Andrew C. Clarke Joins ParkOhio Board of Directors Share CLEVELAND, OHIO--(BUSINESS WIRE)--Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced that Andrew C. Clarke, former Chief Financial Officer of C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) was appointed to ParkOhio's Board of Directors effective September 30, 2025. Mr. Clarke will be an independent director of the Company. Oct 1, 2025 3:10 PM Eastern Daylight Time Park-Ohio Holdings Corp. NASDAQ:PKOH Release Versions English Contacts "Andy is a wel ...

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Summary of Park-Ohio Holdings Corp. Conference Call Company Overview - **Company Name**: Park-Ohio Holdings Corp. - **Ticker**: PKOH - **Market Cap**: Approximately $310 million with a closing stock price of $21.64 [5] - **Employees**: Approximately 6,500 across 15 countries [3] - **Segments**: Operates through three segments: Supply Technologies, Assembly Components, and Engineered Products [3][4] Core Points and Arguments - **Business Restructuring**: The company has undergone a significant restructuring, consolidating nearly one million square feet of manufacturing space, which is expected to enhance margins and operating leverage [11][12]. - **Financial Guidance**: For the second quarter, sales are projected to be between $1.62 billion and $1.65 billion, with earnings per share guidance of $2.90 to $3.20 [5]. - **Free Cash Flow**: Expected free cash flow for the current year is between $20 million and $30 million, with a target of generating approximately $65 million in the second half [5][12]. - **Dividend**: The company pays a dividend of $0.50 per share, yielding approximately 2.3% [6][13]. - **Long-term Goals**: Aiming for $2 billion in sales and a 10% EBITDA margin [12][48]. Industry Dynamics - **Market Position**: Park-Ohio is positioned to capitalize on megatrends such as increased activity in data centers, electrification, and aerospace [11][19]. - **Diversity**: The company has a diversified customer base, with no single customer accounting for more than 7% of total sales. Approximately 80% of business is through sole-sourced relationships [17][18]. - **Geographic Distribution**: 58% of sales are from the U.S., followed by Europe (16%) and Asia (12%) [17]. Financial Performance - **Revenue**: Trailing 12-month revenue stands at $1.61 billion, with adjusted EBITDA of $145 million [6]. - **Capital Expenditures**: Maintenance CapEx is estimated to be around $10 million, with most revenue-generating businesses requiring minimal CapEx [14][15]. Strategic Focus - **Operational Efficiency**: The company is focusing on long-term competitiveness rather than just growth, emphasizing technology and automation [15][16]. - **Debt Management**: Aiming to reduce debt and operate sustainably below three times leverage [21][48]. - **Acquisition Strategy**: While traditionally open to acquisitions, the current focus is on building operating leverage and new business opportunities rather than pursuing acquisitions aggressively [49]. Additional Insights - **Customer Relationships**: The average customer relationship lasts over 10 years, indicating strong customer loyalty and retention [24]. - **Market Trends**: The company is seeing benefits from industrial policies and technological advancements, particularly in the steel and aerospace sectors [19][20]. - **Challenges**: The Engineered Products segment has faced challenges post-COVID, but there are signs of recovery and strong backlogs [35][38]. Conclusion Park-Ohio Holdings Corp. is at a pivotal point with a clear strategy for growth and operational efficiency. The company is well-positioned to leverage its diverse portfolio and capitalize on emerging market trends while managing its financial health and customer relationships effectively.

Group 1 - Park-Ohio Holdings Corp. will present and host one-on-one meetings at the Sidoti & Company Small-Cap Virtual Conference on September 17 to September 18, 2025 [1] - Matthew V. Crawford, Chairman, CEO, and President, along with Patrick W. Fogarty, Vice President and CFO, will give a formal presentation and answer investor questions on Wednesday [1]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Park-Ohio's financial statements for Q2 and H1 2025 show decreased net sales and net income, increased assets and debt, and negative operating cash flow Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $873.8 | $836.0 | | **Total assets** | $1,421.7 | $1,365.1 | | **Total current liabilities** | $336.2 | $361.1 | | **Long-term debt** | $656.7 | $618.3 | | **Total liabilities** | $1,045.4 | $1,028.0 | | **Total equity** | $376.3 | $337.1 | Condensed Consolidated Statements of Income Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $400.1 | $432.6 | $805.5 | $850.2 | | **Operating income** | $20.1 | $24.6 | $39.0 | $48.6 | | **Net income attributable to Park-Ohio** | $9.2 | $11.9 | $17.5 | $21.5 | | **Diluted EPS (Total)** | $0.66 | $0.92 | $1.26 | $1.68 | Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(23.7) | $(0.4) | | **Net cash used in investing activities** | $(16.9) | $(24.2) | | **Net cash provided by financing activities** | $31.5 | $35.3 | | **(Decrease) increase in cash** | $(7.5) | $5.1 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes detail accounting policies, segment revenue, debt, and subsequent events including new senior secured notes and credit agreement amendment Revenue by Product Line (in millions) | Product Line Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Supply Technologies** | $187.1 | $202.6 | $374.9 | $399.5 | | **Assembly Components** | $95.1 | $103.1 | $192.0 | $210.3 | | **Engineered Products** | $117.9 | $126.9 | $238.6 | $240.4 | | **Total revenues** | $400.1 | $432.6 | $805.5 | $850.2 | Debt Composition (as of June 30, 2025, in millions) | Debt Instrument | Carrying Value | | :--- | :--- | | Senior Notes | $350.0 | | Revolving credit facility | $287.5 | | Finance Leases | $15.1 | | Other | $14.4 | | **Total debt** | **$667.0** | - On July 31, 2025, the company issued **$350.0 million** in new 8.50% senior secured notes due 2030 to redeem existing 6.625% Senior Notes due 2027[76](index=76&type=chunk)[58](index=58&type=chunk) - In July 2025, the Credit Agreement was amended to extend its maturity date to the fifth anniversary from the amendment's closing[77](index=77&type=chunk)[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2025 net sales decline to lower demand, with operating income decreasing, and liquidity at **$189.4 million** Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $400.1 | $432.6 | $(32.5) | (7.5)% | | **Operating income** | $20.1 | $24.6 | $(4.5) | (18.3)% | | **Income from continuing operations** | $8.9 | $11.4 | $(2.5) | (21.9)% | H1 2025 vs H1 2024 Performance (in millions) | Metric | H1 2025 | H1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $805.5 | $850.2 | $(44.7) | (5.3)% | | **Operating income** | $39.0 | $48.6 | $(9.6) | (19.8)% | | **Income from continuing operations** | $16.7 | $21.5 | $(4.8) | (22.3)% | - Net sales decreased in Q2 and H1 2025 primarily due to lower customer demand across all business segments, notably in power sports, heavy-duty truck, and bus markets[90](index=90&type=chunk)[99](index=99&type=chunk)[109](index=109&type=chunk) - As of June 30, 2025, total liquidity was **$189.4 million**, comprising **$45.6 million** in cash and **$143.8 million** in unused borrowing availability[130](index=130&type=chunk) [Segment Results](index=28&type=section&id=SEGMENT%20RESULTS) All three operating segments experienced year-over-year sales declines in Q2 and H1 2025 due to reduced demand and customer launch delays Supply Technologies Segment Performance (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $187.1 | $202.6 | $374.9 | $399.5 | | **Segment operating income** | $16.3 | $19.0 | $34.1 | $38.5 | | **Operating income margin** | 8.7% | 9.4% | 9.1% | 9.6% | Assembly Components Segment Performance (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $95.1 | $103.1 | $192.0 | $210.3 | | **Segment operating income** | $5.6 | $6.9 | $10.9 | $15.5 | | **Operating income margin** | 5.9% | 6.7% | 5.7% | 7.4% | Engineered Products Segment Performance (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $117.9 | $126.9 | $238.6 | $240.4 | | **Segment operating income** | $6.0 | $6.3 | $9.8 | $9.8 | | **Operating income margin** | 5.1% | 5.0% | 4.1% | 4.1% | [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) Market risks include interest rates, foreign currency, and commodity prices; a 100-basis-point rate increase would raise H1 2025 interest expense by **$1.4 million** - The company faces interest rate risk on its floating-rate revolving credit facility; a 100-basis-point increase would raise H1 2025 interest expense by approximately **$1.4 million**[146](index=146&type=chunk) - Foreign currency translation risks arise from foreign subsidiaries operating in local currencies, with fluctuations recorded in Accumulated Other Comprehensive Loss[147](index=147&type=chunk) - Major commodity price exposures are metal and rubber compounds; the company utilized foreign currency hedges in 2025 and 2024 but holds no other commodity swap agreements[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of the reporting period end[149](index=149&type=chunk) - No material changes to internal control over financial reporting occurred during Q2 2025[150](index=150&type=chunk) [Part II. Other Information](index=35&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal matters, including **110** asbestos cases, but management anticipates no material adverse effect on financial condition or operations - As of June 30, 2025, the company is a co-defendant in **110** cases involving **152** plaintiffs alleging asbestos exposure personal injury[153](index=153&type=chunk)[66](index=66&type=chunk) - Management does not anticipate these legal proceedings, including asbestos cases, will materially adversely affect the company's financial condition or operations[152](index=152&type=chunk)[155](index=155&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes to risk factors have occurred since the 2024 Annual Report on Form 10-K[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company acquired **84,392** common shares from employees to settle withholding tax liabilities, not under a public repurchase program Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | N/A | | May 2025 | 32,415 | $18.32 | | June 2025 | 51,977 | $17.62 | | **Total** | **84,392** | **$17.89** | - The **84,392** shares acquired were from restricted stock award recipients to settle withholding tax liabilities, not part of the publicly announced repurchase plan[160](index=160&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q2 2025[162](index=162&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley and Inline XBRL data files - Exhibits include CEO and CFO certifications under Sarbanes-Oxley Act Sections 302 and 906[164](index=164&type=chunk) - The filing incorporates various Inline XBRL documents for interactive data[164](index=164&type=chunk)

Financial Data and Key Metrics Changes - Second quarter revenue totaled $400 million, down from $433 million year-over-year, reflecting lower customer demand across certain end markets [9][10] - Adjusted EPS increased 14% to $0.75 per diluted share, while EBITDA increased 4% to $35 million compared to the first quarter [11] - EBITDA margin was 8.8% in the quarter, with a trailing twelve-month EBITDA totaling $144 million [11][12] - SG&A expenses decreased to $46.8 million from $48.2 million in the previous quarter, reflecting cost containment efforts [12] - The effective income tax rate was 17%, with an expected full-year effective tax rate range of 17% to 19% [12] Business Line Data and Key Metrics Changes - Supply Technologies net sales were $187 million, lower than the prior year due to decreased demand in key markets, partially offset by increases in electrical and semiconductor markets [13] - Assembly Components segment sales decreased to $95 million, driven by lower unit volumes and customer delays on new product launches [15] - Engineered Products segment sales were $118 million, down from $127 million year-over-year due to lower demand in the forged machine products group [16] - Capital equipment orders reached an all-time quarterly record of $85 million, including a significant order for $47 million from a major steel producer [8][17] Market Data and Key Metrics Changes - Sales in Europe showed strength year-over-year, while North America and Asia experienced lower sales [13] - The company noted a robust order activity driven by regional investment cycles in manufacturing, defense, aerospace, and energy sectors [45] Company Strategy and Development Direction - The company is focused on transforming its portfolio to enhance profitability and has exited underperforming businesses [25][26] - Investments are being made in technology and operational improvements to drive long-term competitiveness and higher operating leverage [27][30] - The company anticipates significant operating and free cash flow in the second half of the year, with free cash flow expected to be between $20 million and $30 million for the full year [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to absorb improving backlogs and new business, expecting solid performance for the remainder of 2025 [5][19] - The company is assessing the impact of tariffs and expects to recover tariff costs estimated between $25 million and $35 million in 2025 [19] - Adjusted EPS for 2025 is estimated to be in the range of $2.9 to $3.2 per diluted share, with net sales expected between $1.62 billion and $1.65 billion [19] Other Important Information - The company successfully refinanced $350 million of senior secured notes, extending the maturity date and receiving upgraded ratings from credit agencies [7][8] - Liquidity as of June 30 was strong at $189 million, consisting of $46 million in cash and $143 million in unused borrowing capacity [13] Q&A Session Summary Question: Are there any lines of business earning less than acceptable returns? - Management acknowledged some underperforming assets, particularly in the forge group, and emphasized ongoing efforts to improve profitability [25][28] Question: What is the operating margin target? - Management indicated that Supply Technologies is approaching a 10% operating income margin and expects continued improvement in other segments [31][35] Question: What are the drivers behind the increasing backlog? - The backlog is driven by robust order activity in capital equipment, particularly in sectors like manufacturing and aerospace [44][45] Question: What is the timeline for margin improvements in different segments? - Management stated that improvements are expected to be long-term and will depend on volume ramp-up from new business [37] Question: Are new customers entering the market or is it market share expansion? - Management noted that current or former customers are seeking support to solve supply chain challenges, indicating a mix of both new and existing customer activity [55]

Financial Performance - Net sales decreased to $4001 million in Q2 2025 from $4326 million in Q2 2024[6] - Adjusted EPS decreased to $075 per diluted share in Q2 2025 from $102 per diluted share in Q2 2024[6] - EBITDA decreased to $352 million in Q2 2025 from $394 million in Q2 2024[6] - Gross margin expanded to 170% in Q2 2025 from 168% in Q1 2025[5] Segment Performance - Supply Technologies net sales decreased to $187 million in Q2 2025 from $203 million in Q2 2024, with adjusted operating income decreasing to $167 million from $192 million[8,9] - Assembly Components net sales decreased to $95 million in Q2 2025 from $103 million in Q2 2024, with adjusted operating income decreasing to $61 million from $69 million[12,14] - Engineered Products net sales decreased to $118 million in Q2 2025 from $127 million in Q2 2024, with adjusted operating income decreasing to $64 million from $73 million[17,18] Backlog and Bookings - Engineered Products backlog increased by 19% to $172 million at June 30, 2025, from $145 million at year-end[5,19] - Record quarterly bookings of new capital equipment totaled $85 million, including a $47 million order in the Engineered Products segment[5] Outlook - The recent refinancing is expected to reduce Adjusted EPS by approximately $020 per diluted share[20] - Full-year 2025 net sales are expected to be between $1620 billion and $1650 billion[20] - Full-year 2025 Adjusted EPS is expected to be between $290 and $320 per diluted share[21] - Free cash flow is expected to improve from FY2024 and approximate $20 million to $30 million in FY2025[21]

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) This report details significant current events for Park-Ohio Holdings Corp., including preliminary financial results and required exhibits [Registrant Information](index=1&type=section&id=Registrant%20Information) This section details the identification and registration information for Park-Ohio Holdings Corp. and Park-Ohio Industries, Inc., including their principal offices and registered securities - The primary registrant is Park-Ohio Holdings Corp., an Ohio-based corporation with its principal executive offices located at 6065 Parkland Boulevard, Cleveland, Ohio 44124[1](index=1&type=chunk) Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock, Par Value $1.00 Per Share | PKOH | The NASDAQ Stock Market LLC | [Item 2.02 Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section announces Park-Ohio Holdings Corp.'s preliminary financial results for the second quarter ended June 30, 2025, released via press statement - The company announced preliminary financial results for the quarter ended June 30, 2025, via a press release on July 15, 2025[4](index=4&type=chunk) - The information in this report, including the press release, is not deemed "filed" under Section 18 of the Exchange Act and is not incorporated by reference into other filings unless explicitly stated[5](index=5&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section provides a list of exhibits accompanying the Form 8-K, including the press release and interactive data file Exhibits Filed | Exhibit Number | Description | | :--- | :--- | | 99.1 | Park-Ohio Holdings Corp. Press Release, dated July 15, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=4&type=section&id=Signatures) This section confirms the official signing and authorization of the report by Patrick W. Fogarty on July 16, 2025 - The report was signed on July 16, 2025, by Patrick W. Fogarty, Vice President and Chief Financial Officer[9](index=9&type=chunk)

Financial Performance - Net sales decreased by 2.9% to $405.4 million in Q1 2025 compared to $417.6 million in Q1 2024, primarily due to lower demand in Supply Technologies and Assembly Components segments [72]. - Operating income fell by 21.3% to $18.9 million in Q1 2025 from $24.0 million in Q1 2024, reflecting lower sales levels [71]. - SG&A expenses increased by 2.3% to $48.2 million in Q1 2025, representing 11.9% of net sales compared to 11.3% in Q1 2024, driven by inflation and higher employee costs [75]. - The Supply Technologies segment reported a 4.6% decrease in net sales to $187.8 million in Q1 2025, with segment operating income down by $1.7 million [81]. - The Assembly Components segment experienced a 9.6% decline in net sales to $96.9 million in Q1 2025, with operating income decreasing by $3.3 million [83]. - The Engineered Products segment saw a 6.3% increase in net sales to $120.7 million in Q1 2025, with operating income rising by $0.3 million [85]. Cash Flow and Liquidity - Cash used in operating activities was $10.0 million in Q1 2025, a decrease from cash generated of $2.3 million in Q1 2024, due to higher working capital needs [88]. - As of March 31, 2025, the company had total liquidity of $209.5 million, which included $54.5 million in cash and cash equivalents and $155.0 million of unused borrowing availability under credit agreements [95]. - The company had net debt borrowings of $22.1 million during the three months ended March 31, 2025, compared to $27.5 million in the same period of 2024 [91]. - The company had cash and cash equivalents held by foreign subsidiaries of $44.2 million at March 31, 2025, showing a slight increase from $43.4 million at December 31, 2024 [96]. - The company expects its existing financial resources and anticipated cash flow from operations to be adequate to meet cash requirements for at least the next twelve months [94]. - The company does not expect restrictions on repatriation of cash held outside the U.S. to materially affect its overall liquidity [96]. Capital Expenditures and Investments - Capital expenditures were $9.5 million in Q1 2025, aimed at increasing capacity for future growth in Engineered Products and Assembly Components segments [89]. Tax and Pension - The effective income tax rate for Q1 2025 was 20%, down from 25% in Q1 2024, primarily due to federal research and development tax credits [79]. - Other components of pension and OPEB income increased to $1.8 million in Q1 2025 from $1.3 million in Q1 2024, attributed to lower net actuarial losses [77]. Dividends and Financial Agreements - The company declared and paid dividends totaling $1.8 million during the three months ended March 31, 2025, with a quarterly dividend of $0.125 per common share declared on April 17, 2025 [105]. - The company’s calculated availability under the Credit Agreement was $118.0 million as of March 31, 2025, indicating compliance with financial covenants [101]. - The company has the option to increase the availability under its revolving credit facility by an aggregate incremental amount up to $70.0 million [99]. Interest Rates and Financial Impact - A 100-basis-point increase in interest rates would have resulted in an increase in interest expense of approximately $0.7 million during the three-month period ended March 31, 2025 [112]. - The company had finance leases totaling $15.7 million as of March 31, 2025 [100].

Financial Data and Key Metrics Changes - The first quarter sales totaled $405 million compared to $418 million a year ago, indicating a slight decline [12] - Consolidated gross margin was 16.8% in the quarter, down from 17.1% in the first quarter of last year [12] - GAAP earnings per share from continued operations was $0.61 per diluted share compared to $0.83 last year, while adjusted EPS was $0.66 compared to $0.85 a year ago [14] - EBITDA totaled $34 million in the quarter, with trailing twelve-month EBITDA at $148 million compared to $152 million for the full year 2024 [14][15] Business Line Data and Key Metrics Changes - In the Supply Technologies segment, net sales totaled $188 million, down from $197 million a year ago, with operating income at $17.8 million compared to $19.5 million last year [16] - The Assembly Components segment saw sales decline to $97 million from $107 million, with operating income dropping to $5.3 million from $8.6 million [17] - The Engineered Products segment reported sales of $121 million, up from $114 million a year ago, driven by strong aftermarket sales in North America [18] Market Data and Key Metrics Changes - Sales growth was noted in the Supply Technology business in Europe and Asia, particularly in the commercial aerospace end market, which helped offset demand weakness in North America [11] - Demand was lower year over year in certain North American end markets, including power sports and industrial equipment, impacting overall sales [16] Company Strategy and Development Direction - The company is focusing on reshaping its business by investing in its best products and services, which includes closing nonstrategic locations and discontinuing certain customer relationships [6] - The strategy aims to improve cash flows, reduce earnings volatility, and enhance overall margins through the business cycle [6] - The company is well-positioned to benefit from reshoring trends and increased investment in infrastructure and defense, particularly in steel technologies [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slow start in January but noted a rebound in February and March, aligning more closely with expectations [4][5] - The company has widened its 2025 earnings forecast to account for uncertainties related to tariffs and potential lower sales as customers pause for clarity [9] - Management expressed confidence in the strength of the business model and the ability to navigate current market volatility [9][59] Other Important Information - SG&A expenses increased to approximately $48 million from $47 million a year ago, driven by inflation and personnel costs [13] - Capital spending in the first quarter totaled $9.5 million, with expectations for full-year CapEx ranging between $30 million and $35 million [15] Q&A Session Summary Question: What parts of the business are driving the changing guidance? - Management indicated that the high end of the guidance aligns with year-to-date performance, while the lower end reflects uncertainty in demand, particularly from consumer-facing customers [24][25] Question: How much of the Q1 shortfall can be made up in subsequent quarters? - Management expects to make up ground in the remaining quarters, noting that the slow start was primarily in January and that momentum picked up in March [46] Question: Is there a qualification process for the supply chain shift? - Management characterized the supply chain shift as ongoing, with incremental opportunities emerging, particularly in automotive and industrial sectors [51][53] Question: What is the outlook for M&A activity? - Management noted a decline in M&A activity due to macro uncertainties, with many acquirers adopting a wait-and-see approach [56]