Ampco Pittsburgh Swings to Profit as Orders Surge 50%
The diversified manufacturer posted $9.8 million in adjusted EBITDA, up 22% year over year, as a U.K. facility closure began to pay off.
Ampco Pittsburgh Corp. (AP), the diversified manufacturer of engineered steel products and air-processing equipment, swung to a second-quarter profit as a restructuring of its European casting operations lifted margins even as revenue declined.
The company reported net income of $1.5 million, or $0.07 a share, for the quarter ended June 30, 2026, compared with a net loss of $7.3 million, or $0.36 a share, a year earlier. The prior-year period included $6.75 million in costs tied to the exit of a U.K. cast roll facility, a move Ampco completed in late 2025.
Revenue fell 9% to $102.9 million from $113.1 million, dragged lower by a 13.6% decline in the Forged and Cast Engineered Products segment following the U.K. closure. The Air and Liquid Processing segment partially offset the drop, with sales rising 1.2%. On a sequential basis, total sales slipped 5% from $108.3 million in the first quarter.
Profitability told a different story. Adjusted EBITDA rose 22% to $9.8 million, and the company's adjusted EBITDA margin widened 240 basis points to 9.5%. Forged and Cast Engineered Products adjusted operating income climbed 15.1% to $7.8 million despite the revenue contraction, reflecting manufacturing efficiencies as production ramped up at the company's Sweden facility. Air and Liquid Processing adjusted operating income surged 34.2% to $5.3 million on minimal sales growth, with its margin expanding to 14.8% from 11.2%.
Customer orders pointed to strengthening demand. Orders jumped roughly 50% year over year to approximately $144 million in the quarter, building on $124 million booked in the first three months of the year. First-half order activity totaled approximately $268 million, up 32% from the same period in 2025, with Air and Liquid Processing orders rising 42% and Forged and Cast Engineered Products orders up 25%. The backlog grew to $385.4 million at June 30, a $39.9 million increase from the end of March.
The U.K. exit, which Ampco expects to generate $7 million to $8 million in annual EBITDA improvement, is central to the margin story. Roughly half the lost volume is being transferred to the Sweden operation, allowing the company to consolidate production while reducing overhead. Six-month adjusted EBITDA margin of 8.4% expanded 70 basis points from 7.7% in the first half of 2025.
Cash generation remained a pressure point. Operating cash flow improved to $0.3 million from a $2.3 million use a year ago, but higher capital expenditures of $5.7 million—up from $1.5 million—pushed free cash flow to negative $5.5 million. Net debt stood at $130.5 million at quarter end, up from $124.7 million a year earlier.