Good morning, everyone. We're ready for our next presentation of the day. My name is John Franzreb. I'm an analyst here at Sedona Inc. Our next presentation is Park-Ohio Holdings Corp., ticker PKOH. For those not familiar with the company, Park-Ohio is a diversified industrial operation that provides supply chain logistics and manufactures aluminum products. We are fortunate to have with us today CEO Matthew V. Crawford and CFO Patrick Fogarty. Following the presentation, there will be time for Q&A. Those of you willing to submit a question, do so in the Q&A icon at the bottom of the page, and I'll present it to management. With that said, gentlemen, thank you for being with us today. The floor is yours. Great job. Thank you very much. We appreciate your time. We are live here from Cleveland, Ohio. I'm Matt Crawford, and Pat Fogarty, our CFO, joins us here. I want to thank Sedona and John in particular. We're excited to spend some time with these guys recently and excited that you have chosen to join us and learn a little bit more about Park-Ohio. We are here today because we believe our company is at an inflection point. We have recently completed largely a reshaping of our business, a reimagining of our allocation of capital, and we think we're poised, after a couple of years of pretty flat growth, to not only grow with significant operating leverage but also reduce debt while we're doing it. Park-Ohio, as John said, is a diverse, integrated group of leading high-value industrial companies, each of which has a deep competitive moat built over decades on brand, customer relationships, process innovation, and intellectual property. We've completed a strategic view of our business portfolio and are prepared to resume our growth, which began in 1992 with less than $100 million in sales. We are a very decentralized business. Here in Cleveland, at Pat and my office, we've got about 30 people. Total employment around the world in 15 different countries is about 6,500. Very decentralized. We empower the business units. We empower the leaders in these individual business units, which are typically one or two in their segment to run the businesses. We operate through three segments. The first is a supply chain business, Supply Technologies. This is not an MRO standard shop. This is an OE, highly engineered, non-standard outsourced services business. Think product categories like fasteners and seals, the things that our customers need a lot of to assemble whatever they're assembling. Assembly Components, an auto and industrial player. They service a number of applications across the global OEM universe, largely, I think, and most competitively in polymer and material science-based extrusions and moldings. Engineered Products, highly specialized manufacturer of equipment for the global power management and induction business, as well as a unique forging business and assets as well. Pat, I want to touch on the right side a little bit. Sure. Just a few key facts about the business. As John mentioned, you know our ticker is PKOH. We closed yesterday at $21.64, which puts our market cap at about $310 million. We have shares outstanding on a fully diluted basis of 14.3 million. Insiders own 33% of the business. When it comes to the financial summary, our second quarter guidance that we gave indicated that sales we expect to be at about $1.62 billion to $1.65 billion. Our earnings per share guidance is $2.90 to $3.20, and our free cash flow is expected to be $20 million to $30 million during the current year, which requires us to generate, in the second half, close to $65 million in free cash flow, which we believe we will be able to do given reductions in harvesting of working capital. Our trailing 12-month revenue is $1.61 billion, and our adjusted EBITDA in the trailing 12 months is $145 million. We also pay a $0.50 dividend, which is estimated to yield 2.3% based on $0.50 a share. Great. We use this next page to sort of emphasize the point that I made earlier. We are diversified in geographies. We're diversified in end markets. We're diversified in products and services. We go to market through these brands. You guys may not know them, but in the markets they serve, they are one of the top players. They typically work with the crème de la crème of the global OEM customer base, and we'll talk about that in a minute. I turn to the management page. If you've known our company before, you know that we were highly decentralized from an operating perspective as well. We've restructured the way we lead our business today. As I mentioned, there's just 30 people here at corporate, which include a lot of accountants and lawyers. Pat and I and our Chief Administrative Officer, Bob Vilsack, are the key employees here. We go to market through leadership with the operational leaders on the right-hand side. Bryan Norris has been with us about four years. He comes from Grainger. Craig Cowan's been with us for many years. He's homegrown. Ravi joined us on the polymer side from Dana. Matt French at the bottom just joined us recently from Ametek. We have brought in world-class leadership to run business portfolios that are typically, call it $500 million to $1 billion in size. On the right-hand side, you can see our family continues to own about a third of the shares. That does not mean that all of these people on this page and others are not deeply invested in the equity. We believe it's a great advantage to have the stewardship of a family. That has been great for attracting talent. It's been great for our business model of giving authority and accountability at the business line, closer to the plants, closer to the customers, but at the same time, allowing acquisition targets and employees to share in the benefits of being in a public company. Why is it a good time to invest in Park-Ohio? First of all, we believe we're well-positioned to capitalize on several megatrends that will drive our revenue growth. We're seeing leading indicators of increased activity and backlog in many of our businesses, new businesses being one in the build-out of data centers through electrical and electrical distribution customers. The increase in silicon steel production has benefited our business, and the increased activity around electrification, aerospace, and defense, and many other parts of our end markets, we're seeing growth. As Matt mentioned, we've completed a portfolio transformation where we consolidated almost a million square feet of manufacturing space. We believe this will unlock our margins through increased absorption and improve our operating leverage. We believe we're less cyclical and capital-intensive than we've been in the past. John mentioned earlier that we manufacture aluminum products, but at the end of 2023, we sold our aluminum products business, which was a very capital-intensive business for us. Our focus is investing in technology and centers of excellence that will help us drive margin improvement and improve our free cash flow. Third, our earnings quality and cash flow are increasing as we de-leverage. We expect to generate, as I mentioned, $65 million of free cash flow in the second half of the year. Each of our businesses has a high conversion rate from EBITDA to free cash flow. As we'll discuss, our long-term strategic goal of being a $2 billion sales company and a 10% EBITDA margin business, we are on track to achieve those metrics. As I mentioned, we currently pay a $0.50 dividend, and our stock is trading well below small cap, mid cap, the index, and multiples much less than companies of our size in diversification. Value creation model. A few things on here are a bit on our DNA since 1992. A strong invested leadership team, a diversified portfolio of customers, markets, and geographies. I mentioned that. A couple of things that I think are worth mentioning that we've touched on. One is we emerge a leaner, less capital-intensive business coming out of our restructuring. As we restructured the business, other than the businesses we sold, most notably the casting business, the million square feet of fixed cost facilities we closed, the other restructurings we did, we didn't lose any customers. This is in our effort, which we're only beginning to see the benefit of, is really around driving more efficiencies, driving more productivity around our current footprint. I think we've seen CapEx levels that are a little bit elevated. We believe our maintenance CapEx now to be down in the $10 million range. Most of our, the vast majority of our revenue businesses do not require significant CapEx, but we are still investing. One of the things we do differently here now today is we are less focused around growth per se, i.e., new contracts, and more focused on long-term competitiveness. Today, when we think about vertical integration, we think about technology tools, we think about automation. Some of the things we're doing we'll talk about are pretty exciting relative to how we're allocating capital to pick up more market share in our key markets. We talked a little bit earlier about end market exposure and the tailwinds Pat talked about. It's funny. I grew up when everybody that I knew was in real estate and all kinds of other businesses, not manufacturing, not industrial. I feel like the cross-section of some government policy or the predominance of you of the North American business in our portfolio has really, in the reinvestment cycle that's going on in key technologies, has really got the wind at our back. Our businesses today, a number of them, deserve an unfair share of our capital going forward, and that will drive significant operating leverage. When you think about Park-Ohio, think about the diversity of our portfolio. Shown on this page is our sales by geography. 58% of our business is in the U.S., and then next in line would be Europe at 16% and Asia at 12%. Our business by segment has changed over the years. Supply Technologies now represents about 50% of our business. The auto business, the Assembly Components segment, represents 24%, and then 29% is our capital equipment and forged and machine products group. Our revenue base is highly diversified. No one customer represents more than 7% of our total consolidated sales. You can see the end markets listed on this page, very diverse in each of our businesses and very diverse in terms of the products that they sell. The majority of our sales are sole sourced. We estimate that over 80% of our business is through sole-sourced relationships with our customers. Our technological capabilities, processes, and products, we continue to further diversify the business and the customer base and the countries and areas of the world that we do business. Our earnings and cash flow are driven by the growth and diversity of our businesses and the strength of the premier customer base, which you'll see shortly. We've touched on some of these global megatrends, but I do want to highlight again, we talk a lot. Many of our underlying markets do have cycles. We talk a lot about sort of the upward slanting to the right sign curve. We want the highs higher and the lows higher. Why do we think this is a good inflection point for that? We've seen general sort of industrial softening over the last couple of years, and I think we've weathered that, particularly given some of our pricing power well. I think that the diversity of our business, plus I think where we are in the industrial cycle generally, with some exceptions, provides a good backdrop to the next couple of years. Also, I think we've talked a lot about industrial policy. Most recently, we acknowledged a $50 million order in the steel industry. We are seeing the benefit, not just of industrial policy around things like steel or aerospace and defense. We're actually seeing, I think, evolution in technology. For example, the investment or the order we took in the steel market is for extremely high technology steel. This is not an opportunity just to play the cycle. It's an opportunity as our country reinvests in itself, and we're beginning to see the same thing in Europe, particularly in Germany. Plus, of course, the new business. I think we have our investments around competitiveness, long-term competitiveness have begun to benefit, and as we go into 2026, we expect to see the new business cycle pick up. We talk a lot about customers. This is just a sampling. Some people like our diversity, some don't, but I would challenge you to say a few companies our size would find technology players like Dell and Foxconn in applied materials, alongside consumer brands like Whirlpool, Polaris, and John Deere, alongside aerospace and defense guys like General Dynamics, Pratt & Whitney, and Northrop Grumman. I'll pick who you want, but I think that is a strength of our durability through the business cycle, particularly as we've used some debt over time. Our cash flow and the strength of our customers have allowed us to maintain significant liquidity even during difficult times. We'll talk a little bit about debt. Pat mentioned an inflection point because one of our goals is to reduce debt and operate sustainably below three times leverage. We'll talk about the businesses a little bit. We don't have a ton of time here today, so maybe we'll come back to these later, but Supply Technologies is, at its core, an outsourced service business. We go to market, have 7,000 customers in 18 countries and 280,000 active part numbers through our product. The reality of it is we are a complete supply chain solution for large OEMs, some of which were mentioned on the prior page. Think in terms of items that may reflect half of the bill of material, but only maybe a single-digit% of the cost. If you look at the picture down here on the left, you could see them assembling a transportation product, and in the background, you can see all of the product that we provide. These are not standard parts. These are fit-for-use, designed-to-print products that we manage, often engineering, design work in conjunction with the company, straight through to placing in the plant. The customer often doesn't own it until they assemble it on the part. Imagine the suite of services that surround this type of process. It's extremely sticky and has a tendency to grow in SKUs over time. Want to touch on some of the financial? Just on the financial summary, think of the Supply Technologies segment as improving, not only from a sales standpoint, but from a margin standpoint. This is a business that has a very high conversion of EBITDA to free cash flow, low CapEx. We're pleased with the direction this segment of our business is heading with the improvement in margins that we've seen over this five-year period of time. Yeah. Hopefully, you sort of get that the value proposition here is two things. We really sell uptime. For our customers, we assure that when they open the doors that day and they've been busy thinking about buying windshields or control boards or whatever they need or tires in the prior picture's case, they don't have to worry about the things that cost pennies, that are particularly difficult to buy but equally important. As one customer has said to us, "If I'm making my product and I'm missing an engine or a $0.02 screw, I ain't making my product that day if I don't have both." What are we doing from a value proposition standpoint? We're reducing the total cost of the supply chain, not just the directed cost. These relationships are typically sole-sourced and typically very sticky. The average customer base, even with new customers, lasts over 10 years, is over 10 years, probably closer to 20. On the next page, we've got a case study. I think you guys get a sense of the business. This is electrical distribution for data centers. This particular customer, of which the prior page had a picture of, we sell 1,000 different components and hardware lines. We service locations in the UK, Ireland, and the United States. We work in the facility on-site with replenishment services to make sure by the shift that they don't run out of product. Again, these supply chains often are long and complex and highly engineered, so this is not as easy as maybe it looks. People ask sometimes who our competition is. I said often it's the customer themselves. You know, do they want to get out of managing inventory, managing quality, managing the engineering side of these products? Oftentimes, the answer is yes. Assembly Components, this is the business we mentioned is in the industrial and automotive space. It has a number of different ways to market, but the one we're going to focus on the most, I think, is the polymer business. I want you to touch on the financials, and then we'll jump into that product. Yeah. From a sales standpoint over this period of time, we've seen some improvement. As I mentioned on our second quarter call, we've landed an incremental $50 million of new business in this space. Margins at 6.6% last year and on an LTM basis, about 6%. We're not pleased with where the margin profile is right now. This is a segment that will benefit from the consolidation of facilities, and any increase in revenues is going to dramatically improve the margin profile of this business. Where we have maintenance capital, you'll see it primarily in this segment of our business. Matt mentioned $10 million. This represents probably 80% of our maintenance capital and roughly half of our annual CapEx requirements in the business. Turning a little bit to the underlying business. First of all, we are exceedingly well-positioned after the last few years in where we do business. We have very efficient and competitive positioning from a manufacturing standpoint in China, and mostly for China, I would add. We have great competitive positioning, low cost in Mexico, and then also in the U.S. We are very well positioned for new business, even in this climate of tariffs and so forth. Most of our business is localized already. As I look here and think about the products here, I'll focus a little bit more energy, I think, on the right-hand side. 83% of our product is agnostic to powertrain. You can see we've got some things here that are fuel rails and fuel filler assemblies. Those are great businesses, by the way, particularly in the U.S. with the shift back to hybrid, plug-in hybrid, and ICE engines. The real, I think, power in the business is on the right side, the polymer-based business, extruded rubber and plastics, molded rubber and plastics. We extrude multi-layer hose, very hard to make, just like our friends down the street here in Cleveland at Parker Hannifin, just like our friends down the street here at Eaton. They are more industrial-focused, which we do have some business. We traditionally have been more automotive-focused. It is a very difficult process. The heritage for us in this business is through a business called Dayco, and then Dana. We acquired this business. The technology, the brand recognition, the complexity, increased regulation around permeating and sweating. Plus, if you think about the opportunity where there's more and more fluid and air management in the car. Think about battery coolant. Think about camera sensor, camera washers, and sensor washers. A lot of opportunity. On the far right, think about molded products. You can see there some electrification protection products, seals and grommets. The more electrification, the more wiring, the more complexity it needs to protect that wiring. That comes with material science. It also comes, I think, with not just understanding the rubber you're mixing, but also, in our case, vertically integrating. We have vertically integrated most of our rubber needs, for example, with significant investments over the last few years, actually in current year as well. This is giving us not just a lower entry point on the raw material, it's also giving us higher quality yields and more ability to alter our recipes. Really, really exciting opportunity where we're sort of in elite air relative to our ability to do this. After having exited the casting business, this part is not high CapEx, notwithstanding the mixture investment. The extrusion lines themselves are really about process knowledge. They're not really about CapEx. That extrusion line does not know if it's making hose for a car, for a lift truck. It just doesn't know. For an airplane, it has no idea. Lastly, and maybe the most exciting opportunity, what I call our inflection point here because it's been underperforming, is our Engineered Products group. The Engineered Products group is a two-pronged business, both in sort of the born out of the industrial side or heat part of the industrial business. The first is a leading, if not the leader globally in induction technology. We can go into what induction is, but suffice it to say for hardening and melting conductive metal, it is a very important process. Also, in terms of large power management, it is a very important process. It is a very innovative-driven process. This is what I just talked about relative to the new steel investments going on. This touches globally every major end market, every major industrial end market. It also comes with massive amounts of embedded equipment, which means the aftermarket business here is very predictable, very strong, and very high margin. We also in this business have a forging business, which unfortunately has been significantly underperforming, and we're in the midst of a turnaround there. That business, while only $100 million in sales, has been struggling. We're starting to see light at the end of the tunnel. We've talked about it extensively on our conference calls. Why have we stayed the course there? This business for the 2000s and 2010s was the most high margin and predictable business at Park-Ohio. Not only are we restabilizing that business, not only is it well-positioned from a tariff perspective for localization, not only is it well-positioned for aerospace and defense, not only are the backlogs inappropriately high at times because people are willing to wait for our product because they can't get it elsewhere, the level of unique assets in this business and the costs to recreate it are really prohibitive for any of our brand name customers. I want to talk a little bit about the financials. Yeah. We've got a few minutes left, and then we'll open it up for Q&A. This business, as Matt mentioned, is historically our highest margin business. Our sales during this period of time have grown at about a 7% compounded annual growth rate. We're sold out in most of our businesses here, strong backlogs, strong books, order book that we're seeing. We fully expect the margin profile in this business to grow, given the makeup of the revenues between new equipment and aftermarket. Here's a picture, I think, of some of the processes. Unless you know a lot about these types of heavy industrial markets, you may not recognize it. Suffice it to say, large power management doing very elegant solutions around heating and hardening. It, again, is a leader in innovation. Our customers are not just steel mills. They are the largest government-backed energy companies. They're the largest companies in the world, I think, trying to manage power as well. People talk a lot about decarbonizing the transportation space. They don't talk a lot about decarbonizing the industrial space, but that is a real tailwind for this business. The backlogs here, I mentioned earlier, we've got tremendous market opportunities. We have struggled to execute. Coming out of COVID, some turnover from people who really knew this business, a lot retired, a lot turned over. We have struggled. I, among others, coined the phrase bad backlog. This business shouldn't be at $200 million. That means there's some product we can't get out the door. Product you can't get out the door is expensive. I think we've turned the corner on execution. The backlogs are very healthy at the $160-170 million level. If you think about the size of the equipment business, that's about a little less than a year worth of backlog. That's really good. You don't want to be quoting this stuff out two years. We're very excited about where this business is going. On the forge side, again, aerospace and defense driving that business. Again, a lot of turnover post-COVID. I promised myself I wouldn't talk about COVID anymore, but a lot of the turnover, a lot of things that happened during that period had caused us to sacrifice the better part of a couple of years of earnings as we have reinvested in that business. This should be the most accretive and the most important business for the future of our company. John, I see you on the call. You want to open it up for a quick Q&A before I have to leave? Thank you, gentlemen. There's a fair amount of questions, so maybe we should just do some speed dating on them. Some of them are specific, such as what are you doing on the product side in the Assembly Components business to mitigate risk on legacy programs? Great question. We have been working the pricing side of that for a couple of years. I think if you go back to that, you can see some progress. I would say the answer is three-pronged. One is we have been working hard the pricing side of that business. You could see the substantial recovery after 2022. We did not recover everything we wanted on the pricing side. In many cases, what we did recover is new business awards. We are looking to see that benefit in 2026 with significant operating leverage. I think that recovery is only half-baked at this point. You have to meet our customers halfway. Some of our investments, particularly around vertical integration, are just beginning to see the benefits of that. We are sort of midstream there, but it is a three-prong attack. Okay. Another specific question. What's the timeline for scaling similar orders to the recent induction heating order? Again, we want to manage our backlogs in a way in which we can execute appropriately. We have had negative variances to target margins on large jobs a lot the last couple of years, and we're emerging from that in a very healthy way. I would honestly tell you, I don't know that if we had the management sitting here and we talk a lot about their order book, we don't want five $50 million orders, right? We want a lot of $5 million and $10 million orders that we can execute reasonably quickly on technology that we are leaders and we're awarded accordingly over the margin profile. I would add that the $50 million order that was won represents five pieces of equipment. Our order levels continue to be robust. The business is poised to take advantage of some of the trends that we talked about. We are a global manufacturer. Whether we manufacture the product here in the U.S. or we manufacture it in Europe and we can shift production to various areas of the world, we're able to do that because we have service people and locations all around the world, which will benefit the growth opportunities that we're seeing. I'll sneak one last question in. This participant had a few, but there's some discussion during the bond road show that within Supply Technologies, some of the new business wins were actually achieved by acquiring new customer inventory and reselling it back to them. Can you kind of walk through that transaction and give us a magnitude of how big it was? I wouldn't call that out as any specific transaction. As we have discussed, one of the value drivers of why customers like Supply Technologies, we will talk occasionally about nothing comes to mind right now where we will be asked to bid on a customer who would like to outsource this part of their business. They will ask us to buy their inventory, right? We sort of find it interesting sometimes. They'll tell us they have $4 million of inventory they'd like us to buy. We will audit it to see what's active and find out less than half of it is active. That's one of the inefficiencies with customers trying to do it themselves is they don't buy this stuff well, and they don't buy it in the right order sizes. They're left with tons of obsolete. That is not a core go-to-market strategy, and there's nothing pending of size on that front. Makes sense. Great. Thanks for that clarification. Gentlemen, we've gone a little bit into overtime here. Any closing remarks? We didn't get a chance to do the long-term goals. Pat, why don't you highlight a couple of them and we'll... I was going to ask you if there's M&A in part of that, but go ahead. Yeah, no, we're continuing to drive the business towards $2 billion in revenue, 10% EBITDA, a net deleveraging down to three times. We're heading in the right direction, and we have many opportunities we're seeing in the marketplace that will get us there. Each of our businesses are driven by those three long-term strategic goals. We traditionally do like doing acquisitions. We de-emphasize them as we seek to restructure and build operating leverage on our next leg up in growth. That is our focus. We are less focused on acquisitions and more focused on, I think, operating leverage and new business. Having said that, we are very good buyers, and if we can find an opportunity that meets our goals around long-term leverage and around operating leverage and strategic growth, we're going to look at it. Again, I think that has not been our emphasis. We've sort of turned the allocation of capital model on its head. Okay. Thanks again. I appreciate you presenting. I know you have a full day ahead of you, but thanks for presenting at the Silverwing Company Conference. Have a great day, everybody. Thanks, John. Thanks, everybody, for your interest. Thank you.