Ampco-Pittsburgh Stock Gains Post Strong Q3 Earnings and Restructuring

Shares of Ampco-Pittsburgh Corporation AP have surged 31.4% since the company released results for the quarter ended Sept. 30, 2025, sharply outperforming the S&P 500 Index’s 3.3% decline over the same period. Over the past month, the stock has gained 25.8%, whereas the S&P 500 lost 1.2%.AP’s Earnings SnapshotAmpco-Pittsburgh’s third-quarter 2025 results showed notable year-over-year improvement. Net sales rose 12.3% to $108 million from $96.2 million in the prior-year quarter, driven by higher shipment volumes in the Air and Liquid Processing (ALP) segment and stronger net roll pricing and forged engineered products shipments in the Forged and Cast Engineered Products (FCEP) segment. Adjusted EBITDA climbed 34.9% to $9.2 million from $6.8 million a year ago, supported by higher volumes and improved margins. Adjusted EBITDA margin expanded to 8.53% in third-quarter 2025 from 7.10% in the prior-year quarter.Adjusted earnings per share (EPS) improved to $0.04, a $0.14-per-share increase from the year-ago loss of $0.10 per share. While AP reported a GAAP net loss of $2.2 million, or $0.11 per share — widening from a $1.96 million loss last year, or $0.10 per share — results were weighed down by $3.1 million in accelerated depreciation and other non-cash charges associated with the exit of its U.K. cast roll operations and a domestic steel distribution business.Ampco-Pittsburgh’s Other Key Business MetricsThe ALP segment delivered one of its strongest quarters in company history. ALP’s revenues increased 26.2% to $36.5 million from $28.9 million a year earlier, with growth across all product lines. Segment adjusted EBITDA rose 31% to $4.4 million from $3.4 million, reflecting higher volumes and a favorable mix. Year-to-date adjusted EBITDA for ALP reached $12.1 million — its highest on record — driven by robust demand in nuclear, naval and pharmaceutical markets, as well as capacity expansion initiatives completed in 2024.In the FCEP segment, net sales of $71.5 million were 6.3% higher than the prior-year quarter’s $67.2 million, although down sequentially due to typical summer shutdowns in Europe. FCEP adjusted EBITDA was 0.3 million above last year’s level, supported by improved demand for forged engineered products, continued pricing strength and tariff pass-throughs. Year-to-date, forged engineered products (FEP) revenues rose 40.4% to $14.4 million from $10.2 million in the prior year, aided by import barriers that have allowed for price increases.Company-wide selling and administrative expenses declined 4.5% from the prior year due to lower employee-related costs, partially offset by professional fees tied to exit activities. Interest expense was stable year over year. The income tax provision decreased, largely due to a reduced statutory tax rate in one foreign jurisdiction. Liquidity at quarter-end stood at $14.9 million in cash and $28.2 million in revolver availability.Ampco-Pittsburgh Corporation Price, Consensus and EPS Surprise Ampco-Pittsburgh Corporation price-consensus-eps-surprise-chart | Ampco-Pittsburgh Corporation QuoteAP’s Management CommentaryExecutives emphasized that the quarter’s strengthened operating performance, coupled with strategic exit decisions, positions Ampco-Pittsburgh for sustainably higher profitability. CEO Brett McBrayer noted that ALP delivered its best year-to-date results ever and that the U.K. exit alone is expected to increase full-year adjusted EBITDA by $7 million–$8 million. Management highlighted growing momentum across multiple end markets, particularly nuclear power, naval programs and pharmaceutical manufacturing — all areas expected to generate long-term demand for custom heat exchangers, pumps and air handling systems.In the FCEP segment, leadership anticipates gradual normalization in roll ordering patterns as customers work down inventories amid tariff uncertainty. AP continues passing tariff costs through to customers and expects roll demand fundamentals to benefit from broader industrial trends, including construction spending and automotive and can-sheet production.Factors Influencing Ampco-Pittsburgh’s Quarterly ResultsThe quarter’s GAAP loss was primarily due to accelerated depreciation and other non-cash charges related to facility exits. Temporary plant shutdowns in Europe also reduced absorption and pressured margins in the FCEP segment. However, these headwinds were offset by higher FEP shipments, increased roll pricing and strong demand across ALP product lines.Tariffs remained a major external factor. For ALP, copper tariffs required supply-chain adjustments, though the company successfully avoided most added costs and passed on the remainder. In FCEP, roll imports from Sweden now face tariffs ranging from 15% to 27%, and products from Slovenia face rates as high as 50%, though management expects the impact to be temporary.AP’s GuidanceAmpco-Pittsburgh reiterated that the accelerated exit from its U.K. cast roll facility — completed in mid-October — and the planned exit from a small steel distribution business are expected to materially improve profitability beginning in the fourth quarter of 2025. No quantitative revenue or EPS guidance was issued, but management emphasized that the earnings power of the portfolio has fundamentally changed heading into 2026.Ampco-Pittsburgh’s Other DevelopmentsKey restructuring actions defined the quarter. Ampco-Pittsburgh placed its U.K. cast roll plant into administration on Oct. 14, halting further losses far earlier than its original wind-down schedule. The company also initiated the exit from its Alloys Unlimited steel distribution business, slated for completion by late November 2025. The U.K. liquidation is expected to generate $8 million–$9 million in proceeds applied toward reducing revolver borrowings, easing balance-sheet pressure.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ampco-Pittsburgh Corporation (AP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks