Ampco-Pittsburgh Corp (AP) 2025 Q2 法說會逐字稿

Welcome to the Ampco-Pittsburgh Corporation second-quarter 2025 earnings results conference call. (Operator Instructions) Please note, this event is being recorded.

歡迎參加 Ampco-Pittsburgh Corporation 2025 年第二季收益業績電話會議。（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 Kim Knox, Corporate Secretary. Please go ahead

現在我想將會議交給公司秘書金諾克斯 (Kim Knox)。請繼續

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

謝謝你，加里，大家早上好，參加今天的 2025 年第二季電話會議。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 Mike McAuley。今天參加電話會議的還有聯合電工鋼鐵公司總裁 Sam Lyon 和空氣與液體系統公司總裁 Dave 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.

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。

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 its subsequent filings with the Securities and Exchange Commission.

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很大差異。

We do not undertake any obligation to update, or otherwise release publicly, any revision to our forward-looking statements. 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.

我們不承擔更新或以其他方式公開發布任何前瞻性陳述修訂的義務。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？

Thank you, Kim. Good morning, and thank you for joining our call. As reported in our press release issued yesterday afternoon, Ampco-Pittsburgh Corporation reported adjusted EBITDA of $8 million for the second quarter of 2025.

謝謝你，金。早安，感謝您參加我們的電話會議。正如我們昨天下午發布的新聞稿所述，Ampco-Pittsburgh Corporation 報告 2025 年第二季的調整後 EBITDA 為 800 萬美元。

The quarterly results were negatively impacted by a pause in customer orders as they await clarity on tariffs. As a result, our Forged and Cast Engineered Products group shut down production to adjust working capital through portions of the period.

由於等待關稅明朗，客戶訂單暫停，對季度業績產生了負面影響。因此，我們的鍛造和鑄造工程產品集團暫停了部分生產，以調整部分期間的營運資金。

A major focus in the quarter was on our UK cash roll facility, where we continue to experience significant losses. Progress on the wind down of this facility has progressed well as we work to accelerate rightsizing our portfolio.

本季的重點是我們的英國現金流工具，我們在該方面繼續遭受重大損失。隨著我們努力加快調整投資組合，該設施的關閉工作進展順利。

Once this action is complete, we expect a minimum of a $5 million operating income improvement on an annualized basis. Our Air & Liquid Processing segment saw a 15% increase in adjusted EBITDA in the quarter versus prior year, and the highest year-to-date adjusted EBITDA in our segment's history. The growth in this business' performance continues to be impressive.

一旦這項行動完成，我們預計年度營業收入將增加至少 500 萬美元。我們的空氣和液體處理部門本季的調整後 EBITDA 與去年同期相比增長了 15%，並且是該部門歷史上年初至今的最高調整後 EBITDA。該業務業績的成長持續令人印象深刻。

For further details regarding our segment performance, I'll turn the call now over to Sam Lyon, President of our Forged Cast Engineered Products segment.

有關我們部門業績的更多詳細信息，我現在將電話轉給鍛造工程產品部門總裁 Sam Lyon。

Thank you, Brett, and good morning. For the second quarter of 2025, FCEP reported net sales of $77.9 million, a 3% increase compared to Q2 of 2024, and a 7.8% increase compared to Q1 of 2025. Segment adjusted EBITDA for Q2 2025 was $6.8 million, down $1.5 million from Q1 of 2025.

謝謝你，布雷特，早安。2025 年第二季度，FCEP 報告淨銷售額為 7,790 萬美元，與 2024 年第二季相比成長 3%，與 2025 年第一季相比成長 7.8%。2025 年第二季分部調整後 EBITDA 為 680 萬美元，較 2025 年第一季下降 150 萬美元。

Our US Forged plant utilization in the quarter was 10% lower than Q2 of 2024, and 14% lower than Q1 of 2025, primarily due to lower work roll demand caused by elevated customer inventory positions on Forged work rolls, partially resulting from a reduction of activity due to the fluid tariff environment.

本季度，我們美國鍛造廠的利用率比 2024 年第二季低 10%，比 2025 年第一季低 14%，這主要是由於客戶鍛造工作卷庫存增加導致工作卷需求下降，部分原因是流動關稅環境導致活動減少。

The decrease in plant utilization and lower revenue and margin from forged work rolls negatively affected earnings in Q2. FEP demand and shipments were a positive development from the tariffs. We were able to increase pricing on this product line as barriers to imports increased.

工廠利用率下降以及鍛造工作卷收入和利潤下降對第二季的收益產生了負面影響。關稅上調對 FEP 的需求和出貨量產生了正面影響。隨著進口壁壘的增加，我們能夠提高該產品線的價格。

The mix shift from Forged rolls to FEP reduced overall margins, yet strategically positions us to capture reshoring opportunities in tool steel, distribution bar and block products. Looking at the flat-rolled market environment, demand in North America and Europe remains weak with many US customers postponing roll purchases in Q2 due to tariff uncertainty, following the administration's expansion of Section 232 duties, and unknown levels of base tariffs.

從鍛造捲到 FEP 的組合轉變降低了整體利潤率，但從策略上使我們處於有利地位，可以抓住工具鋼、配電棒和塊狀產品的回流機會。縱觀板材市場環境，北美和歐洲的需求仍然疲軟，由於美國政府擴大第232條款關稅以及基準關稅水平未知導致關稅不確定性，許多美國客戶推遲了第二季度的板材採購。

For US imports from our Sweden and Slovenia plants, the baseline tariff now stands at 15%, up from 10% in Q2. The cast roll market in North America exceeds domestic capacity. So long-term demand for our European cast rolls should not be affected by these tariffs.

從我們的瑞典和斯洛維尼亞工廠進口到美國的商品，基準關稅目前為 15%，高於第二季的 10%。北美鑄軋捲市場已超出國內產能。因此，我們對歐洲鑄軋捲的長期需求不應受到這些關稅的影響。

The tariff effect in the short term is reflected in our second half expectations as a temporary shortfall, particularly in North America. Notably, the long-term fundamentals remain strong. Construction spending automotive production and cansheet demand are all expected to grow at mid-single-digit rates over the next five years, supporting a return to more normal roll ordering patterns.

短期內關稅效應在我們下半年的預期中反映為暫時的短缺，尤其是在北美。值得注意的是，長期基本面依然強勁。預計未來五年，建築支出、汽車生產和罐板需求都將以中位數個位數的速度成長，從而支持恢復更正常的捲材訂購模式。

As we previously indicated, we have issued formal notice to the union of our intention to wind down operations at our UK cast roll plant. We are engaging with multiple potential asset buyers. The current backlog takes us through Q1 of 2026, and we are reallocating products across the global UES network to ensure continued customer supply while working to wrap up operations as soon as possible. We've stopped taking new orders for the UK.

正如我們先前所指出的，我們已向工會發出正式通知，表示我們打算逐步關閉英國鑄卷廠的運作。我們正在與多個潛在資產買家接洽。目前的積壓訂單將持續到 2026 年第一季度，我們正在全球 UES 網路中重新分配產品，以確保持續向客戶供應，同時努力盡快完成營運。我們已停止接受英國的新訂單。

In summary, although tariff-related hesitation is reducing near-term North American demand for rolls, our pricing discipline, cost control measures and expanding FEP volumes give us confidence going into 2026. As stated earlier, cast roll supply is limited in the US, allowing us to be competitive with other European suppliers.

總而言之，儘管與關稅相關的猶豫正在減少北美近期對卷材的需求，但我們的定價紀律、成本控制措施和不斷擴大的 FEP 產量使我們對進入 2026 年充滿信心。如前所述，美國的鑄軋捲供應有限，這使我們能夠與其他歐洲供應商競爭。

To date, we have passed on all tariffs costs to our customers. We anticipate a full order book for our 2026 at our cast roll plant in Sweden, and the closure of the UK operations will provide a meaningful improvement and OI for the segment once complete.

到目前為止，我們已將所有關稅成本轉嫁給了客戶。我們預計，2026 年我們位於瑞典的鑄軋廠將迎來滿滿的訂單，而英國業務的關閉將為該部門帶來有意義的改進和營運收益 (OI)。

Brett, back to you.

布雷特，回到你身邊。

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

謝謝你，山姆。空氣和液體系統總裁戴夫安德森 (Dave Anderson) 將介紹其部門的業績

Thank you, Brett. Good morning. 2025 continues to be a very positive year for Air & Liquid. In Q2, order activity continued to be very good. Our backlog at the end of Q2 was 8% higher than the start of the year. The nuclear, military and pharmaceutical markets continue to be strong. Q2 revenue was consistent with prior year.

謝謝你，布雷特。早安. 2025 年對 Air & Liquid 來說仍然是非常積極的一年。第二季度，訂單活動持續保持良好。我們第二季末的積壓訂單比年初高出 8%。核能、軍事和醫藥市場持續保持強勁。第二季營收與去年同期持平。

However, the product mix was improved. Revenue for pumps was higher than prior year as we continue to see positive results from the military market. Heat exchanger shipments declined versus prior year due to the timing of some large orders that are expected to ship in Q3.

然而，產品組合得到了改善。由於我們繼續看到軍事市場的正面成果，泵浦的收入高於上一年。由於一些大訂單預計將在第三季發貨，因此熱交換器出貨量與去年同期相比有所下降。

Adjusted EBITDA in Q2 was $3.9 million versus $3.4 million in the prior year. The 15% increase versus prior year was primarily driven by better product mix. Year-to-date adjusted EBITDA of $7.7 million was the highest in Air & Liquid's history, and a 36% increase over prior year. We continue to see positive activity in the nuclear market for our heat exchanger product line. Orders have already exceeded any prior full year, and we expect shipments to also be at record levels this year.

第二季調整後的 EBITDA 為 390 萬美元，而去年同期為 340 萬美元。與前一年相比，成長 15% 主要得益於更好的產品組合。年初至今的調整後 EBITDA 為 770 萬美元，是 Air & Liquid 歷史上的最高水平，比前一年增長了 36%。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。訂單量已經超過了以往任何一年的全年訂單量，我們預計今年的出貨量也將達到創紀錄的水平。

From restarting legacy nuclear plants to the new small modular reactors, nuclear power has become the preferred power option, and our engineering and manufacturing capabilities positions us well as this market grows. There continues to be strong demand from the US Navy, and we expect this demand to continue as the Navy moves forward with fleet expansion plans.

從重啟傳統核電廠到新的小型模組化反應堆，核電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，這種需求將持續下去。

New manufacturing equipment from the Navy funding program is expected to arrive at our facility by the end of 2025. This is from the Navy approved funding in 2024. In addition to the equipment being delivered this year, we are pleased to announce that Air & Liquid has been approved for another equipment funding from the US Navy.

海軍資助計畫的新製造設備預計將於 2025 年底抵達我們的工廠。這是海軍於 2024 年批准的資金。除了今年交付的設備外，我們很高興地宣布，Air & Liquid 已獲得美國海軍另一項設備資助的批准。

This new funding was approved in May and was approximately $2 million that will be used to purchase additional equipment for our Buffalo manufacturing location. This equipment, along with the equipment we installed in 2024 will position us to meet the expected growth in this market. Demand for custom air handlers remains strong.

這筆新資金於 5 月獲得批准，金額約為 200 萬美元，將用於為我們的布法羅製造工廠購買額外的設備。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。客製化空氣處理機的需求依然強勁。

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. Tariffs continue to be a major subject in the last few months and the recent copper tariff will impact many products.

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。關稅在過去幾個月中一直是一個主要話題，最近的銅關稅將影響許多產品。

Copper is a main component of our heat exchangers, and we have notified our customers that we will be passing on any tariff costs incurred. While there may be some short-term fluctuations as the supply chain adjusts in the long term, anything that results in increased manufacturing in the United States will increase demand for our products.

銅是我們熱交換器的主要部件，我們已通知客戶，我們將轉嫁產生的任何關稅成本。雖然由於供應鏈的長期調整，可能會出現一些短期波動，但任何導緻美國製造業增加的因素都會增加對我們產品的需求。

In summary, demand for our products remain strong. Backlog is up 8% this year, and year-to-date adjusted EBITDA increased 36% versus prior year.

總之，我們產品的需求依然強勁。今年積壓訂單增加了 8%，年初至今調整後的 EBITDA 較前一年增加了 36%。

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. As indicated in both our Form 10-Q and in our press release 8-K filed yesterday, the major headline item for the quarter was the UK exit charge. We recorded $6.8 million in expenses related to employee severance, accelerated depreciation due to the plant shortened operating life, and certain professional fees associated with the plant closure.

謝謝你，布雷特。正如我們昨天提交的 10-Q 表和 8-K 新聞稿中所述，本季度的主要頭條新聞是英國退出費用。我們記錄了 680 萬美元的費用，這些費用與員工遣散費、因工廠運營壽命縮短而加速的折舊以及與工廠關閉相關的某些專業費用有關。

As indicated and itemized in Note 2 of our Form 10-Q, these costs are recorded against the respective cost of goods sold, SG&A and depreciation and amortization expense line items on the consolidated P&L. To reiterate, we expect the following -- that following the exit from this location, operating income is expected to improve by at least $5 million on an annualized run rate basis.

正如我們的 10-Q 表註 2 中所示和逐項列出的，這些成本記錄在合併損益表中的相應銷售成本、銷售、一般和行政費用以及折舊和攤銷費用項目中。重申一下，我們預計，從該地點退出後，營業收入預計將按年率計算將至少提高 500 萬美元。

Ampco's net sales for the second quarter of 2025 were $113.1 million, an increase of 2% compared to net sales for the second quarter of 2024. The increase was primarily driven by higher sales of Forged Engineered Products and favorable FX translation, which more than offset lower roll demand. Adjusted EBITDA of $8 million for the second quarter of 2025 declined by $2.1 million versus prior year, primarily due to lower margins in the Forged and Cast Engineered Products segment for a few key reasons.

Ampco 2025 年第二季的淨銷售額為 1.131 億美元，與 2024 年第二季的淨銷售額相比成長 2%。成長主要得益於鍛造工程產品銷售的成長和有利的外匯轉換，這足以抵消捲材需求的下降。2025 年第二季調整後 EBITDA 為 800 萬美元，較上年下降 210 萬美元，主要原因是鍛造和鑄造工程產品部門的利潤率因幾個關鍵原因而下降。

Unfavorable manufacturing costs relative to pricing and surcharge pass-throughs in the current quarter than in the prior year quarter, a lower volume of roll shipments, offset by a higher volume of Forged Engineered Product shipments led to a weaker margin mix in Q2 2025 versus the prior year quarter.

本季相對於定價和附加費轉嫁而言的製造成本較去年同期不利，卷材出貨量較低，但鍛造工程產品出貨量較高，導致 2025 年第二季的利潤率組合較去年同期有所減弱。

And lower production rates in the current year quarter led to lower absorption of manufacturing overhead costs. These impacts were partly offset by higher profitability during the quarter versus prior year in the Air & Liquid Processing segment due to a better sales mix, as Dave described. 2025 year-to-date adjusted EBITDA of $16.8 million remains up versus prior year.

本季生產力較低導致製造間接成本的吸收較低。正如戴夫所描述的，由於銷售組合改善，空氣和液體處理部門本季盈利能力較上年有所提高，部分抵消了這些影響。 2025 年迄今的調整後 EBITDA 為 1,680 萬美元，仍高於上年。

Total selling and administrative expenses declined slightly for the second quarter of 2025 versus prior year, but are comparable year-to-date versus prior year. Depreciation and amortization expense for the quarter, and for year-to-date, are higher than prior year periods due to the accelerated depreciation piece of the UK exit charge, which was $0.7 million.

2025 年第二季的總銷售和管理費用與去年同期相比略有下降，但年初至今與去年同期相比持平。本季以及年初至今的折舊和攤銷費用高於去年同期，因為英國退出費用的加速折舊部分為 70 萬美元。

Severance costs of $5.9 million on the Q2 P&L are the employee-related severance costs that represent the largest element of the total UK exit charge. Interest expense for the second quarter declined slightly primarily due to lower average interest rates on the revolving credit facility. The change in other expense income net was driven primarily by changes in foreign exchange transaction gains and losses.

第二季損益表中 590 萬美元的遣散費用是與員工相關的遣散費用，佔英國總離職費用的最大部分。第二季的利息支出略有下降，主要原因是循環信貸額度的平均利率較低。其他費用收入淨額的變動主要是由於外匯交易損益的變動所致。

The income tax provision for 2025 is benefiting from a lower statutory tax rate in one of our foreign tax paying jurisdictions. As a result, net loss attributable to Ampco-Pittsburgh for the three months ended June 30, 2025, was $7.3 million, or $0.36 per share, which includes $6.8 million, or $0.34 per share, for the UK exit charge.

2025 年的所得稅規定受益於我們其中一個外國納稅管轄區的較低法定稅率。因此，截至 2025 年 6 月 30 日的三個月，Ampco-Pittsburgh 的淨虧損為 730 萬美元，即每股 0.36 美元，其中包括 680 萬美元，即每股 0.34 美元的英國退出費用。

At the end of June, we amended and extended our credit agreement through 2030. We restructured the facility into a $100 million revolving credit line backed by eligible accounts receivable and inventory, plus a $13.5 million term loan backed by certain eligible machinery and equipment. The structure and added capacity provides us greater flexibility to support our global working capital needs.

6 月底，我們修改了信貸協議並將其有效期延長至 2030 年。我們將該貸款重組為 1 億美元的循環信貸額度，由合格的應收帳款和庫存支持，加上 1,350 萬美元的定期貸款，由某些合格的機械和設備支持。該結構和增加的容量為我們提供了更大的靈活性，以支持我們的全球營運資金需求。

At closing, we fully drew on the term loan to pay down the revolver balance, which significantly increased the corporation's available liquidity. At June 30, 2025, the corporation's liquidity position included cash on hand of $9.9 million, and undrawn availability on our revolving credit facility of $34.2 million.

在交易結束時，我們充分利用了定期貸款來償還循環貸款餘額，這大大增加了公司可用的流動資金。截至 2025 年 6 月 30 日，公司的流動資金狀況包括現金 990 萬美元，以及未提取的循環信貸額度 3,420 萬美元。

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。

We will now begin the question and answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指示）

Dennis Scannell, Rutabaga Capital.

丹尼斯·斯坎內爾（Dennis Scannell），Rutabaga Capital。

Yes, good morning, gentlemen. I was hoping to get a little bit more color on what's going on in the roll market from Sam, if I could. Sam, in your conversations with customers is -- and kind of what you saw for the month of July, are they -- is there some pent-up demand? Are they -- are you seeing either actual orders in July, or the promise of orders later in the year coming? And is this happening both in the US and in Europe? Or is it really mostly in the US? Just trying to get a sense of how the back half of the year might look for your business.

是的，先生們，早安。如果可以的話，我希望從 Sam 那裡了解更多關於卷材市場的情況。薩姆，在您與客戶的交談中——以及您在七月看到的情況是——是否存在一些被壓抑的需求？您是否看到了 7 月的實際訂單，或明年稍後的訂單承諾？美國和歐洲都出現這種情況了嗎？還是實際上主要發生在美國？只是想了解一下今年下半年您的業務狀況如何。

Yeah, Dennis, the second half of the year will be lighter shipment on rolls than the first half. One, because we have less days and more holidays. And just the overall demand, the lead time on our products is depending where it's shipping. If it's in the US, it's three months, if it has to go overseas, it would take four or five months. And vice versa if they're going to ship from overseas to here, it's five months.

是的，丹尼斯，今年下半年捲筒紙的出貨量會比上半年少。一是因為我們的日子越來越少，假期越來越多。就整體需求而言，我們產品的交貨時間取決於運輸地點。如果在美國，則需要三個月，如果要到海外，則需要四、五個月。反之，如果他們要從海外運送到這裡，則需要五個月。

So you're kind of -- in the really back half, we could take orders for November, December kind of time frame, and we have seen a slight uptick in order activity from a few of our large customers. What's really happening is there was a pause -- there was a couple of unknowns in Q2. One, what was the tariff rate going to be? It was set at 10% and then it ultimately ended up being 15% for our plant.

所以你有點 - 在真正的後半段，我們可以接受 11 月、12 月左右的訂單，而且我們看到一些大客戶的訂單活動略有增加。實際情況是出現了停頓——第二季度出現了一些未知數。一、關稅稅率是多少？該比例最初設定為 10%，但最終我們工廠的比例定為 15%。

Our plant in Slovenia, our plant in Sweden that ships to the US has no effect on their shipments into Europe, of course. But then the European customers we have didn't know if there was going to be a retaliatory tariff or not until just recently, and now there is not. So the future, we would anticipate to be in a pretty good position.

當然，我們在斯洛維尼亞的工廠和在瑞典的工廠向美國發貨，但這不會影響它們向歐洲發貨。但直到最近，我們的歐洲客戶才知道是否會有報復性關稅，但現在還沒有。因此，我們預計未來將處於相當有利的地位。

One, because the dollar has weakened somewhat making the US shipments into Europe more favorable, making our cost position better. So that's a positive. And now it's a known, the tariffs are 15%. They're not 20%, or 30%, or 40%. And rolls are not subject to the steel tariffs. So it's a total tariff of 15%.

一是因為美元有所走弱，使得美國對歐洲的出口更加有利，使我們的成本狀況更好。這是積極的。現在眾所周知，關稅是15%。它們不是 20%、30% 或 40%。且軋輥不受鋼鐵關稅的限制。所以總關稅為15%。

It's not 15%, plus the 50% for steel, it's just 15%. So now all that's known, we feel like things start happening again. And specifically, Dennis, where we saw the degradation in ordering was really Europe into the US, and US to US So the activity in the US plant slowed a bit.

不是15%，加上鋼鐵的50%，就只有15%。現在我們知道了一切，我們感覺事情又開始發生了。具體來說，丹尼斯，我們看到訂單下降的實際上是從歐洲到美國，以及從美國到美國，所以美國工廠的活動有所放緩。

There's a third factor, and that is that in 2024, we had a pretty high shipment level of forged work rolls. And I think our customers were anticipating an uptick in overall steel demand. And the tariffs kind of hurt automotive production and hurt some other -- the interest rates, the housing market, housing starts are lower. That's offset somewhat by nonresidential construction and data centers being high.

還有第三個因素，那就是到 2024 年，我們的鍛造工作輥的出貨量相當高。我認為我們的客戶預期整體鋼鐵需求將會上升。關稅在一定程度上損害了汽車生產，也損害了其他一些領域——利率、房地產市場和新屋開工率都較低。非住宅建築和資料中心的旺盛需求在一定程度上抵消了這一影響。

But there's just a lot of questions around how much are things going to cost? How much is it going to be even on infrastructure projects? So again, now that that's all -- seems to be settled, we expect things to go back to normal.

但關於這些東西要花多少錢，仍有許多疑問。基礎建設項目的投資額度是多少？所以，既然現在一切似乎已經解決了，我們預期事情會恢復正常。

So to the extent that the lack of demand, or lack of orders has been a US event, we could conceivably see increased US ordering activity and that affecting the second half of '25? You said it's like a three-month lead time, right? So do you expect that?

因此，如果需求不足或訂單不足是美國事件，我們可能會看到美國訂購活動增加，並影響 25 年下半年？您說這就像三個月的準備時間，對嗎？那你期待這樣嗎？

I mean, as you talk to your customers. Are they -- do they -- are they still -- they're US customers. Do they still have a pretty high inventory of rolls so that -- what I'm thinking of some orders maybe in August or September are not going to materialize? Kind of any color on that standpoint?

我的意思是，當你與你的客戶交談時。他們還是──他們還是──美國客戶嗎？他們是否仍然有大量卷材庫存，以至於——我認為 8 月或 9 月的一些訂單可能無法實現？從這個角度來看，有什麼顏色嗎？

I guess I'll say due to lead time of parts and materials and things, again, we would be shipping -- we would be delivering in November, December for any incremental new orders. And we have seen a little bit of uptick, but it's hard to say. And each customer is different. Some customers are flushed with cash, and they have more inventory and they can wait longer. And some are not, and they have to order. Their hand to mouth and they're ordering to get stuff as soon as they can. So it's pretty variable, actually.

我想說的是，由於零件、材料和物品的準備時間，我們會再次發貨——我們會在 11 月、12 月交付任何增量新訂單。我們已經看到了一些上漲，但很難說。而且每個顧客都是不同的。有些客戶資金充裕，庫存較多，可以等待更長。有些則沒有，他們必須訂購。他們勉強糊口，正在訂購，希望能盡快得到東西。所以實際上它是相當多變的。

Got it. And then any other color you can give on the closure of the UK facility in terms of the timing? Like is that something that will happen kind of second half of '25 and then we get that $5 million incremental operating income bump in '26? Or is this -- will this drag on longer?

知道了。那麼，您能否就英國工廠的關閉時間提供其他資訊？這是否會在 2025 年下半年發生，然後我們會在 2026 年獲得 500 萬美元的增量營業收入？或者這——這會拖延更久嗎？

Well, the longest potential endpoint is Q1 of '26, and we're working to pull that in. So sometime in Q4, between, most likely, October and December, the casting will stop then those costs will stop. So that's the major energy consumer in the plant and about third of the employees. And then the rolls will progress through to the back-end machining. And as they -- as the rolls get finished, the employees will be -- will be attrited and then costs will continue to come down.

嗯，最長的潛在終點是 26 年第一季度，我們正在努力實現這一目標。因此，在第四季的某個時候，最有可能是 10 月到 12 月之間，選角將會停止，然後這些成本也會停止。這是工廠的主要能源消耗者，也是約三分之一的員工的能源消耗者。然後，軋輥將進入後端加工階段。隨著產量的完成，員工將會減少，成本將持續下降。

And then at the same time, as those costs are coming down, you're still shipping product, so then you start getting receipts in from the customers. And so from a cash perspective, it's -- it starts at high and then you start receiving it back in.

同時，隨著這些成本的下降，您仍在運送產品，因此您開始從客戶那裡收到收據。因此，從現金角度來看，它開始時價格很高，然後你開始收回成本。

Yeah. Okay. And you mentioned -- so do we own the plant? And do you have a sense of potential proceeds if we do actually sell the facility?

是的。好的。您有提到過—那麼我們擁有這家工廠嗎？如果我們真的出售該設施，您是否知道潛在的收益是多少？

We do own it and that's being evaluated right now. It's in a, I'll call it, a fairly desirable area in Newcastle. But you have to evaluate. It's been there for a long time. So what's the demolition cost versus the redevelopment cost?

我們確實擁有它並且目前正在評估它。它位於紐卡斯爾一個相當理想的地區。但你必須評估。它已經在那裡很久了。那麼拆除成本與重建成本相比是多少呢？

Does the -- maybe the Gateshead Council wants it? We're not sure. The government is interested potentially to develop it, then there's private people. It's really hard to say. We're not counting on anything, but there could be upside.

蓋茨黑德市議會是否想要它？我們不確定。政府可能有興趣開發它，然後還有私人的興趣。這真的很難說。我們不指望任何事情，但可能會有好處。

Got it. Okay, great thank you very much. Good luck.

知道了。好的，非常感謝。祝你好運。

Thanks.

謝謝。

(Operator Instructions) Robert Jensen, a Private Investor.

（操作員指示）私人投資者羅伯特詹森 (Robert Jensen)。

Yeah. I'm just wondering, you guys closing the UK operations. How is that going to impact your revenues?

是的。我只是想知道，你們會關閉英國的業務嗎？這將如何影響您的收入？

Yes, this is Sam, Robert. Roughly, it will be down -- there's about $25 million to $29 million -- roughly $25 million to $30 million, I'd say. And then there's some upside to offset that with converting some rolls to forged rolls of $3 million or $4 million. So I'd say in the neighborhood of $20 million to $25 million, something like that. And the reason that's not larger is we're shifting -- we are shifting some product to Sweden as well. So Sweden will end up being full. They're running at a lower utilization rate right now. So that will be an offset.

是的，這是山姆，羅伯特。粗略地說，它會下降——大約 2500 萬美元到 2900 萬美元——我想大約是 2500 萬美元到 3000 萬美元。然後透過將一些卷轉換為價值 300 萬美元或 400 萬美元的偽造卷，可以產生一些好處來抵消這一影響。所以我認為大約在 2000 萬美元到 2500 萬美元之間，諸如此類。而規模沒有擴大的原因是我們正在轉移——我們也在將一些產品轉移到瑞典。因此瑞典最終會變得擁擠。目前它們的利用率較低。所以這將是一個抵消。

Yeah. Okay.

是的。好的。

This concludes our question-and-answer session. I would like to turn the conference back over to Brett McBrayer for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Brett McBrayer 做最後演講。

Thank you. In closing today, I want to recognize the great work by our employees. I particularly want to highlight the work of our team in the UK who are managing a very difficult situation. I also want to thank our shareholders and Board of Directors for continued support.

謝謝。今天結束時，我要表彰我們員工的出色工作。我特別想強調我們英國團隊在應對非常困難的情況時所做的工作。我還要感謝我們的股東和董事會的持續支持。

Despite the pause in our order book, we've recently experienced, tariff clarity and the wind down of our U.K. operations will position us well as we move into 2026. I'm excited about our direction and the commitment of our team to demonstrate significantly improved earnings for our shareholders. Thank you again for joining our call this morning.

儘管我們的訂單最近有所暫停，但關稅的明確性和英國業務的逐步減少將使我們在進入 2026 年時處於有利地位。我對我們的方向和團隊的承諾感到非常興奮，我們致力於為股東帶來顯著提高的收益。再次感謝您今天上午參加我們的電話會議。

The conference is 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。