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 ...

Financial Performance - Net sales decreased 0.3% to $417.6 million in Q3 2024 compared to $418.8 million in Q3 2023, driven by strong demand in Supply Technologies and Engineered Products, offset by lower pricing in Assembly Components [78]. - Cost of sales decreased to $345.3 million in Q3 2024 from $348.8 million in Q3 2023, contributing to a gross margin improvement to 17.3% from 16.7% [80]. - Operating income for Q3 2024 was $23.6 million, down 12.6% from $27.0 million in Q3 2023 [76]. - Income from continuing operations attributable to common shareholders increased by 9.6% to $13.7 million in Q3 2024 compared to $12.5 million in Q3 2023 [76]. - For the first nine months of 2024, net sales decreased 0.2% to $1,267.8 million from $1,270.4 million in the same period in 2023, primarily due to lower sales in Assembly Components [90]. - Cost of sales for the first nine months of 2024 decreased to $1,050.9 million from $1,063.1 million in the same period in 2023, with a gross margin improvement to 17.1% from 16.3% [92]. - SG&A expenses increased by 11.2% to $47.8 million in Q3 2024, representing 11.4% of net sales compared to 10.3% in Q3 2023, due to inflation and higher employee costs [81][82]. - SG&A expenses for the first nine months of 2024 were $142.3 million, an increase of 5.3% from $135.1 million in the same period in 2023, representing 11.2% of net sales [94]. Segment Performance - Net sales for the Supply Technologies Segment increased by $8.1 million, or 1%, to $594.0 million in the nine months ended September 30, 2024, compared to $585.9 million in 2023 [102][105]. - Segment operating income for the Supply Technologies Segment rose by $14.0 million, or 31%, to $59.0 million in the nine months ended September 30, 2024, with an operating income margin increase of 220 basis points [106]. - Net sales for the Assembly Components Segment decreased by $21.8 million, or 7%, to $309.0 million in the nine months ended September 30, 2024, compared to $330.8 million in 2023 [107][110]. - Segment operating income for the Assembly Components Segment fell to $21.6 million in the nine months ended September 30, 2024, down from $26.9 million in 2023, with a margin decrease of 110 basis points [111]. - Net sales for the Engineered Products Segment increased by 3.1% in the nine months ended September 30, 2024, driven by higher capital equipment and aftermarket sales [115]. Cash Flow and Liquidity - The Company generated cash of $8.6 million from operating activities in the nine months ended September 30, 2024, a decrease from $24.3 million in the same period of 2023 due to higher working capital needs [119]. - Capital expenditures were $22.3 million in the nine months ended September 30, 2024, primarily for increased capacity in the Engineered Products and Assembly Components segments [120]. - As of September 30, 2024, the Company had total liquidity of $194.4 million, including $59.5 million in cash and cash equivalents [127]. - The Company incurred interest expense of $36.0 million in the first nine months of 2024, compared to $33.4 million in the same period of 2023, primarily due to higher interest rates [99]. Debt and Financing - Park-Ohio completed the sale of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027, using proceeds to repay previous debt [130]. - As of September 30, 2024, Park-Ohio had finance leases totaling $14.6 million [132]. - The Credit Agreement provides a revolving credit facility of $405.0 million, with calculated availability at $108.7 million as of September 30, 2024, exceeding the $50.625 million threshold [131][133]. - The company must maintain a defined debt service coverage ratio of 1.15 to make certain permitted payments, including acquisitions and dividends [134]. Special Charges and Restructuring - The Company recorded $2.1 million in restructuring and other special charges during the first nine months of 2024, a decrease from $6.6 million in the same period of 2023 [95][96]. Interest Expense and Risks - Interest expense increased to $12.1 million in Q3 2024 from $11.6 million in Q3 2023, primarily due to higher interest rates [85]. - A 100-basis-point increase in interest rates would increase interest expense by approximately $2.1 million during the nine-month period ended September 30, 2024 [144]. - The company faces translation risks related to foreign currency exchange rates, which may affect net sales and expenses from foreign operations [145]. - The company has substantial indebtedness and is subject to risks from economic conditions, including supply chain issues and pricing pressures [142]. - The company entered into agreements to hedge foreign currency, which did not have a material impact on results [146]. - Variability in customer orders has resulted in significant fluctuations in operations, particularly in the capital equipment business [138]. Dividends - The company declared and paid dividends totaling $4.9 million during the nine months ended September 30, 2024, with a quarterly dividend of $0.125 per common share declared on November 1, 2024 [137].

Financial Performance - Net sales for Q3 2024 were $418 million, slightly down from $419 million in Q3 2023[1] - GAAP EPS from continuing operations rose to $1.02 per diluted share, compared to $0.99 in Q3 2023[1] - Adjusted EPS from continuing operations increased by 8% to $1.07 per diluted share, up from $0.99 in Q3 2023[1] - Operating income for Q3 2024 was $23.6 million, down 12.6% from $27.0 million in Q3 2023[15] - The company reported a net income attributable to common shareholders of $9.8 million in Q3 2024, down from $11.1 million in Q3 2023, a decrease of 11.7%[15] - Income from continuing operations attributable to common shareholders increased to $13.7 million in Q3 2024, compared to $12.5 million in Q3 2023, representing an increase of 9.6%[15] - Adjusted earnings from continuing operations for Q3 2024 were $14.3 million, or $1.07 per diluted share, compared to $12.5 million, or $0.99 per diluted share in Q3 2023[17] Earnings and Margins - Gross margin improved to 17.3%, an increase of 60 basis points year-over-year[1] - EBITDA for Q3 2024 was $39 million, representing 9.2% of net sales[1] - EBITDA for Q3 2024 was $38.5 million, unchanged from Q3 2023, while EBITDA for the nine months ended September 30, 2024, was $115.2 million, up from $104.8 million in the same period of 2023[21] - Adjusted EPS for the nine months ended September 30, 2024, was $2.94 per diluted share, a 15% increase from $2.55 in 2023[9] Sales and Revenue Outlook - Year-to-date net sales from continuing operations were $1,267.8 million, down from $1,270.4 million in the same period of 2023[9] - The company expects 2024 revenues to be 1%-2% above record 2023 revenues, with adjusted EPS projected to increase by more than 10% year-over-year[11] - Net sales for Q3 2024 were $417.6 million, a slight decrease of 0.3% compared to $418.8 million in Q3 2023[15] - Net sales for the Supply Technologies segment increased from $192.8 million to $194.5 million year-over-year, while Engineered Products sales rose from $117.6 million to $124.4 million[27] Assets and Liabilities - Total current assets increased to $886.0 million as of September 30, 2024, compared to $824.4 million at the end of 2023, reflecting a growth of 7.5%[23] - Total current liabilities decreased slightly from $363.6 million to $361.3 million, while total long-term liabilities increased from $687.2 million to $702.3 million[24] - The company reported a total equity increase from $289.9 million to $343.0 million[24] Cash Flow and Investments - Net cash provided by operating activities from continuing operations decreased significantly from $24.3 million to $8.6 million[26] - Net cash used in investing activities from continuing operations increased from $20.0 million to $33.3 million[26] - The company issued $24.7 million in common stock, contributing to net cash provided by financing activities of $33.1 million[26] - The company experienced a decrease in cash and cash equivalents from $58.2 million to $54.8 million at the beginning of the period[26] Other Financial Metrics - Interest expense for Q3 2024 was $12.1 million, slightly up from $11.6 million in Q3 2023[15] - The company maintained dividends per common share at $0.125 for both Q3 2024 and Q3 2023[15] - The company reported a loss from discontinued operations of $3.9 million in Q3 2024, compared to a loss of $1.4 million in Q3 2023[15] - Income from continuing operations before income taxes decreased from $16.0 million to $12.6 million for the three months ended September 30, 2024[27] - Adjusted segment operating income for Supply Technologies was reported at $20.5 million, up from $15.6 million in the same period last year[30]

Financial Data and Key Metrics Changes - The company reported record consolidated sales of $433 million for Q2 2024, a 4% increase from $418 million in the previous quarter and a slight increase from $428 million a year ago [4][5] - Adjusted EPS for the quarter was $1.02, up 23% from $0.83 a year ago, while GAAP EPS increased 67% to $0.95 [6][7] - EBITDA for the quarter was $39.4 million, a 10% improvement year-over-year, with an EBITDA margin of 9.1%, the highest since 2018 [6][7] - Consolidated operating income improved 28% to $24.6 million, with adjusted operating income increasing 11% to $26 million [7] Business Line Data and Key Metrics Changes - **Supply Technologies**: Achieved record net sales of $203 million, a 3% increase year-over-year, with a significant 56% increase in the aerospace and defense market [8][9] - **Assembly Components**: Sales decreased to $103 million from $112 million a year ago, impacted by lower unit volumes and pricing on legacy programs [10][11] - **Engineered Products**: Sales reached a record $127 million, up 7% year-over-year, driven by strong demand in industrial equipment and forged machine products [12][13] Market Data and Key Metrics Changes - Demand in the aerospace and defense market showed notable strength, contributing positively to sales growth [5][8] - The company anticipates variability in demand in the second half of the year, particularly in consumer-facing markets, while maintaining a stable outlook overall [4][18] Company Strategy and Development Direction - The company aims for year-over-year revenue growth of 2% to 4%, focusing on improving margins and operational efficiencies [15] - Continued emphasis on debt reduction and free cash flow generation is expected in the second half of the year [4][8] - The company is transitioning its business model to enhance quality of earnings and sustainable cash flow, particularly after divesting from lower-margin automotive assets [37] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, highlighting the strength in aerospace and defense while acknowledging challenges in consumer-facing markets [18][19] - The company is focused on improving operational execution and addressing supply chain challenges to enhance performance in the Engineered Products segment [20][21] Other Important Information - The effective tax rate for the quarter was 19%, with expectations to lower the full-year effective tax rate to between 21% and 23% due to tax strategies [7] - The company reported strong liquidity of $161 million as of June 30, including $60 million in cash and $101 million in unused borrowing capacity [8] Q&A Session Summary Question: Guidance on revenue growth - Management noted that while guidance has been adjusted to 2% to 4%, certain end markets, particularly aerospace and defense, remain strong, while consumer-facing markets are more challenging [16][17] Question: Sustainability of Engineered Products performance - Management indicated that Engineered Products is expected to improve over the medium term, despite historical underperformance due to execution issues [19][20][21] Question: Pricing strategies for low-margin products - Management confirmed ongoing efforts to increase pricing on low-margin products, particularly in the automotive segment, while also focusing on operational efficiencies [24][25] Question: Bookings and backlog in Engineered Products - Bookings for the quarter were approximately $50 million, with strong backlogs and improved operational performance expected to sustain growth [35] Question: Free cash flow expectations - Management expects second-half free cash flow to be between $25 million and $30 million, with year-to-date cash flow at $13 million [35]

Park-Ohio Holdings Corp. Second Quarter 2024 Earnings Call Presentation August 8, 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 impli ...