Park-ohio Holdings Stock Earnings Reports

Park‑Ohio reported a solid start to 2026 with Q1 sales of $421M, up 4% year‑over‑year, and improved margins and adjusted operating income. All three segments grew: Supply Technologies (+4%) driven by powersports, semiconductor, aerospace/defense and a growing electrical infrastructure/business tied to data centers; Assembly Components (+3%) driven by new program launches and improving mix; Engineered Products (+4%, sequential +8%) driven by strong capital equipment and aftermarket demand across defense, steel, data center and other industrial end markets. Backlog and bookings were healthy (Q1 bookings ≈ $62M; backlog $196M, +9% sequential), with expected average conversion times of roughly 9–12 months. Gross margin was 17.3% (+50 bps YoY); adjusted operating income was $21M (+6% YoY). GAAP EPS from continuing ops was $0.58 and adjusted EPS was $0.65; excluding Southwest Steel Processing (SSP) adjusted EPS would have been $0.77. Cash from operations used $8M (working capital build to support growth); CapEx was $12.5M in the quarter with full‑year CapEx guide ~$35M. Liquidity remained strong (~$200M total). Management commenced a formal strategic review of Southwest Steel Processing (SSP) — SSP generated ~$17M revenue and was a drag (expected to reduce full‑year EPS by ~$0.53); the review may result in a sale. The company reaffirmed full‑year guidance: revenue $1.675–1.710B (+5–7%), adjusted EPS $2.90–3.20 (+7–19%), EBITDA 8–9% of sales, and free cash flow $20–30M. Management emphasized continued investments in people, automation, IT and distribution (new Supply Tech N.A. distribution center due Q3) to drive longer‑term margin expansion and more consistent cash flow, while prioritizing leverage reduction (targeting ~3x net debt/EBITDA as an intermediate goal).