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 a trailing twelve-month EBITDA of $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][17] - The Assembly Components segment saw sales of $97 million, down from $107 million, with operating income of $5.3 million compared to $8.6 million a year ago [18] - The Engineered Products segment reported sales of $121 million, up from $114 million a year ago, driven by strong aftermarket sales in North America [19] 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] - The Engineered Products segment is expected to benefit from increased investment in infrastructure and defense, particularly in steel technologies [9] Company Strategy and Development Direction - The company is focusing on reshaping its business by investing in its best products and services, which includes closing non-strategic 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 has seen increased inquiries from customers looking to secure their supply chains in the US [8] 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] - The company has widened its 2025 earnings forecast to account for uncertainties related to tariffs and potential lower sales due to customer hesitance [9] - Management expressed confidence in the business model and the ability to navigate current market volatility [9] Other Important Information - Capital spending in the first quarter totaled $9.5 million, with expectations for full-year CapEx to range between $30 million and $35 million [15] - The effective income tax rate for the quarter was approximately 20%, with expectations for the full year to range between 20% and 23% [13] Q&A Session Summary Question: What parts of the business are driving the changing guidance? - Management indicated that the high end of the guidance reflects year-to-date performance, while the lower end considers uncertainties in current demand, particularly from consumer-facing customers [26][27] Question: How much of the cost base comes from China or countries with significant tariffs? - Approximately 70% of the business is North America-based, with only about 8% of the Asian segment located in China, indicating a relatively small exposure [32][36] Question: Are there signs of demand pull forward or pauses? - Management noted that while there may be some pull forward, overall, they did not see significant evidence of it impacting the supply chain [38][41] Question: How much of the Q1 shortfall can be made up in subsequent quarters? - Management expressed confidence in making up the shortfall, particularly as momentum picked up in March [47] Question: What is the current state of M&A activity? - There has been a decline in M&A activity due to macroeconomic uncertainties, but this may be short-term as conditions improve [55]

Financial Performance - Net sales decreased to $405 million in Q1 2025 from $418 million in Q1 2024[5] - GAAP EPS decreased to $0.61 in Q1 2025 from $0.83 in Q1 2024[5] - Adjusted EPS decreased to $0.66 per diluted share in Q1 2025 from $0.85 in Q1 2024[5] - EBITDA decreased to $34 million in Q1 2025 from $38 million in Q1 2024[5] - Income from continuing operations attributable to Park-Ohio Holdings Corp common shareholders decreased to $8.5 million in Q1 2025 from $10.6 million in Q1 2024[5] Segment Performance - Supply Technologies segment net sales decreased to $188 million in Q1 2025 from $197 million in Q1 2024[10] - Assembly Components segment net sales decreased to $97 million in Q1 2025 from $107 million in Q1 2024[15] - Engineered Products segment net sales increased to $121 million in Q1 2025 from $114 million in Q1 2024, a 6% increase[20,8] Outlook - The company estimates 2025 net sales to be in the range of $1.6 billion to $1.7 billion and adjusted earnings per share to be in the range of $3.00 to $3.50[24]

[Financial and Operational Highlights](index=1&type=section&id=FIRST%20QUARTER%20CONSOLIDATED%20RESULTS%20FROM%20CONTINUING%20OPERATIONS) ParkOhio reported resilient Q1 2025 results despite lower revenue, with a rebound beginning in its Engineered Products Group Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $405M | $418M | | GAAP EPS from continuing operations | $0.61 | $0.83 | | Adjusted EPS from continuing operations | $0.66 | $0.85 | | Income from continuing operations (PKOH shareholders) | $8.5M | $10.6M | | EBITDA, as defined | $34M | $38M | - The CEO highlighted the strength of the company's **diversity in products, end markets, and geographies**, with an anticipated rebound in the Engineered Products Group throughout 2025[2](index=2&type=chunk) - The company expects to **offset potential tariff costs** through supply chain and commercial solutions and notes that many North American businesses may benefit from shifting customer supply chains[2](index=2&type=chunk) [Segment Performance](index=1&type=section&id=FIRST%20QUARTER%20SEGMENT%20RESULTS%20FROM%20CONTINUING%20OPERATIONS) Segment performance was mixed in Q1 2025, with sales declines in two segments offset by growth in Engineered Products [Supply Technologies](index=1&type=section&id=Supply%20Technologies) Supply Technologies' net sales decreased due to reduced demand in several key markets, slightly compressing its operating margin Supply Technologies Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $187.8M | $196.9M | | Operating Income | $17.8M | $19.5M | | Operating Margin | 9.5% | 9.9% | - The sales decrease was driven by lower demand in powersports, industrial equipment, and electrical equipment markets, while demand increased in heavy-duty truck, semiconductor equipment, and consumer electronics[6](index=6&type=chunk) [Assembly Components](index=2&type=section&id=Assembly%20Components) The Assembly Components segment saw lower sales and operating income due to reduced volumes and unfavorable pricing changes Assembly Components Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $96.9M | $107.2M | | Operating Income | $5.3M | $8.6M | | Operating Margin | 5.5% | 8.0% | - Reasons for the sales decline include **lower unit volumes** in fuel rail and extruded rubber, customer delays on new business, and the end of favorable pricing on certain legacy programs in 2024[9](index=9&type=chunk) [Engineered Products](index=2&type=section&id=Engineered%20Products) Engineered Products delivered strong sales growth driven by its industrial equipment business, boosting its adjusted operating income Engineered Products Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $120.7M | $113.5M | | Operating Income | $3.8M | $3.5M | | Adjusted Operating Income | $4.6M | $3.8M | - The segment's growth was driven by the industrial equipment business, with **new equipment sales up 12%** and aftermarket sales up 5%[10](index=10&type=chunk) - New equipment backlog stood at **$136 million** at the end of Q1 2025, down from $145 million at the end of 2024[10](index=10&type=chunk) [Cash Flow and Liquidity](index=2&type=section&id=CASH%20FLOWS%20AND%20LIQUIDITY) The company used cash from operations in Q1 2025 due to higher accounts receivable but maintained a strong overall liquidity position Cash Flow Summary (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Cash Flow | ($10.0M) | $2.3M | | Capital Expenditures | $9.5M | $5.8M | | Free Cash Flow | ($19.5M) | ($3.5M) | - Total liquidity was **$209.5 million** as of March 31, 2025, comprising $54.5 million in cash and $155.0 million in unused borrowing availability[12](index=12&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20OUTLOOK%20-%20CONTINUING%20OPERATIONS) ParkOhio reaffirmed its full-year 2025 guidance, acknowledging macroeconomic uncertainty but expecting to benefit from sourcing trends Full-Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Sales | $1.6B - $1.7B | | Adjusted EPS | $3.00 - $3.50 | - The company is working to mitigate the impact of added costs from tariffs and believes many of its businesses are positioned to **benefit from localized sourcing** back into the United States[14](index=14&type=chunk) - **Free cash flow is expected to improve** year over year in 2025[14](index=14&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2025 and 2024 [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)) The company reported lower net sales and operating income in Q1 2025 compared to the prior-year period Condensed Consolidated Statements of Income (Unaudited) | (In millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $405.4 | $417.6 | | Operating income | $18.9 | $24.0 | | Income from continuing operations | $7.8 | $10.1 | | Net income attributable to PKOH shareholders | $8.3 | $9.6 | | Diluted EPS (Continuing operations) | $0.61 | $0.83 | | Diluted EPS (Total) | $0.60 | $0.75 | | Dividends per common share | $0.125 | $0.125 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased as of March 31, 2025, driven by higher accounts receivable and long-term debt Condensed Consolidated Balance Sheets (In millions) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Total current assets | $870.0 | $836.0 | | Total assets | $1,411.8 | $1,365.1 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Total current liabilities | $360.8 | $361.1 | | Long-term debt | $642.1 | $618.3 | | Total liabilities | $1,057.0 | $1,028.0 | | Total equity | $354.8 | $337.1 | | Total liabilities and shareholders' equity | $1,411.8 | $1,365.1 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) The company used cash in operating activities and saw a net increase in cash due to financing activities in Q1 2025 Condensed Consolidated Statements of Cash Flows (In millions) | Three Months Ended March 31, | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($10.0) | $2.3 | | Net cash used in investing activities | ($9.5) | ($16.8) | | Net cash provided by financing activities | $20.3 | $25.8 | | Increase in cash and cash equivalents | $1.4 | $6.8 | | Cash and cash equivalents at end of period | $54.5 | $61.6 | [Business Segment Information](index=11&type=section&id=Business%20Segment%20Information%20(Unaudited)) This table details the net sales and operating income performance for each of the company's three business segments Segment Operating Income (Loss) (In millions) | Three Months Ended March 31, | Supply Technologies | Assembly Components | Engineered Products | Corporate | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **2025** | | | | | | | Net Sales | $187.8 | $96.9 | $120.7 | - | $405.4 | | Operating Income (Loss) | $17.8 | $5.3 | $3.8 | ($8.0) | $18.9 | | **2024** | | | | | | | Net Sales | $196.9 | $107.2 | $113.5 | - | $417.6 | | Operating Income (Loss) | $19.5 | $8.6 | $3.5 | ($7.6) | $24.0 | [Non-GAAP Financial Measures](index=5&type=section&id=Supplemental%20Non-GAAP%20Financial%20Measures%20(Unaudited)) This section provides reconciliations for non-GAAP measures like Adjusted Earnings and EBITDA to their comparable GAAP figures [Reconciliation of Adjusted Earnings](index=5&type=section&id=Reconciliation%20of%20Adjusted%20Earnings) Adjusted earnings from continuing operations were $9.3 million in Q1 2025 after excluding special charges Reconciliation to Adjusted Earnings (In millions, except EPS) | | Q1 2025 Earnings | Q1 2025 Diluted EPS | Q1 2024 Earnings | Q1 2024 Diluted EPS | | :--- | :--- | :--- | :--- | :--- | | GAAP Income from continuing operations | $8.5 | $0.61 | $10.6 | $0.83 | | Restructuring & other special charges | $1.0 | $0.07 | $0.3 | $0.03 | | Tax effect of adjustments | ($0.2) | ($0.02) | ($0.1) | ($0.01) | | **Adjusted Earnings** | **$9.3** | **$0.66** | **$10.8** | **$0.85** | [Reconciliation of EBITDA, as defined](index=8&type=section&id=Reconciliation%20of%20EBITDA%2C%20as%20defined) EBITDA, as defined by the company's credit facility, decreased to $33.9 million in Q1 2025 from $37.8 million in Q1 2024 Reconciliation to EBITDA, as defined (In millions) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Income from continuing operations (PKOH shareholders) | $8.5 | $10.6 | | Interest expense, net | $11.0 | $11.9 | | Income tax expense | $1.9 | $3.3 | | Depreciation and amortization | $8.3 | $8.4 | | Other adjustments | $4.2 | $3.6 | | **EBITDA, as defined** | **$33.9** | **$37.8** | [Reconciliation of Adjusted Segment Operating Income](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Segment%20Operating%20Income) Total adjusted operating income was $19.9 million in Q1 2025, with adjustments made to two of the three segments Adjusted Segment Operating Income (In millions) | Q1 2025 | As Reported | Adjustments | As Adjusted | | :--- | :--- | :--- | :--- | | Supply Technologies | $17.8 | $— | $17.8 | | Assembly Components | $5.3 | $0.2 | $5.5 | | Engineered Products | $3.8 | $0.8 | $4.6 | | Corporate | ($8.0) | $— | ($8.0) | | **Total** | **$18.9** | **$1.0** | **$19.9** | [Reconciliation of Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free cash flow was a use of $19.5 million in Q1 2025, a larger use than the prior-year period due to higher capex Reconciliation to Free Cash Flow (In millions) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($10.0) | $2.3 | | Less: purchases of property plant and equipment | ($9.5) | ($5.8) | | **Free cash flow** | **($19.5)** | **($3.5)** |

Park-Ohio Holdings Corp. Full Year 2024 Earnings Call Presentation March 6, 2025 Forward-Looking Statements and Non-GAAP Measures These slides contain forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by ...

Financial Performance - For the year ended December 31, 2024, net sales were $775.8 million for Supply Technologies, $398.7 million for Assembly Components, and $481.7 million for Engineered Products[15] - For the year ended December 31, 2024, net sales for Supply Technologies were $775.8 million, Assembly Components were $398.7 million, and Engineered Products were $481.7 million[15] Customer Base - Approximately 57% of Supply Technologies' net sales were to domestic customers, while 66% of Assembly Components' net sales were also domestic[16][20] - The five largest customers of Supply Technologies accounted for approximately 34% of its sales in 2024, while the same for Assembly Components was about 55%[16][20] - The average tenure of service for the top 50 Supply Technologies clients exceeds ten years, indicating strong customer relationships[16] - Approximately 66% of Assembly Components' net sales were to domestic customers, with the five largest customers accounting for approximately 55% of segment sales[20] - Engineered Products segment net sales to domestic customers were approximately 54% for the year ended December 31, 2024[24] Operations and Facilities - Supply Technologies operates approximately 80 logistics service centers globally, including in the U.S., Mexico, Canada, and several European and Asian countries[16] - Engineered Products operates 13 domestic and 19 international facilities, serving various industries including automotive, construction, and oil and gas[22][24] - The company operates 13 domestic facilities and 19 international facilities across various countries, enhancing its manufacturing capabilities[22] Employee and Human Resources - The company employed approximately 6,300 employees globally as of December 31, 2024, with 2,500 in the United States and 3,800 in other countries[33] - The company employs approximately 6,300 employees globally, with about 33% covered by collective bargaining agreements[33] - The company’s human resource programs are designed to attract, retain, and develop employees through competitive compensation and comprehensive benefits[34] - The company’s compensation policy aligns short-term and long-term incentives with strategic objectives, offering competitive benefits[37] Product and Service Offerings - Assembly Components manufactures products focused on fuel efficiency and vehicle electrification, including high-pressure direct fuel injection fuel rails[18] - Assembly Components focuses on manufacturing products that enhance fuel efficiency and reduce emissions, including high-pressure direct fuel injection fuel rails[18] - Approximately 48% of Engineered Products' revenues from induction heating and melting systems are derived from the sale of replacement parts and field service[23] - Approximately 48% of revenues from the induction heating and melting systems segment are derived from the sale of replacement parts and field service for the installed base of products[23] - The company’s engineering and manufacturing capabilities include precision cold-formed and cold-extruded fasteners used in high-vibration applications[16] Strategic Approach - Supply Technologies competes on the basis of its Total Supply Management approach, which includes engineering support and just-in-time delivery[17] - The company’s Total Supply Management approach distinguishes it from traditional distributors, providing customized supply chain management solutions[16] Environmental and Safety Commitment - The company is committed to employee health and safety, with global health and safety programs tailored to various jurisdictions and operating hazards[35] - The company is committed to health and safety, with global programs tailored to address specific operating hazards and regulatory compliance[35] - The company is actively involved in environmental compliance and has not experienced material adverse effects from such regulations in the past[30] Supply Chain and Sourcing - The company is dependent on third-party suppliers for production components, with a significant portion sourced from foreign countries[27] - The company has multiple sources for raw materials, which are primarily commodity products available from several domestic suppliers[27] Discontinued Operations - The Company completed the sale of its Aluminum Products business to Angstrom Automotive Group on December 29, 2023, classifying it as a discontinued operation[15] - The company completed the sale of its Aluminum Products business to Angstrom Automotive Group on December 29, 2023, classifying it as a discontinued operation[15]

Financial Data and Key Metrics Changes - Consolidated net sales in 2024 were approximately $1.7 billion, consistent with 2023 record revenues [9] - GAAP earnings per share from continuing operations increased 18% to $3.19 per diluted share compared to $2.72 last year [12] - Full-year gross margins improved 60 basis points to 17% of net sales [13] - Adjusted operating income was $94 million compared to $90 million a year ago, an increase of 4% year-over-year [14] - EBITDA as defined was $152 million in 2024, up 13% compared to $134 million in 2023 [16] - Operating cash flow generated during the year was $35 million, and free cash flow was $15 million [17] Business Line Data and Key Metrics Changes - Supply Technologies segment achieved record sales of $779 million, up 2% compared to $766 million in 2023 [22] - Proprietary fastener manufacturing business saw greater than 10% growth year-over-year due to increased demand for new applications [10] - Assembly Components segment sales declined 7% year-over-year to $399 million, affected by lower unit volumes and pricing [25] - Engineered Products segment net sales were a record $482 million, up 3% compared to 2023, driven by strong customer demand [27] Market Data and Key Metrics Changes - Year-over-year growth in aerospace and defense, heavy-duty truck, consumer electronics, and electrical distribution markets [10] - Weaker demand observed in power sports, industrial and agricultural equipment, and lawn and garden markets [10] - Booking trends remained robust in both North America and Europe across major induction heating and melting brands [11] Company Strategy and Development Direction - The company aims to build a diverse set of complementary industrial businesses with competitive moats and above-average growth characteristics [5] - Focus on organic growth complemented by acquisitions through the business cycle [6] - Strategic investments to lower capital expenses and improve overall competitiveness and margin profile [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth driven by stable demand in most end markets for 2025 [33] - Anticipated year-over-year improvement in adjusted operating income, adjusted net income, EBITDA, and free cash flow [33] - Concerns about potential demand impact due to inflation and market chaos, but no current signs of decline [46] Other Important Information - Corporate expenses were $29 million in 2024, compared to $28 million in 2023, primarily due to higher employee-related costs [33] - The effective income tax rate for 2024 was 11%, expected to normalize to 21% to 23% in 2025 [16][33] Q&A Session Summary Question: Expectations for 2025 cadence and impact of tariffs - Management indicated that most of the business will not be significantly impacted by tariffs, with opportunities in domestic sourcing [38][39] Question: Potential standout end markets for 2025 - Aerospace and defense remain strong, with expectations for growth in capital equipment and heavy-duty truck markets [48][50] Question: M&A activity and economic outlook - The company is actively looking for strategic acquisitions to complement profitable businesses, with a steady volume of deals observed [58][60] Question: Fastener business strength and market mix - The fastener business benefits from diverse end markets, with strong performance in aerospace and defense contributing to overall success [110][112]

Financial Data and Key Metrics Changes - Consolidated net sales in 2024 were approximately $1.7 billion, consistent with 2023 record revenues [9] - GAAP earnings per share from continuing operations increased 18% to $3.19 per diluted share compared to $2.72 last year [12] - Full-year gross margins improved 60 basis points to 17% of net sales [13] - Adjusted operating income was $94 million compared to $90 million a year ago, an increase of 4% year-over-year [14] - EBITDA as defined was $152 million in 2024, up 13% compared to $134 million in 2023 [16] - Operating cash flow generated during the year was $35 million, and free cash flow was $15 million [17] Business Line Data and Key Metrics Changes - Supply Technologies segment achieved record sales of $779 million, up 2% compared to $766 million in 2023 [22] - Assembly Components segment sales declined 7% year-over-year to $399 million due to lower unit sales and pricing [25] - Engineered Products segment net sales were a record $482 million, up 3% compared to $469 million in 2023 [27] - Adjusted operating income in the Supply Technologies segment reached an all-time high of $75 million, up 27% compared to $59 million in the prior year [23] Market Data and Key Metrics Changes - Year-over-year growth in sales was driven by aerospace and defense, heavy-duty truck, consumer electronics, and electrical distribution markets [10] - Weaker demand was noted in power sports, industrial and agricultural equipment, and lawn and garden markets [10] - Booking trends remained robust in both North America and Europe across major induction heating and melting brands [10] Company Strategy and Development Direction - The company aims to build a diverse set of complementary industrial businesses with competitive moats and above-average growth characteristics [5] - Focus on organic growth complemented by acquisitions through the business cycle [6] - The strategy includes reallocating capital from high capital cost businesses to areas with better growth opportunities [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth driven by stable demand in most end markets for 2025 [33] - Concerns were raised about potential impacts of tariffs and inflation on overall demand in 2025 [46] - The company expects year-over-year improvement in adjusted operating income, adjusted net income, EBITDA, and free cash flow [33] Other Important Information - Corporate expenses were $29 million in 2024, compared to $28 million in 2023, primarily due to higher employee-related costs [33] - The effective tax rate for 2025 is expected to range from 21% to 23% compared to 11% in 2024 [34] Q&A Session Summary Question: Expectations for 2025 cadence and impact of tariffs - Management indicated that most of the business will not be significantly impacted by tariffs, with opportunities in domestic sourcing [38][39] Question: Potential standout end markets for 2025 - Aerospace and defense remain strong, with expectations for growth in heavy-duty trucks and capital equipment [50] Question: Strength of the fastener business - The fastener business benefits from diverse end markets, with strong demand in aerospace and defense [112] Question: Commentary on share increase - The increase in shares is due to a million shares sold through an ATM program, with no additional sales expected in the forecast [71][72] Question: Outlook for proprietary products - Proprietary products in fastener manufacturing are expected to continue growing, particularly in lightweight materials for automotive applications [79][80]

Financial Performance - In Q4 2024, net sales from continuing operations were $388.4 million, slightly down from $389.3 million in Q4 2023[4] - Q4 2024 adjusted EPS was $0.67 per diluted share, a 24% increase from $0.54 in Q4 2023[4] - Full year 2024 net sales totaled $1.656 billion, compared to $1.660 billion in 2023[5] - Full year 2024 adjusted EPS was $3.59 per diluted share, up 17% from $3.07 in 2023[5] - EBITDA for Q4 2024 was $37 million, a 27% increase from $29 million in Q4 2023[4] - Operating income for Q4 2024 was $14.4 million, down from $17.7 million in Q4 2023, reflecting a decrease of 18.6%[21] - Adjusted earnings from continuing operations for Q4 2024 were $9.3 million, or $0.67 per diluted share, compared to $6.9 million, or $0.54 per diluted share in Q4 2023[23] - The company reported a net income attributable to common shareholders of $0.5 million in Q4 2024, compared to a loss of $14.5 million in Q4 2023[21] - Total cost of sales for the year ended December 31, 2024, was $1,374.8 million, a decrease of 1.0% from $1,388.3 million in 2023[21] - Selling, general and administrative expenses for Q4 2024 were $45.1 million, a decrease from $46.4 million in Q4 2023[21] - The company declared cash dividends of $0.125 per common share for both Q4 2024 and Q4 2023[21] - The loss from discontinued operations for Q4 2024 was $5.1 million, an improvement from a loss of $21.4 million in Q4 2023[21] Segment Performance - In the Supply Technologies segment, Q4 2024 net sales were $181.8 million, a 2% increase from $177.5 million in Q4 2023[7] - For the Assembly Components segment, Q4 2024 net sales were $89.7 million, down from $97.0 million in Q4 2023[8] - Engineered Products segment net sales in Q4 2024 were $116.9 million, up 2% from $114.8 million in Q4 2023[9] - Segment operating income for Supply Assembly Technologies Components was $75.0 million in 2024, compared to $59.0 million in 2023, an increase of 27.1%[34] - Supply Technologies segment reported adjusted operating income of $75.2 million for 2024, a significant increase from $59.2 million in 2023, marking a growth of 27.8%[36] - Assembly Components segment adjusted operating income decreased to $26.5 million in 2024 from $34.9 million in 2023, a decline of 24.5%[36] - Engineered Products segment adjusted operating income was $21.3 million in 2024, compared to $24.0 million in 2023, indicating a decrease of 11.3%[36] - Corporate segment reported an adjusted operating loss of $29.0 million for both 2024 and 2023, showing no change year-over-year[36] - The financial results indicate a mixed performance across segments, with notable growth in Supply Technologies but declines in Assembly Components and Engineered Products[36] Liquidity and Cash Flow - Total liquidity at December 31, 2024, was $198.2 million, reflecting an increase of $32.2 million year-over-year[11] - Net cash provided by operating activities from continuing operations decreased to $35.0 million in 2024, down from $53.4 million in 2023, a decline of 34.4%[31] - Cash and cash equivalents at the end of the year were $53.1 million, down from $54.8 million at the end of 2023, a decrease of 3.1%[31] Debt and Assets - Total assets increased to $1,365.1 million in 2024, up from $1,340.7 million in 2023, representing a growth of 1.8%[30] - Total current liabilities decreased to $361.1 million in 2024 from $363.6 million in 2023, a reduction of 0.7%[30] - Long-term debt decreased to $618.3 million in 2024 from $633.4 million in 2023, a decline of 2.4%[30] Future Outlook - For 2025, the company expects year-over-year sales growth of 2% to 4% driven by stable demand in key end markets[14]

Financial Data and Key Metrics Changes - Consolidated net sales were $418 million, flat compared to $419 million a year ago, indicating stable overall demand despite challenges in industrial markets [12][5] - Consolidated gross margin improved to 17.3%, up 60 basis points from 16.7% last year, with year-to-date gross margin increasing to 17.1% from 16.3% [13][7] - GAAP earnings per share increased by 3% to $1.02, while adjusted earnings per share rose 8% to $1.07 compared to $0.99 a year ago [18] - EBITDA for the quarter was $39 million, consistent with the previous year, while year-to-date EBITDA improved by 10% [19] Business Segment Data and Key Metrics Changes - Supply Technologies segment generated net sales of $195 million, up from $193 million a year ago, with operating income reaching a record $20.5 million, a 31% increase [22][23] - Assembly Components segment sales decreased to $99 million from $108 million a year ago, with adjusted operating income of $6.6 million [26][27] - Engineered Products segment sales increased by 6% to $124 million, driven by a 19% rise in industrial equipment demand, although operating income decreased to $5.2 million [29][31] Market Data and Key Metrics Changes - Strong demand was noted in aerospace and defense, consumer electronics, and medical equipment, while heavy-duty truck and power sports markets experienced lower sales [22] - European revenues in the Engineered Products segment increased by 32% year-over-year, indicating regional strength [29] Company Strategy and Development Direction - The company aims to reshape itself into a more nimble and profitable enterprise, focusing on margin improvement and sustainable growth through strategic investments [4][6] - Continued efforts to reduce leverage were highlighted, including the sale of $25 million in common stock to support debt reduction [9] - The company plans to manage fluctuations in year-end demand closely and improve productivity, particularly in automotive and forging businesses [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for growth in the fourth quarter and anticipated improvements in end markets that faced declines in unit volume during 2024 [6] - The company expects adjusted earnings per share to increase by more than 10% year-over-year and EBITDA to reach approximately $150 million, a 12% increase compared to last year [33] Other Important Information - The company repaid over $23 million of debt during the quarter, significantly increasing liquidity to $194 million [21] - SG&A expenses rose to approximately $48 million, driven by acquisition-related costs and higher employee-related expenses [15] Q&A Session Summary Question: Can you expand on the gross margin improvements and investments in products? - Management discussed repositioning the portfolio since 2018, focusing on making operations more nimble and profitable, and investing in high-margin products [35][36] Question: Are there any lines of business that may be considered for divestiture? - Management indicated that while there are ongoing initiatives to improve operations, there are no current plans for broad divestitures [41] Question: What is the outlook for the Forged segment and operational improvements? - Management acknowledged challenges in the Forged Group but expressed optimism for incremental improvements and better performance in 2025 [55][56] Question: How does the company view the aerospace and defense market? - Management sees a sustainable path in aerospace and defense, with good visibility and backlog extending through 2025 [57][58] Question: Are there any parts of the business uniquely exposed to potential increased tariffs? - Management believes that the business philosophy of local production mitigates significant risks from tariffs, with 70% of operations in North America [63][64]

Park-Ohio Holdings Corp. Third Quarter 2024 Earnings Call Presentation November 7, 2024 Forward-Looking Statements and Non-GAAP Measures These slides contain forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or impl ...