Loading...
01/10 16:41
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlighted strong financial metrics, such as a 35% increase in EBITDA and a significant rise in EPS, which are positive indicators. However, the closure of the U.K. facility and related restructuring costs introduce uncertainties. The Q&A session revealed management's evasiveness on certain financial impacts, adding to the uncertainty. Despite positive long-term projections, short-term tariff impacts and operational risks balance out the positive financial performance, leading to a neutral outlook.
Consolidated Adjusted EBITDA $9.2 million, up 35% from the prior year. This increase was driven by the best year-to-date results in the Air and Liquids segment's history.
Adjusted Earnings Per Share (EPS) $0.04, up $0.14 from the prior year. This improvement reflects strong underlying performance.
FCEP Net Sales $71.5 million, $4.3 million higher than Q3 2024. The increase was attributed to improved demand and shipments, as well as $0.9 million in tariff pass-throughs.
FCEP Segment Adjusted EBITDA $7.1 million, $0.3 million better than Q3 2024. This was due to improved demand and shipments, as well as price increases and better margins.
Year-to-Date FEP Revenue $14.4 million, up approximately 40% from $10.2 million last year. The increase was driven by price hikes and improved margins.
Air and Liquid Segment Revenue 26% higher than prior year for Q3, and year-to-date revenue was nearly 7% above prior year. The increase was driven by higher revenue in all product lines, particularly pumps.
Air and Liquid Segment Adjusted EBITDA $4.4 million for Q3, a 31% increase from $3.4 million in the prior year. Year-to-date adjusted EBITDA was $12.1 million, the highest in the segment's history, driven by higher revenue and improved product mix.
Ampco's Net Sales $108 million for Q3 2025, an increase of 12% compared to Q3 2024. The growth was driven by higher sales in all three divisions of Air and Liquid Processing, higher net roll pricing, and higher shipments of forged engineered products.
Total Selling and Administrative Expenses Declined by $0.6 million or 4% for Q3 2025 compared to the prior year. The reduction was due to lower employee-related costs, offset partially by professional fees and higher sales commissions.
Air and Liquid segment performance: Achieved the best year-to-date results in its history, with a 26% increase in Q3 revenue compared to the prior year. Year-to-date revenue was 7% higher than the prior year, driven by increased demand for pumps and heat exchange products.
Nuclear market growth: Orders and shipments for heat exchange products exceeded any prior full year, driven by nuclear power market growth and U.S. Navy fleet expansion.
Tariff impacts: Tariffs on European imports and copper have been passed on to customers. European steel quotas and tariffs are expected to increase in 2026, potentially benefiting the roll business.
Roll market dynamics: North American roll market is stabilizing as inventory levels deplete. European cast roll demand remains strong despite tariffs.
Exit from U.K. facility: Accelerated exit from the U.K. cast roll facility, expected to improve full-year adjusted EBITDA by $7-8 million. Sweden plant utilization will increase as a result.
Closure of AUP steel distribution business: Winding down the unprofitable AUP steel distribution business by November 2025 to improve operational efficiency.
Manufacturing capacity expansion: New equipment installed in 2024 and additional equipment arriving in 2026 will increase manufacturing capacity for pump products, supported by Navy funding.
Focus on high-growth markets: Positioning in growing markets such as nuclear power, U.S. Navy fleet expansion, and pharmaceutical custom air handling products.
Tariff Uncertainty: Tariffs on imports from Sweden and Slovenia, as well as on copper, have created uncertainty and increased costs. While some costs are passed to customers, the tariff environment remains a challenge, particularly for Canadian and Mexican customers affected by U.S. tariffs.
European Quota and Tariff System: Europe's planned changes to its steel quota and tariff system in 2026 could impact operations. The new system will lower quotas and increase tariffs to 50% for imports above the quota, potentially affecting European operations and profitability.
U.K. Facility Closure: The accelerated closure of the U.K. cast roll facility, while reducing losses, involves risks related to customer disruption and operational adjustments. The insolvency process also carries financial and operational uncertainties.
Supply Chain Adjustments: Adjustments to avoid tariff costs, particularly for copper, may lead to short-term supply chain disruptions and fluctuations.
Roll Market Demand Variability: Temporary postponement of roll purchases by North American customers due to tariff uncertainty has led to reduced roll inventory levels, impacting short-term demand.
Operational Footprint Reduction: The exit from the U.K. facility and a small steel distribution business involves restructuring costs and operational risks, though expected to improve profitability in the long term.
Foreign Exchange and Pension Income: Lower foreign exchange transaction losses and reduced pension income due to asset allocation changes could impact financial stability.
Exit from U.K. Facility: The company has accelerated its exit from the U.K. facility, which is expected to improve full-year adjusted EBITDA by $7 million to $8 million. This action removes a significant operational drag and positions the company for improved profitability starting in Q4 2025.
Closure of Steel Distribution Business: The company is nearing completion of its exit from the small steel distribution business, AUP, by the end of November 2025. This is expected to contribute to improved operating income and adjusted EBITDA for the segment.
Roll Market Outlook: North American roll market is expected to return to normal ordering patterns as inventory levels deplete. Long-term fundamentals remain strong, with construction spending, automotive production, and can sheet demand expected to grow at mid-single-digit rates over the next five years.
European Tariff Changes: Europe plans to modify its quota and tariff system for steel in July 2026, which will result in increased utilization of European mills. This new system is expected to be a significant tailwind for the company's roll business.
Air and Liquid Systems Growth: The Air and Liquid Systems segment is experiencing strong demand across product lines, with 2025 expected to be the best year in its history. Long-term growth is anticipated in the nuclear market, U.S. Navy fleet expansion, and the pharmaceutical market.
Manufacturing Capacity Expansion: New manufacturing equipment funded by the Navy program is expected to arrive in 2026, further increasing capacity for the pump product line and positioning the company to meet market growth.
The selected topic was not discussed during the call.
The earnings call highlighted strong financial metrics, such as a 35% increase in EBITDA and a significant rise in EPS, which are positive indicators. However, the closure of the U.K. facility and related restructuring costs introduce uncertainties. The Q&A session revealed management's evasiveness on certain financial impacts, adding to the uncertainty. Despite positive long-term projections, short-term tariff impacts and operational risks balance out the positive financial performance, leading to a neutral outlook.
The earnings call summary and Q&A reveal mixed results with a negative bias. While there is record order intake and some positive growth in specific segments, overall financial performance shows a decline in adjusted EBITDA and a net loss due to the U.K. plant closure. The Q&A highlights uncertainties in the roll market and potential revenue declines from the U.K. exit. Despite some positive aspects, such as tariff resolution and strategic focus on nuclear power, the financial health and guidance issues suggest a negative stock price reaction.
The earnings call reveals mixed signals: improved EPS and EBITDA indicate operational efficiency, yet declining net sales and no shareholder return plan dampen enthusiasm. The record order intake and backlog increase are positives, but the tariff impact and supply chain challenges pose risks. With no new guidance or shareholder return initiatives, the sentiment remains neutral, suggesting a stock price movement between -2% to 2%.
Despite strong EPS and record sales in certain segments, the company faces significant challenges, including lower revenues, operational and regulatory risks, and uncertainties about the UK operations. The share buyback is positive, but concerns about debt levels and unclear management responses in the Q&A section further contribute to a negative sentiment. The lack of guidance on the UK plant and potential operational impacts suggest a cautious outlook, likely leading to a negative stock price reaction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
