Financial Performance - Net sales increased by 1.1% to $432.6 million in Q2 2024 compared to $428.1 million in Q2 2023, driven by higher customer demand in Supply Technologies and Engineered Products segments [67]. - Operating income rose by 28.1% to $24.6 million in Q2 2024 from $19.2 million in Q2 2023, reflecting improved profitability [65]. - Gross margin improved to 16.9% in Q2 2024 from 16.4% in Q2 2023, attributed to better performance in Supply Technologies and capital equipment business [68]. - Income from continuing operations attributable to common shareholders was $12.3 million in Q2 2024, a 73.2% increase from $7.1 million in Q2 2023 [66]. - Net sales for the first six months of 2024 decreased by 0.2% to $850.2 million compared to $851.6 million in the same period in 2023, mainly due to lower sales in the Assembly Components segment [78]. - Gross margin for the first six months of 2024 improved to 17.0% from 16.1% in the same period in 2023, driven by profit improvement initiatives [79]. Segment Performance - Net sales for the Supply Technologies segment increased by $5.3 million (2.7%) in Q2 2024 compared to Q2 2023, driven by strong demand in key markets [89]. - Segment operating income for the Supply Technologies segment rose by $3.6 million to $19.0 million in Q2 2024, with an operating income margin increase of 160 basis points [90]. - Net sales for the Assembly Components segment decreased by $8.9 million (7.9%) in Q2 2024 compared to Q2 2023, primarily due to lower product pricing and unit volumes [94]. - Segment operating income for the Assembly Components segment decreased to $6.9 million in Q2 2024 from $8.4 million in Q2 2023 [95]. - Net sales for the Engineered Products segment increased by 6.8% in Q2 2024 compared to Q2 2023, driven by higher sales in capital equipment and aftermarket parts [98]. - Segment operating income for the Engineered Products segment increased by $3.1 million to $6.3 million in Q2 2024, with an operating income margin increase of 230 basis points [98]. Expenses and Charges - SG&A expenses increased by 1.3% to $47.4 million in Q2 2024, representing 11.0% of net sales, up from 10.9% in Q2 2023 [69]. - Interest expense increased to $12.0 million in Q2 2024 from $11.1 million in Q2 2023, primarily due to higher interest rates [73]. - Restructuring and special charges decreased significantly to $1.2 million in Q2 2024 from $4.1 million in Q2 2023 [71]. - In the first six months of 2024, the company recorded acquisition-related charges of $0.3 million and restructuring charges of $1.2 million, compared to $6.6 million in 2023 [81]. Cash Flow and Liquidity - As of June 30, 2024, the company had total liquidity of $158.2 million, including $59.9 million in cash and cash equivalents [106]. - Capital expenditures for the first half of 2024 were $13.2 million, primarily aimed at increasing capacity for future growth [103]. - The Company declared and paid dividends totaling $3.3 million during the six months ended June 30, 2024, with a quarterly dividend of $0.125 per common share declared on July 19, 2024, resulting in a cash outlay of approximately $1.6 million [115]. Debt and Interest Rate Risks - The company incurred net interest expense of $23.9 million in the first half of 2024, up from $21.8 million in the same period of 2023, primarily due to higher interest rates [84]. - A 100-basis-point increase in interest rates would have resulted in an increase in interest expense of approximately $1.5 million during the six-month period ended June 30, 2024 [121]. - The Company must maintain defined availability thresholds ranging from $37.5 million to $50.625 million and a debt service coverage ratio of 1.15 to make certain permitted payments, including acquisitions and dividends [112]. Market and Operational Risks - The Company faces translation risks related to changes in foreign currency exchange rates, which may affect net sales and expenses from foreign operations [122]. - The Company is exposed to market risk, including changes in interest rates and commodity prices, particularly for metal and rubber compounds [123]. - The Company expects to remain in compliance with financial covenants throughout 2024, although declines in sales volumes could adversely impact this ability [113]. - The variability of customer orders has resulted in significant periodic and quarterly fluctuations in operations, particularly in the capital equipment business [116]. - The Company has no material commodity swap agreements or forward purchase contracts, having entered into agreements to hedge foreign currency in 2024 and 2023 [123]. - Forward-looking statements indicate potential risks including economic conditions, supply chain issues, and the ability to integrate acquisitions, which may impact future performance [119].

Financial Performance - Record net sales of $433 million in Q2 2024, up from $428 million in Q2 2023, representing a 1% increase[1][2] - Gross margin improved by 50 basis points to 16.9% year-over-year[1][2] - GAAP income from continuing operations increased to $12.3 million, or $0.95 per diluted share, compared to $7.1 million, or $0.57 per diluted share in Q2 2023, a 67% increase[1][2] - Adjusted EPS from continuing operations rose 23% to $1.02 per diluted share, up from $0.83 in Q2 2023[1][2] - EBITDA improved by 10% year-over-year to $39 million, representing 9.1% of net sales[1][2] - Year-to-date net sales from continuing operations were $850.2 million, slightly down from $851.6 million in the same period in 2023[8] - For 2024, the company expects year-over-year revenue growth between 2% and 4%[8] - Operating income for the three months ended June 30, 2024, increased to $24.6 million, compared to $19.2 million in the same period last year, and for the six months, it rose to $48.6 million from $39.4 million[12] - Income from continuing operations attributable to Park-Ohio Holdings Corp. common shareholders for the three months ended June 30, 2024, was $12.3 million, up from $7.1 million year-over-year, and for the six months, it increased to $22.9 million from $14.6 million[12] - Adjusted earnings from continuing operations for the three months ended June 30, 2024, were $13.1 million, or $1.02 per diluted share, compared to $10.2 million, or $0.83 per diluted share, in the same period last year[14] - EBITDA for the three months ended June 30, 2024, was $39.4 million, an increase from $35.7 million in the same period last year, and for the six months, it rose to $77.2 million from $67.2 million[12] - Operating income for the three months ended June 30, 2024, was $24.6 million, up from $19.2 million in the same period of 2023, a growth of 28.2%[23] - The company achieved an operating income of $50.1 million for the first half of 2024, compared to $45.2 million in the first half of 2023, reflecting a growth of 10.9%[27] - Adjusted operating income for the first half of 2024 was $50.1 million, compared to $39.4 million in the first half of 2023, indicating a growth of 27.0%[27] Segment Performance - In the Supply Technologies segment, net sales reached $202.6 million, a 3% increase driven by strong demand in aerospace and defense, with a 56% year-over-year sales increase in that market[4] - Engineered Products segment net sales were a record $126.9 million, up 7% year-over-year, with new equipment backlog totaling $173 million[6] - Net sales for the Supply Technologies segment for the six months ended June 30, 2024, were $399.5 million, up from $393.1 million in the same period of 2023, indicating a 1.0% increase[23] - Supply Technologies reported revenue of $19.0 million for the three months ended June 30, 2024, an increase from $15.4 million in the same period of 2023, reflecting a growth of 23.4%[26] - Engineered Products segment revenue increased to $7.3 million in Q2 2024 from $6.1 million in Q2 2023, representing a year-over-year growth of 19.7%[26] - Supply Technologies adjusted revenue for the first half of 2024 was $38.7 million, compared to $29.6 million in the first half of 2023, marking a significant increase of 30.9%[27] - Engineered Products adjusted revenue for the first half of 2024 reached $11.1 million, up from $13.1 million in the first half of 2023, showing a growth of 35.4%[27] - The Assembly Components segment maintained revenue at $15.5 million for the first half of 2024, consistent with the same period in 2023[27] Assets and Liabilities - Total current assets increased to $864.1 million as of June 30, 2024, from $824.4 million as of December 31, 2023, reflecting a growth of 4.1%[20] - Total assets reached $1,380.6 million as of June 30, 2024, compared to $1,340.7 million at the end of 2023, marking a 2.97% increase[20] - Long-term debt increased to $670.3 million as of June 30, 2024, from $633.4 million at the end of 2023, representing a 5.8% rise[20] Cash Flow and Expenses - The company reported a net cash used in investing activities of $24.2 million for the six months ended June 30, 2024, compared to $13.0 million for the same period in 2023, indicating a significant increase in investment[22] - Cash and cash equivalents at the end of the period increased to $59.9 million from $53.4 million, showing an increase of 12.2%[22] - Interest expense for the three months ended June 30, 2024, was $12.0 million, compared to $11.1 million in the same period last year[12] - Interest expense for the six months ended June 30, 2024, was $23.9 million, compared to $21.8 million for the same period in 2023, reflecting an increase of 9.6%[18] - Selling, general and administrative expenses for the three months ended June 30, 2024, were $47.4 million, compared to $46.8 million in the same period last year[12] - The company experienced restructuring and other special charges of $1.2 million for the three months ended June 30, 2024, down from $4.1 million in the same period last year[12] Discontinued Operations - The company reported a loss from discontinued operations of $0.4 million for the three months ended June 30, 2024, an improvement from a loss of $1.7 million in the same period last year[12] - The corporate segment reported an operating loss of $(15.2) million for the first half of 2024, slightly worse than the $(14.7) million loss in the same period of 2023[27] - The company reported a gain on the sale of assets of $0.8 million in the first half of 2023, which did not recur in the first half of 2024[27]

Park-Ohio Holdings Corp. First Quarter 2024 Earnings Call Presentation First Quarter 2024 Highlights Gross margin of 17.1% improved 120 basis points year-over-year 3 • 18% improvement in Adjusted EPS driven by record operating profit in our Supply Technologies segment and benefits from ongoing profit-improvement actions, including product pricing. Q1 Supply Technologies Segment (in millions) • Continued strong customer demand in most of our key end markets, driven by a 28% increase in the aerospace and defe ...

Financial Data and Key Metrics Changes - Adjusted EPS increased by 18% to $0.85 compared to $0.72 a year ago [7] - EBITDA improved by 19% year-over-year, totaling $38 million in Q1 2024 [8] - Consolidated operating income rose 19% to $24 million from $20.2 million in the same quarter last year [7][8] - Operating income margins improved by 90 basis points to 5.7% of net sales [7] - Revenues for the quarter totaled $418 million, with a consolidated gross margin of 17.1%, up 120 basis points from the previous year [31] Segment Performance Changes - In Supply Technologies, net sales were $197 million, reflecting a 28% increase in aerospace and defense, despite lower demand in heavy-duty truck and agricultural equipment markets [9] - Assembly Components segment sales totaled $107 million, down from $110 million a year ago, but operating income increased 18% to $8.6 million [11] - New equipment bookings were approximately $40 million, with backlogs totaling $151 million [12] Market Data and Key Metrics Changes - Strong demand was noted in aerospace and defense, industrial supply, and aftermarket services, contributing to overall revenue growth [9][35] - The Engineered Products segment saw a slight decline in sales to $114 million, primarily due to lower new equipment sales in the U.S. and Europe, although aftermarket revenue increased by 16% [35] Company Strategy and Industry Competition - The company is focusing on becoming a leaner, less capital-intensive business while improving operational efficiencies and cash flow management [4][28] - There is a strong emphasis on high-margin products and services, with ongoing initiatives to exit low-margin businesses [28][60] - The acquisition of EMA GmbH is expected to enhance global induction heating expertise and contribute positively to operating margins and earnings per share [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved year-over-year comparisons and growth driven by stable demand and macro trends in infrastructure, EV, and semiconductor sectors [5][36] - The company anticipates continued operational improvements and margin expansion, with a focus on managing working capital and reducing inventory levels [68] Other Important Information - The company’s liquidity at the end of Q1 was $168 million, consisting of $62 million in cash and $106 million in unused borrowing capacity [8] - Interest costs increased to $11.9 million due to higher interest rates, but were partially offset by lower average borrowings [32] Q&A Session Summary Question: How challenging will it be to map process improvements from Supply Tech to other segments? - Management acknowledged the unique challenges of each business cycle but expressed confidence in the operational excellence achieved in Supply Tech [40] Question: What does the sales cycle look like for new business in automotive? - Management indicated that replacement business is well-positioned, and new business opportunities are expected to impact growth positively starting in 2025 [42] Question: What is the margin opportunity in a higher revenue environment? - Management expects a flow-through of at least 15% in operating income margins as revenues expand, driven by fixed cost management [55] Question: How will capital expenditures be managed moving forward? - The company plans to spend approximately $25 million in CapEx this year, focusing on growth opportunities while reducing working capital [56][68] Question: What enabled the gross margin improvement this quarter? - The improvement was attributed to a favorable mix of higher-margin products and ongoing pricing initiatives [59][60]

Financial Performance - Net sales decreased 1.4% to $417.6 million in Q1 2024 compared to $423.5 million in Q1 2023, primarily due to lower sales in the Engineered Products and Assembly Components segments [84]. - Cost of sales decreased 2.8% to $346.2 million in Q1 2024, resulting in a gross margin improvement to 17.1% from 15.9% in Q1 2023, driven by higher operating profit in the Supply Technologies segment [86]. - SG&A expenses increased by 4.0% to $47.1 million in Q1 2024, representing 11.3% of net sales compared to 10.7% in Q1 2023, attributed to ongoing inflation and higher employee costs [88]. - Operating income increased 18.8% to $24.0 million in Q1 2024, with income from continuing operations attributable to common shareholders rising 41.3% to $10.6 million [84]. Segment Performance - The Supply Technologies segment reported net sales of $196.9 million in Q1 2024, with segment operating income increasing to $19.5 million, reflecting a margin improvement to 9.9% [95]. - The Assembly Components segment's net sales decreased to $107.2 million in Q1 2024, but segment operating income improved 17.8% to $8.6 million [98]. - The Engineered Products segment experienced a 3.2% decrease in net sales to $113.5 million, with segment operating income declining to $3.5 million due to lower sales and higher operating costs [101]. Cash Flow and Capital Expenditures - Cash flow from operating activities increased to $2.3 million in Q1 2024 from $0.2 million in Q1 2023, driven by higher income from continuing operations [105]. - Capital expenditures were $5.8 million in Q1 2024, aimed at increasing capacity for future growth in the Engineered Products and Assembly Components segments [106]. - Capital expenditures were $6.0 million for the three months ended March 31, 2023, primarily for future growth capacity in Engineered Products and Assembly Components segments [107]. Liquidity and Debt - As of March 31, 2024, total liquidity was $167.5 million, including $61.6 million in cash and cash equivalents and $105.9 million in unused borrowing availability [112]. - Net debt borrowings of $27.5 million were made during the three months ended March 31, 2024, to fund the EMA acquisition and capital expenditures [108]. - The Company had finance leases totaling $15.5 million as of March 31, 2024 [117]. - The Company made net debt borrowings of $7.4 million during the three months ended March 31, 2023, to fund higher working capital levels [109]. Dividends and Interest Rates - The Company declared and paid dividends totaling $1.6 million during the three months ended March 31, 2024, with a quarterly dividend of $0.125 per common share declared on April 19, 2024 [121]. - 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, 2024 [128]. Credit Facilities - The Credit Agreement provides for a revolving credit facility of $405.0 million, with an option to increase availability by up to $70.0 million [116]. - The calculated availability under the Credit Agreement was $100.8 million as of March 31, 2024, indicating compliance with financial covenants [120]. Foreign Cash Holdings - Cash and cash equivalents held by foreign subsidiaries were $50.4 million at March 31, 2024, compared to $44.6 million at December 31, 2023 [113].

[Q1 2024 Financial Highlights & Consolidated Results](index=1&type=section&id=FIRST%20QUARTER%20CONSOLIDATED%20RESULTS%20FROM%20CONTINUING%20OPERATIONS) ParkOhio reported strong Q1 2024 results with a 36% increase in GAAP EPS from continuing operations to $0.83 and an 18% rise in adjusted EPS to $0.85, alongside improved gross margin and EBITDA, primarily driven by record performance in the Supply Technologies segment Q1 2024 Consolidated Financial Highlights | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Millions) | $417.6 | $423.5 | -1.4% | | Gross Margin | 17.1% | 15.9% | +120 bps | | GAAP EPS (cont. ops) (Dollars) | $0.83 | $0.61 | +36.1% | | Adjusted EPS (cont. ops) (Dollars) | $0.85 | $0.72 | +18.1% | | EBITDA, as defined (Millions) | $37.8 | $31.7 | +19.2% | - The company's CEO highlighted **improved quality of earnings** and **solid backlogs**, particularly in equipment and forging end markets, as key drivers for the **strong performance**[3](index=3&type=chunk) - Profitability was boosted by **record operating profit** in the Supply Technologies segment and benefits from ongoing **profit-improvement initiatives** and **product pricing**[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=FIRST%20QUARTER%20SEGMENT%20RESULTS%20FROM%20CONTINUING%20OPERATIONS) In Q1 2024, the Supply Technologies segment delivered record operating income and margin, driven by strong demand in aerospace and defense, while Assembly Components improved its operating margin, and Engineered Products saw a decline in sales due to lower new equipment sales despite aftermarket growth [Supply Technologies](index=1&type=section&id=Supply%20Technologies) Q1 2024 Supply Technologies Performance | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $196.9 | $195.8 | +0.6% | | Operating Income | $19.5 | $14.0 | +39.3% | | Operating Margin | 9.9% | 7.2% | +270 bps | - Sales growth was driven by a **28% increase** in the aerospace and defense market and a **15% year-over-year increase** in the fastener manufacturing business[7](index=7&type=chunk) - The **record 9.9% operating margin** was attributed to an increase in higher-margin sales, lower supply chain costs, and strong demand in the fastener business[9](index=9&type=chunk) [Assembly Components](index=2&type=section&id=Assembly%20Components) Q1 2024 Assembly Components Performance | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $107.2 | $110.4 | -2.9% | | Operating Income | $8.6 | $7.3 | +17.8% | | Operating Margin | 8.0% | 6.6% | +140 bps | - The **18% improvement in operating income** was driven by profit improvement initiatives, better product pricing, and benefits from completed plant closure and consolidation actions[10](index=10&type=chunk) [Engineered Products](index=2&type=section&id=Engineered%20Products) Q1 2024 Engineered Products Performance | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $113.5 | $117.3 | -3.2% | | Operating Income | $3.5 | $5.0 | -30.0% | | Adjusted Op. Income | $3.8 | $7.0 | -45.7% | - Sales in the aftermarket parts and service business grew **16% year-over-year**, partially offsetting lower new equipment sales[11](index=11&type=chunk) - New equipment backlog totaled **$151 million** at March 31, 2024[11](index=11&type=chunk) - On February 29, 2024, the company completed the acquisition of EMA Indutec GmbH to expand its global induction business[11](index=11&type=chunk) [Liquidity and Cash Flow](index=2&type=section&id=LIQUIDITY%20AND%20CASH%20FLOW) EBITDA increased 19% year-over-year to $37.8 million in Q1 2024, with operating cash flow from continuing operations improving to $2.3 million, and total liquidity remaining strong at $167.5 million - Operating cash flow from continuing operations was **$2.3 million**, an improvement from **$0.2 million** in Q1 2023[14](index=14&type=chunk) - Total liquidity at March 31, 2024, was **$167.5 million**, which included **$61.6 million** of cash on hand and **$105.9 million** of unused borrowing availability[15](index=15&type=chunk) [Credit Agency Upgrade](index=2&type=section&id=CREDIT%20AGENCY%20UPGRADE) On April 10, 2024, S&P Global upgraded Park-Ohio's issuer credit rating to 'B' from 'B-', reflecting improved operating performance and expectations for continued profitability and deleveraging - S&P Global upgraded the issuer credit rating to **B from B-** and the issue-level rating on the Company's senior unsecured notes to **B-**[17](index=17&type=chunk) [2024 Outlook](index=2&type=section&id=2024%20OUTLOOK%20-%20CONTINUING%20OPERATIONS) The company reaffirmed its full-year 2024 outlook, expecting mid-single-digit revenue growth driven by strong demand and a robust backlog, along with continued year-over-year improvement in both EPS and EBITDA - The company continues to expect revenue growth in the **mid-single digit range year-over-year** for 2024[19](index=19&type=chunk) - Continued **year-over-year improvement in EPS and EBITDA**, as defined, is also expected[19](index=19&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, 2024, compared to the same period in 2023, including Statements of Income, Balance Sheets, Cash Flows, and Business Segment Information [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)) Q1 2024 Condensed Consolidated Statements of Income | (In millions, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net sales (Millions) | $417.6 | $423.5 | | Operating income (Millions) | $24.0 | $20.2 | | Income from continuing operations (Millions) | $10.1 | $7.6 | | Net income attributable to PKOH shareholders (Millions) | $9.6 | $5.8 | | Diluted EPS from continuing operations (Dollars) | $0.83 | $0.61 | | Dividends per common share (Dollars) | $0.125 | $0.125 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Q1 2024 Condensed Consolidated Balance Sheets | (In millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents (Millions) | $61.6 | $54.8 | | Total current assets (Millions) | $883.7 | $824.4 | | Total assets (Millions) | $1,402.5 | $1,340.7 | | **Liabilities & Equity** | | | | Total current liabilities (Millions) | $393.5 | $363.6 | | Long-term debt (Millions) | $657.3 | $633.4 | | Total liabilities (Millions) | $1,105.0 | $1,050.8 | | Total equity (Millions) | $297.5 | $289.9 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Q1 2024 Condensed Consolidated Statements of Cash Flows | (In millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities (cont. ops) (Millions) | $2.3 | $0.2 | | Net cash used in investing activities (cont. ops) (Millions) | $(16.8) | $(5.1) | | Net cash provided by financing activities (cont. ops) (Millions) | $25.8 | $4.5 | | Increase (decrease) in cash and cash equivalents (Millions) | $6.8 | $(8.6) | [Non-GAAP Reconciliations](index=5&type=section&id=Supplemental%20Non-GAAP%20Financial%20Measures%20(Unaudited)) This section provides reconciliations for key non-GAAP financial measures used by management to evaluate performance, including Adjusted EPS from continuing operations, EBITDA, and adjustments to segment operating income [Reconciliation of Adjusted Earnings Per Share (EPS)](index=5&type=section&id=Reconciliation%20of%20Adjusted%20Earnings%20from%20Continuing%20Operations) Q1 2024 Reconciliation of Adjusted Earnings Per Share | (In millions, except EPS) | Q1 2024 Earnings (Millions) | Q1 2024 Diluted EPS (Dollars) | Q1 2023 Earnings (Millions) | Q1 2023 Diluted EPS (Dollars) | | :--- | :--- | :--- | :--- | :--- | | GAAP Income from cont. ops. | $10.6 | $0.83 | $7.5 | $0.61 | | Adjustments (net of tax) | $0.2 | $0.02 | $1.3 | $0.11 | | **Adjusted Earnings** | **$10.8** | **$0.85** | **$8.8** | **$0.72** | [Reconciliation of EBITDA, as defined](index=8&type=section&id=Reconciliation%20of%20EBITDA%2C%20as%20defined) Q1 2024 Reconciliation of EBITDA | (In millions) | Three Months Ended March 31, 2024 (Millions) | Three Months Ended March 31, 2023 (Millions) | | :--- | :--- | :--- | | Income from continuing operations | $10.6 | $7.5 | | Interest expense, net | $11.9 | $10.7 | | Income tax expense | $3.3 | $2.6 | | Depreciation and amortization | $8.4 | $7.7 | | Other adjustments | $3.6 | $3.2 | | **EBITDA, as defined** | **$37.8** | **$31.7** | [Reconciliation of Adjusted Segment Operating Income](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Segment%20Operating%20Income) Q1 2024 Reconciliation of Adjusted Segment Operating Income | (In millions) | As Reported Q1 2024 (Millions) | As Adjusted Q1 2024 (Millions) | As Reported Q1 2023 (Millions) | As Adjusted Q1 2023 (Millions) | | :--- | :--- | :--- | :--- | :--- | | Supply Technologies | $19.5 | $19.5 | $14.0 | $14.2 | | Assembly Components | $8.6 | $8.6 | $7.3 | $7.6 | | Engineered Products | $3.5 | $3.8 | $5.0 | $7.0 |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 000-03134 PARK-OHIO HOLDINGS CORP. (Exact name of registrant as specified in its charter) | Ohio ...

Financial Data and Key Metrics Changes - The company achieved record consolidated net sales from continuing operations of $1.7 billion, up 11% compared to $1.5 billion in 2022 [63][64] - Gross margins improved by 230 basis points year-over-year to 16.4% of net sales [66] - Operating cash flows exceeded $50 million, with free cash flow of $25 million, a significant improvement from a negative free cash flow of $54 million last year [55][51] - GAAP earnings per share increased significantly to $2.72, with adjusted EPS improving to $3.07, a 74% increase year-over-year [85] Business Line Data and Key Metrics Changes - In the Supply Technologies segment, net sales reached a record $763 million, up 7% from $712 million in 2022, driven by strong demand across various end markets [56] - The Engineered Products segment saw sales of $469 million, up 19% compared to $393 million in 2022, supported by strong customer demand and robust equipment backlogs [70] - Assembly Components segment sales were $428 million, up 10% from $389 million in 2022, attributed to increased net price realization and volumes from new programs [57] Market Data and Key Metrics Changes - The company noted strong demand in aerospace and defense markets, with a 26% year-over-year increase in demand from commercial aerospace customers [88] - Demand in the semiconductor market is expected to stabilize, with increased year-over-year demand anticipated in aerospace and semiconductor end markets [91] Company Strategy and Development Direction - The company is focused on continuous improvement, optimizing execution, and reducing costs while prioritizing organic growth opportunities [49][60] - The acquisition of EMA Indutec GmbH for approximately $14 million is expected to be accretive to segment margins and earnings per share, enhancing the company's global induction heating expertise [73][93] - The company aims to create operating leverage, grow gross margins, and generate additional cash flow to reduce debt in 2024 [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2024 with strong backlogs and anticipated stable demand across most end markets, particularly in aerospace and defense [61][92] - The company acknowledged challenges in Europe, particularly in Germany, but emphasized the importance of the German market for global manufacturing [18] - Management indicated that while unit volumes may flatten, there are significant opportunities for innovation and operational improvements [28][105] Other Important Information - The company reduced net debt leverage to 4.4 times, an improvement of 27% compared to the previous year [51] - SG&A expenses increased due to higher sales levels and inflation but remained stable as a percentage of net sales at 10.9% [54] Q&A Session Summary Question: What lessons can be expected for free cash flow going forward? - Management indicated that predicting month-to-month deliveries is challenging, but strong backlogs and customer demand are expected to support cash flow [10][11] Question: What is the integration timeline for EMA? - Management noted that EMA is a complex equipment business, and while integration is expected to be smooth, it will take time to fully realize synergies [25][41] Question: How does the company plan to address margin pressures in Engineered Products? - Management highlighted that margins were affected by startup costs and equipment downtime but expect improvements as operations stabilize [38][39] Question: What is the expected growth cadence in the semiconductor business? - Management acknowledged that semiconductor demand is difficult to predict but expressed confidence in year-over-year growth, particularly in aerospace and defense [30][31] Question: How does the company view its acquisition strategy? - Management emphasized a rigorous process for acquisitions, focusing on strategic fit and financial metrics, while also noting that the current focus is not solely on acquisitions [16][98]

Park-Ohio Holdings Corp. Fourth Quarter 2023 Earnings Call Presentation Forward-Looking Statements and Non-GAAP Measures Record net sales from continuing operations of $1.7 billion, up 11% YOY, and record net sales in each business segment March 6, 2024 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, o ...

"Our team delivered strong growth of 11% during 2023 even with the adverse impact of the UAW strikes during the fourth quarter. These results represented record revenue for our business in total and for every business segment. Additionally, gross margin increased more than 200 basis points over 2022, and operating cash flow exceeded $53 million, which was used to grow our business and reduce debt. Our strong performance is a testament to the hard work of our teams and strong positioning in the market of our ...