Ampco-Pittsburgh Corp (AP) 2025 Q1 法說會逐字稿

Good morning, and welcome to the Ampco-Pittsburgh Corporation First Quarter 2025 Earnings Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

早上好，歡迎參加 Ampco-Pittsburgh Corporation 2025 年第一季財報結果電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Kimberly Knox, Corporate Secretary. Please go ahead.

現在我想將會議交給公司秘書金伯利諾克斯 (Kimberly Knox)。請繼續。

Thank you, Brian, and good morning to everyone joining us on today's first quarter 2025 conference call. Joining me today are Brett McBrayer, our Chief Executive Officer; and Michael McAuley, Senior Vice President, Chief Financial Officer and Treasurer. Also joining us on the call today are Samuel Lyon, President of Union Electric Steel Corporation; and David Anderson, President of Air & Liquid Systems Corporation.

謝謝你，布萊恩，大家早安，參加今天的 2025 年第一季電話會議。今天與我一起出席的還有我們的執行長 Brett McBrayer 和高級副總裁、財務長兼財務主管 Michael McAuley。參加今天電話會議的還有聯合電工鋼鐵公司總裁 Samuel Lyon 和空氣與液體系統公司總裁 David Anderson。

Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking and may include financial projections or other statements of the corporation's plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties, many of which are outside the corporation's control. The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statements due to various risk factors, including those discussed in the corporation's most recently filed Form 10-K and in subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update or otherwise release publicly any revision to our forward-looking statements.

在我們開始之前，我想提醒大家，本次電話會議的參與者可能會做出前瞻性的陳述或評論，其中可能包括財務預測或公司計劃、目標、期望或意圖的其他陳述。這些事項涉及一定的風險和不確定性，其中許多超出了公司的控制範圍。由於各種風險因素，包括公司最近提交的 10-K 表格以及隨後向美國證券交易委員會提交的文件中討論的風險因素，公司的實際結果可能與任何前瞻性陳述中預測或建議的結果存在重大差異。我們不承擔更新或以其他方式公開發布我們前瞻性陳述的任何修訂的義務。

A replay of this call will be posted on our website later today. To access the earnings release or the webcast replay, please consult the Investors section of our website at ampcopgh.com.

這次通話的重播將於今天稍晚發佈在我們的網站上。若要查看收益報告或網路直播重播，請造訪我們網站 ampcopgh.com 的「投資者」部分。

With that, I'd like to turn the call over to Brett McBrayer, Ampco-Pittsburgh's CEO. Brett?

說到這裡，我想把電話轉給 Ampco-Pittsburgh 的執行長 Brett McBrayer。布雷特？

As reported in our press release and 10-Q, Ampco-Pittsburgh Corporation reported earnings per common share of $0.06 for the first quarter of 2025, an improvement of $0.20 as compared to the prior year quarter. Adjusted EBITDA for the quarter was $8.8 million compared to $5.1 million in the first quarter of 2024. Both segments showed significant EBITDA improvements versus the prior year.

正如我們的新聞稿和 10-Q 所報導的，Ampco-Pittsburgh Corporation 報告 2025 年第一季每股普通股收益為 0.06 美元，比去年同期增長 0.20 美元。本季調整後 EBITDA 為 880 萬美元，而 2024 年第一季為 510 萬美元。與前一年相比，這兩個部門的 EBITDA 均有顯著改善。

The quarter was highlighted by a record order intake for Air and Liquid and continuing benefits from our new equipment in our US forged business. We expect to experience some near-term impacts in Q2 as markets and supply chains react to the recent tariffs. However, our intent is to protect our margins by passing through to our customers any negative effects. We are nearing the conclusion of our collective consultation process at our UK facility. We expect to eliminate much of the losses for this business as we move forward.

本季的亮點是空氣和液體的訂單量創下紀錄，我們美國鍛造業務的新設備持續帶來收益。由於市場和供應鏈對最近的關稅做出反應，我們預計第二季將受到一些短期影響。然而，我們的目的是透過將任何負面影響轉嫁給客戶來保護我們的利潤。我們英國工廠的集體協商過程即將結束。我們期望在未來的發展中消除該業務的大部分損失。

For further details regarding our segment performance, I will start by turning the call over to Sam Lyon, President of our Forged and Cast Engineered Products segment.

有關我們部門業績的更多詳細信息，我將首先將電話轉給鍛造和鑄造工程產品部門總裁 Sam Lyon。

For the first quarter of 2025, Forged and Cast Engineered Products segment reported net sales of $72.3 million compared to $77.2 million in the first quarter of 2024, primarily driven by lower rule volume and unfavorable exchange rates, partially offset by higher base pricing and increased FEP shipments. Segment EBITDA improved significantly to $8.27 million, up from $6 million in the prior year quarter. This improvement resulted from higher pricing, better manufacturing absorption and a lower cost structure.

2025 年第一季度，鍛造和鑄造工程產品部門報告淨銷售額為 7,230 萬美元，而 2024 年第一季為 7,720 萬美元，這主要是由於規則量下降和匯率不利，但基本定價提高和 FEP 出貨量增加部分抵消了這一影響。分部 EBITDA 大幅提升至 827 萬美元，高於去年同期的 600 萬美元。這種改善是由於更高的定價、更好的製造吸收和更低的成本結構所造成的。

In 2024, we also had $0.5 million of costs associated with the fire at our Sweden location and a machine failure in the UK. As previously announced, we initiated a formal collective consultation process with employees at our UK Cast facility in February. We now expect this process to conclude by the end of May. At that point, we will have clarity on the future of those operations and our definitive actions to dramatically stem our losses at the location.

2024 年，我們也因瑞典工廠的火災和英國的機器故障而損失了 50 萬美元。正如先前宣布的那樣，我們在二月與英國鑄造工廠的員工啟動了正式的集體協商程序。我們現在預計這一進程將在五月底完成。到那時，我們將清楚地了解這些行動的未來，以及我們將採取哪些明確行動來大幅減少我們在該地點的損失。

Turning to market conditions. Global steel demand remains soft but stable in our two largest markets, North America and Europe. That said, we are closely monitoring the evolving tariff environment. Currently, US tariffs on rolls are limited to the baseline of 10%. For our business, these tariffs apply to rolls shipped from our European facilities to the US. As of yesterday, tariffs on US produced rolls shipped to China were reduced to 10%. Our annual shipments to China are small, ranging from $2 million to $5 million per year. We have an order scheduled to ship to China in the next two quarters and the reduction from 125% to 10% tariffs on imports from the US will relieve pressure and enable this shipment.

轉向市場狀況。在我們最大的兩個市場北美和歐洲，全球鋼鐵需求依然疲軟但穩定。儘管如此，我們正在密切關注不斷變化的關稅環境。目前，美國對卷材徵收的關稅限制在10%的基準水準。對於我們的業務而言，這些關稅適用於從我們的歐洲工廠運往美國的捲材。自昨天起，美國生產的捲材運往中國的關稅已降至 10%。我們每年對中國的出貨量很小，每年在200萬至500萬美元之間。我們計劃在未來兩個季度內將訂單發送到中國，美國進口關稅從 125% 降至 10% 將減輕壓力並使這批貨物能夠順利發貨。

We have worked with our US customers and the vast majority have agreed to pay the cost of the tariffs. Importantly, with the US cast roll market still underserved, our European operations remain competitive despite the tariffs. To date, only one customer has not agreed to accept this condition. This customer has elected to manage orders case by case to see if any trade deals eliminate the tariff.

我們已經與美國客戶合作，絕大多數客戶同意支付關稅費用。重要的是，由於美國鑄卷市場仍然服務不足，儘管有關稅，我們的歐洲業務仍然保持競爭力。到目前為止，只有一位客戶尚未同意接受該條件。該客戶選擇逐案管理訂單，以查看是否有任何貿易協定可以取消關稅。

We would also expect the utilization of our US customers' mills to improve as a result of the more comprehensive tariffs of 25% on aluminum and steel, which will benefit our business. Steel tariffs are also creating a significant tailwind for our domestic FEP business. Growth opportunities in tool steel, distribution bar, and block products are emerging as imports face these new costs. FEP sales and margins are projected to rise from our 2024 revenue of $11.8 million.

我們也預計，由於對鋁和鋼徵收 25% 的更全面關稅，美國客戶工廠的利用率將會提高，這將有利於我們的業務。鋼鐵關稅也為我們的國內 FEP 業務帶來了巨大的推動力。隨著進口面臨這些新的成本，工具鋼、配電棒和塊材產品的成長機會正在出現。FEP 的銷售額和利潤率預計將從 2024 年的 1,180 萬美元收入中上升。

In summary, we continue to enhance our profitability through pricing, operational efficiency, and disciplined management of external risks, including tariffs and geopolitical uncertainties. Brett?

總而言之，我們繼續透過定價、營運效率以及對關稅和地緣政治不確定性等外部風險的嚴格管理來提高獲利能力。布雷特？

Thanks, Sam. Dave Anderson, President of Air & Liquid Systems, will now cover his segment's results.

謝謝，山姆。空氣和液體系統總裁戴夫安德森 (Dave Anderson) 現在將介紹其部門的表現。

Thank you, Brett. Good morning. Great start to the year for Air & Liquid. Q1 sales orders were the highest order intake in our history. The order activity was driven by record order intake from the nuclear market, along with continued strong order activity for both the military and pharmaceutical markets. Revenue was slightly below last year.

謝謝你，布雷特。早安.對於 Air & Liquid 來說，今年開局很好。第一季的銷售訂單是我們史上最高的訂單量。訂單活動受到核市場創紀錄的訂單量以及軍事和醫藥市場持續強勁的訂單活動的推動。收入略低於去年。

However, the product mix was substantially improved. Revenue for heat exchangers increased due to increased shipments in the nuclear market. Revenue for pumps was slightly higher than prior year, while air handling revenue declined due to the timing of order delivery dates and revenue recognition.

然而，產品組合得到了大幅改善。由於核能市場出貨量增加，熱交換器的收入也隨之增加。泵浦的收入略高於上年，而空氣處理收入則因訂單交付日期和收入確認的時間而下降。

Adjusted EBITDA in Q1 was $3.8 million versus $2.2 million in the prior year. Similarly, operating income was at $3.5 million in Q1 versus $2 million in the prior year. The increase versus prior year was primarily driven by a much better product mix. We continue to see positive activity in the nuclear market for our heat exchanger product line. We expect both orders and shipments to be at record levels this year. In March, we received our first order for a small modular reactor or SMR project. There is a great deal of activity in the new SMR market, and we have started working with several companies that are developing these new products.

第一季調整後的 EBITDA 為 380 萬美元，而去年同期為 220 萬美元。同樣，第一季的營業收入為 350 萬美元，而去年同期為 200 萬美元。與上一年相比的成長主要得益於更好的產品組合。我們繼續看到我們的熱交換器產品線在核市場上的積極表現。我們預計今年的訂單和出貨量都將達到創紀錄的水平。三月份，我們收到了第一份小型模組化反應器（SMR）項目的訂單。新的 SMR 市場非常活躍，我們已經開始與幾家正在開發這些新產品的公司合作。

Nuclear power in many ways seems to have become the preferred power option, and our engineering and manufacturing capabilities position us well as this market grows. There continues to be strong demand from the US Navy for both new and aftermarket pumps. We expect this demand to continue as the Navy moves forward with fleet expansion plans. We still expect to receive the new manufacturing equipment from the Navy funding program by the end of 2025. This equipment, along with the equipment we installed in 2024 will position us to meet the expected growth in this market.

核能在許多方面似乎已成為首選的電力選擇，我們的工程和製造能力使我們在這個市場不斷發展的過程中佔據有利地位。美國海軍對新泵浦和售後泵浦的需求持續強勁。我們預計，隨著海軍推進艦隊擴張計劃，這種需求將會持續下去。我們仍預計在 2025 年底前從海軍資助計畫中獲得新的製造設備。該設備以及我們在 2024 年安裝的設備將使我們能夠滿足該市場的預期成長。

Demand for custom air handlers remains strong. From upgrading existing facilities to increasing research and manufacturing capabilities in the United States, there continues to be tremendous demand in the pharmaceutical market for our custom air handling products. Of course, tariffs have been a major subject in the last few months, so I wanted to provide some thoughts on how tariffs may impact Air and Liquids businesses. While the tariff situation remains rather fluid at the moment, I do not see significant negative issues. Most of our raw materials and components are excluded from the tariffs as they are either produced in the US or they are exempted.

客製化空氣處理機的需求依然強勁。從升級現有設施到提高美國的研究和製造能力，製藥市場對我們的客製化空氣處理產品的需求持續巨大。當然，關稅是過去幾個月的一個主要主題，所以我想就關稅如何影響空氣和液體業務提供一些想法。儘管目前關稅狀況仍然相當不穩定，但我沒有看到重大的負面問題。我們的大部分原料和零件都不受關稅限制，因為它們要么在美國生產，要么獲得豁免。

For components that are subject to tariffs, we expect to pass on the majority of the costs in order to maintain our margins. There is some potential for short-term supply issues as the world adapts to the new tariffs. We have taken steps to mitigate supply chain disruptions that could occur later this year. If the tariffs do result in increased manufacturing in the United States, then there is potential for significant demand increases for our products, as the US is our primary market. Onshoring manufacturing in the pharmaceutical market will only drive air handling demand even higher.

對於受關稅影響的零件，我們預計轉嫁大部分成本，以維持我們的利潤率。隨著世界適應新的關稅，可能會出現一些短期供應問題。我們已採取措施緩解今年稍後可能發生的供應鏈中斷。如果關稅確實導緻美國製造業增加，那麼我們的產品需求就有可能大幅增加，因為美國是我們的主要市場。醫藥市場的本土製造只會進一步推高空氣處理需求。

Overall, more manufacturing would increase the need for our industrial heat exchangers and would drive higher demand for power generation, which would benefit both our commercial pump line and our nuclear heat exchangers. In summary, demand for our products remains strong. Adjusted EBITDA increased 73% versus prior year. And while the tariffs could cause short-term supply chain issues, in the longer term, they have the potential to increase demand for our products.

總體而言，更多的製造業將增加我們對工業熱交換器的需求，並將推動對發電的更高需求，這將有利於我們的商用泵浦生產線和核熱交換器。總之，我們產品的需求依然強勁。調整後的 EBITDA 較上年增長 73%。雖然關稅可能會導致短期供應鏈問題，但從長遠來看，它們有可能增加對我們產品的需求。

Thank you, Dave. At this time, Mike McAuley, our Chief Financial Officer, will now share more details regarding our financial performance for the quarter.

謝謝你，戴夫。此時，我們的財務長 Mike McAuley 將分享更多有關本季財務業績的詳細資訊。

Thank you, Brett. Before I begin, I'd like to comment on the change we implemented in our non-GAAP measures reporting starting in this Q1 of 2025. You will note that these new disclosures and reconciliation tables are in both our Form 10-Q and in our Q1 earnings press release from yesterday. Specifically, we've begun reporting adjusted EBITDA, whereas in prior quarters, we provided consolidated adjusted operating income. We added this because adjusted EBITDA increasingly became a key measure used internally, and because we believe investors will find this change helpful.

謝謝你，布雷特。在開始之前，我想先評論一下我們從 2025 年第一季開始在非公認會計準則報告中實施的變更。您會注意到，這些新的揭露和對帳表都出現在我們的 10-Q 表和昨天的第一季財報新聞稿中。具體來說，我們已經開始報告調整後的 EBITDA，而在前幾個季度，我們提供的是合併調整後的營業收入。我們新增此項目是因為調整後的 EBITDA 越來越成為內部使用的關鍵指標，我們相信投資者會發現這項變更很有幫助。

Now regarding our Q1 results, as indicated in both our Form 10-Q and in our press release 8-K filed yesterday, Ampco's consolidated net sales for the first quarter of 2025 were $104.3 million, a decline of approximately 5% compared to net sales for the first quarter of 2024, but about a 3% increase sequentially versus Q4 2024.

現在關於我們的第一季業績，正如我們的 10-Q 表和昨天提交的 8-K 新聞稿所示，Ampco 2025 年第一季的綜合淨銷售額為 1.043 億美元，與 2024 年第一季的淨銷售額相比下降約 5%，但與 2024 年第四季相比環比增長約 3%。

Compared to prior year, the key drivers for the sales decline were lower shipments of mill rolls and changes in roll product mix, which more than offset higher net pricing in the Forged and Cast Engineered Products segment and lower sales of air handling units due to timing of shipments in the Air and Liquid Processing segment. Yet Q1 2025 mill roll sales rose nearly 9% compared to Q4 2024, and this was the key driver for Ampco's consolidated sales growth sequentially. Consolidated adjusted EBITDA of $8.8 million for Q1 2025 improved by $3.7 million versus prior year for a few key reasons despite the lower sales.

與前一年相比，銷售額下降的主要原因是軋輥出貨量下降和軋輥產品組合的變化，這抵消了鍛造和鑄造工程產品部門淨價格上漲以及空氣和液體處理部門出貨時間導致的空氣處理機組銷售額下降的影響。然而，2025 年第一季軋輥銷售額與 2024 年第四季相比成長了近 9%，這是 Ampco 合併銷售額連續成長的主要驅動力。儘管銷售額較低，但由於幾個主要原因，2025 年第一季的綜合調整後 EBITDA 為 880 萬美元，比去年同期提高了 370 萬美元。

In the Forged and Cast Engineered Products segment, higher pricing, net of lower surcharges and related product cost changes improved the segment's margins significantly. In addition, there was improved manufacturing uptime and manufacturing cost efficiency due in part to improved machine reliability and uptime in our Castrol facilities, as Sam described. And in the Air and Liquid Processing segment, as Dave indicated, there was a significant improvement in the product mix sold in Q1 of 2025 compared to the prior year.

在鍛造和鑄造工程產品部門，扣除較低的附加費和相關產品成本變化後的較高定價顯著提高了該部門的利潤率。此外，正如 Sam 所描述的，由於嘉實多工廠的機器可靠性和正常運作時間的提高，製造正常運作時間和製造成本效率也提高了。正如戴夫所指出的，在空氣和液體處理領域，2025 年第一季銷售的產品組合與前一年相比有了顯著改善。

Corporation's total selling and administrative expenses for Q1 2025 increased 5% versus prior year due to inflationary increases, higher employee-related costs and higher professional fees. Interest expense of $2.7 million for the quarter was flat with prior year. Other income net was declined slightly versus prior year.

由於通貨膨脹、員工相關成本增加以及專業費用增加，該公司 2025 年第一季的總銷售和管理費用較上年增加了 5%。本季利息支出為 270 萬美元，與上年持平。其他淨收入較上年略有下降。

The income tax provision for Q1 2025 decreased $0.4 million year-over-year, primarily due to the benefit of reduced tax rate in one of our foreign taxpaying jurisdictions. As a result, net income attributable to Ampco-Pittsburgh for Q1 2025 was $1.1 million or $0.06 per share. This compares to a net loss of $2.7 million or $0.14 per share in the prior year or $0.20 per share EPS improvement. Total backlog at March 31, 2025, of $368.5 million rose $19.7 million or 6% versus March 31, 2024, with both segments experiencing increases.

2025 年第一季的所得稅準備金年減 40 萬美元，主要原因是我們其中一個外國納稅管轄區的稅率降低。因此，2025 年第一季歸屬於 Ampco-Pittsburgh 的淨收入為 110 萬美元，即每股 0.06 美元。相比之下，去年同期淨虧損 270 萬美元，即每股虧損 0.14 美元，每股收益改善 0.20 美元。截至 2025 年 3 月 31 日的總積壓訂單為 3.685 億美元，較 2024 年 3 月 31 日增加 1,970 萬美元，增幅為 6%，兩個部門均有所增長。

Compared to December 31, 2025, however, despite the record order intake in Air and Liquid in Q1 2025, total backlog declined due to the timing of placement of new orders from some of our larger roll customers, which typically occur later in the year. Net cash flows used by operating activities was $5.3 million for Q1 2025, reflecting primarily a rise in net working capital.

然而，與 2025 年 12 月 31 日相比，儘管 2025 年第一季空氣和液體訂單量創下紀錄，但由於一些較大的捲材客戶下達新訂單的時間通常發生在當年晚些時候，總積壓訂單有所下降。2025 年第一季經營活動所用淨現金流為 530 萬美元，主要反映淨營運資本的增加。

The corporation also made a pension contribution of $0.8 million during the quarter. Capital expenditures for the first quarter of 2024 were $2.2 million. At March 31, 2025, the corporation's liquidity position included cash on hand of $7.1 million and undrawn availability on our revolving credit facility of $28.6 million.

該公司還在本季繳納了 80 萬美元的退休金。2024 年第一季的資本支出為 220 萬美元。截至 2025 年 3 月 31 日，該公司的流動資金狀況包括 710 萬美元的現金和 2,860 萬美元的未提取循環信貸額度。

Operator, at this time, we would now like to open the line for questions.

接線員，現在我們想開通熱線來回答問題。

(Operator Instructions) [Ronald Ha, Vanesku Holdings].

（操作員指示）[Ronald Ha，Vanesku Holdings]。

I did not register for a question.

我沒有註冊提問。

With no questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Brett McBrayer, CEO, for any closing remarks.

如果沒有問題，我們的問答環節就結束了。我想將會議交還給執行長 Brett McBrayer，請他做最後發言。

Thank you. I want to recognize another strong performance by our employees in Q1 as they continue to drive positive improvements throughout our businesses. Thank you for your great work. I also want to thank our shareholders and Board of Directors for your continued support. Despite the uncertainty in our markets, we remain focused on delivering significant improvements in our businesses as we move forward. Thank you for joining our call this morning.

謝謝。我想表彰我們的員工在第一季的出色表現，他們繼續推動我們整個業務的積極改進。感謝您的出色工作。我還要感謝我們的股東和董事會的持續支持。儘管市場充滿不確定性，但我們仍致力於在未來的業務中實現顯著改善。感謝您今天上午參加我們的電話會議。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。