities in the United States, there continues to be tremendous demand in the pharmaceutical market for our custom air handling products. Tariffs continue to be a major subject in the last few months. The tariff on copper, which is a main component of our heat exchangers, has been in place for a few months now. We've been able to adjust our supply chain to avoid most of the tariff costs and are passing on any remaining tariff costs to our customers. While there may be some short-term fluctuations as the supply chain adjusts, in the long term, anything that results in increased manufacturing in the United States will increase demand for our products. In summary, demand for our products remains strong.

[David Anderson, President of Air & Liquid Systems Corporation at Ampco-Pittsburgh Corporation]

2025 will be the best year in Air & Liquid Systems' history, and we are well positioned in markets that are showing significant long-term growth potential.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

Thank you, Dave. At this time, Mike McAuley, our Chief Financial Officer, will now share more details regarding our financial performance for the quarter.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Thank you, Brett. As indicated in both our Form 10-Q and in our press release 8-K filed yesterday, while we have recorded charges totaling $3.1 million in the quarter relating to reducing our operational footprint for significant future projected earnings improvements, the underlying business has improved with significantly higher consolidated Adjusted EBITDA and Adjusted EPS in Q3 2025 than in the prior year, which is true for the year-to-date period as well. All while we have navigated some short-term disruptions from tariff policy in our customer base. In October, we issued a press release and filed a Form 8-K, which detailed the accelerated exit from our U.K. cast roll facility through a structured insolvency process. This removes that subsidiary's operating results from our consolidated results immediately from that date forward.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

This represents a departure from our previous plan to unwind it more gradually into early 2026, stopping those losses sooner. In conjunction with that action, we will deconsolidate the U.K. subsidiary in Q4. When we reported that, we expect a significant non-cash write-down as itemized in the report, and again in note two to our Q3 Form 10-Q. The major benefits of this approach, beyond sooner operating loss reduction, is avoidance of significant cash plant closure costs and an expectation for a material revolving credit facility borrowing reduction, as distributions from the administrators from liquidation proceeds are remitted to the secured creditor, which is expected by around mid-2026. To reiterate, we expect Adjusted EBITDA to improve by $7 million-$8 million per full year post the U.K. deconsolidation, and that begins in early Q4 2025. Now, back to Q3 results.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Ampco-Pittsburgh's net sales for the third quarter of 2025 were $108 million, an increase of 12% compared to net sales for the third quarter of 2024. The increase was primarily driven by higher sales in all three divisions of Air & Liquid Processing, higher net roll pricing, and higher shipments of forged engineered products in the Forged and Cast Engineered Products segment, which more than offset softer roll shipment volumes during the quarter. As I mentioned, we recorded $3.1 million in non-cash accelerated depreciation and other expenses in Q3 related to the exit of our U.K. cast roll business and our small Alloys Unlimited steel distribution business. These expenses are spread by the pertinent income statement line item in the consolidated P&L, but are summarized for you in note two to our Q3 Form 10-Q and in the non-GAAP reconciliation table attached to the Q3 earnings press release.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Referring to that non-GAAP reconciliation schedule, please note that consolidated Adjusted EBITDA of $9.2 million for the third quarter of 2025 improved by $2.4 million versus prior year. This was driven by a few primary reasons: higher pricing and surcharges, net of changes in manufacturing costs in the Forged and Cast Engineered Products segment; higher shipment volumes of forged engineered products, which helped to partially mitigate the impact of lower mill roll shipment volumes; unfavorable manufacturing overhead absorption compared to the prior year quarter related to temporary plant shutdowns typically taken in Q3 of each year in the Forged and Cast Engineered Products segment; and the higher shipment volumes and improved product mix experienced in the Air & Liquid Processing segment. 2025 year-to-date Adjusted EBITDA of $26 million remains up versus prior year.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Total selling and administrative expenses declined $0.6 million or 4% for Q3 2025 versus prior year due to lower employee-related costs offset in part by professional fees associated with our efforts to exit the U.K. operations and higher sales commissions in both segments. Depreciation and amortization expense for the quarter and for the year-to-date are higher than prior year periods due to the accelerated depreciation portion of those exit charges associated with the U.K. and Alloys Unlimited steel distribution business. Severance charges and loss on disposal of assets stem from the exit as well, and again are part of those exit charges itemized in note two in Form 10-Q and in that non-GAAP reconciliation table. Interest expense for the third quarter is approximately flat with prior year.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

The change in other expense income net was driven primarily by lower foreign exchange transaction losses, but also by lower pension income, given the lower expected long-term asset returns, given the asset allocation changes we've made to protect a much higher funded status of our U.S. defined benefit plan. The income tax provision for 2025 is benefiting from a lower statutory tax rate in one of our foreign tax-paying jurisdictions. As a result, net loss attributable to Ampco-Pittsburgh for the three months ended September 30th, 2025, was $2.2 million or $0.11 per share, which includes $3.1 million or $0.15 per share for the exit charges.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Referring to the non-GAAP reconciliation schedule attached to the earnings release, please note that adjusted earnings per share of $0.04 for Q3 2025 was up $0.14 from prior year, and for the year-to-date period ended September 30th, 2025, Adjusted EPS of $0.03 was up $0.16 per share. Excuse me. So significant underlying improvement there. At September 30th, 2025, the corporation's liquidity position included cash on hand of $15 million and undrawn availability on our revolving credit facility of $28.2 million. Operator, at this time, we would now like to open the line for questions.

[Operator]

We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. Again, if you have a question, please press star, then one. Our first question is from David Wright with the Henry Investment Trust. Please go ahead.

[David Wright, President at Henry Investment Trust]

Good morning.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

Good morning, David.

[David Wright, President at Henry Investment Trust]

I could not let you go without anyone asking you questions because that is about the best report you have had in a long time. So congratulations. Two for Mike. On the U.K. closure and the question on the difference between bankruptcy filing in the U.S. and this filing in the U.K., you addressed the operating results and being absolved of them. Is the subsidiary's debt or is the parent also absolved of that as a result of the filing?

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Yes. Yes. In fact, going along with that process, first of all, the insolvency is exclusively related to the subsidiary, has nothing to do, does not affect any other subsidiary segment or the entire Ampco-Pittsburgh. That process is something we had been thinking about, but as we got into more investigations on it, it became more evident that it was the best answer for Ampco and did accelerate our exit. There is no material local debt other than the pension obligations, which are now part of that business and its other liabilities. We did not have direct debt. It never issued direct debt itself. We had significant closure costs, which were liabilities that we expected to incur, which we are no longer going to incur, David. You can see those.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

If you look back at what we've recorded earlier in the year as charges, for example, severance charge, something in the range of $7 million, that's going to be reversed as part of the Q4 deconsolidation.

[David Wright, President at Henry Investment Trust]

The secured debt, it's just secured against the U.K. assets?

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

The secured debt, are you talking about the corporation's revolving credit facility?

[David Wright, President at Henry Investment Trust]

No, no. The debt that has to be liquidated, the debt that has to be paid off as the assets of the U.K. operation are liquidated.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Yeah. Those will primarily be accounts payable incurred, accounts payable that had not been paid yet, any other liabilities that are on the balance sheet of that subsidiary, any liabilities which materialize as the real estate eventually gets liquidated, and any costs for the administration, any commissions for the sale of the assets.

[David Wright, President at Henry Investment Trust]

Okay.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

All be handled out of the remaining assets of the subsidiary. Yes.

[David Wright, President at Henry Investment Trust]

Okay. The other question for you, Mike, is you alluded to the pension plan. Are you doing an evaluation again this year? The pension plan. Excuse me, the asbestos liability.

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

Yes, we will.

[David Wright, President at Henry Investment Trust]

Okay. So is that going to be an annual thing now?

[Mike McAuley, Senior VP, CFO, and Treasurer at Ampco-Pittsburgh Corporation]

It has been in the last couple of years. We've migrated to an annual of that, David, and we're going to do it again in Q4.

[David Wright, President at Henry Investment Trust]

Okay. And then one for Dave. Looks like your run rate based off the last quarter sales were $140 million annualized. I know you undertook a capacity expansion. You talk about the demand from pharmaceutical companies continuing. How much more can you put through the system?

[David Anderson, President of Air & Liquid Systems Corporation at Ampco-Pittsburgh Corporation]

We can put significantly more through the system, David. We are addressing that in multiple ways. The equipment coming in through the Navy funding program is state-of-the-art, so we are getting significant improvements in manufacturing efficiencies. We are also looking at other projects at our facilities to improve our utilization, improve our efficiencies. We still have a long runway.

[David Wright, President at Henry Investment Trust]

Remind me on the nuclear plants, where are you in the food chain if they want to restart a plant or they want to build a new one? Are you early or late?

[David Anderson, President of Air & Liquid Systems Corporation at Ampco-Pittsburgh Corporation]

We're usually early. Often, we have supplied the heat exchangers well in advance before they're opening the facility. We've already been to some of the ones that are reopening, and that was a while ago. We were up in Michigan to the first one. We are early in the process.

[David Wright, President at Henry Investment Trust]

Okay. All right. Great. Like I said, best quarter you've reported in a long time, and hope lots of people see it. Thanks very much.

[David Wright, President at Henry Investment Trust]

Thanks, David.

[Operator]

The next question is from John Baer with Ascend Wealth Advisors. Please go ahead.

[John Baer, Research Analyst at Ascend Wealth Advisors]

Thank you. Good morning, and I'll echo the congrats on a good quarter here. My question kind of cycles back to the discontinued operations. Do you anticipate getting any kind of monetization, I guess, from the liquidation of properties and so forth in those operations, or will it all go to the trustee that's the receivership, I guess, that's settling that out?

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

Yeah. That's a good question. Actually, part of the answer to that is disclosed in the 8-K that we issued. You can read more about it there. The overview really is, as the assets get liquidated, there's a priority of payments that the administrator will follow according to U.K. solvency law. The secured creditors are settled first, and the secured claims are supposed to be the bank debt. Those are the claims. Those are the chargeholders on that legal entity. That would be our bank group. The liquidation proceeds would first go and be remitted to the bank group, who would then reduce our outstanding asset-based loan balance, which is our revolving credit facility. Yes, we do expect.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

We had some projections from the administrator, and we've analyzed those, and we've included those in our assessment of the net charge we will record in Q4, and we'll net that charge down by an estimated proceeds amount, which is $8 million-$9 million expected in net proceeds through that process.

[John Baer, Research Analyst at Ascend Wealth Advisors]

That amount.

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

Just one comment. Part of that is just Sam. The administrator, they have continued to run the plant. Anything that has already been through the melting process, they are finishing those rolls, turning them into finished goods and shipping them and monetizing that, which ends up being part of the funds that will end up funneling back through. It is a double benefit, number one. It generates more value. Number two, it actually helps with our customers in the transition of closing the plant.

[John Baer, Research Analyst at Ascend Wealth Advisors]

Okay. So just high altitude, you're looking at possibly somewhere in the $8 million-$9 million that could flow back to you after this is all closed out, right?

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

Yes. In the form of reduced bank debt. Yes.

[John Baer, Research Analyst at Ascend Wealth Advisors]

Okay. Okay. And then following up on that, my understanding is that you'd be supplying or hoping to supply existing customers that have been served by that facility from your other European operations. Is that right?

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

A portion of it. John, this is Sam again. The work rolls, we will maximize the Sweden plant, so the utilization there will definitely increase significantly. There was one type of roll that we made that cannot be made in Sweden. Some of them will be converted to forged rolls. There is very limited supply in the marketplace. We will see some of that come to the U.S. There will be an overall slight reduction in revenue, but obviously a big gain in profitability.

[John Baer, Research Analyst at Ascend Wealth Advisors]

Okay. So the Sweden plant will be more efficient and more higher utilization. Is that a fair way to look at it?

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

That is a fair way to look at it. Yes.

[John Baer, Research Analyst at Ascend Wealth Advisors]

Okay. Great. Thank you very much for taking the questions.

[Sam Lyon, President of Union Electric Steel Corporation at Ampco-Pittsburgh Corporation]

All right. Thanks, John.

[Operator]

This concludes our question-and-answer session. I would like to turn the conference back over to Brett McBrayer for any closing remarks.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

In closing, I want to share an important corporate update and then leave you with a final thought on our path forward. We recently announced that David Anderson will become our new CFO on January 1st, 2026, while also continuing his duties as President of Air & Liquid Processing. Dave's prior CFO experience in both of our segments positions him uniquely well for this expanded role. Dave has a deep and tenured team at Air & Liquid Processing, which gives us full confidence in his ability to manage both responsibilities and drive strong performance across the organization. I also want to acknowledge and thank Mike McAuley for his significant contributions. Mike will continue working for me as a strategic advisor for the first half of 2026 to ensure a seamless transition. Finally, I want to thank our employees who are making the positive improvements you heard about today.

[Brett McBrayer, CEO at Ampco-Pittsburgh Corporation]

Our message this quarter is clear. Our core business is improving, and we have taken the difficult but necessary steps to address our underperforming assets. By exiting the U.K. and our small steel distribution business, AUP, we are removing the most significant drags on our profitability. We enter 2026 stronger, more focused, and a more profitable company. I want to thank the board of directors and our shareholders for your continued support. Thank you for joining our call this morning.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• David Anderson, President of Air & Liquid Systems Corporation
• Kim Knox, Corporate Secretary
• Brett McBrayer, CEO
• Mike McAuley, Senior VP, CFO, and Treasurer
• Sam Lyon, President of Union Electric Steel Corporation

Analysts

• John Baer, Research Analyst at Ascend Wealth Advisors
• David Wright, President at Henry Investment Trust