third quarter 2026
Filed Nov 4, 2026ParkOhio Announces Record Sales and Strong Third Quarter 2026 Results; Raises FY 2026 Sales and Adjusted EPS Outlook on Continued Strong Demand Across Its Diversified End Markets
Record quarterly revenue, broad year-over-year growth across all three segments, gross-margin expansion, 54% operating-income growth, sharply higher EPS and raised full-year sales and Adjusted EPS outlook support a strong result.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $458.5M | – | 15% |
| Cost of sales, three months ended September 30GAAP | $376.3M | – | – |
| Gross profit, three months ended September 30GAAP | $82.2M | – | – |
| Gross margin, three months ended September 30GAAP | 17.9% | – | up 120 basis points |
| Selling, general and administrative expenses, three months ended September 30GAAP | $54.2M | – | – |
| Restructuring and other special charges, three months ended September 30GAAP | $1.4M | – | – |
| Operating income, three months ended September 30GAAP | $26.6M | – | 54% |
| Income from continuing operations before income taxes, three months ended September 30GAAP | $16.5M | – | – |
| Income from continuing operations, three months ended September 30GAAP | $13.4M | – | – |
| Net income attributable to Park-Ohio Holdings Corp. common shareholders, three months ended September 30GAAP | $13.7M | – | – |
| Diluted EPS from continuing operations, three months ended September 30GAAP | $0.97 | – | 149% |
| Total diluted EPS, three months ended September 30GAAP | $0.96 | – | – |
| Adjusted earnings from continuing operations, three months ended September 30non-GAAP | $14.9M | – | – |
| Adjusted diluted EPS, three months ended September 30non-GAAP | $1.04 | – | 60% |
| EBITDA, as defined, three months ended September 30non-GAAP | $40.9M | – | – |
| Net cash provided by operating activities from continuing operations, three months ended September 30GAAP | $15.5M | – | – |
| Purchases of property, plant and equipment, three months ended September 30GAAP | $8.4M | – | – |
| Free cash flow, three months ended September 30non-GAAP | $7.1M | – | – |
| Net sales, nine months ended September 30GAAP | $1.32B | – | 10% |
| Gross profit, nine months ended September 30GAAP | $233.8M | – | – |
| Gross margin, nine months ended September 30GAAP | 17.7% | – | an increase of 80 basis points |
| Operating income, nine months ended September 30GAAP | $70.8M | – | – |
| Net income attributable to Park-Ohio Holdings Corp. common shareholders, nine months ended September 30GAAP | $33.9M | – | – |
| Diluted EPS from continuing operations, nine months ended September 30GAAP | $2.41 | – | 44% |
| Total diluted EPS, nine months ended September 30GAAP | $2.39 | – | – |
| Adjusted earnings from continuing operations, nine months ended September 30non-GAAP | $37.4M | – | – |
| Adjusted diluted EPS, nine months ended September 30non-GAAP | $2.61 | – | 27% |
| EBITDA, as defined, nine months ended September 30non-GAAP | $113.9M | – | – |
| Net cash provided by operating activities from continuing operations, nine months ended September 30GAAP | $16.9M | – | – |
| Purchases of property, plant and equipment, nine months ended September 30GAAP | $31.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Supply Technologies, three months ended September 30, 2026Growth in the semiconductor, AI data center, heavy-duty truck, powersports, and aerospace and defense end markets. Operating income increased 23%, with operating margins of 9.5%, reflecting higher volumes, operating leverage and ongoing productivity initiatives, including automation. | $225.2M | – | 21% |
| Assembly Components, three months ended September 30, 2026New programs and higher demand across automotive platforms. Operating margins improved to 5.4% from 4.8% a year ago. | $103.6M | – | 7% |
| Engineered Products, three months ended September 30, 2026Growth in engineered capital equipment, aftermarket parts and services and better operating performance in forged and machined products. Operating margin improved to 7.0% from 2.9%. | $129.7M | – | 12% |
| Supply Technologies, nine months ended September 30, 2026Record year-to-date revenues in the segment. | $629.6M | – | – |
| Assembly Components, nine months ended September 30, 2026Strong year-over-year sales growth was reported across all three business segments. | $305.2M | – | – |
| Engineered Products, nine months ended September 30, 2026Record year-to-date revenues in the segment. | $384.8M | – | – |
FY 2026 outlook
- Revenue$1.750 billion to $1.770 billion
- NoteAdjusted EPS: $3.35 to $3.50 per diluted share
- NoteEBITDA (as defined): 8.5-9.0% of Net Sales
- NoteFree Cash Flow: $20 million to $30 million
- NoteExpect $35 to $45 million of free cash flow in the fourth quarter of 2026.
- NoteSouthwest Steel Processing is expected to contribute approximately $15 million in revenue and a loss of approximately $0.46 per diluted share.
Capital returns
- Dividends per common share were $0.125 for the three months ended September 30, 2026 and $0.375 for the nine months ended September 30, 2026.
- Dividends were $1.8 million for the three months ended September 30, 2026 and $5.4 million for the nine months ended September 30, 2026.
What drove it
- Continued strong demand across semiconductor, AI data center, electrical steel, aerospace and defense, oil and gas and other industrial markets.
- Record revenue and 21% sales growth in Supply Technologies, driven by semiconductor, AI data center, heavy-duty truck, powersports, and aerospace and defense end markets.
- Engineered Products new equipment bookings totaled $53 million and equipment backlog reached $242 million at September 30, up 18% from year-end 2025.
- Higher volumes, operating leverage, productivity initiatives, automation and increased operating efficiency supported margin expansion.
- Proprietary fastener sales increased 12%, reflecting demand for engineered fastening technologies.
Concerns
- The Southwest Steel Processing strategic-alternatives review is ongoing, with no assurance that it will result in a 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 $0.46 per diluted share.
- Interest expense, net was $12.2 million in the third quarter and $36.8 million in the first nine months of 2026.
- The Company cites substantial indebtedness, supply chain and logistics issues, raw-material and component availability and pricing, energy costs, and cyclical automotive and heavy-duty truck demand among its risks.
- Failure to maintain calculated availability of at least $50.625 million and meet the debt service ratio covenant could materially impact the availability and interest rate of future borrowings.
What to watch
- Execution against FY 2026 net-sales guidance of $1.750 billion to $1.770 billion and Adjusted EPS guidance of $3.35 to $3.50 per diluted share.
- Delivery of the expected $35 to $45 million of free cash flow in the fourth quarter of 2026.
- The outcome of the Southwest Steel Processing strategic review and its potential impact relative to the outlook that includes approximately $15 million of revenue and a loss of approximately $0.46 per diluted share.
- Conversion of the $242 million Engineered Products equipment backlog and the pace of new equipment bookings.
- Sustained gross-margin improvement and operating efficiency across the three business segments.
Balance sheet and cash flow
- Cash and cash equivalents were $58.9 million at September 30, 2026, compared with $44.8 million at December 31, 2025.
- Current portion of long-term debt and short-term debt was $7.0 million at September 30, 2026, compared with $8.3 million at December 31, 2025.
- Long-term debt was $660.4 million at September 30, 2026, compared with $620.7 million at December 31, 2025.
- Calculated availability under the revolving credit facility was $94.7 million at September 30, 2026.
- Accounts receivable, net was $292.0 million and inventories, net were $423.7 million at September 30, 2026.
- The revolving credit facility matures in July 2030 and is in the amount of $405.0 million.
Analysis
ParkOhio delivered record third-quarter net sales of $458.5 million, up 15% year-over-year, with growth across all three reportable segments. Supply Technologies led with $225.2 million of revenue and 21% growth, supported by semiconductor, AI data center, heavy-duty truck, powersports, aerospace and defense demand. Assembly Components grew 7% to $103.6 million on new programs and automotive-platform demand, while Engineered Products rose 12% to a record $129.7 million on capital equipment, aftermarket parts and services, and improved forged and machined-products performance.
Profitability improved materially. Gross margin was 17.9%, up 120 basis points from 16.7%, while operating income increased 54% to $26.6 million. Supply Technologies reported a 9.5% operating margin, Assembly Components improved to 5.4% from 4.8%, and Engineered Products expanded to 7.0% from 2.9%. Management attributed the broad margin strengthening to volume, operating leverage, productivity initiatives, automation and better operating performance.
GAAP diluted EPS from continuing operations was $0.97, up 149% from $0.39, while Adjusted diluted EPS was $1.04, up 60% from $0.65. For the first nine months, net sales reached $1,319.6 million, gross margin rose to 17.7% from 16.9%, GAAP diluted EPS from continuing operations was $2.41, and Adjusted diluted EPS was $2.61. The segment mix remains favorable to Supply Technologies and Engineered Products, both of which reported record year-to-date revenue.
Cash conversion remains central in the fourth quarter. Third-quarter net cash provided by operating activities from continuing operations was $15.5 million and free cash flow was $7.1 million, while management expects $35 to $45 million of free cash flow in the fourth quarter. Cash and cash equivalents were $58.9 million at September 30, 2026, long-term debt was $660.4 million, and calculated revolving-facility availability was $94.7 million.
Management raised FY 2026 net-sales guidance to $1.750 billion to $1.770 billion from $1.700 billion to $1.730 billion and Adjusted EPS guidance to $3.35 to $3.50 per diluted share from $3.10 to $3.30 per diluted share. EBITDA margin and free-cash-flow guidance were unchanged. The ongoing Southwest Steel Processing review remains a key variable: the outlook includes approximately $15 million of revenue and a loss of approximately $0.46 per diluted share from the business, while management states that the review outcome could represent upside to the current outlook.
Management, verbatim
The global industrial economy, led by North America, continues to underpin accelerating business performance at our Company. Demand has been favorable to expectations throughout the year, and we are pleased to increase both our revenue and earnings outlook again for 2026.
Matthew V. Crawford, Chairman and Chief Executive Officer
We also recognize the excellent execution by our teammates as we continue to see strengthening margins across the company due not only to additional volume but ongoing productivity improvements.
Matthew V. Crawford, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly operating metrics were not provided.
- GAAP and non-GAAP effective tax rates were not provided.
- Share repurchases were not reported.
- A total-debt line item was not reported.
- Forward guidance for gross margin, operating expenses and tax rate was not provided.
- A comparable prior-year free-cash-flow figure for the three months ended September 30, 2025 was not reported.
- Prior-period segment revenue percentage changes for the nine months ended September 30 were not explicitly reported by segment.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.