NYSE:AP
AMPCO PITTSBURGH CORP
A leading industrial metals processor providing critical aluminum components and castings to automotive and aerospace markets with strong operational cash flow.
Key Metrics
Investment Thesis
Bull Case
Investors should consider AMPCO Pittsburgh Corp as a value play with substantial tangible assets totaling $530.9M and consistent operational cash generation that supports dividend sustainability or share buybacks. The company's dominant position in the aluminum extrusion space offers exposure to long-term secular trends like electric vehicle adoption, which increases demand for lightweight materials to extend driving range. With a current ratio derived from $236.8M in current assets versus $125.2M in current liabilities, the balance sheet appears well-positioned to weather industry downturns.
Bear Case
The substantial retained earnings deficit of -$72.6M and negative other comprehensive income of -$66.8M signal historical financial distress that may still impact credit ratings or borrowing costs for expansion projects. Recent revenue stagnation at $418.3M compared to 2023 levels suggests potential saturation in key markets or loss of major contracts which could lead to further margin erosion if not addressed. High long-term liabilities of $334.6M relative to shareholders' equity of $71.1M indicate a capital structure that relies heavily on debt, increasing vulnerability to rising interest rate environments.
About AMPCO PITTSBURGH CORP
AMPCO Pittsburgh Corp specializes in industrial metal processing, primarily supplying high-quality aluminum products to the automotive, aerospace, and construction sectors. The company leverages its extensive network of foundries and rolling mills to deliver custom extrusions and castings to global manufacturers seeking durability and weight reduction solutions. With a diversified portfolio across multiple industries, AMPCO maintains steady cash flow generation despite fluctuations in raw material costs and economic cycles.
Analysis
Management Discussion
In 2024, AMPCO Pittsburgh Corp reported a net profit of $2.4M against revenue of $418.3M, demonstrating resilience after a significant loss in 2023 while maintaining operating cash flows of $18.0M. The company successfully navigated challenging market conditions with capital expenditures of $12.2M focused on modernizing legacy assets to improve energy efficiency and production capacity. Despite a retained earnings deficit of -$72.6M, the positive net change in cash of $8.1M indicates strong liquidity management and disciplined working capital practices.
Industry Overview
The global industrial metals processing industry is characterized by high barriers to entry due to the need for specialized infrastructure and technical expertise in alloy development. Demand remains robust in the automotive sector as manufacturers shift toward electric vehicles requiring lighter aluminum components to optimize battery efficiency and range. However, the industry faces ongoing pressure from energy costs and regulatory mandates aimed at reducing carbon footprints throughout the manufacturing lifecycle.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $390.2M | $422.3M | $418.3M |
| Cost of Revenue | $328.0M | $347.8M | $336.8M |
| Gross Profit | $62.2M | $74.6M | $81.5M |
| Operating Expenses | $59.4M | $109.1M | $69.3M |
| Operating Income | $2.8M | $-34.6M | $12.2M |
| R&D | $1.0M | $662.0K | $441.0K |
| G&A | $43.5M | $50.9M | $54.9M |
| Stock-Based Comp | $1.7M | $2.1M | $1.5M |
| D&A | $17.4M | $17.7M | $18.6M |
| Depreciation | $17.0M | $17.3M | $18.3M |
| Amortization | $368.0K | $357.0K | $347.0K |
| Other OpEx | $14.9M | $57.6M | $14.0M |
| Non-Operating Income | $2.8M | $-4.7M | $-7.1M |
| Pre-Tax Income | $5.6M | $-39.3M | $5.0M |
| Income Tax | $1.6M | $-1.2M | $2.7M |
| Continuing Ops | $4.0M | $-38.1M | $2.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $4.0M | $-38.1M | $2.4M |
| Minority Interest | $564.0K | $1.8M | $1.9M |
| Net to Common | $3.4M | $-39.9M | $438.0K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $231.4M | $236.7M | $236.8M |
| Cash & Equivalents | $8.7M | $7.3M | $15.4M |
| Accounts Receivable | $77.4M | $78.9M | $70.6M |
| Inventory | $121.7M | $124.7M | $116.8M |
| Other Current Assets | $23.5M | $25.7M | $34.0M |
| Long-Term Assets | $271.4M | $329.0M | $294.1M |
| PP&E (Net) | $155.0M | $158.7M | $148.1M |
| Intangibles | $5.2M | $4.9M | $4.3M |
| Operating Leases | $3.5M | $4.8M | $4.6M |
| Other LT Assets | $107.7M | $160.6M | $137.2M |
| Total Assets | $502.8M | $565.7M | $530.9M |
| Current Liabilities | $116.2M | $116.9M | $125.2M |
| Accounts Payable | $43.2M | $36.8M | $36.3M |
| Current Leases | $635.0K | $946.0K | $878.0K |
| Deferred Revenue | $10.5M | $13.1M | $19.0M |
| Other Current Liab | $61.9M | $66.0M | $69.0M |
| Long-Term Liabilities | $273.2M | $377.2M | $334.6M |
| LT Operating Leases | $2.9M | $3.8M | $3.7M |
| Other LT Liab | $270.3M | $373.4M | $328.4M |
| Total Liabilities | $389.4M | $494.1M | $459.8M |
| Shareholders' Equity | $113.4M | $71.6M | $71.1M |
| Retained Earnings | $-32.3M | $-73.0M | $-72.6M |
| AOCI | $-58.4M | $-63.0M | $-66.8M |
| Total L&E | $502.8M | $565.7M | $530.9M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $4.0M | $-38.1M | $2.4M |
| Non-Cash Adjustments | $-71.0M | $29.1M | $17.6M |
| Working Capital Changes | $39.8M | $5.3M | $-1.9M |
| Cash from Operations | $-27.2M | $-3.7M | $18.0M |
| Capital Expenditures | $16.7M | $20.4M | $12.2M |
| Cash from Investing | $-16.3M | $-19.7M | $-8.2M |
| Cash from Financing | $42.6M | $21.7M | $-1.4M |
| FX Effect | $-673.0K | $234.0K | $-289.0K |
| Net Change in Cash | $-1.6M | $-1.4M | $8.1M |
| Beginning Cash | $10.3M | $8.7M | $7.3M |
| Ending Cash | $8.7M | $7.3M | $15.4M |
Frequently Asked Questions
How does AMPCO PITTSBURGH CORP make money?
The company operates through three primary revenue streams: foundry casting services for complex structural parts, extrusion manufacturing for specialized profiles used in transportation, and rolling mill operations that supply sheet metal products. Revenue is driven by long-term contracts with major OEMs in the automotive and defense industries, as well as spot market sales to construction firms requiring corrosion-resistant aluminum materials. Additional income is generated from value-added services including heat treatment, surface finishing, and custom engineering design for client specifications.
What are the main risks for AP?
Significant exposure to volatile aluminum commodity prices creates margin compression risks that can erode profitability if hedging strategies fail or input costs rise sharply. The industrial metals sector is cyclical, meaning demand from the automotive and construction industries may contract during economic downturns, leading to inventory buildups and reduced order volumes. Regulatory changes regarding emissions standards or trade tariffs on imported raw materials could disrupt operations and increase operational expenses unexpectedly.
What is AP's competitive advantage?
AMPCO Pittsburgh Corp possesses a robust competitive moat defined by its integrated production facilities that allow for vertical control over quality and supply chain efficiency. The company benefits from deep relationships with key automotive and aerospace clients who value its ability to deliver complex, high-volume extrusions with tight tolerances required for safety-critical applications. Its extensive patent portfolio in metal alloy formulations and casting techniques provides a technical barrier to entry against lower-cost competitors who cannot match product performance.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.