Park-Ohio (PKOH) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $440.1 million, up 10% year-over-year, with growth across all business segments and key end markets including aerospace, defense, AI data centers, and semiconductors.

• Gross margin reached 17.9%, the highest since 2013, and GAAP EPS rose 30% to $0.87; adjusted EPS increased 24% to $0.93.

• Operating cash flow improved to $9 million, a $23 million year-over-year improvement.

• Transformation initiatives focused on productivity tools, facility optimization, automation, and infrastructure enhancements, especially in Engineered Products.

• The company is reviewing strategic alternatives for Southwest Steel Processing (SSP) to focus on higher-growth, higher-margin opportunities.

Financial highlights

• Q2 2026 net sales: $440.1 million, up 10% year-over-year; six-month net sales: $861.1 million, up 6.9%.

• Gross margin improved 90 basis points to 17.9% year-over-year; operating income rose 22% to $24.5 million.

• GAAP EPS increased 30% to $0.87; adjusted EPS up 24% to $0.93.

• Cash flow from operations was $9 million for Q2 and $1.4 million for the first half, a significant improvement year-over-year.

• Liquidity at quarter-end was $189 million, including $48 million cash and $141 million unused borrowing capacity.

Outlook and guidance

• Full-year 2026 net sales outlook raised to $1.70–$1.73 billion (6–8% growth over 2025).

• Adjusted EPS guidance increased to $3.10–$3.30 (15–22% growth over 2025).

• EBITDA guidance raised to 8.5%–9% of net sales; free cash flow guidance maintained at $20–$30 million.

• Full-year effective tax rate expected between 17% and 20%.

• Outlook includes SSP, expected to contribute $15 million in revenue and a loss of $0.50 per diluted share.