Park-Ohio (NASDAQ: PKOH) posts Q1 2026 growth and reviews SSP unit
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Park-Ohio Holdings Corp. reported first quarter 2026 net sales of $421.0 million, up 4% from $405.4 million a year ago, with growth across all three segments. Gross margin improved to 17.3% from 16.8%, and income from continuing operations attributable to common shareholders was $8.2 million, or $0.58 diluted EPS, compared with $8.5 million, or $0.61, in 2025.
Adjusted diluted EPS was $0.65, versus $0.66 a year earlier, and EBITDA (as defined) was $34.3 million with an 8.1% margin. The Engineered Products segment grew revenue to $125.7 million and expanded operating margins by 140 basis points, while Supply Technologies and Assembly Components also delivered year-over-year sales increases.
The company launched a review of strategic alternatives, including a potential sale, for its Southwest Steel Processing business, which had net assets of about $45 million. Excluding SSP, first quarter diluted EPS from continuing operations would have been approximately $0.70, and adjusted diluted EPS approximately $0.77. Park-Ohio reaffirmed its full-year 2026 outlook, including net sales of $1.675–$1.710 billion, adjusted diluted EPS of $2.90–$3.20, EBITDA (as defined) of 8–9% of net sales, and free cash flow of $20–$30 million.
Positive
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Negative
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Insights
Q1 shows steady growth, margin improvement and a focused portfolio review.
Park-Ohio delivered Q1 2026 sales of $421.0 million, up 4% year over year, with revenue growth in all three segments. Gross margin expanded to 17.3%, and EBITDA (as defined) rose to $34.3 million, indicating modest operating leverage despite flat adjusted EPS at $0.65.
The company is formally reviewing strategic alternatives, including a potential sale, for its Southwest Steel Processing business, which carried net assets of about $45 million at March 31, 2026. SSP has recently been pressured, including prior asset impairment charges, but excluding SSP, diluted EPS from continuing operations would have been about $0.70, and adjusted diluted EPS about $0.77.
Leverage remains a key consideration: long-term debt was $646.2 million, and total debt availability under the revolving credit facility was supported by calculated availability of $108.4 million, well above the $50.625 million threshold at which a debt service coverage covenant applies. The reaffirmed 2026 outlook—net sales of $1.675–$1.710 billion and adjusted EPS of $2.90–$3.20—highlights expectations for continued revenue growth, margin expansion and improved free cash flow through 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Net Sales: $421.0 million
Q1 2026 Diluted EPS (GAAP, continuing ops): $0.58 per share
Q1 2026 Adjusted Diluted EPS: $0.65 per share
+5 more
8 metrics
Q1 2026 Net Sales
$421.0 million
Three months ended March 31, 2026 vs $405.4 million in 2025
Q1 2026 Diluted EPS (GAAP, continuing ops)
$0.58 per share
Three months ended March 31, 2026 vs $0.61 in 2025
Q1 2026 Adjusted Diluted EPS
$0.65 per share
Three months ended March 31, 2026 vs $0.66 in 2025
Q1 2026 EBITDA (as defined)
$34.3 million
Three months ended March 31, 2026 vs $33.9 million in 2025
Engineered Products Backlog
$195.9 million
Backlog at March 31, 2026, up 9% from year-end 2025 and 44% year over year
SSP Net Assets
$45 million
Net assets of Southwest Steel Processing at March 31, 2026
2026 Net Sales Guidance
$1.675–$1.710 billion
Reaffirmed full year 2026 outlook, 5–7% growth over 2025
Revolving Credit Availability
$108.4 million
Calculated availability under credit agreement at March 31, 2026
Key Terms
EBITDA, as defined, Adjusted earnings from continuing operations, strategic alternatives, asset impairment charges, +2 more
6 terms
EBITDA, as defined financial
"EBITDA, as defined of $34.3 million; EBITDA, as defined margin of 8.1%."
Adjusted earnings from continuing operations financial
"Adjusted earnings from continuing operations is a non-GAAP financial measure that the Company is providing in this press release."
strategic alternatives financial
"formal review of strategic alternatives for its Southwest Steel Processing (“SSP”) business, including a potential sale or other transaction."
Strategic alternatives are different options a company considers to improve its value or achieve its goals, such as selling the business, merging with another company, or restructuring operations. For investors, understanding these options is important because they can significantly impact the company's future direction and its stock value, often signaling potential changes or opportunities.
asset impairment charges financial
"operational restructuring over the past two years, which led to asset impairment charges totaling $7.7 million in the fourth quarter of 2025."
Asset impairment charges happen when a company realizes that the value of something it owns, like equipment or property, has dropped significantly and is now worth less than its current book value. This is important because it shows the company needs to write down the asset's value on its financial records, which can affect its profits and overall financial health.
debt service coverage ratio financial
"to meet a debt service ratio covenant generally based on our EBITDA, as defined compared to our consolidated debt charges"
Debt service coverage ratio measures how many times a company's available cash flow can pay its scheduled debt payments (interest plus principal). Think of it like checking how many months of take-home pay it would take to cover your mortgage and loan bills; a higher number means a bigger cushion against missed payments. Investors use it to gauge credit risk, the likelihood of default, and whether a company can afford dividends or new borrowing.
revolving credit facility financial
"The Credit Agreement provides for a revolving credit facility, which matures in July 2030, in the amount of $405.0 million."
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
Earnings Snapshot
Revenue: $421.0 million · Guidance included
Q1 2026
Revenue
$421.0 million
+4% year over year
Diluted EPS (continuing ops, GAAP)
$0.58
slightly below $0.61 in Q1 2025
Adjusted Diluted EPS
$0.65
slightly below $0.66 in Q1 2025
EBITDA (as defined)
$34.3 million
up from $33.9 million in Q1 2025
Guidance
For 2026, Park-Ohio reaffirmed net sales of $1.675–$1.710 billion, adjusted diluted EPS of $2.90–$3.20, EBITDA (as defined) of 8–9% of net sales, and free cash flow of $20–$30 million, including the expected impact of Southwest Steel Processing.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 6, 2026
Commission file number: 000-03134
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code | ||
(440 ) 947-2000
| Not applicable | ||
(Former name or former address, if changed since last report.) | ||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. | |||||
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ | |||||
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| Item 2.02 | Results of Operations and Financial Condition. | ||||
On May 6, 2026 , Park-Ohio Holdings Corp. issued a press release announcing its quarter ended March 31, 2026 results. The press release is attached hereto as Exhibit 99.1.
The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits
| Exhibit Number | Description | |||||||
| 99.1 | Park-Ohio Holdings Corp. Press Release, dated May 6, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Park-Ohio Holdings Corp. | |||||||||||||||||
| (Registrant) | |||||||||||||||||
| Dated: | May 6, 2026 | /s/ Patrick W. Fogarty | |||||||||||||||
| Patrick W. Fogarty | |||||||||||||||||
| Vice President and Chief Financial Officer | |||||||||||||||||
4
ParkOhio Reports First Quarter 2026 Results
Announces Review of Strategic Alternatives for its Southwest Steel Processing Business
Reaffirms FY 2026 Outlook
CLEVELAND, OHIO, May 6, 2026 — Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the first quarter of 2026.
“Following a strong finish to 2025, we are continuing to build momentum into 2026, supported by improving operating performance, strong backlog visibility and increasing alignment with key growth markets including data center, infrastructure, aerospace and defense and industrial electrification, which is material to our revenues. Our first quarter results reflect continued execution against our transformation initiatives, with revenue growth across all three segments, expanding margins in Engineered Products and sustained performance in Supply Technologies. As we move through 2026, we expect to benefit from backlog conversion, new business ramp and operating leverage from prior investments in automation, information systems and vertical integration,” said Matthew V. Crawford, Chairman and Chief Executive Officer.
First Quarter 2026 Highlights
•Results reflect continued year-over year and sequential improvements and positioning for growth across aerospace and defense, data center, infrastructure, power management and advanced manufacturing end markets.
•Revenue of $421.0 million, up 4% year-over-year.
•Year-over-year sales growth in each business segment.
•Gross margin of 17.3%, up 50 basis points compared to 16.8% in the 2025 first quarter.
•GAAP EPS of $0.58 from continuing operations; Adjusted EPS of $0.65.
•EBITDA (as defined) of $34.3 million; EBITDA (as defined) margin of 8.1%.
First Quarter 2026 Segment Highlights
•Supply Technologies – Revenue of $195.1 million compared to $187.8 million in the first quarter of 2025, up 4% driven by sales growth in the power sports, semiconductor, aerospace and defense, electrical and agriculture end markets. Operating margins were 9.0%, reflecting ongoing investments in information management tools and automation initiatives designed to improve productivity and reduce operating costs across our global distribution network, which expands our role as a technology-enabled supply chain partner.
•Assembly Components – Revenue of $100.2 million compared to $96.9 million in the first quarter of 2025, up 3%. Improved volumes were driven by new business and increased year-over-year demand from various automotive platforms in each of our product lines. Our vertically integrated polymer extrusion and molding capabilities, combined with a global manufacturing footprint, position us to support fluid routing and critical component applications across traditional, hybrid and electrified powertrains, as well as broader industrial markets. We continue to leverage our long-standing OEM relationships to expand into new product development and innovation opportunities.
•Engineered Products – Revenue of $125.7 million compared to $120.7 million in the first quarter of 2025, up 4%. Bookings of $62 million in the quarter driven by demand across defense, steel production, oil and gas, power generation and electrification-related end markets. Backlog at March 31, 2026 totaled $195.9 million, up 9% from year-end 2025 and 44% from the first quarter of 2025. Operating margins were up 140 basis points compared to the corresponding 2025 quarter, driven by improvement in both our capital equipment and forged and machined products groups. Through our expanding global aftermarket parts and service operations and investments in production
-more-
efficiency, we are enhancing lifecycle value for customers and positioning the segment for improved operating performance as backlog converts to revenue.
Review of Strategic Alternatives for Southwest Steel Processing
As part of our ongoing portfolio optimization strategy, the Company has engaged an investment banking firm to assist us in a formal review of strategic alternatives for its Southwest Steel Processing (“SSP”) business, including a potential sale or other transaction. SSP is a fully automated forging facility included in our Forged and Machined Products group within the Engineered Products segment. This review reflects our continued focus on aligning capital and resources toward higher-growth, higher-margin opportunities across our portfolio. The Company has not set a deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this review will result in any transaction or particular outcome.
“Our actions regarding SSP reflect the continued execution of our transformation strategy. Over the past few years, we have reshaped our portfolio to focus on businesses with stronger growth, margin and cash flow characteristics. The SSP review is a natural next step in this process, and we believe it will further enhance the quality and earnings power of ParkOhio going forward,” said Matthew V. Crawford, Chairman and Chief Executive Officer. “SSP has been a long-time contributor to our business performance and continues to have a best-in-class business model for critical rail products. Despite the recent challenges including a sustained end market turndown, we believe its best days are ahead. We will use this strategic review to evaluate how we can position the business for long-term success.”
SSP was impacted by cyclical weakness in the railcar end market and operational restructuring over the past two years, which led to asset impairment charges totaling $7.7 million in the fourth quarter of 2025. In the first quarter of 2026, SSP performance improved, driven by improved utilization and higher production. At March 31, 2026, the net assets of SSP were approximately $45 million.
Excluding SSP, the Company’s results highlight the underlying earnings power of the business. For the first quarter of 2026, earnings from continuing operations would have increased from $0.58 to approximately $0.70 per diluted share, and earnings as adjusted would have increased from $0.65 to approximately $0.77 per diluted share.
Full Year 2026 Outlook Reaffirmed
As we continue to optimize our portfolio and operations to align with key macroeconomic trends – including AI-driven data center expansion, electrical infrastructure investment, and the reshoring of industrial supply chains – we are reaffirming our previously-announced full year 2026 guidance as follows:
•Net Sales: $1.675 billion to $1.710 billion, an increase of 5% to 7% over 2025
•Adjusted EPS: $2.90 to $3.20 per diluted share, an increase of 7% to 19% over 2025
•EBITDA (as defined): 8-9% of Net Sales
•Free Cash Flow: $20 million to $30 million
Our 2026 outlook includes the impact of SSP, which is expected to be approximately $17 million in revenue and a loss of approximately $0.53 per diluted share. The outcome of our strategic review process represents potential upside to our current outlook, which reflects continued revenue growth, margin expansion, and improving cash flow generation, supported by strong backlogs, new business launches, and increased operating efficiency across all three business segments.
The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as Adjusted EPS, to the most comparable GAAP financial measures due to the inherent difficulty in forecasting certain items, including non-cash or infrequent charges, which are not available without unreasonable effort.
Long-Term Positioning
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As we have mentioned in our previous commentary, we believe we are in the early innings of significant demand for electrical infrastructure-related spending. While the diversity of our end markets is a strength, we are tactically positioning the business to take advantage of these trends. We remain committed to our goal of building a diverse integrated group of leading high value industrial companies, each of which has a deep competitive moat built over decades on brand, customer relationships, process innovation and intellectual property.
Webcast and Conference Call
A live webcast and conference call to review ParkOhio’s first quarter 2026 financial results will be held on Thursday May 7, 2026, at 9:00 a.m. Eastern Time. To access the webcast, please visit the Investor Relations section of the Company’s website at https://www.pkoh.com. A corresponding investor presentation will also be available on the site prior to the call.
ParkOhio is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. Headquartered in Cleveland, Ohio, ParkOhio operates approximately 130 manufacturing sites and supply chain logistics facilities worldwide, through three reportable segments: Supply Technologies, Assembly Components and Engineered Products.
This news release contains forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors that could cause actual results to differ materially from expectations include, but are not limited to, the following: the outcome of our strategic review of the SSP business; the impact supply chain and logistic issues have on our business, results of operations, financial position and liquidity; our substantial indebtedness; the uncertainty of the global economic environment; general business conditions and competitive factors, including pricing pressures and product innovation; demand for our products and services; the impact of labor disturbances affecting our customers; raw material availability and pricing; fluctuations in energy costs; component part availability and pricing; changes in our relationships with customers and suppliers; the financial condition of our customers, including the impact of any bankruptcies; our ability to successfully integrate recent and future acquisitions into existing operations; the amounts and timing, if any, of purchases of our common stock; changes in general economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions and changing government policies, laws and regulations, including those related to the current global uncertainties and crises, such as tariffs and surcharges; adverse impacts to us, our suppliers and customers from acts of terrorism or hostilities, or geopolitical unrest; public health issues, including the outbreak of infectious diseases and any impact on our facilities and operations and our customers and suppliers; our ability to meet various covenants, including financial covenants, contained in the agreements governing our indebtedness; disruptions, uncertainties or volatility in the credit markets that may limit our access to capital; potential disruption due to a partial or complete reconfiguration of the European Union; increasingly stringent domestic and foreign governmental regulations, including those affecting the environment or import and export controls and other trade barriers; inherent uncertainties involved in assessing our potential liability for environmental remediation-related activities; the outcome of pending and future litigation and other claims and disputes with customers; our dependence on the automotive and heavy-duty truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending; our ability to negotiate contracts with labor unions; our dependence on key management; our dependence on information systems; our ability to continue to pay cash dividends, and the timing and amount of any such dividends; and the other factors we describe under "Item 1A. Risk Factors" included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In light of these and other uncertainties, the inclusion of a forward-looking statement herein should not be regarded as a representation by us that our plans and objectives will be achieved. The Company assumes no obligation to update the information in this release.
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| CONTACT: | MATTHEW V. CRAWFORD | ||||
| PARK-OHIO HOLDINGS CORP. | |||||
| (440) 947-2000 | |||||
4
Park-Ohio Holdings Corp. and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (In millions, except per share data) | |||||||||||
| Net sales | $ | 421.0 | $ | 405.4 | |||||||
| Cost of sales | 348.3 | 337.3 | |||||||||
| Selling, general and administrative expenses | 51.7 | 48.2 | |||||||||
| Restructuring and other special charges | 1.3 | 1.0 | |||||||||
| Operating income | 19.7 | 18.9 | |||||||||
| Other components of pension and other postretirement benefits income, net | 2.1 | 1.8 | |||||||||
| Interest expense, net | (12.3) | (11.0) | |||||||||
| Income from continuing operations before income taxes | 9.5 | 9.7 | |||||||||
| Income tax expense | (1.6) | (1.9) | |||||||||
| Income from continuing operations | 7.9 | 7.8 | |||||||||
| Loss attributable to noncontrolling interests | 0.3 | 0.7 | |||||||||
| Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | 8.2 | 8.5 | |||||||||
| Loss from discontinued operations, net of tax | (0.1) | (0.2) | |||||||||
| Net income attributable to Park-Ohio Holdings Corp. common shareholders | $ | 8.1 | $ | 8.3 | |||||||
| Income (loss) per common share attributable to Park-Ohio Holdings Corp. common shareholders: | |||||||||||
| Basic: | |||||||||||
| Continuing operations | $ | 0.59 | $ | 0.63 | |||||||
| Discontinued operations | (0.01) | (0.01) | |||||||||
| Total | $ | 0.58 | $ | 0.62 | |||||||
| Diluted: | |||||||||||
| Continuing operations | $ | 0.58 | $ | 0.61 | |||||||
| Discontinued operations | (0.01) | (0.01) | |||||||||
| Total | $ | 0.57 | $ | 0.60 | |||||||
| Weighted-average shares used to compute income (loss) per share: | |||||||||||
| Basic | 13.8 | 13.6 | |||||||||
| Diluted | 14.1 | 13.9 | |||||||||
Dividends per common share | $ | 0.125 | $ | 0.125 | |||||||
Other financial data: | |||||||||||
| EBITDA, as defined | $ | 34.3 | $ | 33.9 | |||||||
5
Park-Ohio Holdings Corp. and Subsidiaries
Supplemental Non-GAAP Financial Measures (Unaudited)
Adjusted earnings from continuing operations is a non-GAAP financial measure that the Company is providing in this press release. Adjusted earnings from continuing operations is income from continuing operations calculated in accordance with generally accepted accounting principles ("GAAP"), adjusted for special items. The Company presents this non-GAAP financial measure because management uses adjusted earnings from continuing operations to compare its operating performance on a consistent basis over multiple periods because they remove the impact of certain significant noncash credits or charges and certain infrequent items impacting net income. Adjusted earnings is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, income from continuing operations calculated in accordance with GAAP. Adjusted income from continuing operations herein may not be comparable to similarly titled measures of other companies. The following table reconciles income from continuing operations to adjusted earnings from continuing operations:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Earnings | Diluted EPS | Earnings | Diluted EPS | ||||||||||||||||||||
| (In millions, except for earnings per share (EPS)) | |||||||||||||||||||||||
| Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | $ | 8.2 | $ | 0.58 | $ | 8.5 | $ | 0.61 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Restructuring and other special charges | 1.3 | 0.09 | 1.0 | 0.07 | |||||||||||||||||||
| Tax effect of above adjustments | (0.3) | (0.02) | (0.2) | (0.02) | |||||||||||||||||||
| Adjusted earnings | $ | 9.2 | $ | 0.65 | $ | 9.3 | $ | 0.66 | |||||||||||||||
| Year Ended December 31, 2025 | |||||
| Diluted EPS | |||||
| Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | $ | 1.77 | |||
| Adjustments: | |||||
| Restructuring and other special charges | 0.45 | ||||
| Asset impairment charges | 0.64 | ||||
| Loss on extinguishment of debt | 0.14 | ||||
| Tax effect of above adjustments | (0.21) | ||||
| Non-controlling interest impact | (0.09) | ||||
| Adjusted earnings | $ | 2.70 | |||
The following table shows the impact of these adjustments on our segment results (continuing operations):
| Cost of Sales | SG&A | Total | Cost of Sales | SG&A | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||
| Supply Technologies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
| Assembly Components | — | 0.4 | 0.4 | — | 0.2 | 0.2 | |||||||||||||||||||||||||||||
| Engineered Products | — | 0.5 | 0.5 | — | 0.8 | 0.8 | |||||||||||||||||||||||||||||
| Corporate | — | 0.4 | 0.4 | — | — | — | |||||||||||||||||||||||||||||
| Total continuing operations | $ | — | $ | 1.3 | $ | 1.3 | $ | — | $ | 1.0 | $ | 1.0 | |||||||||||||||||||||||
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Park-Ohio Holdings Corp. and Subsidiaries
Supplemental Non-GAAP Financial Measures (Unaudited)
EBITDA, as defined is a non-GAAP financial measure that the Company is providing in this press release. EBITDA, as defined reflects net income attributable to Park-Ohio Holdings Corp. common shareholders before interest expense, income taxes, depreciation and amortization, and also excludes certain charges and corporate-level expenses as defined in the credit agreement (the “Credit Agreement”) governing the Company's current revolving credit facility. The Company presents this non-GAAP financial measure because management uses EBITDA, as defined to assess the Company's performance. Additionally, management uses EBITDA, as defined to calculate its debt service coverage ratio under the Credit Agreement. EBITDA, as defined is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, net income or cash flow information calculated in accordance with GAAP. EBITDA, as defined herein may not be comparable to similarly titled measures of other companies. The following table reconciles net income to EBITDA, as defined:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (In millions) | |||||||||||
| Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | $ | 8.2 | $ | 8.5 | |||||||
Add back: | |||||||||||
| Interest expense, net | 12.3 | 11.0 | |||||||||
| Income tax expense | 1.6 | 1.9 | |||||||||
Depreciation and amortization | 8.3 | 8.3 | |||||||||
| Stock-based compensation expense | 1.4 | 1.5 | |||||||||
| Restructuring, business optimization and other costs | 1.3 | 1.0 | |||||||||
| EBITDA loss attributable to Designated Subsidiary | 1.2 | 1.8 | |||||||||
| Other | — | (0.1) | |||||||||
| EBITDA, as defined | $ | 34.3 | $ | 33.9 | |||||||
The Credit Agreement provides for a revolving credit facility, which matures in July 2030, in the amount of $405.0 million. The availability of borrowings under the revolving credit facility is based on (1) our calculated availability under the Credit Agreement and (2) if such calculated availability decreases below $50.625 million, our ability to meet a debt service ratio covenant generally based on our EBITDA, as defined compared to our consolidated debt charges for the most recent four-quarter period. If our calculated availability is less than $50.625 million, our debt service coverage ratio must be greater than 1.0. At March 31, 2026, our calculated availability was $108.4 million; therefore, the debt service ratio covenant did not apply. Failure to maintain calculated availability of at least $50.625 million and meet the debt service ratio covenant could materially impact the availability and interest rate of future borrowings. Our debt service coverage ratio could be materially impacted by negative economic trends, including inflation and supply chain disruptions. While we expect to remain in compliance throughout 2026, declines in sales volumes in the future, including due to the current macroeconomic conditions, could adversely impact our ability to remain in compliance with certain of these financial covenants.
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Park-Ohio Holdings Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
| (Unaudited) | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| (In millions) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 46.7 | $ | 44.8 | |||||||
| Accounts receivable, net | 278.4 | 265.0 | |||||||||
| Inventories, net | 426.6 | 420.9 | |||||||||
| Other current assets | 120.1 | 121.8 | |||||||||
| Total current assets | 871.8 | 852.5 | |||||||||
| Property, plant and equipment, net | 201.6 | 198.5 | |||||||||
| Operating lease right-of-use assets | 38.5 | 41.2 | |||||||||
| Goodwill | 115.0 | 115.8 | |||||||||
| Pension assets | 92.8 | 93.3 | |||||||||
| Other long-term assets | 116.8 | 118.3 | |||||||||
| Total assets | $ | 1,436.5 | $ | 1,419.6 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Trade accounts payable | $ | 200.6 | $ | 199.8 | |||||||
| Current portion of long-term debt and short-term debt | 6.4 | 8.3 | |||||||||
| Current portion of operating lease liabilities | 10.5 | 10.9 | |||||||||
| Accrued expenses and other | 145.1 | 147.6 | |||||||||
| Total current liabilities | 362.6 | 366.6 | |||||||||
| Long-term liabilities, less current portion: | |||||||||||
| Long-term debt | 646.2 | 620.7 | |||||||||
| Long-term operating lease liabilities | 28.2 | 30.4 | |||||||||
| Other long-term liabilities | 18.5 | 19.1 | |||||||||
| Total long-term liabilities | 692.9 | 670.2 | |||||||||
| Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 379.4 | 380.9 | |||||||||
| Noncontrolling interests | 1.6 | 1.9 | |||||||||
| Total equity | 381.0 | 382.8 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,436.5 | $ | 1,419.6 | |||||||
8
Park-Ohio Holdings Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (In millions) | |||||||||||
| OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | |||||||||||
| Income from continuing operations | $ | 7.9 | $ | 7.8 | |||||||
| Adjustments to reconcile income from continuing operations to net cash used in operating activities from continuing operations: | |||||||||||
| Depreciation and amortization | 8.3 | 8.3 | |||||||||
| Stock-based compensation expense | 1.4 | 1.5 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (14.8) | (25.0) | |||||||||
| Inventories | (7.0) | 5.0 | |||||||||
| Prepaid and other current assets | 1.1 | (7.8) | |||||||||
| Accounts payable and accrued expenses | (2.1) | (1.9) | |||||||||
| Other | (2.6) | 2.1 | |||||||||
| Net cash used in operating activities from continuing operations | (7.8) | (10.0) | |||||||||
| INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | |||||||||||
| Purchases of property, plant and equipment | (12.5) | (9.5) | |||||||||
| Net cash used in investing activities from continuing operations | (12.5) | (9.5) | |||||||||
| FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | |||||||||||
| Proceeds from revolving credit facility, net | 26.2 | 24.2 | |||||||||
| Payments on other debt, net | (1.3) | (0.8) | |||||||||
| Payments on finance lease facilities, net | (0.6) | (1.3) | |||||||||
| Dividends | (1.8) | (1.8) | |||||||||
| Net cash provided by financing activities from continuing operations | 22.5 | 20.3 | |||||||||
| DISCONTINUED OPERATIONS | |||||||||||
| Total used by operating activities | (0.1) | (0.2) | |||||||||
| Decrease in cash and cash equivalents from discontinued operations | (0.1) | (0.2) | |||||||||
| Effect of exchange rate changes on cash | (0.2) | 0.8 | |||||||||
| Increase in cash and cash equivalents | 1.9 | 1.4 | |||||||||
| Cash and cash equivalents at beginning of period | 44.8 | 53.1 | |||||||||
| Cash and cash equivalents at end of period | $ | 46.7 | $ | 54.5 | |||||||
| Interest paid | $ | 19.7 | $ | 4.6 | |||||||
| Income taxes paid | $ | 4.4 | $ | 5.3 | |||||||
9
Park-Ohio Holdings Corp. and Subsidiaries
Business Segment Information (Unaudited)
| Supply Technologies | Assembly Components | Engineered Products | Total | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||
| Net sales | $ | 195.1 | $ | 100.2 | $ | 125.7 | $ | 421.0 | |||||||||||||||
| Cost of sales | 157.9 | 90.0 | 100.4 | 348.3 | |||||||||||||||||||
| Gross profit | 37.2 | 10.2 | 25.3 | 72.7 | |||||||||||||||||||
| Selling, general and administrative expenses | 19.7 | 4.9 | 19.1 | 43.7 | |||||||||||||||||||
| Restructuring and other special charges | — | 0.4 | 0.5 | 0.9 | |||||||||||||||||||
| Segment operating income | 17.5 | 4.9 | 5.7 | 28.1 | |||||||||||||||||||
| Corporate expenses | (8.0) | ||||||||||||||||||||||
| Corporate restructuring and other special charges | (0.4) | ||||||||||||||||||||||
| Operating income | 19.7 | ||||||||||||||||||||||
| Other components of pension and other postretirement benefits income, net | 2.1 | ||||||||||||||||||||||
| Interest expense, net | (12.3) | ||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | 9.5 | |||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||
| Net sales | $ | 187.8 | $ | 96.9 | $ | 120.7 | $ | 405.4 | |||||||||||||||
| Cost of sales | 153.2 | 85.7 | 98.4 | 337.3 | |||||||||||||||||||
| Gross profit | 34.6 | 11.2 | 22.3 | 68.1 | |||||||||||||||||||
| Selling, general and administrative expenses | 16.8 | 5.7 | 17.7 | 40.2 | |||||||||||||||||||
| Restructuring and other special charges | — | 0.2 | 0.8 | 1.0 | |||||||||||||||||||
| Segment operating income | 17.8 | 5.3 | 3.8 | 26.9 | |||||||||||||||||||
| Corporate expenses | (8.0) | ||||||||||||||||||||||
| Operating income | 18.9 | ||||||||||||||||||||||
| Other components of pension and other postretirement benefits income, net | 1.8 | ||||||||||||||||||||||
| Interest expense, net | (11.0) | ||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | 9.7 | |||||||||||||||||||||
10
Park-Ohio Holdings Corp. and Subsidiaries
Supplemental Non-GAAP Financial Measures (Unaudited)
Adjusted segment operating income (loss) is a non-GAAP financial measure that the Company is providing in this press release. Adjusted segment operating income (loss) is calculated as segment operating income (loss) plus adjustments for restructuring and other special charges. The Company presents this non-GAAP financial measure because the business segments have incurred significant restructuring and related expenses during the year-to-date periods. Adjusted segment operating income (loss) is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, earnings in accordance with GAAP. Adjusted segment operating income (loss) herein may not be comparable to similarly titled measures of other companies. The following table reconciles adjusted segment operating income (loss) to segment operating income (loss):
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| As reported | Adjustments | As adjusted | As reported | Adjustments | As adjusted | ||||||||||||||||||||||||||||||
| Supply Technologies | $ | 17.5 | $ | — | $ | 17.5 | $ | 17.8 | $ | — | $ | 17.8 | |||||||||||||||||||||||
| Assembly Components | 4.9 | 0.4 | 5.3 | 5.3 | 0.2 | 5.5 | |||||||||||||||||||||||||||||
| Engineered Products | 5.7 | 0.5 | 6.2 | 3.8 | 0.8 | 4.6 | |||||||||||||||||||||||||||||
| Corporate | (8.4) | 0.4 | (8.0) | (8.0) | — | (8.0) | |||||||||||||||||||||||||||||
| Operating income - continuing operations | $ | 19.7 | $ | 1.3 | $ | 21.0 | $ | 18.9 | $ | 1.0 | $ | 19.9 | |||||||||||||||||||||||
11
Park-Ohio Holdings Corp. and Subsidiaries
Supplemental Non-GAAP Financial Measures (Unaudited)
Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP and adjusted income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP are non-GAAP financial measures the Company is providing in this press release. Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP is calculated as GAAP EPS excluding loss attributable to SSP for the period presented. Adjusted income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP is calculated as Adjusted EPS excluding loss attributable to SSP for the period presented. The Company presents this non-GAAP financial measure in connection with its review of strategic alternatives for its SSP business announced herein. Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP and adjusted income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP are not measures of performance under GAAP and should not be considered in isolation from, or as a substitute for, EPS in accordance with GAAP. Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP and adjusted income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP herein may not be comparable to similarly titled measures of other companies. The following table reconciles Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP and adjusted income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP:
Three Months Ended March 31, 2026 | |||||
Diluted EPS | |||||
Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | $ | 0.58 | |||
Exclude: Loss attributable to SSP | (0.12) | ||||
Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP | $ | 0.70 | |||
Adjusted income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders | $ | 0.65 | |||
Exclude: Loss attributable to SSP | (0.12) | ||||
Adjusted income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders excluding SSP | $ | 0.77 | |||
12
FAQ
How did Park-Ohio (PKOH) perform financially in Q1 2026?
Park-Ohio reported Q1 2026 net sales of $421.0 million, up 4% from $405.4 million in 2025. Income from continuing operations attributable to common shareholders was $8.2 million, or $0.58 diluted EPS, with adjusted diluted EPS of $0.65 and EBITDA (as defined) of $34.3 million.
What are Park-Ohio’s segment results for Q1 2026?
In Q1 2026, Supply Technologies generated revenue of $195.1 million, Assembly Components $100.2 million, and Engineered Products $125.7 million. Engineered Products bookings were $62 million, with backlog of $195.9 million at March 31, 2026, up 9% from year-end 2025 and 44% year over year.
What strategic alternatives is Park-Ohio considering for Southwest Steel Processing (SSP)?
Park-Ohio has engaged an investment banking firm to review strategic alternatives for Southwest Steel Processing, including a potential sale or other transaction. SSP is a fully automated forging facility with net assets of about $45 million at March 31, 2026, within the Engineered Products segment’s Forged and Machined Products group.
What full-year 2026 guidance did Park-Ohio reaffirm?
For 2026, Park-Ohio reaffirmed net sales guidance of $1.675–$1.710 billion, implying 5–7% growth over 2025. It also guided to adjusted diluted EPS of $2.90–$3.20, EBITDA (as defined) of 8–9% of net sales, and free cash flow of $20–$30 million, including SSP’s expected impact.
What is Park-Ohio’s debt position and liquidity as of March 31, 2026?
At March 31, 2026, Park-Ohio reported long-term debt of $646.2 million and total assets of $1,436.5 million. Under its $405.0 million revolving credit facility, calculated availability was $108.4 million, above the $50.625 million level at which a debt service coverage covenant would apply.