Park-Ohio (PKOH) Q3 2026 earnings summary

Executive summary

• Record Q3 net sales of $458.5M, up 15% YoY, with growth across all three segments and gross margin expansion of 120 bps.

• Operating income rose 54% to $26.6M; adjusted diluted EPS reached $1.04, up 60% YoY and the highest in two years.

• FY26 sales and adjusted EPS outlook increased; demand across several industrial markets is expected to support growth into 2027.

Financial highlights

• Q3 operating income was $26.6M vs. $17.3M; net income attributable to common shareholders was $13.7M vs. $5.3M.

• Diluted EPS from continuing operations was $0.97 vs. $0.39; adjusted diluted EPS was $1.04 vs. $0.65.

• Q3 operating cash flow was $15.5M and free cash flow was $7.1M; 9M operating cash flow was $16.9M.

• 9M net sales were $1,319.6M, up 9.6% YoY; operating income rose 25.8% to $70.8M.

Outlook and guidance

• FY26 sales guidance raised to $1.750B–$1.770B, up 9%–11% over 2025; adjusted EPS guidance raised to $3.35–$3.50 per diluted share, up 24%–30%.

• FY26 EBITDA outlook remains 8.5%–9.0% of sales and free cash flow outlook remains $20M–$30M; Q4 free cash flow is expected at $35M–$45M.

• FY26 outlook includes Southwest Steel Processing, expected to contribute ~$15M revenue and a loss of ~$0.46 per diluted share; a transaction could provide upside, with no assured outcome.

• Growth is expected in each segment in 2027; year-end 2026 backlog is expected to be ~10% above year-end 2025, with forging and press capacity sold out for 2027.