Slides
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Park-Ohio Holdings Corp.Second Quarter 2025 Earnings Call PresentationAugust 7, 2025
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These slides contain forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknownrisks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any futureresults, performance or achievements expressed or implied by such forward-looking statements. These factors that could cause actual results to differ materially fromexpectations include, but are not limited to, the following: the impact supply chain and logistic issues have on our business, results of operations, financial position andliquidity; our substantial indebtedness; the uncertainty of the global economic environment; general business conditions and competitive factors, including pricingpressures and product innovation; demand for our products and services; the impact of labor disturbances affecting our customers; raw material availability andpricing; fluctuations in energy costs; component part availability and pricing; changes in our relationships with customers and suppliers; the financial condition of ourcustomers, including the impact of any bankruptcies; our ability to successfully integrate recent and future acquisitions into existing operations; the amounts andtiming, if any, of purchases of our common stock; changes in general economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higherlabor and healthcare costs, recessions and changing government policies, laws and regulations, including those related to the current global uncertainties and crises,such as tariffs and surcharges; adverse impacts to us, our suppliers and customers from acts of terrorism or hostilities, including the conflicts between Russia andUkraine and in the Middle East, or political unrest, including the rising tension between China and the United States; public health issues, including the outbreak ofinfectious diseases and any impact on our facilities and operations and our customers and suppliers; our ability to meet various covenants, including financialcovenants, contained in the agreements governing our indebtedness; disruptions, uncertainties or volatility in the credit markets that may limit our access to capital;potential disruption due to a partial or complete reconfiguration of the European Union; increasingly stringent domestic and foreign governmental regulations,including those affecting the environment or import and export controls and other trade barriers; inherent uncertainties involved in assessing our potential liability forenvironmental remediation-related activities; the outcome of pending and future litigation and other claims and disputes with customers; our dependence on theautomotive and heavy-duty truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending; our ability to negotiatecontracts with labor unions; our dependence on key management; our dependence on information systems; our ability to continue to pay cash dividends, and thetiming and amount of any such dividends; and the other factors we describe under “Item 1A. Risk Factors” included in the Company’s Annual Report on Form 10-K forthe year ended December 31, 2024. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation toupdate any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In light of these and otheruncertainties, the inclusion of a forward-looking statement herein should not be regarded as a representation by us that our plans and objectives will be achieved.The Company uses certain non-GAAP measures in discussing the Company’s performance, including Adjusted EPS; EBITDA, as defined; and Adjusted SegmentOperating Income. The reconciliation of these measures to the most directly comparable GAAP measures is detailed at the end of these slides and in the Company’spress release for the second quarter of 2025, which is available on the Company’s website atwww.pkoh.com. 2 Forward-Looking Statements and Non-GAAP Measures
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Second Quarter 2025 Highlights 3 GAAP EPS from continuing operations of $0.67 per diluted share, an increase of 10% compared to Q1 2025 Adjusted EPS from continuing operations of $0.75 per diluted share, an increase of 14% compared to Q1 2025 EBITDA (as defined) of $35.2 million, up from $33.9 million in Q1 2025 Gross margin expanded to 17.0%, from 16.8% in the prior quarter, reflecting improvement in operating leverage All-time record quarterly bookings of new capital equipment totaling $85 million, including an individual order of $47 million in Engineered Products segmentBacklog in Engineered Products increased to $172 million, up 19% from $145 million at year-endSuccessful refinancing of $350 million senior notes, and extension of revolving credit facility, enhancing liquidity and extending maturities
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Q2 Consolidated Results (in millions, except EPS) 4•In the second quarter of 2025, net sales from continuing operations were $400.1 million compared to $432.6 million in the 2024 period. •Excluding special items related to restructuring actions in both periods, Adjusted EPS from continuing operations was $0.75 per diluted share in the second quarter of 2025 compared to $1.02 per diluted share in the 2024 period. Year-over-year, Adjusted EPS was impacted by lower sales levels; higher shares outstanding in the 2025 period due to our share issuances last year, which impacted Adjusted EPS by $0.06 per diluted share; and foreign exchange losses in the 2025 period totaling $0.04 per diluted share.•EBITDA, as defined totaled $35.2 million in the 2025 second quarter compared to $39.4 million in the 2024 second quarter. $433 $400 Q2 2024 Q2 2025Net Sales $39 $35 Q2 2024 Q2 2025EBITDA, as defined $1.02 $0.75 Q2 2024 Q2 2025Adjusted EPS
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Q2 Supply Technologies Segment (in millions) 5•Decrease in net sales was primarily driven by lower customer demand in certain end markets in our supply chain business, including power sports, heavy duty truck and bus, industrial equipment and aerospace and defense, partially offset by increases in the electrical and semiconductor end markets.•Sales growth of approximately 3% in Europe was more than offset by lower demand in North America. •Sales in our fastener manufacturing business were down year-over-year, driven by lower automotive production levels during the quarter.•Adjusted segment operating income was $16.7 million in the 2025 period compared to $19.2 million in the 2024 period. •Operating income margin was 8.9% in the 2025 quarter compared to 9.5% in the 2024 period. In the 2025 period, profit-enhancement actions, including alignment of variable costs to lower demand levels, partially offset the impact of lower sales levels on profitability. $203 $187 Q2 2024 Q2 2025Net Sales $19.2$16.7Q2 2024 Q2 2025Adjusted Operating Income
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Q2 Assembly Components Segment (in millions) 6•Sales were lower year-over-year due primarily to lower unit volumes in our fuel rail and extruded rubber products, customer delays on new business launches, and favorable pricing that ended in 2024 on certain legacy programs.•Adjusted segment operating income was $6.1 million in the second quarter of 2025 compared to $6.9 million in the corresponding 2024 quarter. •Operating income margin was 6.4% in the 2025 period compared to 6.7% in the 2024 second quarter. •The decreases in adjusted operating income and margin in the second quarter of 2025 compared to the 2024 period were due to the lower unit volumes on certain automotive platforms. $103 $95 Q2 2024 Q2 2025Net Sales $6.9$6.1Q2 2024 Q2 2025Adjusted Operating Income
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Q2 Engineered Products Segment (in millions) 7•The sales decrease was driven primarily by lower sales in our forged and machined products group.•New equipment backlog increased to $172 million at June 30, 2025 compared to $145 million at December 31, 2024, an increase of 19%. •A quarterly record $85 million in new capital equipment bookings included a record $47 million induction heating order utilizing our patent pending technology that enables the most uniform heating profile available in today’s markets. This order is expected to ship beginning in 2026.•In our forged and machined products business, second quarter 2025 sales were down 22% compared to the same quarter a year ago, driven by lower demand in rail car production and closure of a small manufacturing operation in 2024.•On an adjusted basis, which excludes restructuring and other special charges, segment operating income was $6.4 million in the second quarter of 2025 compared to $7.3 million in the 2024 period, driven by the lower sales levels. $127 $118 Q2 2024 Q2 2025Net Sales $7.3$6.4Q2 2024 Q2 2025Adjusted Operating Income
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2025 Outlook 8 The recent refinancing of our 2027 Senior Notes will increase interest expense in the secondhalf of the year and is expected to reduce Adjusted EPS by approximately $0.20 per diluted share.We now expect full-year 2025:•Net Sales: $1.620 billion to $1.650 billion•Adjusted EPS: $2.90 to $3.20 per diluted share•Free Cash Flow: Expected to improve from FY2024 and approximate $20 million to $30million in FY2025; expect approximately $65 million of free cash flow in the second halfof 2025The Company does not provide reconciliations of forward-looking non-GAAP financialmeasures, such as Adjusted EPS, to the most comparable GAAP financial measures due to theinherent difficulty in forecasting certain items, including non-cash or infrequent charges, which arenot available without unreasonable effort.
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Non-GAAP Reconciliations – Q2 9
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Q2 Non-GAAP Reconciliations (continued) 10