Park-Ohio Holdings Corp (PKOH) Q1 2025 Earnings Call Highlights: Navigating Market Volatility ...

In This Article:

  • Sales: $405 million compared to $418 million a year ago.

  • Gross Margin: 16.8% compared to 17.1% in the first quarter of last year.

  • Operating Income: $19 million compared to $24 million in the first quarter of last year.

  • Interest Costs: $11 million compared to $11.9 million last year.

  • Effective Tax Rate: Approximately 20% for the quarter.

  • GAAP Earnings Per Share: $0.61 per diluted share compared to $0.83 last year.

  • Adjusted Earnings Per Share: $0.66 per share compared to $0.85 per share a year ago.

  • EBITDA: $34 million for the quarter; $148 million on a trailing twelve-month basis.

  • Cash Flow from Operations: Use of $10 million.

  • Capital Spending: $9.5 million in the first quarter.

  • Liquidity: $210 million, including $55 million of cash on hand.

  • Supply Technologies Sales: $188 million compared to $197 million last year.

  • Assembly Component Sales: $97 million compared to $107 million a year ago.

  • Engineered Product Sales: $121 million compared to $114 million a year ago.

  • 2025 Net Sales Forecast: Estimated to range from $1.6 billion to $1.7 billion.

  • 2025 Adjusted Earnings Forecast: Expected to be in the range of $3 to $3.50 per share.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Park-Ohio Holdings Corp (NASDAQ:PKOH) saw a rebound in sales during February and March after a slow start in January, aligning with expectations.

  • The Engineered Products Group showed year-over-year improvement, with strong execution and increased profitability anticipated to continue.

  • The company is focusing on reshaping its business by investing in its best products and services, leading to record growth in remaining businesses, particularly in supply technologies.

  • Park-Ohio Holdings Corp (NASDAQ:PKOH) is well-positioned to benefit from reshoring trends, with a significant portion of its revenue coming from domestic customers.

  • The company experienced sales growth in its industrial equipment business and engineered products segment, with a 13% increase in sales and improved operating margins.

Negative Points

  • First quarter results were below internal expectations due to volatility in end markets.

  • The Assembly Component segment faced challenges with lower unit volumes, pricing issues, and delayed new business launches, impacting sales.

  • Consolidated gross margin and operating income margin declined due to lower sales levels in supply technologies and assembly component segments.

  • GAAP and adjusted earnings per share decreased year-over-year, driven by lower sales and an increase in diluted shares outstanding.

  • The company faces uncertainties related to tariffs and market demand, leading to a widened earnings forecast range for 2025.