Park-Ohio (PKOH) Q4 2025 earnings summary

Executive summary

• Achieved strong cost management and productivity improvements in 2025, offsetting demand volatility from tariffs and economic uncertainty.

• 2025 marked a pivotal year with strategic transformation, focusing on portfolio reshaping, productivity investments, and cash flow consistency.

• Prioritized cash management, meeting a $40 million debt reduction goal in Q4 and reducing revolving credit facility borrowings.

• Full-year 2025 revenue was $1.6 billion, with GAAP diluted EPS of $1.77 and adjusted EPS of $2.70.

• Entering 2026 with expectations of above-average growth and improved operating leverage, supported by record bookings and expanding backlog.

Financial highlights

• Q4 2025 revenue was $395 million, up 2% year-over-year; full-year 2025 revenue was $1.6 billion, down from $1.7 billion in 2024.

• Q4 gross margin: 17.3%, up 70 bps year-over-year; full-year gross margin stable at 17%.

• Q4 adjusted operating income: $20 million, up 4% year-over-year; full-year adjusted EPS: $2.70 vs. $3.59 in 2024.

• Q4 EBITDA was $35 million (8.9% margin); full-year EBITDA was $138 million (8.6% margin).

• Q4 operating cash flow: $49 million; free cash flow: $36 million; full-year operating cash flow: $42 million, up from $35 million in 2024.

Outlook and guidance

• 2026 consolidated revenues expected at $1.675–1.71 billion, up 5–7% year-over-year.

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

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

• Growth driven by volume increases (75% of growth), recovery in industrial end markets, new business launches, and improved pricing.

• Expect improved operating margins in Assembly Components and Engineered Products in 2026.