Ampco-Pittsburgh Corporation Releases Fourth Quarter and Full Year 2024 Results

For the fourth quarter, Ampco-Pittsburgh reported net sales of $100.9 million, a decline from $108.1 million in the previous year. For the full year, total net sales were $418.3 million, slightly lower than $422.3 million reported for 2023. The decrease in sales was primarily attributed to lower mill roll shipment volumes due to softer end-market demand.

Despite lower sales figures, the company reported a non-GAAP adjusted income from operations of $1.0 million for the fourth quarter and $8.0 million for the full year, compared to a loss of $0.7 million and an income of $4.2 million respectively for the same periods in 2023. This improvement is largely credited to better net roll pricing, operational efficiencies, and improved manufacturing cost absorption.

Brett McBrayer, CEO of Ampco-Pittsburgh, commented on the year’s performance: “Our 2024 non-GAAP adjusted income from operations of $8.0 million is at the highest level we’ve experienced in years, and improved $3.7 million over 2023. Despite lower sales revenue in 2024, the Forged and Cast Engineered Products segment delivered 38% higher operating income than a year ago due to pricing actions and manufacturing efficiency improvements."

McBrayer also noted the record sales achieved by the Air and Liquid Processing segment, although he acknowledged the ongoing challenges due to excess plant capacity in the cast roll system, which has led to significant operating losses in the U.K. facility.

One noteworthy highlight from the financial report was the net credit of $4.2 million related to the revaluation of long-term asbestos liabilities, in stark contrast to the $40.7 million charge recorded in 2023. This change reflects lower projected defense costs and modest proceeds from an insolvent insurance carrier.

The interest expense for the fourth quarter and full year increased compared to 2023, primarily due to higher equipment financing debt and interest rates. However, Ampco-Pittsburgh's total debt remained stable at $12.9 million as of December 31, 2024, unchanged from the previous year.

The income tax provision for 2024 was higher than in 2023, largely due to the establishment of a valuation allowance on deferred tax assets associated with the U.K. operations, which have faced persistent losses due to soft cast roll demand.

Net income attributable to Ampco-Pittsburgh was $3.1 million (or $0.16 per share) for the fourth quarter, compared to a net loss of $41.8 million (or $2.12 per share) in the prior year. For the full year, net income was $0.4 million (or $0.02 per share), significantly improved from a net loss of $39.9 million (or $2.04 per share) in 2023.

The corporation's cash flows from operating activities improved to $18.0 million for the year, a substantial increase of $21.7 million compared to the prior year. This change was driven by lower investments in trade working capital and reduced outflows related to asbestos litigation. However, capital expenditures of $12.2 million were approximately $8.2 million lower than the previous year, attributed to the completion of plant modernization efforts in the U.S.

Sales in this segment saw a decline due to a decrease in shipment volumes. Nonetheless, operating income improved thanks to better pricing and manufacturing cost variances.

This segment performed well with an increase in sales, driven by higher volumes of centrifugal pump sales and custom air handlers, resulting in record sales for the year.

Ampco-Pittsburgh will hold a teleconference on March 13, 2025, to discuss these results in more detail. Investors and analysts are encouraged to participate to gain further insights into the company's financial health and strategic direction moving forward.

Ampco-Pittsburgh continues to navigate a complex market landscape while demonstrating resilience and operational improvements across its business segments.