AMPCO PITTSBURGH CORP

Previous wording

inability to maintain adequate liquidity to meet our operating cash flow requirements, repay maturing debt and meet other financial obligations including severance costs associated with our anticipated exit from our operations in the U.K.;

Current wording

inability to maintain adequate liquidity to meet our operating cash flow requirements, repay maturing debt and meet other financial obligations as they become due;

Previous wording

inability to successfully restructure our operations, exit our U.K. operations, and/or invest in operations that will yield the best long-term value to our shareholders;

Current wording

inability to successfully restructure our operations, exit our U.K. operations, and/or invest in operations that will yield long-term value to our shareholders;

Previous wording

changes in the global economic environment, inflation, the ongoing impact of tariffs, elevated interest rates, recessions or prolonged periods of slow economic growth, and global instability and actual and threatened geopolitical conflict;

Current wording

changes in the global economic environment, inflation, the ongoing impact of tariffs, elevated interest rates, recessions or prolonged periods of slow economic growth, global instability, and actual and threatened geopolitical conflict;

Previous wording

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, oil and gas industry and the aluminum and plastic extrusion industries. The segment has operations in the United States, England, Sweden, and Slovenia, and an equity interest in three joint venture companies in China. Collectively, the segment primarily competes with European, Asian and North 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.

Current wording

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, oil and gas industry and aluminum and plastic extrusion industries. The segment has operations in the United States, England, Sweden, and Slovenia, and an equity interest in three joint venture companies in China. Collectively, the segment primarily competes with European, Asian and North 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.

Previous wording

In February 2025, Union Electric Steel UK Limited (“UES-UK”), an indirect subsidiary of the Corporation, entered into a formal consultation process with its unions and staff to evaluate various options to improve its profitability, which it completed during the second quarter of 2025. The U.K. operations have been impacted by unpredictable and high energy costs compared to its foreign competitors, lower demand for its products manufactured in the U.K., and increased imports of rolls and flat rolled steel into Europe from low-cost countries. In light of UES-UK's historical performance and management's outlook for the remainder of 2025 and subsequent years, UES-UK has decided to exit its operations. While UES-UK continues to review its restructuring alternatives, it is currently expected it will complete its orders in backlog and will cease foundry operations at the end of 2025 and finishing operations in the spring of 2026. As of the date of this filing, no decision has been made by the Board of Directors of UES-UK as to the method to liquidate and dissolve its operations.

Current wording

In February 2025, UES-UK entered into a formal consultation process with its unions and staff to evaluate various options to improve its profitability, which it completed during the second quarter of 2025. The U.K. operations have been impacted by unpredictable and high energy costs compared to its foreign competitors, lower demand for its products manufactured in the U.K., and increased imports of rolls and flat rolled steel into Europe from low-cost countries. In light of UES-UK's historical performance and management's outlook for the remainder of 2025 and subsequent years, UES-UK has decided to exit its operations. As of the September 30, 2025 balance sheet date, no decision had been made by the Directors of UES-UK as to the method to liquidate and dissolve its operations.

Previous wording

For the three and six months ended June 30, 2025, the Corporation recognized charges approximating $6,750 primarily for employee-related costs payable to the 168 employees of UES-UK under existing benefit plans and accelerated depreciation from reducing the estimated remaining useful lives and revising the estimated salvage value of the property, plant and equipment of UES-UK (the “U.K. Exit Charge”). Additional benefits may be earned by the employees as additional services are rendered which will be accrued as earned and could range between $500 - $600.

Current wording

For the three and nine months ended September 30, 2025, the Corporation recognized charges approximating $3,069 and $9,819, respectively, primarily for employee-related costs payable to the employees of UES-UK under existing benefit plans; accelerated depreciation from reducing the estimated remaining useful lives and revising the estimated residual values of the property, plant and equipment of UES-UK; and similar closure costs approximating $800 for the non-core steel distribution facility located in Ohio held by Alloys Unlimited and Processing, LLC (“AUP”), an indirect wholly owned subsidiary of the Corporation (collectively, the “Exit Charges”).

Previous wording

For the FCEP segment, global steel manufacturing capacity continues to exceed global consumption of steel products. Demand for steel is soft but stable. Increased entry of low-priced products from other countries has negatively impacted local demand in the U.S. and Europe, with several of the segment’s largest customers engaging in trade cases to reduce the number of imports into the U.S. The U.S. government previously announced new tariffs on steel and aluminum imports to the U.S. and has, for now, removed the exceptions allowing certain countries to send un-tariffed products to the U.S. As a result, tariffs are now incurred on forged and cast rolls shipped from the segment's European facilities into the U.S. and on U.S. forged and cast rolls shipped into China. Since the cast roll market is currently underserved in the U.S., the Corporation believes the segment's European operations are on equal footing with its competition with respect to tariffs. Subject to negotiations with customers, it is expected that the costs associated with tariffs will be passed on to customers. With the recently announced trade deals, tariff rates with many of the segment's largest trading partners have begun to be finalized, however, outcomes are fluid and subject to change. Accordingly, it is difficult to predict how tariffs will affect the ordering patterns of the segment's customers. Customer deferral of orders has occurred and may continue to occur. The primary focus for the FCEP segment is to improve its profitability by maintaining a strong position in the roll market and continuing to improve operational efficiency and equipment reliability following the completion of a significant capital equipment program.

Current wording

For the FCEP segment, global steel manufacturing capacity continues to exceed global consumption of steel products. Demand for steel is soft but stable. Increased entry of low-priced products from other countries has negatively impacted local demand in the U.S. and Europe; however, recently, several of the segment’s largest customers have successfully engaged in trade cases to reduce the number of imports into the U.S. In addition, in the third quarter of 2025, the U.S. government announced new tariffs on coated steel into the U.S. Earlier in 2025, the U.S. government announced new tariffs on steel and aluminum imports to the U.S. and the removal of exceptions allowing certain countries to send un-tariffed products to the U.S. As a result, tariffs are now incurred on forged and cast rolls shipped from the segment's European facilities into the U.S. and on U.S. forged and cast rolls shipped into China. Since the cast roll market is currently underserved in the U.S., the Corporation believes the segment's remaining European cast operations are approximately on equal footing with its competition with respect to tariffs. Tariffs on steel product also have been a tailwind for the segment's FEP products resulting in increased order volumes.

Previous wording

For the ALP segment, businesses are benefiting from steady demand and increased market share but continue to face increasing production costs due to inflation. The segment has been implementing price increases for certain of its products to help mitigate these inflationary effects. The focus for this segment is to grow revenues, strengthen engineering and manufacturing capabilities to keep pace with growth opportunities, and continue to improve its sales distribution network. Following previous U.S. government actions, tariffs are now incurred on certain of the segment's raw materials. It is expected that the costs associated with these tariffs will be passed on to customers. Tariff outcomes are fluid and subject to change; however, the U.S.'s onshoring of additional manufacturing capabilities would potentially increase demand for the segment's products.

Current wording

For the ALP segment, businesses are benefiting from increased demand in power generation and U.S. military markets and have successfully increased market share but continue to face increasing production costs due to inflation. The segment has been implementing price increases for its products to help mitigate these inflationary effects. The focus for this segment is to grow revenues, strengthen engineering and manufacturing capabilities to keep pace with growth opportunities, and continue to improve its sales distribution network. Following previous U.S. government actions, tariffs are now incurred on certain of the segment's raw materials, primarily those that contain copper or copper alloys. Costs associated with these tariffs have been, and are expected to continue to be, passed on to customers. Tariff outcomes are fluid and subject to change; however, the U.S.'s onshoring of additional manufacturing capabilities would potentially increase demand for the segment's products.

Previous wording

Net sales approximated $113,104 and $110,988 for the three months ended June 30, 2025 and 2024, respectively, an improvement of $2,116, and $217,369 and $221,203 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $3,834. A discussion of net sales for the Corporation’s two segments is included below.

Current wording

Net sales approximated $108,009 and $96,166 for the three months ended September 30, 2025 and 2024, respectively, an improvement of $11,843, and $325,378 and $317,369 for the nine months ended September 30, 2025 and 2024, respectively, an increase of $8,009. A discussion of net sales for the Corporation’s two segments is included below.

Previous wording

Employee-retention credits, which were refundable employer payroll taxes for certain eligible businesses affected by the COVID-19 pandemic, of $735 received from the Internal Revenue Service during the second quarter of 2025 (the “Employee-Retention Credits”) for the FCEP ($456) and ALP ($279) segments.

Current wording

Income (loss) from operations approximated $1,123 and $1,870 for the three months ended September 30, 2025 and 2024, respectively, a decrease of $747, and $1,895 and $6,995 for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $5,100. Income (loss) from operations for three and nine months ended September 30, 2025 includes the Exit Charges. In addition, income (loss) from operations for the nine months ended September 30, 2025 includes employee-retention credits, which were refundable employer payroll taxes for certain eligible businesses affected by the COVID-19 pandemic, of $735 received from the Internal Revenue Service during the second quarter of 2025 (the “Employee-Retention Credits”) for the FCEP ($456) and ALP ($279) segments. A discussion of income (loss) from operations for the Corporation’s two segments is included below.

Previous wording

Backlog equaled $351,266 as of June 30, 2025 versus $378,884 as of December 31, 2024. Backlog represents the accumulation of firm orders on hand which: (i) are supported by evidence of a contractual arrangement, (ii) include a fixed and determinable sales price, (iii) have reasonably assured collectability, and (iv) generally are expected to ship within two years from the backlog reporting date. Backlog at a certain date may not be a direct measure of future revenue for a particular order because price increases, negotiated subsequently to the original order, are not included in backlog until the updated contract is received from the customer and certain surcharges are not determinable until the order is complete and ready for shipment to the customer. Approximately 37% of the backlog is expected to be released after 2025. A discussion of backlog by segment is included below.

Current wording

Backlog equaled $344,640 as of September 30, 2025 versus $378,884 as of December 31, 2024. Backlog represents the accumulation of firm orders on hand which: (i) are supported by evidence of a contractual arrangement, (ii) include a fixed and determinable sales price, (iii) have reasonably assured collectability, and (iv) generally are expected to ship within two years from the backlog reporting date. Backlog at a certain date may not be a direct measure of future revenue for a particular order because price increases, negotiated subsequently to the original order, are not included in backlog until the updated contract is received from the customer and certain surcharges are not determinable until the order is complete and ready for shipment to the customer. Approximately 67% of the backlog is expected to be released after 2025. A discussion of backlog by segment is included below.

Previous wording

Costs of products sold, excluding depreciation and amortization, as a percentage of net sales, for the three months ended June 30, 2025 and 2024 approximated 81.3% and 79.0%, respectively, with the increase primarily being driven by the FCEP segment. Costs of products sold, excluding depreciation and amortization, as a percentage of net sales, for the six months ended June 30, 2025 and 2024 approximated 80.1% and 81.5%, respectively, with both segments contributing to the decrease. Included in costs of products sold, excluding depreciation and amortization, for the three and six months ended June 30, 2025 is the benefit from the Employee-Retention Credits. See further discussion in the below commentary for the Corporation’s two segments.

Current wording

Costs of products sold, excluding depreciation and amortization, as a percentage of net sales, for the three months ended September 30, 2025 and 2024 approximated 80.2% and 79.4%, respectively, with the increase primarily being driven by the FCEP segment. Included in costs of products sold, excluding depreciation and amortization, for the three months ended September 30, 2025 is a portion of the Exit Charges. Costs of products sold, excluding depreciation and amortization, as a percentage of net sales, for the nine months ended September 30, 2025 and 2024 approximated 80.1% and 80.8%, respectively, with both segments contributing to the decrease. Included in costs of products sold, excluding depreciation and amortization, for the nine months ended September 30, 2025 is a portion of the Exit Charges and the benefit from the Employee-Retention Credits. See further discussion in the below commentary for the Corporation’s two segments.

Previous wording

Selling and administrative expenses approximated $12,968 and $13,550 for the three months ended June 30, 2025 and 2024, respectively, with the decrease primarily due to lower employee-related costs and lower commission costs for the ALP segment offset by professional fees associated with efforts to exit the U.K. operations. Selling and administrative expenses were comparable for the six months ended June 30, 2025 and 2024, and approximated $26,627 and $26,523, respectively. While the Corporation is experiencing inflationary increases and incurred professional fees associated with the efforts to exit the U.K. operations, commission costs for the ALP segment were lower for the six months ended June 30, 2025 when compared to the same period of the prior year by approximately $500 due to changes in product mix.

Current wording

Selling and administrative expenses approximated $12,738 and $13,332 for the three months ended September 30, 2025 and 2024, respectively, a decrease of $594 primarily due to lower employee-related costs offset by professional fees associated with efforts to exit the U.K. operations and higher commission costs for both the FCEP and ALP segments. Selling and administrative expenses approximated $39,365 and $39,855 for the nine months ended September 30, 2025 and 2024, respectively, a decrease of $490 primarily due to lower employee-related costs offset by higher professional fees associated with the efforts to exit the U.K. operations. Commission costs for the nine months ended September 30, 2025 and 2024 were relatively comparable with higher commission costs for the FCEP segment being offset by lower commissions for the ALP segment.

Previous wording

Severance charge represents primarily statutory severance and other benefits payable to the 168 employees of UES-UK under existing benefit plans. Additional benefits may be earned by the employees as additional services are rendered which will be accrued as earned and could range between $500 - $600.

Current wording

Severance charge for the three months ended September 30, 2025 represents primarily statutory severance and other benefits payable to the 15 employees of AUP under existing benefit plans. Severance charge for the nine months ended September 30, 2025 represents primarily statutory severance and other benefits payable to the approximately 168 employees of UES-UK and the 15 employees of AUP under existing benefit plans. Additional benefits may be earned by the employees as additional services are rendered which will be accrued as earned and could range between $200 - $300.

Previous wording

Interest expense decreased approximately $192 and $223 for the three and six month periods ended June 30, 2025, respectively, when compared to the same periods of the prior year, primarily due to:

Current wording

Interest expense increased approximately $25 and decreased approximately $198 for the three and nine months ended September 30, 2025, respectively, when compared to the same periods of the prior year, primarily due to:

Previous wording

Other (expense) income – net is comprised of the following:

Current wording

Other income – net is comprised of the following:

Previous wording

Other (expense) income – net fluctuated primarily due to:

Current wording

Other income – net fluctuated primarily due to:

Previous wording

Lower net pension and other postretirement income primarily due to a lower expected long-term rate of return on the assets of U.S. defined benefit pension plan in 2025 versus 2024; and

Current wording

Lower net pension and other postretirement income primarily due to a lower expected long-term rate of return on the assets of U.S. defined benefit pension plan in 2025 versus 2024;

Previous wording

Changes in unrealized losses and gains in the market value of the Rabbi trust investments corresponding to the volatility in the financial markets; offset by

Current wording

Changes in unrealized gains in the market value of the Rabbi trust investments corresponding to the volatility in the financial markets; and

Previous wording

Higher investment income which includes approximately $102 of interest received during the second quarter of 2025 associated with the Employee-Retention Credits and a $96 dividend from one of the Corporation's Chinese joint ventures received during the second quarter of 2025 versus third quarter of 2024.

Current wording

Timing of the dividend from one of the Corporation's Chinese joint ventures which was received during the second quarter of 2025 versus third quarter of 2024. In addition, investment income for the nine months ended September 30, 2025 includes approximately $102 of interest associated with the Employee-Retention Credits.

Previous wording

The income tax provisions for 2025 benefited from a lower statutory income tax rate on the earnings of the Corporation's majority-owned Chinese joint venture as a result of the joint venture qualifying as a high-tech enterprise (“HTE”). As a HTE, the earnings of the Chinese joint venture through 2026 will be taxed at a rate of 15% (versus 25%). The effect on the income tax provisions was a benefit of $300 and $800 for the three and six months ended June 30, 2025, respectively, when compared to the income tax provisions for the three and six months ended June 30, 2024.

Current wording

The income tax provisions for 2025 benefited from a lower statutory income tax rate on the earnings of the Corporation's majority-owned Chinese joint venture as a result of the joint venture qualifying as a high-tech enterprise (“HTE”). As a HTE, the earnings of the Chinese joint venture through 2026 will be taxed at a rate of 15% (versus 25%). The effect on the income tax provisions was a benefit of $100 and $900 for the three and nine months ended September 30, 2025, respectively, when compared to the income tax provisions for the three and nine months ended September 30, 2024.

Previous wording

Net (loss) attributable to Ampco-Pittsburgh and net (loss) per common share attributable to Ampco-Pittsburgh equaled $(7,335), or $(0.36) per common share, and $(6,193), or $(0.31) per common share, for the three and six months ended June 30, 2025, respectively, including the U.K. Exit Charge and Employee-Retention Credits. No income tax benefit was able to be recognized for the U.K. Exit Charge since the U.K. operations remained in a three-year cumulative loss position as of June 30, 2025. The U.K. Exit Charge and Employee-Retention Credits impacted net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh by $6,006, or $0.30 per common share, for each of the three and six months ended June 30, 2025. The income tax benefit resulting from the Corporation's majority-owned Chinese joint venture qualifying as an HTE of approximately $500 reduced the net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh by approximately $299, or $0.01 per common share, for the six months ended June 30, 2025.

Current wording

The income tax benefit resulting from the Corporation's majority-owned Chinese joint venture qualifying as an HTE of approximately $100 for the three months ended September 30, 2025 did not have a significant impact on the net loss attributable to Ampco-Pittsburgh or the net loss per common share attributable to Ampco-Pittsburgh for the three months ended September 30, 2025. The income tax benefit resulting from the Corporation's majority-owned Chinese joint venture qualifying as an HTE of approximately $900 for the nine months ended September 30, 2025 reduced the net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh by approximately $539, or $0.03 per common share, for the nine months ended September 30, 2025.

Previous wording

Net income attributable to Ampco-Pittsburgh and net income per common share attributable to Ampco-Pittsburgh equaled $2,012, or $0.10 per common share, and $(705), or $(0.04) per common share, for the three and six months ended June 30, 2024, respectively.

Current wording

Net loss attributable to Ampco-Pittsburgh and net loss per common share attributable to Ampco-Pittsburgh equaled $(1,959), or $(0.10) per common share, and $(2,664), or $(0.13) per common share, for the three and nine months ended September 30, 2024, respectively.

Previous wording

The change in net sales for the three and six months ended June 30, 2025, when compared to the same periods of the prior year, is primarily due to the following:

Current wording

The change in net sales for the three and nine months ended September 30, 2025, when compared to the same periods of the prior year, is primarily due to the following:

Previous wording

Changes in pricing and lower variable-index surcharges passed through to customers as a result of fluctuations in the price of raw materials, energy and transportation costs, which reduced net sales by approximately $1,100 for the three months ended June 30, 2025, when compared to the three months ended June 30, 2024, but increased net sales by approximately $1,300 for the six months ended June 30, 2025, when compared to the six months ended June 30, 2024; and

Current wording

Improved pricing and higher variable-index surcharges passed through to customers as a result of fluctuations in the price of raw materials, energy and transportation costs, which increased net sales for the three and nine months ended September 30, 2025, when compared to the same periods of 2024, by approximately $8,500 and $9,800, respectively;

Previous wording

Changes in exchange rates used to translate net sales of the segment’s foreign subsidiaries into the U.S. dollar, which increased net sales for the three and six months ended June 30, 2025, when compared to the same periods of 2024, by approximately $2,200 and $1,200, respectively.

Current wording

Changes in exchange rates used to translate net sales of the segment’s foreign subsidiaries into the U.S. dollar, which increased net sales for three and nine months ended September 30, 2025, when compared to the same periods of 2024, by approximately $1,400 and $2,500, respectively, offset by

Previous wording

The change in (loss) income from operations for the three and six months ended June 30, 2025, when compared to the three and six months ended June 30, 2024, is primarily due to:

Current wording

The change in (loss) income from operations for the three and nine months ended September 30, 2025, when compared to the three and nine months ended September 30, 2024, is primarily due to:

Previous wording

Recognition of the U.K. Exit Charge in the second quarter of 2025, which reduced operating results by approximately $6,750 for the three and six months ended June 30, 2025, when compared to the three and six months ended June 30, 2024;

Current wording

Recognition of the Exit Charges, which reduced operating results for the three and nine months ended September 30, 2025, when compared to the same periods of 2024, by approximately $3,069 and $9,819, respectively;

Previous wording

Lower volume of roll shipments, offset by a higher volume of FEP shipments, which decreased operating results by $300 and $2,900 for the three and six months ended June 30, 2025, respectively, when compared to the three and six months ended June 30, 2024; and

Current wording

Lower volume of roll shipments, offset by a higher volume of FEP shipments, which decreased operating results for the three and nine months ended September 30, 2025, when compared to the same periods of 2024, by approximately $2,400 and $5,300, respectively;

Previous wording

Unfavorable manufacturing absorption as a result of temporary plant shutdowns to align production with customer needs, which adversely impacted operating results by approximately $1,400 and $900 for the three and six months ended June 30, 2025, respectively, when compared to the same periods of the prior year;

Current wording

Unfavorable manufacturing absorption as a result of temporary plant shutdowns to align production with customer needs, which adversely impacted operating results for the three and nine months ended September 30, 2025, when compared to the same periods of 2024, by approximately $1,900 and $2,800, respectively; and

Previous wording

Higher selling and administrative expenses, principally due to inflationary increases and higher professional fees offset by lower employee-related costs, which decreased operating results by approximately $100 and $800 for the three and six months ended June 30, 2025, respectively, when compared to the same periods of the prior year; offset by

Current wording

Changes in selling and administrative expenses, principally attributable to lower employee-related costs offset by higher professional fees associated with efforts to exit the U.K. operations and higher commissions, which increased operating results by approximately $300 for the three months ended September 30, 2025, when compared to the same period of 2024, but reduced operating results by approximately $500 for the nine months ended September 30, 2025, when compared to the same period of the prior year; offset by

Previous wording

Employee-Retention Credits received in the second quarter of 2025 of approximately $456, which improved operating results by the same amount for the three and six months ended June 30, 2025, when compared to the same periods of 2024; and

Current wording

Employee-Retention Credits received in the second quarter of 2025 of approximately $456, which improved operating results by the same amount for the nine months ended September 30, 2025, when compared to the same period of 2024; and

Previous wording

Changes in exchange rates used to translate the operating results of the segment’s foreign subsidiaries into the U.S. dollar, which improved operating results by approximately $200 and $100 for the three and six months ended June 30, 2025, respectively, when compared to the same periods of 2024.

Current wording

Changes in exchange rates used to translate the operating results of the segment’s foreign subsidiaries into the U.S. dollar, which improved operating results for the three and nine months ended September 30, 2025, when compared to the same periods of 2024, by approximately $100 and $200, respectively.

Previous wording

Backlog decreased at June 30, 2025 from December 31, 2024 by $38,101 primarily due to:

Current wording

Backlog decreased at September 30, 2025 from December 31, 2024 by $44,685 primarily due to:

Previous wording

Lower backlog for mill rolls of approximately $54,300 due to (i) lower demand in Europe as a result of mills operating at a reduced rate, (ii) U.S. customers deferring orders due, in part, to the current geopolitical events with tariffs resulting in uncertainty as to the total cost of a roll, (iii) timing of orders for the following year, and (iv) lower orders for UES-UK resulting from the anticipated exit of UES-UK; offset by

Current wording

Lower backlog for mill rolls of approximately $60,200 due to (i) lower orders for UES-UK resulting from the anticipated exit of UES-UK; (ii) lower demand in Europe as a result of mills operating at a reduced rate, and (iii) U.S. customers deferring orders due, in part, to the current geopolitical events with tariffs resulting in uncertainty as to the total cost of a roll order although, in the third quarter of 2025, customers have started to release some of these orders; offset by

Previous wording

Higher exchange rates used to translate the backlog of the Corporation’s foreign subsidiaries into the U.S. dollar, which increased backlog at June 30, 2025 when compared to backlog at December 31, 2024, by approximately $14,300; and

Current wording

Higher exchange rates used to translate the backlog of the Corporation’s foreign subsidiaries into the U.S. dollar, which increased backlog at September 30, 2025 when compared to backlog at December 31, 2024, by approximately $14,500; and

Previous wording

Improved demand for FEP, which increased backlog at June 30, 2025 when compared to backlog at December 31, 2024 by approximately $1,900.

Current wording

Improved demand for FEP, which increased backlog at September 30, 2025 when compared to backlog at December 31, 2024 by approximately $1,000.

Previous wording

At June 30, 2025, approximately 45% of backlog is expected to ship after 2025.

Current wording

At September 30, 2025, approximately 60% of backlog is expected to ship after 2025. At September 30, 2025, UES-UK backlog approximated $8,700. The Corporation has been working closely with its customers to help manage their cast roll supply needs. Accordingly, a portion of these orders will be transferred to other facilities within the segment for completion or will be completed by UES-UK post-administration.

Previous wording

The decrease in net sales for the three and six months ended June 30, 2025, when compared to the same periods of the prior year, is primarily due to:

Current wording

The increase in net sales for the three and nine months ended September 30, 2025, when compared to the same periods of the prior year, is primarily due to:

Previous wording

Lower net sales of air handling units principally due to the timing of shipments and associated revenue recognition.

Current wording

Higher net sales of air handling units principally due to the timing of shipments and associated revenue recognition for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024. Sales for the nine months ended September 30, 2025 and 2024 were comparable.