ParkOhio(US:PKOH)2025-11-05 21:30Revenue and Sales Performance - Revenue for Q3 2025 was $399 million, flat sequentially but down 5% year-over-year[6] - Net sales for the three months ended September 30, 2025, were $398.6 million, a decrease of 4.3% compared to $417.6 million in the same period of 2024[28] - For the nine months ended September 30, 2025, net sales totaled $1,204.1 million, a decrease of 5% from $1,267.8 million in the same period of 2024[29] - Net sales guidance for FY2025 is projected between $1.600 billion and $1.620 billion[6] Profitability and Margins - EBITDA for Q3 2025 was $34 million, with an EBITDA margin of 8.6%[6] - Gross profit for the three months ended September 30, 2025, was $66.6 million, down from $72.3 million in the same period of 2024, reflecting a gross margin of 16.7%[28] - Operating income for the three months ended September 30, 2025, was $17.3 million, compared to $23.6 million in the same period of 2024, indicating a decline of 26.5%[28] - The company reported an operating income of $56.3 million for the nine months ended September 30, 2025, down from $72.2 million in the same period of 2024, reflecting a decline of 22.0%[32] Cash Flow and Financial Health - Free cash flow improved by $28 million sequentially to $7 million in Q3 2025[6] - Free cash flow for the three months ended September 30, 2025, was $6.6 million, a significant improvement from a negative $0.1 million in the same period of 2024[33] - The company reported a net cash provided by operating activities from continuing operations of $17.3 million for the three months ended September 30, 2025, compared to $9.0 million in 2024, representing an increase of approximately 92.2%[25] - The company anticipates meaningful cash generation to reduce debt for the remainder of 2025[4] Assets and Liabilities - Total current assets increased to $887.0 million as of September 30, 2025, compared to $836.0 million at the end of 2024, marking an increase of approximately 6.1%[23] - Total assets rose to $1,436.6 million as of September 30, 2025, up from $1,365.1 million in 2024, indicating a growth of about 5.2%[23] - Total liabilities increased to $1,057.8 million as of September 30, 2025, compared to $1,028.0 million in 2024, reflecting an increase of approximately 2.9%[23] - The company’s long-term debt stood at $659.1 million as of September 30, 2025, compared to $618.3 million in 2024, reflecting an increase of about 6.6%[23] Equity and Shareholder Information - Income from continuing operations attributable to common shareholders for the nine months ended September 30, 2025, was $23.3 million, down from $36.6 million in 2024, representing a decline of about 36.4%[21] - The company’s total equity increased to $378.8 million as of September 30, 2025, from $337.1 million in 2024, indicating a growth of approximately 12.4%[23] - Adjusted EPS guidance for FY2025 is between $2.70 and $2.90 per diluted share[6] Segment Performance - Supply Technologies segment revenue was $186 million, with adjusted margins improving to 9.9%[6] - Assembly Components segment revenue was $97 million, with over $50 million of new business expected to launch through 2026[6] - Engineered Products segment revenue was $116 million, with a backlog of $185 million[6] - Adjusted segment operating income for Supply Technologies was $18.4 million for the three months ended September 30, 2025, compared to $20.5 million in the same period of 2024[32] Expenses and Charges - Selling, general and administrative expenses for the three months ended September 30, 2025, were $46.5 million, compared to $47.8 million in the same period of 2024, showing a slight decrease of 2.7%[28] - The company incurred interest expense of $12.5 million for the three months ended September 30, 2025, slightly up from $12.1 million in 2024[21] - Interest expense for the nine months ended September 30, 2025, was $34.7 million, an increase from $36.0 million in the same period of 2024[29] - The company incurred restructuring and other special charges of $2.8 million for the three months ended September 30, 2025, compared to $0.9 million in the same period of 2024[28] Backlog and Demand - Backlog increased by 28% year-to-date to $185 million, driven by demand in defense, infrastructure, and electrification[6]