Ampco-Pittsburgh Corporation (NYSE: AP) shares traded higher following the announcement of its second-quarter 2026 results, which marked a return to profitability for the industrial manufacturer. The company reported net income attributable to shareholders of $1.5 million, or $0.07 per share, a significant improvement from the net loss of $7.3 million, or $0.36 per share, recorded in the same period last year. This positive market reaction underscores investor confidence in the company’s operational turnaround, driven by stronger segment performance and the absence of $6.75 million in exit costs related to its U.K. operations that weighed on prior-year results.

The financial improvement occurred despite a decline in total net sales to $102.9 million for the quarter, down from $113.1 million in the prior-year period. The revenue contraction was primarily attributed to lower sales in the Forged and Cast Engineered Products segment, reflecting the closure of the U.K. cast roll facility included in previous results. However, this was partially offset by higher sales in the Air and Liquid Processing segment. Brett McBrayer, CEO of Ampco-Pittsburgh, noted that order activity improved, particularly in North America, as steel market conditions recovered from lower levels experienced in 2025.

Segment Performance

In the Forged and Cast Engineered Products segment, adjusted operating income rose 15.1% to $7.8 million, benefiting from improved operating leverage and manufacturing efficiencies, including the ramp-up of the Sweden facility. The Air and Liquid Processing segment saw adjusted operating income increase 34.2% to $5.3 million, supported by healthy demand for commercial pumps in power generation and U.S. Navy programs, as well as strength in air handling equipment.

What the Numbers Show

While top-line revenue declined due to the structural change from exiting the U.K. business, underlying profitability expanded significantly. Adjusted EBITDA increased 22% year-over-year to $9.8 million, with the margin expanding 240 basis points to 9.5%. This divergence between revenue and adjusted earnings highlights the effectiveness of cost-control measures and operational optimizations implemented during 2025. The improvement in core margins suggests that the company is successfully navigating the transition away from its U.K. operations while maintaining robust profitability in its remaining businesses.

Backlog and Orders

Customer orders increased 50% year-over-year to approximately $144 million, building on $124 million generated in the first quarter. Consequently, backlog grew sequentially by $39.9 million to $385.4 million as of June 30, 2026. This growth reflects stronger customer order activity and improving demand conditions, particularly for roll products in North America and custom-engineered air handling systems.

Balance Sheet and Liquidity

As of June 30, 2026, Ampco-Pittsburgh held $7.0 million in cash and cash equivalents, with total liquidity at $29.0 million. Operating cash flow improved to an inflow of $0.2 million, compared to a use of $2.3 million in the prior-year period. Capital expenditures were $5.7 million, resulting in free cash flow of $(5.5) million. Net debt stood at $130.5 million, up from $124.7 million a year earlier.

Ampco-Pittsburgh Corporation (NYSE: AP) will hold a conference call on Tuesday, August 11, 2026, at 8:30 a.m. Eastern Time (ET) to discuss its financial results for the second quarter ended June 30, 2026. The event provides investors and analysts with an opportunity to review the company’s performance during the period and address questions regarding its operational and financial standing.

Participants interested in joining the live broadcast are encouraged to pre-register using the provided link to receive a conference passcode and unique PIN, which allows immediate access without waiting for a live operator. Those unable to pre-register or lacking internet access may dial in directly. A webcast replay of the call will be available on the company’s website under the Investors menu for those who cannot listen to the live event.

Conference Call Details

Company Overview

Ampco-Pittsburgh Corporation manufactures and sells highly engineered, high-performance specialty metal products and customized equipment utilized by industry throughout the world. Through its operating subsidiary, Union Electric Steel Corporation, it is a leading producer of forged and cast rolls for the global steel and aluminum industries. The corporation also manufactures open-die forged products sold principally to customers in the steel distribution market, oil and gas industry, and the aluminum and plastic extrusion industries.

Additionally, the company produces air and liquid processing equipment, primarily custom-engineered finned tube heat exchange coils, large custom air handling systems, and centrifugal pumps. It operates manufacturing facilities in the United States, Sweden, and Slovenia and participates in two operating joint ventures located in China. Sales offices are located in North America, Asia, Europe, and the Middle East, with corporate headquarters in Carnegie, Pennsylvania.

Forward-Looking Statements

The press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, including but not limited to liquidity constraints, cyclical demand, global steel capacity, restructuring efforts, and geopolitical conflicts. Specific risks related to the insolvency proceedings of Union Electric Steel UK Limited (UES-UK) include actions by insolvency practitioners, interpretation of U.K. insolvency law, and potential creditor claims. Actual results may differ materially from expectations expressed in these statements.