AMPCO PITTSBURGH CORPAP

AMPCO PITTSBURGH CORP Segments Disclosure

10-KFiled Mar 16, 20266 min read

NOTE 24 – BUSINESS SEGMENTS:

The Corporation organizes its business into two operating segments: FCEP and ALP.

The FCEP segment produces forged hardened steel rolls, cast rolls and forged engineered products (“FEP”). Forged hardened steel rolls are used primarily in hot and cold rolling mills by producers of steel, aluminum and other metals. Cast rolls, which are produced in a variety of iron and steel qualities, are used mainly in hot strip mills, medium/heavy section mills, roughing mills, and plate mills. FEP principally are sold to customers in the steel distribution market, the oil and gas industry, and the aluminum and plastic extrusion industries. The segment has operations in the United States, Sweden, and Slovenia and equity interests in two joint venture companies in China. Collectively, the segment primarily competes with European, Asian, North American and South American companies in both domestic and foreign markets and distributes a significant portion of its products through sales offices located throughout the world.

The ALP segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid. Aerofin produces custom-engineered finned tube heat exchange coils and related heat transfer products for a variety of industries including original equipment manufacturers and commercial, nuclear power generation and industrial manufacturing. Buffalo Air Handling produces large custom-designed air handling systems for institutional (e.g., hospital, university), pharmaceutical and general industrial building markets. Buffalo Pumps manufactures centrifugal pumps for the fossil-fueled power generation, marine defense and industrial refrigeration industries. The segment has operations in Virginia and New York with headquarters in Carnegie, Pennsylvania. The segment utilizes an independent group of sales offices located throughout the United States and Canada.

Net sales by product line for the years ended December 31, 2025 and 2024 are outlined below.

 

 

Net Sales by Product Line

 

 

 

2025

 

 

2024

 

Forged and Cast Engineered Products:

 

 

 

 

 

 

 Forged and cast mill rolls

 

$

274,257

 

 

$

273,036

 

 Forged engineered products

 

 

18,351

 

 

 

13,529

 

  Total

 

 

292,608

 

 

 

286,565

 

Air and Liquid Processing:

 

 

 

 

 

 

 Air handling systems

 

 

50,028

 

 

 

46,439

 

 Heat exchange coils

 

 

48,451

 

 

 

45,237

 

 Centrifugal pumps

 

 

43,079

 

 

 

40,064

 

  Total

 

 

141,558

 

 

 

131,740

 

Consolidated total

 

$

434,166

 

 

$

418,305

 

The accounting policies for each segment are the same as those described in Note 1, Summary of Significant Accounting Policies. The Chief Executive Officer is the Corporation’s chief operating decision maker (“CODM”).

The Corporation measures each segment’s profitability based on (loss) income from operations, which excludes interest expense, other income and expense items and Corporate costs. Along with other measures, the CODM uses segment (loss) income from operations when assessing segment performance and when making decisions to allocate financial resources between segments, primarily through periodic budgeting and segment performance reviews.

Summarized financial information concerning the Corporation’s reportable segments is shown in the following tables.

 

For the Year Ended December 31, 2025

 

 

For the Year Ended December 31, 2024

 

 

FCEP

 

 

ALP

 

 

Total

 

 

FCEP

 

 

ALP

 

 

Total

 

Net sales(1)

$

292,608

 

 

$

141,558

 

 

$

434,166

 

 

$

286,565

 

 

$

131,740

 

 

$

418,305

 

Less:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold (excluding depreciation and amortization)(3)

 

243,180

 

 

 

111,024

 

 

 

 

 

 

232,400

 

 

 

104,409

 

 

 

 

Selling and administrative

 

25,382

 

 

 

14,798

 

 

 

 

 

 

26,047

 

 

 

14,648

 

 

 

 

Depreciation and amortization

 

20,600

 

 

 

1,185

 

 

 

 

 

 

17,602

 

 

 

1,009

 

 

 

 

Charge (credit) for asbestos-related costs, net(4)

 

—

 

 

 

12,352

 

 

 

 

 

 

—

 

 

 

(4,184

)

 

 

 

Deconsolidation Charge

 

41,424

 

 

 

—

 

 

 

 

 

 

—

 

 

 

—

 

 

 

 

Severance charge

 

6,266

 

 

 

—

 

 

 

 

 

 

—

 

 

 

—

 

 

 

 

Loss on disposal of assets

 

435

 

 

 

54

 

 

 

 

 

 

22

 

 

 

—

 

 

 

 

Segment (loss) income from operations(5)

$

(44,679

)

 

$

2,145

 

 

 

(42,534

)

 

$

10,494

 

 

$

15,858

 

 

 

26,352

 

Reconciliation to (loss) income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income - net (6)

 

 

 

 

 

 

 

2,426

 

 

 

 

 

 

 

 

 

4,497

 

Interest expense

 

 

 

 

 

 

 

(11,369

)

 

 

 

 

 

 

 

 

(11,620

)

Unallocated corporate costs(7)

 

 

 

 

 

 

 

(11,945

)

 

 

 

 

 

 

 

 

(14,183

)

(Loss) income before income taxes

 

 

 

 

 

 

$

(63,422

)

 

 

 

 

 

 

 

$

5,046

 

 

(1)
For the FCEP segment, one customer accounted for approximately 10% of its net sales in 2025 and another customer accounted for approximately 11% of its net sales in 2024. For the ALP segment, one customer accounted for approximately 12% of its net sales in 2025 and no customers exceeded 10% of its net sales in 2024.
(2)
The significant expense categories and amounts align with the segment-level information regularly provided to the CODM.
(3)
Costs of products sold (excluding depreciation and amortization) for 2025 includes employee-retention credits, which are refundable employer payroll taxes for certain eligible businesses affected by the COVID-19 pandemic received from the Internal Revenue Service (the “Employee-Retention Credits”) of $735 for the FCEP ($456) and ALP ($279) segments.
(4)
For 2025, the charge for asbestos-related costs represents primarily an increase in the estimated settlement costs of pending and future asbestos claims, net of additional insurance recoveries, and a benefit from the reduction in the estimated defense-to-indemnity cost ratio from 55% to 50%. For 2024, the credit for asbestos-related costs represents primarily a decrease in the estimated settlement costs of pending and future asbestos claims, net of additional insurance recoveries, and a benefit from the reduction in the estimated defense-to-indemnity cost ratio from 60% to 55%.
(5)
FCEP segment loss from operations for 2025 includes the Exit Charges of $10,790 associated with exiting UES-UK and closing AUP.
(6)
Other income, net includes investment-related income, net pension and other postretirement income, losses on foreign exchange transactions, unrealized gains on Rabbi trust investments, and other items not included in the definition of segment (loss) income from operations.
(7)
Unallocated corporate costs represent the operating expenses of the corporate office and other costs not allocated to the segments.

 

 

Capital Expenditures

Depreciation and
Amortization Expense

Identifiable Assets(2)

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Forged and Cast Engineered Products(1)

 

$

6,057

 

 

$

7,166

 

 

$

20,600

 

 

$

17,602

 

 

$

272,303

 

 

$

289,129

 

Air and Liquid Processing

 

 

3,333

 

 

 

5,028

 

 

 

1,185

 

 

 

1,009

 

 

 

215,833

 

 

 

230,171

 

Corporate

 

 

15

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,219

 

 

 

11,596

 

Consolidated total

 

$

9,405

 

 

$

12,194

 

 

$

21,785

 

 

$

18,611

 

 

$

495,355

 

 

$

530,896

 

 

 

 

Long-lived Assets(3)

 

 

Net Sales by
Geographic Area(4)

 

 

(Loss) Income
Before Income Taxes

 

Geographic Areas:

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States(5)

 

$

211,461

 

 

$

235,785

 

 

$

258,230

 

 

$

259,289

 

 

$

(7,202

)

 

$

3,424

 

Foreign(6)

 

 

40,376

 

 

 

55,473

 

 

 

175,936

 

 

 

159,016

 

 

 

(56,220

)

 

 

1,622

 

Consolidated total

 

$

251,837

 

 

$

291,258

 

 

$

434,166

 

 

$

418,305

 

 

$

(63,422

)

 

$

5,046

 

 

(1)
Depreciation and amortization expense for 2025 includes accelerated depreciation of $3,327 associated with exiting UES-UK and closing AUP.
(2)
Identifiable assets for the FCEP segment include investments in joint ventures of $835 at December 31, 2025 and $2,175 at December 31, 2024. The decrease represents the Corporation's interest, through UES-UK, in Gongchang which became as asset of the Administrators as of the Filing Date. Identifiable assets for the ALP segment include asbestos-related insurance receivables of $126,838 and $139,295 at December 31, 2025 and 2024, respectively. Identifiable assets for Corporate represent primarily cash and cash equivalents and other items not allocated to reportable segments.
(3)
Long-lived assets exclude deferred income tax assets. Long-lived assets in the United States include noncurrent asbestos-related insurance receivables of $107,838 and $124,295 at December 31, 2025 and 2024, respectively. Foreign long-lived assets primarily represent assets of the foreign operations.
(4)
Net sales are attributed to the geographic areas based on the location of the customer. Sales to individual foreign countries were less than 10% of consolidated net sales for each of the years. The majority of foreign sales are attributable to the FCEP segment.
(5)
In 2025, loss before income taxes for the United States includes a charge for asbestos-related costs of $12,352 and Exit Charges of $1,480 offset by the estimated recovery by the lenders under the Credit Agreement, if any, after the costs and expenses of the Structured Insolvency of $7,500, and the Employee-Retention credits of $735. In 2024, income before income taxes for the United States includes a credit for asbestos-related costs of $(4,184).
(6)
Loss before income taxes for foreign for 2025 includes a portion of the Deconsolidation Charge approximating $48,924 (representing the write-off of the investment in UES-UK, including cash on hand, and the other comprehensive losses) and Exit Charges of $9,310.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 17, 2025
2023Mar 25, 2024
2022Mar 21, 2023
2021Mar 17, 2022
2020Mar 26, 2021
2019Mar 16, 2020

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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