AP

Ampco-Pittsburgh is a small, cyclical maker of forged/cast steel rolls (FCEP) and air-and-liquid processing equipment (ALP) whose FY2025 results are alarming beneath the flat top line. Revenue grew a modest +3.3% to $416M, but the company swung to a -$66.1M net loss (-$3.28 diluted EPS) and a -$54.5M operating loss, for a -15.9% net margin and -13.1% operating margin. This isn't a one-off: three of the last five years (FY2021, FY2023, FY2025) were loss-making, with FY2023 (-$39.9M) and FY2025 (-$66.1M) both deeply negative — a business that structurally cannot earn its cost of capital through the cycle.

The balance sheet is the disqualifier. Stockholders' equity fell -44.6% to just $32.6M against $447M of total liabilities — a 13.71x liabilities/equity ratio and a -202% ROE — with retained earnings at -$139M. Cash is down to $10.7M (-30.6%) and operating cash flow collapsed -92.5% to $1.34M, below the $9.4M of capex, so the company is burning cash before financing. Management's own risk factors lead with 'inability to maintain adequate liquidity to meet our operating cash flow requirements, debt service costs, net asbestos payments,' flag covenant-compliance risk on its debt agreements, and warn of possible NYSE delisting — a rare, telling admission of distress.