Ampco-Pittsburgh Corporation (NYSE:AP) reported a return to profitability in the third quarter of 2026, with net income of $0.5 million compared with a loss in the corresponding period of the previous year, supported by higher revenue and improved profitability across its two operating segments.
The industrial manufacturing company reported earnings of $0.02 per share, compared with a loss of $0.11 per share in the third quarter of 2025. Net sales increased 3% year-on-year to $111.7 million, while adjusted EBITDA rose to $9.4 million.
Ampco-Pittsburgh also reported higher operating cash flow and reduced its net debt during the quarter. The company’s shares were unchanged in after-hours trading following the earnings announcement.
Third-Quarter Revenue Increases to $111.7 Million
Ampco-Pittsburgh generated third-quarter net sales of $111.7 million, compared with $108.0 million in the corresponding period of 2025.
The increase of $3.7 million represented year-on-year growth of approximately 3%.
Net income attributable to Ampco-Pittsburgh reached $0.5 million, equivalent to $0.02 per share, compared with a net loss of $2.2 million, or $0.11 per share, a year earlier.
The improvement represented a $2.7 million year-on-year change in net income.
The prior-year quarter included $3.1 million in expenses associated with the company’s exit from operations in the United Kingdom, affecting the comparison between reporting periods.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased approximately 2% to $9.4 million, compared with $9.2 million in the third quarter of 2025.
The results reflected differences in performance across the company’s two operating segments, with revenue growth in Air and Liquid Processing offsetting lower sales in Forged and Cast Engineered Products.
Forged and Cast Engineered Products Revenue Declines 4%
Ampco-Pittsburgh’s Forged and Cast Engineered Products segment reported third-quarter net sales of $68.9 million, compared with $71.5 million in the prior-year period.
The decline of approximately 4% was primarily attributed to the closure of the company’s United Kingdom facility.
The segment produces engineered forged and cast products for industrial applications.
Although revenue declined, management reported that both operating segments achieved improved profitability compared with the third quarter of 2025.
The results reflect the impact of the company’s changes to its manufacturing operations, including the previously announced withdrawal from its UK activities.
Air and Liquid Processing Sales Rise 17%
The Air and Liquid Processing segment reported net sales of $42.8 million, an increase of 17% from $36.5 million in the corresponding quarter of 2025.
The increase of $6.3 million was supported by demand from power generation customers, US Navy programmes and air handling markets.
The segment’s revenue growth more than offset the sales decline recorded by Forged and Cast Engineered Products.
Air and Liquid Processing accounted for approximately 38% of consolidated quarterly net sales, compared with around 34% in the prior-year period.
Management also reported improved profitability within the segment, although the supplied announcement did not provide a separate segment operating income figure.
CEO Highlights Profitability and Working Capital Management
Chief Executive Officer Brett McBrayer attributed the quarterly performance to improvements in profitability and cash generation.
“Our third quarter reflects the progress we have made in building a stronger, more profitable Ampco-Pittsburgh,” McBrayer said.
“Even in a seasonally slower quarter, both segments improved profitability compared to the prior year period, we generated strong cash flow through disciplined working capital management, and we used it to pay down debt and strengthen our financial flexibility.”
The comments accompanied the company’s report of higher operating cash flow and a reduction in net debt during the quarter.
Management identified working capital management as a contributor to cash generation, which supported the company’s debt repayment activities.
Operating Cash Flow Increases to $21.8 Million
Ampco-Pittsburgh reported cash flow from operating activities of $21.8 million during the third quarter, compared with $6.3 million in the corresponding period of 2025.
The increase of $15.5 million represented growth of approximately 246% year-on-year.
Free cash flow reached $19.7 million, compared with $4.6 million in the prior-year quarter.
This represented an increase of $15.1 million, reflecting higher cash generation after capital expenditure.
The company attributed its cash flow performance in part to working capital management.
The additional cash generation provided resources for reducing outstanding debt and supporting the company’s financial position.
Net Debt Falls by $19.5 Million to $111 Million
Ampco-Pittsburgh reduced its net debt by $19.5 million during the third quarter.
As of September 30, 2026, net debt stood at $111.0 million, compared with approximately $130.5 million at June 30, 2026.
The reduction represented a decrease of approximately 14.9% over the three-month period.
The company used cash generated during the quarter to repay debt, contributing to the lower net debt balance.
The reduction occurred alongside the improvement in operating cash flow and free cash flow.
Order Backlog Reaches $379.5 Million
Ampco-Pittsburgh reported an order backlog of $379.5 million, representing an increase of $50.6 million during 2026.
The increase implies a backlog of approximately $328.9 million at the beginning of the year.
The backlog reflects customer orders that have not yet been fulfilled or recognised as revenue.
It provides information about contracted future business activity across the company’s industrial manufacturing operations.
The timing of revenue recognition from these orders will depend on production schedules, contract requirements and customer deliveries.
Outlook
Ampco-Pittsburgh’s third-quarter results reflected a return to net profitability, higher consolidated revenue and improved cash generation.
The Air and Liquid Processing segment recorded 17% revenue growth, supported by demand from power generation, US Navy and air handling customers, while Forged and Cast Engineered Products reported lower sales primarily because of the closure of the UK facility.
Operating cash flow increased to $21.8 million, allowing the company to reduce net debt to $111.0 million by the end of September.
The company’s $379.5 million order backlog provides information about future contracted activity, although the timing and profitability of those orders will depend on execution.
Investors will be monitoring segment profitability, order fulfilment, cash flow generation and further changes in the company’s debt position.