Ampco-Pittsburgh Reports 5.4% Revenue Decline but Net Income Turnaround in Q1 2025

Ampco-Pittsburgh Corporation reported a decline in financial performance for the first quarter of 2025, with net sales totaling $104.3 million, down from $110.2 million in the same period of 2024. The decrease of approximately 5.4% was attributed to lower sales volumes and changes in product mix, particularly in the Forged and Cast Engineered Products (FCEP) segment, which saw a drop in sales from $77.2 million to $72.3 million. The Air and Liquid Processing (ALP) segment also experienced a decline, with sales falling from $33.0 million to $32.0 million. Despite the overall revenue drop, the company reported a net income of $1.1 million, a significant turnaround from a net loss of $2.7 million in the prior year.

The company’s operating income improved markedly, reaching $3.9 million compared to just $82,000 in the first quarter of 2024. This improvement was driven by better pricing strategies and operational efficiencies, particularly in the FCEP segment, which benefited from enhanced manufacturing processes following a significant capital equipment upgrade completed in late 2024. The FCEP segment's income from operations rose to $3.9 million, up from $1.6 million, while the ALP segment also saw an increase in operating income to $3.5 million from $2.0 million.

Operationally, Ampco-Pittsburgh reported a backlog of $368.5 million as of March 31, 2025, a decrease from $378.9 million at the end of 2024. The FCEP segment's backlog fell significantly due to reduced demand and customer order deferrals, while the ALP segment's backlog increased, reflecting strong order activity in specific markets such as nuclear power and the U.S. Navy. The company’s total employee headcount remained stable, with no significant changes reported.

In terms of strategic developments, Ampco-Pittsburgh is actively addressing the challenges posed by tariffs on steel and aluminum imports, which have affected pricing and customer ordering patterns. The company is also focused on enhancing its market share in the ALP segment, where it has been implementing price increases to counteract rising production costs due to inflation. Looking ahead, Ampco-Pittsburgh anticipates that ongoing geopolitical tensions and economic conditions will continue to influence its operations and financial performance, but it remains committed to improving profitability and operational efficiency across its segments.