What guidance did Park-Ohio Holdings's management provide for the next earnings period?

What is Park-Ohio Holdings's gross profit margin?

What were the key takeaways from Park-Ohio Holdings's earnings call?

What does Park-Ohio Holdings do and what are its main business segments?

What factors drove the changes in Park-Ohio Holdings's revenue and profit?

What is the revenue and EPS growth rate for Park-Ohio Holdings year over year?

What were the key takeaways from Park-Ohio Holdings’s earnings call?

Did Park-Ohio Holdings beat or miss consensus estimates last quarter?

- **Record Backlog Growth**: Engineered Products backlog up 28% YoY, driven by defense and industrial electrification orders.
- **Debt Reduction Target**: Q4 2025 debt reduction of $35-45 million, with FY25 total debt reduction of $5-10 million.
- **Margin Improvement**: Industrial equipment segment margins expected to recover in 2026 as new orders ramp up.
- **Strong Cash Flow**: Q4 free cash flow projected at $45-55 million, supporting debt reduction and capital investments.
- **Order Visibility**: $47 million high silicon steel production equipment order to contribute to 2026 revenue.

**【CEO Summary Section】**
- Highlighted the company's transformation into a leaner, high-margin business with a focus on operational efficiency and debt reduction.
- Emphasized strong backlogs in industrial equipment and defense sectors, with new orders totaling $47 million for high silicon steel production equipment.
- Projected 2026 growth driven by new business launches, improved aftermarket demand, and reduced working capital inefficiencies.
- Noted margin pressure from one-time investments in facility modernization and workforce expansion for future order fulfillment.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $399 million (stable sequentially, down 5% YoY due to lower North American demand).
- Adjusted EPS: $0.65 (down from $0.75 in Q2, impacted by higher interest expenses and one-time costs).
- EBITDA: $34.2 million (8.6% of net sales), with trailing 12-month EBITDA of $140 million.
- Free cash flow guidance: $10-20 million for FY25, with Q4 expected to generate $45-55 million.
- Backlog in Engineered Products up 28% YoY, driven by defense and industrial electrification orders.
- Strong liquidity of $187 million as of Q3 end.

**【Q&A Highlights】**
- **Order Accounting**: Large equipment orders ($47 million) accounted for using percentage of completion method, with 3/5 units expected to contribute to 2026 revenue.
- **Margin Outlook**: Margins in industrial equipment segment expected to improve as new orders ramp up, offsetting one-time costs for facility upgrades.
- **Cash Flow Drivers**: Q4 free cash flow growth driven by reduced receivables and inventory levels, with FY25 debt reduction projected at $5-10 million.
- **Debt Reduction**: Q4 2025 target to reduce debt by $35-45 million through free cash flow generation.
- **AI Implementation**: Early-stage AI investments focused on data management and supply chain optimization, with potential for future operational efficiency gains.

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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PKOH

PKOH fundamentals

You can ask Aime