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1. Company Snapshot

1.a. Company Description

Park-Ohio Holdings Corp.provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Europe, Asia, Mexico, Canada, and internationally.It operates through three segments: Supply Technologies, Assembly Components, and Engineered Products.


The Supply Technologies segment offers Total Supply Management solution, including engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and ongoing technical support services, as well as provides spare parts and aftermarket products; and production components, such as valves, fuel hose assemblies, electro-mechanical hardware, labels, fittings, steering components, and other products.It also engineers and manufactures precision cold-formed and cold-extruded fasteners and other products, including locknuts, SPAC nuts, SPAC bolts, and wheel hardware.The Assembly Components segment manufactures aluminum products, direct fuel injection fuel rails and pipes, fuel filler pipes, and flexible multi-layer plastic and rubber assemblies; turbo charging and coolant hoses; and fluid handling systems.


It also offers machining services, as well as value-added services, such as design engineering, machining, and part assembly.The Engineered Products segment designs and manufactures engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products primarily for ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; provides field services; and offers aerospace and defense structural components, and rail products, such as railcar center plates and draft lugs.Park-Ohio Holdings Corp.


was founded in 1907 and is headquartered in Cleveland, Ohio.

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1.b. Last Insights on PKOH

Park-Ohio Holdings Corp.'s recent performance was positively driven by its Q2 2025 earnings growth and margin expansion, despite modest revenue headwinds. The company's engineered products segment showed increased activity and backlog. A $350 million senior secured notes offering, priced at 99.500% of par, was completed to strengthen its financial position. Additionally, the company demonstrated operational discipline, delivering two straight quarters of margin expansion and earnings growth. Its Adjusted EBITDA was estimated to be between $34 million and $37 million for Q2 2025.

1.c. Company Highlights

2. Park-Ohio Holdings' Q3 2025 Earnings: A Leaner Business Model

Park-Ohio Holdings reported third-quarter revenue of $399 million, stable sequentially but down year-over-year due to lower end market demand, particularly in certain North American industrial end markets. Gross margins of 16.7% were slightly below prior year's gross margins, demonstrating pricing discipline and operational consistency. Adjusted EPS was $0.65 per diluted share, below analyst estimates of $0.735. The company's EBITDA was $34.2 million in the quarter, with a trailing 12-month EBITDA of $140 million.

Publication Date: Nov -12

📋 Highlights

Segment Performance

The Supply Technologies segment reported net sales of $186 million, in line with sales in both the first and second quarters of this year. The Assembly Components segment saw sales improve sequentially to $97 million, with segment adjusted operating income of $6 million. In the Engineered Products segment, sales were $116 million, driven lower by demand in the forged and machined products business. As CFO Patrick Fogarty explained, the contracts are accounted for using the percentage of completion method, with 3 of the 5 pieces of equipment expected to be recognized during the course of 2026.

Outlook and Valuation

The company expects meaningful progress in 2026, driven by a better aftermarket mix, strong margins, and effective management of working capital. With a record quarter of free cash flow expected between $45 million to $55 million, the company's valuation metrics appear reasonable, with a P/E Ratio of 11.61 and an EV/EBITDA of 9.36. The company's Net Debt / EBITDA ratio is 6.55, indicating a relatively high level of debt. Analysts estimate next year's revenue growth at 3.7%, which may not be sufficient to drive significant multiple expansion.

Operational Highlights

The company is investing in information technology, including AI, to improve data management and quality, driving efficiencies in the business. They expect debt reduction of $5 million to $10 million year-over-year, with $35 million to $45 million in the fourth quarter. As the company continues to transform into a leaner, more predictable business, its focus on end market and application diversification is expected to drive growth.

3. NewsRoom

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Park-Ohio Holdings Corp. $PKOH Shares Bought by Acadian Asset Management LLC

Nov -14

Source: defenseworld.net

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Park-Ohio Holdings Corp. (PKOH) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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ParkOhio Reports Stable Third Quarter 2025 Results, Improved Free Cash Flow and Strong Backlog

Nov -05

Source: businesswire.com

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ParkOhio Announces Third Quarter 2025 Results Webcast

Oct -23

Source: businesswire.com

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Andrew C. Clarke Joins ParkOhio Board of Directors

Oct -01

Source: businesswire.com

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ParkOhio to Attend the Sidoti Small-Cap Virtual Conference

Sep -08

Source: businesswire.com

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Park-Ohio Holdings Corp. (PKOH) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

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ParkOhio Announces Second Quarter 2025 Results

Aug -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Supply Technologies

Expected Growth: 4.5%

Supply Technologies' 4.5% growth is driven by increasing demand for engineered components, expansion in e-mobility and renewable energy markets, and strategic acquisitions. Additionally, operational efficiencies and cost savings initiatives contribute to the segment's growth. Furthermore, the company's focus on innovation and R&D investments in new product development and process improvements also support growth.

Engineered Products

Expected Growth: 4.8%

Park-Ohio Holdings Corp.'s Engineered Products segment growth of 4.8% is driven by increasing demand from the aerospace and industrial markets, coupled with the company's strategic acquisitions and investments in new product development. Additionally, the segment's focus on operational efficiency and cost reduction initiatives has contributed to its growth.

Assembly Components

Expected Growth: 5.2%

Park-Ohio Holdings Corp.'s Assembly Components segment growth of 5.2% is driven by increasing demand for electric vehicles, rising adoption of advanced driver-assistance systems, and growing need for lightweight materials. Additionally, the company's strategic acquisitions and investments in new technologies have expanded its product offerings and improved operational efficiency.

7. Detailed Products

Diversified Industrial Products

Park-Ohio Holdings Corp. provides diversified industrial products, including precision machined components, aluminum billets, and engineered products.

Supply Chain Management Services

The company offers supply chain management services, including procurement, inventory management, and logistics services.

Light Assembly and Packaging Services

Park-Ohio Holdings Corp. provides light assembly and packaging services, including kitting, packaging, and labeling.

Engineered Components

The company designs and manufactures engineered components, including precision machined parts, gears, and bearings.

Forged Products

Park-Ohio Holdings Corp. manufactures forged products, including steel forgings, aluminum forgings, and titanium forgings.

8. Park-Ohio Holdings Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Park-Ohio Holdings Corp. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Park-Ohio Holdings Corp. is high due to the concentration of customers in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Park-Ohio Holdings Corp. is low due to the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Park-Ohio Holdings Corp. is medium due to the moderate barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Park-Ohio Holdings Corp. is high due to the high competition in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.56%
Debt Cost 8.25%
Equity Weight 30.44%
Equity Cost 9.97%
WACC 8.77%
Leverage 228.57%

11. Quality Control: Park-Ohio Holdings Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Graham

A-Score: 5.1/10

Value: 3.3

Growth: 7.9

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

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Enerpac Tool

A-Score: 5.1/10

Value: 4.5

Growth: 7.8

Quality: 6.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Thermon

A-Score: 4.6/10

Value: 5.2

Growth: 5.8

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Park-Ohio

A-Score: 4.3/10

Value: 8.5

Growth: 3.9

Quality: 2.7

Yield: 5.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Twin Disc

A-Score: 4.2/10

Value: 6.1

Growth: 4.8

Quality: 3.6

Yield: 1.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Hurco

A-Score: 3.6/10

Value: 8.8

Growth: 1.4

Quality: 3.4

Yield: 1.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.7$

Current Price

21.7$

Potential

-0.00%

Expected Cash-Flows