Park-Ohio (PKOH) Q1 2026 earnings summary

Executive summary

• Net sales grew to $421 million, up 4% year-over-year, with all segments contributing to growth and exceeding expectations.

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

• Adjusted EPS was $0.65, while reported/GAAP EPS was $0.58 per share.

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

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

Financial highlights

• Quarterly sales reached $421 million, up from $405 million a year ago.

• Operating income increased to $19.7 million, up from $18.9 million.

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

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

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

Outlook and guidance

• Full-year 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.

• SSP expected to generate $17 million in revenue and a net loss of $0.53 per share; outcome of strategic review could provide upside.

• Management expects existing resources and cash flow to be adequate for at least the next twelve months.