Ampco-Pittsburgh Projects Stronger Profitability After UK Exit, Adjusted EBITDA Climbs 35%
Portfolio Reshaping and EBITDA Growth Signal Upturn Ahead
Ampco-Pittsburgh (NYSE: AP) is turning the page on a challenging chapter, announcing Q3 2025 results that showcase both near-term operational improvements and the potential for more robust profitability in coming quarters. The standout metric: Adjusted EBITDA rose 35% year-over-year to $9.2 million, while the company completed its exit from unprofitable UK and steel distribution businesses. Management expects these moves to add $7 to $8 million in adjusted EBITDA per year going forward—a significant improvement for a company with a sub-$10 million quarterly EBITDA base.
Financial Highlights Show Recovery and Improved Margins
Although GAAP numbers are still impacted by non-cash costs from these exits—including $3.1 million in accelerated depreciation—the company’s core metrics have turned upward. Net sales for the quarter increased to $108.0 million, up from $96.2 million in Q3 2024, reflecting strength in both Air and Liquid Processing (ALP) and Forged and Cast Engineered Products (FCEP) segments. Adjusted earnings per share hit $0.04 versus a $(0.10) loss in the prior year period.
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Net Sales ($M) | 108.00 | 96.17 | +12.3% |
| Adjusted EBITDA ($M) | 9.21 | 6.83 | +35.0% |
| Adjusted EPS ($) | 0.04 | (0.10) | +0.14 |
| Adjusted EBITDA Margin (%) | 8.53 | 7.10 | +1.43 pts |
ALP and FCEP Segments Underpin Margin Expansion
The ALP segment, driven by higher shipment volumes, was a bright spot for margin improvement. FCEP saw net roll pricing and shipment gains outpacing some market softness in roll shipments. Together, these segment trends pushed overall adjusted EBITDA margin up to 8.53% from 7.10% last year.
| Segment | Q3 2025 Adjusted Margin (%) | Q3 2024 Adjusted Margin (%) |
|---|---|---|
| FCEP | 9.89 | 10.11 |
| ALP | 12.16 | 11.67 |
| Total (Consolidated) | 8.53 | 7.10 |
Outlook: Portfolio Moves to Deliver Earnings Upside
CEO Brett McBrayer put the transformation in perspective, noting that the completed exits “fundamentally changed the earnings power of our portfolio.” While the global steel cycle remains tepid, Ampco-Pittsburgh is betting that with right-sized operations, improved trade clarity for customers, and sustained cost discipline, elevated profitability is within reach as 2026 approaches.
Key Takeaways: Transformation Creates Monitoring Opportunity
The headline for investors isn’t a single quarter’s outperformance, but a reshaped portfolio poised to deliver steadier, stronger earnings. Adjusted results point to operational momentum. If the anticipated $7 to $8 million EBITDA lift materializes post-UK exit, investors may want to monitor coming quarters for early evidence of these structural improvements working their way through Ampco-Pittsburgh’s financials.
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