Ampco-Pittsburgh: An Inflection Point Backed by Orders and Capacity
Air & Liquid hits records, Forged & Cast stabilizes, and the order book jumps 50% — a small-cap turnaround with real industrial tailwinds.
AP · Earnings Call · 2026-08-11
An Inflection Point Takes Shape
In its second quarter 2026 report, Ampco-Pittsburgh made clear that the restructuring of the past year is now translating into operating momentum. As CEO Brett McBrayer put it on the call,
The second quarter marked a clear turning point for Ampco-Pittsburgh. Net income was $1.5 million, or $0.07 per share compared to a net loss of $7.3 million or a loss of $0.36 per share in the prior year period.
That swing is not just a one-off benefit of the U.K. facility closure; it is being driven by a genuine acceleration in demand. Customer orders jumped 50% year-over-year to roughly $144 million, and backlog grew to $385.4 million, up $39.9 million from the first quarter. Management framed this as a structural shift: “Demand across both segments is accelerating.” — J. McBrayer, Chief Executive Officer · 2026-08-11
Air & Liquid: Riding the Data Center and Nuclear Wave
The Air & Liquid Systems segment is the clearest beneficiary of these tailwinds. Revenue was flat year-over-year in Q2, but adjusted EBITDA rose 34%, and year-to-date EBITDA is up 43% — the highest in the segment's history. The primary drivers are familiar to anyone watching the power markets: power generation demand, driven by data centers, is fueling both commercial pumps and nuclear heat exchangers.
David Anderson, President of Air & Liquid Systems, described the market position succinctly: “We continue to be the dominant supplier of heat exchangers into the growing nuclear market.” — David Anderson, Vice President, Chief Financial Officer and President of Air & Liquid Systems Corporation · 2026-08-11 That dominance is reinforced by the Navy funding program, which has already delivered new manufacturing equipment, with more arriving in late July. This capacity expansion is timely: “Data centers are causing increasing demand in the power generation market, and we expect this demand to continue as the Navy moves forward with fleet expansion plans.” — David Anderson, Vice President, Chief Financial Officer and President of Air & Liquid Systems Corporation · 2026-08-11
Prior calls had already flagged this trajectory. In the May 2026 call, Anderson noted the broader nuclear activity across plant restarts and small modular units. In March, he confirmed supplying Westinghouse's AP1000 reactors. So the story here is not new — but Q2 marks the first time the earnings transcript shows the margin and order acceleration actually landing.
Forged & Cast: Tariff Protections and a Recovering Steel Market
On the Forged and Cast Engineered Products (FCEP) side, net sales declined to $67.3 million, but that is almost entirely due to the U.K. exit and the AUP distribution divestiture. Adjusted EBITDA grew 15% year-over-year and 36% sequentially, and Sam Lyon, President of FCEP, attributed this to a recovery in U.S. roll shipments and Sweden returning to profitability. The key external factor: Tariff protections have reduced imports and lifted U.S. steel mill utilization, increasing the number of rolls consumed.
Lyon, on the current call, was optimistic:
“The demand has improved, particularly in North America. Tariff protections have reduced imports and lifted U.S. steel mill utilization, thereby increasing the number of rolls consumed.” — Samuel Lyon, President of Forged and Cast Engineered Products segment · 2026-08-11
This is consistent with what he told investors three months ago. In May, he said the large roll orders that were suppressed in Q4 and Q1 “have completely recovered” and that the tariffs are “landed in a good spot for us.” The market consolidation among competitors is also opening doors: two competitors have exited or de-emphasized the roll business, and Lyon confirmed in the current call that “the market consolidation is presenting us with opportunities for additional business.” — Samuel Lyon, President of Forged and Cast Engineered Products segment · 2026-08-11
Financial Confirmation
Looking at the fundamental numbers, the turnaround is visible in the operating line. Operating income turned positive in Q1 2026, and the company expects a significantly stronger second half. Gross margin is not reported, but the EBITDA margin expanded 240 basis points to 9.5%, and adjusted EBITDA rose 22% year-over-year. Free cash flow was still negative at -$2M, but that is a 77% improvement from a year ago, and management guided to debt reduction in the $8–10M range for the balance of the year.
That guidance, if met, would be a meaningful step for a company that has been levered: Effective net cash is -$106M. The company’s cash on hand is just $7M, but undrawn revolver availability of $29M provides a cushion.
The stock itself has been volatile: the 90-day tape shows a +8% return, but still 28% below its May peak. Given the order book and the capacity expansion already in process (including new Navy equipment), the market is likely to reward further execution.
Prior calls have laid the groundwork: the closure of the U.K. facility, expected to save $7–8 million annually, is now fully reflected in results. The company has not wavered on that guidance, and Q2 shows it delivering. As Lyon noted in May, “we feel like, as Brett said, we've kind of come through the trough at this point.” — Samuel Lyon, President of Forged and Cast Engineered Products segment · 2026-05-12 Q2 confirms that trough is behind.
Takeaway
The story here is not a brand-new theme — it is the successful execution of a multi-quarter restructuring combined with a powerful secular demand backdrop from data centers, nuclear energy, and a protected U.S. steel market. The order acceleration, record Air & Liquid EBITDA, and FCEP stabilization all point to a company that has turned the corner. For a small-cap with a heavy debt load, the next few quarters will be decisive, but the evidence from Q2 is compelling.