Park-Ohio (PKOH) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were $405.4 million, down from $418 million in Q1 2024, mainly due to lower demand in Supply Technologies and Assembly Components, partially offset by 6% growth in Engineered Products.

• GAAP EPS from continuing operations was $0.61, down from $0.83; adjusted EPS was $0.66, down from $0.85, reflecting lower profitability due to reduced sales.

• EBITDA for Q1 2025 was $33.9 million, compared to $37.8 million in Q1 2024.

• Management highlighted early signs of a rebound in Engineered Products and expects continued improvement through 2025.

• Liquidity at quarter-end was $210 million, including $54.5 million in cash and $155 million in unused borrowing capacity.

Financial highlights

• Q1 2025 net sales were $405.4 million, down 2.9% year-over-year, with declines in Supply Technologies and Assembly Components, but 6% growth in Engineered Products.

• Gross margin was 16.8%, compared to 17.1% in Q1 2024; operating income was $18.9 million, down from $24 million.

• Net income attributable to shareholders was $8.3 million, down from $10.6 million year-over-year.

• Free cash flow was a use of $19.5 million, compared to a use of $3.5 million in Q1 2024.

• Capital expenditures totaled $9.5 million, with $3 million invested in information systems.

Outlook and guidance

• 2025 net sales are estimated at $1.6–$1.7 billion, with adjusted EPS expected between $3.00 and $3.50.

• Free cash flow is expected to improve year-over-year.

• Guidance range widened due to tariff risks and potential demand softness; management anticipates mitigating tariff impacts through supply chain and commercial solutions.