PARK OHIO HOLDINGS CORP (PKOH): Results of Operations and Financial Condition
PARK OHIO HOLDINGS CORP (PKOH) filed an SEC Form 8-K — Results of Operations and Financial Condition. ParkOhio Announces Record Sales and Strong Second Quarter 2026 Results; Raises FY 2026 Outlook CLEVELAND, OHIO, August 5, 2026 — Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the second quarter of 2026. “We are pleased to announce record second quarter r
How this was made
The 30-second read
Why it matters
The immediate tradable signal is the combination of record Q2 financials and a raised FY 2026 outlook, which can drive earnings estimate revisions. A secondary overhang is the ongoing SSP strategic review, which can create upside but also uncertainty around timing and transaction structure.
Market read
Record Q2 performance and raised FY guidance are likely to be the dominant driver for PKOH positioning, with SSP review outcome risk as the main swing factor.
What to watch
Traders may underweight the potential range of outcomes from the SSP strategic alternatives review, which could alter revenue/EPS beyond the current guidance framework.
ParkOhio Announces Record Sales and Strong Second Quarter 2026 Results; Raises FY 2026 Outlook
Record second-quarter revenue grew 10% year-over-year, gross margin expanded 90 basis points, GAAP and Adjusted EPS increased, operating cash flow improved by $23 million year-over-year, and the Company raised its 2026 net sales and Adjusted EPS outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $440 million | – | up 10% year-over-year |
| Gross marginother | 17.9% | – | up 90 basis points |
| GAAP EPSGAAP | $0.87 | – | up 30% |
| Adjusted EPSnon-GAAP | $0.93 | – | up 24% |
| Operating cash flowother | $9 million | – | an improvement of $23 million year-over-year |
| Year-to-date revenueother | $861 million | – | up 7% year-over-year |
| Year-to-date gross marginother | 17.6% | – | an increase of 70 basis points |
| Year-to-date GAAP EPSGAAP | $1.44 | – | – |
| Year-to-date Adjusted EPSnon-GAAP | $1.57 | – | – |
| Supply Technologies operating income year-over-year increaseother | 13.5% | – | increased 13.5% |
| Supply Technologies operating marginother | 8.8% | – | – |
| Engineered Products new equipment bookingsother | $66 million | – | – |
| Engineered Products equipment backlog at June 30, 2026other | $252 million | 23% from December 31, 2025 | 29% from June 30, 2025 |
| Engineered Products operating marginother | 7.0% | – | increased 190 basis points compared to the corresponding 2025 quarter |
| Engineered Products aftermarket sales and service year-over-year sales growthother | 13% | – | 13% year-over-year sales growth |
| Southwest Steel Processing share of net loss per diluted share, three months ended June 30, 2026other | approximately $0.09 per diluted share | – | – |
| Southwest Steel Processing share of net loss per diluted share, six months ended June 30, 2026other | approximately $0.21 per diluted share | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Supply TechnologiesSales growth in semiconductor, AI data center, powersports, aerospace and defense, heavy-duty truck, agricultural and industrial equipment end markets; proprietary-product growth, profit-enhancement initiatives and automation investments. | $209.3 million | – | an increase of 12% |
| Assembly ComponentsImproved volumes from new business and increased year-over-year demand from various automotive platforms in each product line. | $101.4 million | – | an increase of 7% |
| Engineered ProductsDemand across defense, electrical steel processing, oil and gas, agriculture, AI data center, semiconductor and other general industrial end markets; aftermarket sales and service growth and improvement in forged and machined products. | $129.4 million | – | an increase of 10% |
Full Year 2026 outlook
- Revenue$1.700 billion to $1.730 billion, an increase of 6% to 8% over 2025
- NoteAdjusted EPS: $3.10 to $3.30 per diluted share, an increase of 15% to 22% over 2025
- NoteEBITDA (as defined): 8.5-9% of Net Sales
- NoteFree Cash Flow: $20 million to $30 million
- NoteSouthwest Steel Processing is expected to contribute approximately $15 million in revenue and a loss of approximately $0.50 per diluted share.
What drove it
- Year-over-year sales growth in all three business segments reflected demand across aerospace and defense, AI data center, electrical steel, semiconductor, oil and gas, heavy-duty truck and powersports end markets.
- Supply Technologies benefited from higher sales, continued proprietary-product sales growth in fastener manufacturing, profit-enhancement initiatives and automation investments.
- Assembly Components cited new business and increased demand from automotive platforms.
- Engineered Products reported $66 million of new equipment bookings and a $252 million equipment backlog at June 30, 2026.
- The raised outlook reflects continued strong AI-related demand, accelerated aerospace and defense production, strong Engineered Products backlogs, and increased operating efficiency across all three segments.
Concerns
- The review of strategic alternatives for the Southwest Steel Processing business is ongoing, with no assurance that it will result in any transaction or particular outcome.
- The 2026 outlook includes Southwest Steel Processing, which is expected to contribute approximately $15 million in revenue and a loss of approximately $0.50 per diluted share.
- The Company identified substantial indebtedness, uncertainty in the global economic environment, pricing pressures, supply chain and logistics issues, raw-material availability and pricing, energy costs, component availability and pricing, and cyclical exposure to automotive and heavy-duty truck industries among risk factors.
What to watch
- Conversion of the $252 million Engineered Products equipment backlog into revenue and operating performance.
- Sustainability of demand in AI data center, electrical steel, aerospace and defense, semiconductor, oil and gas and industrial end markets.
- Progress of productivity, automation and operational-improvement initiatives supporting margin expansion.
- The outcome of the Southwest Steel Processing strategic-alternatives review and its effect on the outlook.
Balance sheet and cash flow
- Operating cash flow of $9 million compared to a use of $14 million in the 2025 second quarter, an improvement of $23 million year-over-year.
Analysis
ParkOhio reported record second-quarter revenue of $440 million, up 10% year-over-year, with growth in all three reportable segments. Supply Technologies produced record revenue of $209.3 million, Assembly Components reported revenue of $101.4 million, and Engineered Products delivered record revenue of $129.4 million. Management attributed the broad-based growth to demand across aerospace and defense, AI data center, electrical steel, semiconductor, oil and gas, heavy-duty truck and powersports markets.
Profitability improved with gross margin of 17.9%, up 90 basis points from 17.0% in the 2025 second quarter and described as the highest quarterly level since 2013. GAAP EPS rose to $0.87 from $0.67, while Adjusted EPS increased to $0.93 from $0.75. Supply Technologies reported an 8.8% operating margin and a 13.5% year-over-year increase in operating income. Engineered Products reported a 7.0% operating margin, up 190 basis points, supported by 13% year-over-year aftermarket sales and service growth and improvement in its forged and machined products group.
Cash flow also improved: operating cash flow was $9 million versus a use of $14 million in the 2025 second quarter. For the first six months, record revenue was $861 million, up 7% year-over-year; gross margin was 17.6% versus 16.9%; GAAP EPS was $1.44 versus $1.28; and Adjusted EPS was $1.57 versus $1.41. Engineered Products entered the period with $252 million of equipment backlog at June 30, 2026, after $66 million of new equipment bookings during the quarter.
The Company raised its full-year 2026 net sales outlook to $1.700 billion to $1.730 billion from $1.675 billion to $1.710 billion, and raised Adjusted EPS outlook to $3.10 to $3.30 per diluted share from $2.90 to $3.20 per diluted share. The EBITDA outlook moved to 8.5-9% of Net Sales from 8-9% of Net Sales, while Free Cash Flow guidance remained $20 million to $30 million. The outlook includes Southwest Steel Processing, expected to contribute approximately $15 million in revenue and a loss of approximately $0.50 per diluted share, making the ongoing strategic review a material item to monitor.
Management, verbatim
We are pleased to announce record second quarter revenues, driven by strong demand across most end markets. Disciplined execution by our team continued to translate into improved profitability metrics and cash flow performance. We believe our transformation into a faster growing, less cyclical business continues, and we expect that productivity investments in our core products and services are in the early days of adding to the durability of our long-term operating model. Given our strong first half performance and visibility into our customer demand for the second half, we feel well-positioned to raise the bar for our performance in 2026.
Matthew V. Crawford, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP net income for the second quarter of 2026 and the comparable 2025 quarter.
- GAAP operating income for the second quarter of 2026 and the comparable 2025 quarter.
- Adjusted net income and a reconciliation of Adjusted EPS to GAAP EPS.
- Second-quarter free cash flow.
- Cash balance, total debt, net debt and liquidity.
- Capital-return amounts, including share repurchases and dividends.
- Operating expenses and tax rate for the reported period.
- Prior-quarter revenue, gross margin, operating income, net income, EPS, operating cash flow and segment revenue.
- Assembly Components operating income and operating margin.
- Prior-year operating-margin figures for Supply Technologies and Engineered Products.
- A separately provided previous-release outlook for comparison with reported actual results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Q2 2026 results and an updated full-year 2026 outlook, plus disclosure that a formal review of strategic alternatives for the Southwest Steel Processing business is ongoing.
Ticker impact
Park-Ohio reported Q2 2026 record revenue of $440M, GAAP EPS $0.87, and raised FY 2026 outlook, signaling improved profitability and cash flow.
Likely positive bias for PKOH as traders price higher FY revenue, EPS, and margin expansion; volatility possible around expectations for the SSP review outcome.
The filing discloses specific, time-sensitive financial datapoints (Q2 results and updated FY ranges) plus a stated ongoing strategic alternatives process for SSP that can create upside or uncertainty.
Market effects
Strength in aerospace and defense, AI data center, and electrical steel end markets may reinforce demand expectations for industrial supply chains tied to those themes.
Limited direct regional spillover beyond industrial sentiment for the Cleveland-area manufacturing ecosystem.
Moderate, as the drivers cited (AI data center, semiconductors, electrical infrastructure) are globally relevant but the disclosure is company-specific.
Counterpoint
The raised outlook still depends on execution and includes an SSP-related loss assumption, so upside may be more contingent than it appears.
Key entities
- issuerPark-Ohio Holdings Corp.
NASDAQ-listed company reporting Q2 2026 results and raising FY 2026 outlook; conducting strategic alternatives review for Southwest Steel Processing.
- business_unitSouthwest Steel Processing (SSP)
Company segment under formal strategic alternatives review, with guidance impact disclosed (approx. $15M revenue and about $0.50 diluted EPS loss included in outlook).
