Ampco-Pittsburgh Corporation

What they do

The Forged and Cast Engineered Products (FCEP) segment makes forged hardened steel rolls, cast rolls, and forged engineered products (FEP) used mainly by steel, aluminum and other metal rolling mills and by the steel distribution, oil and gas, and extrusion industries. FCEP has operations in the United States, Sweden and Slovenia and an equity interest in two joint ventures in China. The Air and Liquid Processing (ALP) segment, run through subsidiary Air & Liquid Systems, includes Aerofin (finned tube heat exchange coils), Buffalo Air Handling (large custom air handling systems), and Buffalo Pumps (centrifugal pumps for power generation, marine defense and industrial refrigeration), with operations in Virginia and New York.

Revenue drivers

• Forged and Cast Engineered Products (FCEP) — The larger segment; produced $67.3 million of net sales in Q2 2026, down 13.6% year over year, largely because the closed U.K. cast roll plant was in prior-year results. Sells forged and cast rolls to metals producers and FEP to steel distribution, oil and gas, and extrusion customers.
• Air and Liquid Processing (ALP) — Produced $35.6 million of net sales in Q2 2026, higher than the prior-year period, and the company describes it as a source of strength. Revenue comes from Aerofin heat exchange coils, Buffalo Air Handling systems, and Buffalo Pumps centrifugal pumps; orders were driven by commercial power generation pumps, U.S. Navy programs, and air handling.
• Customer order activity and backlog — Not a segment but the leading indicator the company highlights: Q2 2026 bookings were approximately $144 million, up 50% versus prior year, following $124 million in Q1 2026. Backlog rose $39.9 million sequentially to $385.4 million at June 30, 2026.

Recent performance

Second quarter 2026 net sales were $102.9 million, down from $113.1 million a year earlier, as higher ALP sales were more than offset by lower FCEP sales following the U.K. plant closure. Net income attributable to Ampco was $1.5 million, or $0.07 per share, versus a net loss of $7.3 million, or $0.36 per share, in the prior-year period, which included $6.75 million ($0.34 per share) of U.K. exit costs. Adjusted EBITDA rose 22% to $9.8 million and adjusted EBITDA margin expanded 240 basis points to 9.5%. FCEP adjusted operating income was $7.8 million, up 15.1% year over year, while ALP sales increased.

Strategy

Management is focused on improving FCEP profitability by maintaining a strong position in the roll market and continuing to improve operational efficiency and equipment reliability, including ramping the Sweden facility. For ALP, the stated priorities are growing revenues, minimizing inflationary and tariff effects, strengthening engineering and manufacturing capabilities, and improving the sales distribution network. The company exited its U.K. cast roll operations (Union Electric Steel UK entered administration in October 2025) and closed its non-core Ohio steel distribution facility held by Alloys Unlimited and Processing, recognizing $10.79 million of exit charges in 2025. It is also monitoring tariffs, geopolitical developments and economic conditions affecting its business.

Risks

• Steel market demand and global overcapacity — Global steel manufacturing capacity continues to exceed consumption of steel products, and the company describes demand for steel as soft but stable, which pressures FCEP volumes and pricing.
• Tariffs and trade policy — Section 232 tariffs were increased in 2025 for products with domestic melt and pour requirements, new U.S. tariffs on coated steel imports were announced in Q3 2025, and modified tariff and quota systems in Canada and Mexico affect the company's customers and cost base.
• Inflation and production costs in ALP — The ALP segment continues to face increasing production costs due to inflation and has been implementing price increases to mitigate them, which may not fully offset cost pressure.
• Geopolitical and economic uncertainty — The company is actively monitoring U.S. government policy changes, repercussions from Middle East conflicts and similar geopolitical matters, and other developments that could affect operations, financial condition, liquidity, suppliers, industry and workforce.

Outlook

Management says backlog and order trends point to improving demand and a continued shift toward higher-value opportunities, supporting a favorable outlook through 2026 and into 2027. In FCEP, order activity improved for roll products, particularly in North America, as steel market conditions recover from 2025 levels. In ALP, management cites healthy demand in key end markets and strong execution, including Buffalo Air Handling's largest equipment order in its history.