Ampco-Pittsburgh's Mixed Q1: Defense Soars, Steel Segment Recovers

CARNEGIE, Pa. – May 12, 2026 – Ampco-Pittsburgh Corporation (NYSE: AP) today announced first-quarter financial results that paint a picture of a company navigating two distinct industrial currents. While a net loss and headwinds in its core metals segment captured the headline figures, a record-breaking performance in its Air and Liquid Processing division and a growing order backlog suggest a more optimistic trajectory for the remainder of 2026.

The specialty metals and equipment manufacturer reported a 3.9% increase in net sales to $108.3 million for the quarter ended March 31, 2026. However, the company posted a net loss of $0.9 million, or $0.04 per share, a reversal from the $1.1 million net income reported in the same period last year. According to the company, the loss reflects timing issues in its metals segment, the absence of a prior-year tax benefit, and a write-down related to the 2025 closure of its U.K. plant.

“We delivered sequentially improving first‑quarter results, reflecting continued execution against our strategic priorities and strong demand and performance in our Air and Liquid Processing segment,” said Brett McBrayer, CEO of Ampco‑Pittsburgh, in a statement. He noted that the company's largest segment is seeing trends stabilize as it recovers from the 2025 steel industry slowdown.

A Tale of Two Segments

The quarter's results underscore a stark divergence between Ampco-Pittsburgh's two primary business units. The star performer was the Air and Liquid Processing (ALP) segment, which manufactures custom heat exchange coils and air handling systems for markets like naval defense and power generation.

The ALP segment saw its net sales surge 17.3% year-over-year to $37.5 million and delivered a record adjusted operating income of $5.7 million. This robust growth was fueled by what the company described as record customer orders, driven by higher shipments of nuclear heat exchangers and aftermarket products for the U.S. Navy. The increasing power demands from data centers are also bolstering the power generation market, contributing to the segment's success.

In stark contrast, the Forged and Cast Engineered Products (FCEP) segment, which produces rolls for the global steel and aluminum industries, faced a more challenging environment. Its net sales dipped by 2% to $70.8 million. The company attributed the segment's weaker performance to the lingering effects of the 2025 steel industry downturn, unfavorable product and regional shipment mixes, and the flow-through of higher-cost inventory produced in late 2025. The results were also impacted by the closure of its U.K. facility last year.

Despite the year-over-year decline, the company pointed to signs of recovery. “In Forged and Cast Engineered Products, results reflect ongoing progress following the 2025 steel industry slowdown, with trends stabilizing as the business aligns with historical volumes and mix,” McBrayer stated.

Beyond the Bottom Line: Backlog and Restructuring

While the net loss presents a headline challenge, a deeper look at the company’s forward-looking metrics reveals a more positive narrative. The most significant indicator is the company's backlog, which grew by $16.6 million during the quarter to reach $345.5 million. This growing order book, supported by first-quarter bookings of approximately $124 million, provides improved revenue visibility for the coming months.

The growth was again led by a record level of orders in the ALP segment, but the company also noted that order trends in the FCEP segment improved sequentially from the lows of 2025. This suggests that underlying demand in the steel market is beginning to firm up.

Adding context to the quarter's net loss are several one-time or non-operational items. The results were impacted by an $875,000 write-down of a receivable connected to the insolvency proceedings of its former U.K. subsidiary. The absence of a tax benefit that boosted 2025's results also contributed to the negative comparison.

Ampco-Pittsburgh is also beginning to see the effects of its strategic restructuring. The closure of the U.K. plant and the simultaneous ramp-up of a more modern facility in Sweden are part of a broader effort to optimize its manufacturing footprint. “We are also realizing the benefits from the actions taken to optimize our operating footprint... with most of those benefits expected to be realized over the balance of 2026,” McBrayer commented.

The Broader Industrial Pulse

Ampco-Pittsburgh's performance serves as a barometer for several key industrial sectors. The strength in its ALP segment reflects robust government and private investment in defense and energy infrastructure. The continued demand for naval components and power generation equipment, including for nuclear applications, points to long-term, resilient spending cycles in these areas.

Meanwhile, the FCEP segment's gradual recovery mirrors a broader stabilization in the global steel market. Following a difficult 2025, industry forecasts, such as those from the World Steel Association, project modest growth for the U.S. steel market in 2026. This recovery is supported by manufacturing onshoring trends, infrastructure spending, and domestic trade actions that have helped stabilize pricing. Ampco-Pittsburgh may also benefit from shifts in the competitive landscape, with one European competitor reportedly entering receivership and a South American rival exiting the cast roll market, potentially opening up market share.

Financial Health and Future Outlook

The company has made strides in strengthening its financial position. It generated $1.7 million in operating cash flow, a significant turnaround from a $5.3 million use of cash in the prior-year period. This improvement, which the company credits to disciplined working capital management, helped bolster its liquidity, which stood at $30.8 million at the end of the quarter. Net debt was $124.9 million.

A notable positive development is that the company's U.S. Defined Benefit Pension Plan achieved fully funded status in February, removing a significant long-term financial risk from its balance sheet. This progress is balanced, however, by a remaining asbestos liability of approximately $193 million, which is partially offset by an insurance receivable.

Looking ahead, management remains optimistic, anticipating a more favorable product mix and improved performance as 2026 progresses. The combination of a record backlog in one division and stabilizing conditions in the other has positioned the company for what it hopes will be sustained improvement throughout the year.