Ampco-Pittsburgh (AP) investor relations material

Executive summary

• Q2 2026 marked a turnaround with net income of $1.5M ($0.07/share) versus a $7.3M loss in Q2 2025, and adjusted EBITDA up 22% year-over-year to $9.8M.

• Net sales were $102.9M, down from $113.1M year-over-year, mainly due to the closure of the U.K. cast roll facility, but demand and backlog surged across both segments.

• Customer orders rose 50% year-over-year to $144M, driving backlog up to $385.4M at June 30, 2026, with 44% expected to ship after 2026.

• Operating income improved to $5.1M in Q2 2026 from a loss of $3.1M in Q2 2025; six-month operating income rose to $7.6M from $0.8M.

Financial highlights

• Adjusted EBITDA margin expanded by 240 basis points to 9.5% in Q2 2026.

• Gross margin improved as cost of products sold (excluding D&A) fell to 78.4% of sales in Q2 2026 from 81.3% in Q2 2025.

• Depreciation and amortization expense declined to $4.2M in Q2 2026 from $5.4M in Q2 2025, reflecting facility closures.

• Cash on hand at June 30, 2026, was $7M, with $29M undrawn on the revolving credit facility.

• Operating cash flow was $0.2M in Q2 2026 versus $(2.3)M prior year; free cash flow was $(5.5)M.

Outlook and guidance

• Backlog and order trends support a favorable outlook through 2026 and into 2027, with strong demand in power generation, U.S. Navy, and North American roll markets.

• Second half of 2026 expected to be significantly stronger than the first half, despite normal seasonal outages.

• Management expects sufficient liquidity from operations and credit facility to meet obligations and capital needs.