Ampco-Pittsburgh — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 3% year-over-year to $111.7 million for the quarter ended September 30, 2026, compared to $108.0 million in the prior-year period.
• Net income attributable to Ampco-Pittsburgh improved to $0.5 million ($0.02 per share) from a net loss of $2.2 million ($0.11 per share) in the prior year; the prior-year loss included $3.1 million in costs to exit U.K. operations.
• Adjusted EBITDA increased 2% to $9.4 million from $9.2 million in the prior-year period, with an adjusted EBITDA margin of 8.4% compared to 8.5% in the prior year.
• Cash from operations increased $15.5 million to $21.8 million from $6.3 million in the prior-year period.
• Free cash flow increased $15.1 million to $19.7 million from $4.6 million in the prior-year period, driven by lower capital expenditures of $2.7 million.
• Total debt stood at $120.3 million, while net debt reduced $19.5 million to $111.0 million from June 30, 2026.
• The company held $9.3 million in cash and cash equivalents and $31.5 million in total liquidity as of September 30, 2026.

Guidance and Future Outlook:

• The company maintains a favorable outlook through 2026 and into 2027, supported by improving demand and order trends.
• Some Forged and Cast Engineered Products activity previously anticipated in 2026 is expected to extend into 2027 due to timing of customer requirements and shipments.
• Management anticipates continued benefits from North American steel market conditions, onshoring, and infrastructure spending.

Business Segments and Product Lines:

• Forged and Cast Engineered Products: Net sales decreased 4% to $68.9 million; excluding prior-year U.K. sales, segment sales increased approximately 10%. Adjusted operating income rose 9.0% to $7.7 million. Performance reflects the ramp-up of the Sweden facility and closure of the U.K. cast roll facility.
• Air and Liquid Processing: Net sales increased 17% to $42.8 million from $36.5 million in the prior year. Adjusted operating income increased 9% to $4.8 million. Growth was driven by custom air handling systems and pumps supporting power generation and U.S. Navy programs.
• The company extended a seasonal outage at its U.S. Burgettstown facility for maintenance to extend the useful life of an existing forge press asset.

Market and Competitive Landscape:

• Backlog increased $50.6 million to $379.5 million as of September 30, 2026, reflecting stronger customer order activity.
• The Air and Liquid Processing segment sees strong demand in power generation and U.S. Navy markets.
• The Forged and Cast Engineered Products segment reports improved order activity for roll products in North America, benefiting from non-residential construction and onshoring trends.
• Management notes a continued shift toward higher-value opportunities across end markets.

Risks and Challenges:

• Forward-looking statements highlight risks including inability to maintain adequate liquidity, debt service costs, and net asbestos payments.
• Potential risks include cyclical demand, excess global capacity in the steel industry, and the inability to successfully restructure operations or scale effectively.
• Specific risks relate to the insolvency proceedings of Union Electric Steel UK Limited, including actions by administrators and potential claims by creditors.
• Other risks include fluctuations in currency values, commodity price increases, geopolitical conflicts, and potential cyber-based business disruptions.

Management Commentary and Tone:

• CEO Brett McBrayer stated the quarter reflects progress in building a "stronger, more profitable Ampco-Pittsburgh," noting improved profitability in both segments despite a seasonally slower quarter.
• Management emphasized disciplined working capital management, strong cash flow generation, and the use of cash to pay down debt and strengthen financial flexibility.
• Priorities identified include executing on demand, converting backlog into earnings and cash flow, and strengthening the balance sheet to capitalize on opportunities.

Other Key Points:

• The company voluntarily paid down debt using strong cash generation, reducing net debt by $19.5 million from the June 30, 2026 level.
• Capital expenditures moderated from elevated levels in the first half of 2026, with current spending levels consistent with the full-year plan.
• The company operates manufacturing facilities in the United States, Sweden, and Slovenia, and participates in two joint ventures in China.
• A conference call to discuss results was scheduled for November 10, 2026, at 8:30 a.m. Eastern Time.