Park-Ohio (PKOH) Q1 2026 earnings summary

Executive summary

• Revenue grew 4% year-over-year to $421 million, with all three business segments contributing to growth and strong positioning in aerospace, defense, data center, infrastructure, and advanced manufacturing end markets.

• Gross margin improved to 17.3%, up 50 basis points from the prior year.

• Adjusted EPS was $0.65 per share, exceeding expectations; GAAP EPS was $0.58.

• EBITDA (as defined) reached $34.3 million, representing an 8.1% margin.

• Strategic review of Southwest Steel Processing (SSP) is underway, with a potential sale being considered.

Financial highlights

• Net sales increased to $421 million from $405 million a year ago, up 4% year-over-year.

• Consolidated gross margin improved to 17.3%, up from 16.8% a year ago.

• Adjusted operating income was $21 million, up 6% year-over-year; operating income rose to $19.7 million.

• Adjusted EPS was $0.65; reported EPS was $0.58.

• Interest expense increased to $12.3 million due to higher rates on refinanced senior notes.

• Effective income tax rate improved to 17% from 20% a year ago.

• Dividend of $0.125 per share declared and paid, totaling $1.8 million.

Outlook and guidance

• Full-year 2026 net sales guidance reaffirmed at $1.675–$1.71 billion, up 5–7% year-over-year.

• Adjusted EPS guidance of $2.90–$3.20, up 7–19% over last year.

• EBITDA expected at 8–9% of net sales; free cash flow guidance of $20–$30 million.

• Outlook includes SSP, expected to generate $17 million in revenue and a net loss of $0.53 per share.