Ampco-Pittsburgh Reports 3.9% Net Sales Increase in Q1 2026, Net Loss of $0.9 Million

Ampco-Pittsburgh Corporation reported a net sales increase of 3.9% for the first quarter of 2026, reaching $108.3 million compared to $104.3 million in the same period of 2025. The growth was driven primarily by the Air and Liquid Processing (ALP) segment, which saw a significant rise in sales from $32.0 million to $37.5 million, reflecting a 17.3% increase. In contrast, the Forged and Cast Engineered Products (FCEP) segment experienced a decline in sales from $72.3 million to $70.8 million, a decrease of 2.0%. The overall income from operations fell to $2.6 million, down from $3.9 million in the prior year, largely due to a $0.9 million deconsolidation charge related to the insolvency of Union Electric Steel UK Limited (UES-UK).

The company’s financial performance was impacted by several factors, including increased operating costs, which rose to $105.8 million from $100.4 million year-over-year. The cost of products sold as a percentage of net sales increased to 80.1% from 78.7%, primarily due to unfavorable manufacturing absorption in the FCEP segment. Selling and administrative expenses also saw a slight increase, totaling $13.9 million compared to $13.7 million in the previous year. The net loss attributable to Ampco-Pittsburgh was $0.9 million, or $(0.04) per share, compared to a net income of $1.1 million, or $0.06 per share, in the first quarter of 2025.

Operationally, the company reported a backlog of $345.5 million as of March 31, 2026, an increase from $328.9 million at the end of 2025. This growth in backlog was driven by the ALP segment, which saw an increase of $23.5 million, while the FCEP segment's backlog decreased by $6.9 million. The company continues to focus on optimizing its operations, particularly in Sweden, following the closure of its U.K. facility, and aims to improve profitability by enhancing production levels and product mix.

Looking ahead, Ampco-Pittsburgh remains cautious about market conditions, particularly in the steel industry, where global capacity continues to exceed demand. The company is actively monitoring geopolitical developments and their potential impact on operations and financial performance. Management has indicated that they will continue to invest in capacity and operational efficiencies to support growth in the ALP segment, which is benefiting from increased demand in the power generation and defense sectors. The outlook for the remainder of 2026 will depend on the company's ability to navigate these challenges while capitalizing on opportunities for growth in its core markets.