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ParkOhio(PKOH) - 2025 Q1 - Quarterly Report
2025-05-07 19:05
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 000-03134 Park-Ohio Holdings Corp. (Exact name of registrant as specified in its charter) | ...
ParkOhio(PKOH) - 2025 Q1 - Earnings Call Transcript
2025-05-07 15:00
Park-Ohio (PKOH) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Speaker0 Good morning, and welcome to Park Ohio First Quarter twenty twenty five Results Conference Call. At this time, all participants are in a listen only mode. After the presentation, the company will conduct a question and answer session. Today's conference is also being recorded. If you have any objections, you may disconnect at this time. Before we get started, I want to remind everyone that certain statements made on today's call may be ...
ParkOhio(PKOH) - 2025 Q1 - Earnings Call Presentation
2025-05-07 11:08
Park-Ohio Holdings Corp. First Quarter 2025 Earnings Call Presentation May 7, 2025 Forward-Looking Statements and Non-GAAP Measures These slides contain 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 b ...
ParkOhio(PKOH) - 2025 Q1 - Quarterly Results
2025-05-06 20:11
ParkOhio Announces First Quarter 2025 Results CLEVELAND, OHIO, May 6, 2025 — Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the first quarter of 2025. "Our first quarter results demonstrated the strength of our diversity in products, end markets and geographies. While revenue slightly underperformed our expectations, we saw the beginning of a rebound in our Engineered Products Group, which we anticipate will continue through 2025 and beyond. While our forecast takes into account the ...
ParkOhio(PKOH) - 2024 Q4 - Earnings Call Presentation
2025-03-07 04:08
Park-Ohio Holdings Corp. Full Year 2024 Earnings Call Presentation March 6, 2025 Forward-Looking Statements and Non-GAAP Measures These slides contain 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 ...
ParkOhio(PKOH) - 2024 Q4 - Earnings Call Transcript
2025-03-06 21:38
Financial Data and Key Metrics Changes - Consolidated net sales in 2024 were approximately $1.7 billion, consistent with 2023 record revenues [9] - GAAP earnings per share from continuing operations increased 18% to $3.19 per diluted share compared to $2.72 last year [12] - Full-year gross margins improved 60 basis points to 17% of net sales [13] - Adjusted operating income was $94 million compared to $90 million a year ago, an increase of 4% year-over-year [14] - EBITDA as defined was $152 million in 2024, up 13% compared to $134 million in 2023 [16] - Operating cash flow generated during the year was $35 million, and free cash flow was $15 million [17] Business Line Data and Key Metrics Changes - Supply Technologies segment achieved record sales of $779 million, up 2% compared to $766 million in 2023 [22] - Assembly Components segment sales declined 7% year-over-year to $399 million due to lower unit sales and pricing [25] - Engineered Products segment net sales were a record $482 million, up 3% compared to $469 million in 2023 [27] - Adjusted operating income in the Supply Technologies segment reached an all-time high of $75 million, up 27% compared to $59 million in the prior year [23] Market Data and Key Metrics Changes - Year-over-year growth in sales was driven by aerospace and defense, heavy-duty truck, consumer electronics, and electrical distribution markets [10] - Weaker demand was noted in power sports, industrial and agricultural equipment, and lawn and garden markets [10] - Booking trends remained robust in both North America and Europe across major induction heating and melting brands [10] Company Strategy and Development Direction - The company aims to build a diverse set of complementary industrial businesses with competitive moats and above-average growth characteristics [5] - Focus on organic growth complemented by acquisitions through the business cycle [6] - The strategy includes reallocating capital from high capital cost businesses to areas with better growth opportunities [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth driven by stable demand in most end markets for 2025 [33] - Concerns were raised about potential impacts of tariffs and inflation on overall demand in 2025 [46] - The company expects year-over-year improvement in adjusted operating income, adjusted net income, EBITDA, and free cash flow [33] Other Important Information - Corporate expenses were $29 million in 2024, compared to $28 million in 2023, primarily due to higher employee-related costs [33] - The effective tax rate for 2025 is expected to range from 21% to 23% compared to 11% in 2024 [34] Q&A Session Summary Question: Expectations for 2025 cadence and impact of tariffs - Management indicated that most of the business will not be significantly impacted by tariffs, with opportunities in domestic sourcing [38][39] Question: Potential standout end markets for 2025 - Aerospace and defense remain strong, with expectations for growth in heavy-duty trucks and capital equipment [50] Question: Strength of the fastener business - The fastener business benefits from diverse end markets, with strong demand in aerospace and defense [112] Question: Commentary on share increase - The increase in shares is due to a million shares sold through an ATM program, with no additional sales expected in the forecast [71][72] Question: Outlook for proprietary products - Proprietary products in fastener manufacturing are expected to continue growing, particularly in lightweight materials for automotive applications [79][80]
ParkOhio(PKOH) - 2024 Q4 - Annual Report
2025-03-06 21:36
Financial Performance - For the year ended December 31, 2024, net sales were $775.8 million for Supply Technologies, $398.7 million for Assembly Components, and $481.7 million for Engineered Products[15] - For the year ended December 31, 2024, net sales for Supply Technologies were $775.8 million, Assembly Components were $398.7 million, and Engineered Products were $481.7 million[15] Customer Base - Approximately 57% of Supply Technologies' net sales were to domestic customers, while 66% of Assembly Components' net sales were also domestic[16][20] - The five largest customers of Supply Technologies accounted for approximately 34% of its sales in 2024, while the same for Assembly Components was about 55%[16][20] - The average tenure of service for the top 50 Supply Technologies clients exceeds ten years, indicating strong customer relationships[16] - Approximately 66% of Assembly Components' net sales were to domestic customers, with the five largest customers accounting for approximately 55% of segment sales[20] - Engineered Products segment net sales to domestic customers were approximately 54% for the year ended December 31, 2024[24] Operations and Facilities - Supply Technologies operates approximately 80 logistics service centers globally, including in the U.S., Mexico, Canada, and several European and Asian countries[16] - Engineered Products operates 13 domestic and 19 international facilities, serving various industries including automotive, construction, and oil and gas[22][24] - The company operates 13 domestic facilities and 19 international facilities across various countries, enhancing its manufacturing capabilities[22] Employee and Human Resources - The company employed approximately 6,300 employees globally as of December 31, 2024, with 2,500 in the United States and 3,800 in other countries[33] - The company employs approximately 6,300 employees globally, with about 33% covered by collective bargaining agreements[33] - The company’s human resource programs are designed to attract, retain, and develop employees through competitive compensation and comprehensive benefits[34] - The company’s compensation policy aligns short-term and long-term incentives with strategic objectives, offering competitive benefits[37] Product and Service Offerings - Assembly Components manufactures products focused on fuel efficiency and vehicle electrification, including high-pressure direct fuel injection fuel rails[18] - Assembly Components focuses on manufacturing products that enhance fuel efficiency and reduce emissions, including high-pressure direct fuel injection fuel rails[18] - Approximately 48% of Engineered Products' revenues from induction heating and melting systems are derived from the sale of replacement parts and field service[23] - Approximately 48% of revenues from the induction heating and melting systems segment are derived from the sale of replacement parts and field service for the installed base of products[23] - The company’s engineering and manufacturing capabilities include precision cold-formed and cold-extruded fasteners used in high-vibration applications[16] Strategic Approach - Supply Technologies competes on the basis of its Total Supply Management approach, which includes engineering support and just-in-time delivery[17] - The company’s Total Supply Management approach distinguishes it from traditional distributors, providing customized supply chain management solutions[16] Environmental and Safety Commitment - The company is committed to employee health and safety, with global health and safety programs tailored to various jurisdictions and operating hazards[35] - The company is committed to health and safety, with global programs tailored to address specific operating hazards and regulatory compliance[35] - The company is actively involved in environmental compliance and has not experienced material adverse effects from such regulations in the past[30] Supply Chain and Sourcing - The company is dependent on third-party suppliers for production components, with a significant portion sourced from foreign countries[27] - The company has multiple sources for raw materials, which are primarily commodity products available from several domestic suppliers[27] Discontinued Operations - The Company completed the sale of its Aluminum Products business to Angstrom Automotive Group on December 29, 2023, classifying it as a discontinued operation[15] - The company completed the sale of its Aluminum Products business to Angstrom Automotive Group on December 29, 2023, classifying it as a discontinued operation[15]
ParkOhio(PKOH) - 2024 Q4 - Earnings Call Transcript
2025-03-06 19:28
Park-Ohio Holdings Corporation (NASDAQ:PKOH) Q4 2024 Earnings Conference Call March 6, 2025 10:00 AM ET Company Participants Matthew Crawford - Chairman, CEO & President Patrick Fogarty - VP & CFO Conference Call Participants Dave Storms - Stonegate Brian Sponheimer - Gabelli Funds Jamie Wilen - Wilen Management Christian Zyla - KeyBanc Capital Markets Operator Greetings, and welcome to the Park-Ohio Holdings Corp. Fourth Quarter and Full Year 2024 Results Conference Call and Webcast. At this time, all part ...
ParkOhio(PKOH) - 2024 Q4 - Annual Results
2025-03-05 21:13
Financial Performance - In Q4 2024, net sales from continuing operations were $388.4 million, slightly down from $389.3 million in Q4 2023[4] - Q4 2024 adjusted EPS was $0.67 per diluted share, a 24% increase from $0.54 in Q4 2023[4] - Full year 2024 net sales totaled $1.656 billion, compared to $1.660 billion in 2023[5] - Full year 2024 adjusted EPS was $3.59 per diluted share, up 17% from $3.07 in 2023[5] - EBITDA for Q4 2024 was $37 million, a 27% increase from $29 million in Q4 2023[4] - Operating income for Q4 2024 was $14.4 million, down from $17.7 million in Q4 2023, reflecting a decrease of 18.6%[21] - Adjusted earnings from continuing operations for Q4 2024 were $9.3 million, or $0.67 per diluted share, compared to $6.9 million, or $0.54 per diluted share in Q4 2023[23] - The company reported a net income attributable to common shareholders of $0.5 million in Q4 2024, compared to a loss of $14.5 million in Q4 2023[21] - Total cost of sales for the year ended December 31, 2024, was $1,374.8 million, a decrease of 1.0% from $1,388.3 million in 2023[21] - Selling, general and administrative expenses for Q4 2024 were $45.1 million, a decrease from $46.4 million in Q4 2023[21] - The company declared cash dividends of $0.125 per common share for both Q4 2024 and Q4 2023[21] - The loss from discontinued operations for Q4 2024 was $5.1 million, an improvement from a loss of $21.4 million in Q4 2023[21] Segment Performance - In the Supply Technologies segment, Q4 2024 net sales were $181.8 million, a 2% increase from $177.5 million in Q4 2023[7] - For the Assembly Components segment, Q4 2024 net sales were $89.7 million, down from $97.0 million in Q4 2023[8] - Engineered Products segment net sales in Q4 2024 were $116.9 million, up 2% from $114.8 million in Q4 2023[9] - Segment operating income for Supply Assembly Technologies Components was $75.0 million in 2024, compared to $59.0 million in 2023, an increase of 27.1%[34] - Supply Technologies segment reported adjusted operating income of $75.2 million for 2024, a significant increase from $59.2 million in 2023, marking a growth of 27.8%[36] - Assembly Components segment adjusted operating income decreased to $26.5 million in 2024 from $34.9 million in 2023, a decline of 24.5%[36] - Engineered Products segment adjusted operating income was $21.3 million in 2024, compared to $24.0 million in 2023, indicating a decrease of 11.3%[36] - Corporate segment reported an adjusted operating loss of $29.0 million for both 2024 and 2023, showing no change year-over-year[36] - The financial results indicate a mixed performance across segments, with notable growth in Supply Technologies but declines in Assembly Components and Engineered Products[36] Liquidity and Cash Flow - Total liquidity at December 31, 2024, was $198.2 million, reflecting an increase of $32.2 million year-over-year[11] - Net cash provided by operating activities from continuing operations decreased to $35.0 million in 2024, down from $53.4 million in 2023, a decline of 34.4%[31] - Cash and cash equivalents at the end of the year were $53.1 million, down from $54.8 million at the end of 2023, a decrease of 3.1%[31] Debt and Assets - Total assets increased to $1,365.1 million in 2024, up from $1,340.7 million in 2023, representing a growth of 1.8%[30] - Total current liabilities decreased to $361.1 million in 2024 from $363.6 million in 2023, a reduction of 0.7%[30] - Long-term debt decreased to $618.3 million in 2024 from $633.4 million in 2023, a decline of 2.4%[30] Future Outlook - For 2025, the company expects year-over-year sales growth of 2% to 4% driven by stable demand in key end markets[14]
ParkOhio(PKOH) - 2024 Q3 - Earnings Call Transcript
2024-11-09 02:28
Financial Data and Key Metrics Changes - Consolidated net sales were $418 million, flat compared to $419 million a year ago, indicating stable overall demand despite challenges in industrial markets [12][5] - Consolidated gross margin improved to 17.3%, up 60 basis points from 16.7% last year, with year-to-date gross margin increasing to 17.1% from 16.3% [13][7] - GAAP earnings per share increased by 3% to $1.02, while adjusted earnings per share rose 8% to $1.07 compared to $0.99 a year ago [18] - EBITDA for the quarter was $39 million, consistent with the previous year, while year-to-date EBITDA improved by 10% [19] Business Segment Data and Key Metrics Changes - Supply Technologies segment generated net sales of $195 million, up from $193 million a year ago, with operating income reaching a record $20.5 million, a 31% increase [22][23] - Assembly Components segment sales decreased to $99 million from $108 million a year ago, with adjusted operating income of $6.6 million [26][27] - Engineered Products segment sales increased by 6% to $124 million, driven by a 19% rise in industrial equipment demand, although operating income decreased to $5.2 million [29][31] Market Data and Key Metrics Changes - Strong demand was noted in aerospace and defense, consumer electronics, and medical equipment, while heavy-duty truck and power sports markets experienced lower sales [22] - European revenues in the Engineered Products segment increased by 32% year-over-year, indicating regional strength [29] Company Strategy and Development Direction - The company aims to reshape itself into a more nimble and profitable enterprise, focusing on margin improvement and sustainable growth through strategic investments [4][6] - Continued efforts to reduce leverage were highlighted, including the sale of $25 million in common stock to support debt reduction [9] - The company plans to manage fluctuations in year-end demand closely and improve productivity, particularly in automotive and forging businesses [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for growth in the fourth quarter and anticipated improvements in end markets that faced declines in unit volume during 2024 [6] - The company expects adjusted earnings per share to increase by more than 10% year-over-year and EBITDA to reach approximately $150 million, a 12% increase compared to last year [33] Other Important Information - The company repaid over $23 million of debt during the quarter, significantly increasing liquidity to $194 million [21] - SG&A expenses rose to approximately $48 million, driven by acquisition-related costs and higher employee-related expenses [15] Q&A Session Summary Question: Can you expand on the gross margin improvements and investments in products? - Management discussed repositioning the portfolio since 2018, focusing on making operations more nimble and profitable, and investing in high-margin products [35][36] Question: Are there any lines of business that may be considered for divestiture? - Management indicated that while there are ongoing initiatives to improve operations, there are no current plans for broad divestitures [41] Question: What is the outlook for the Forged segment and operational improvements? - Management acknowledged challenges in the Forged Group but expressed optimism for incremental improvements and better performance in 2025 [55][56] Question: How does the company view the aerospace and defense market? - Management sees a sustainable path in aerospace and defense, with good visibility and backlog extending through 2025 [57][58] Question: Are there any parts of the business uniquely exposed to potential increased tariffs? - Management believes that the business philosophy of local production mitigates significant risks from tariffs, with 70% of operations in North America [63][64]