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Dec 31, 2025
Park-Ohio Q4 2025 Earnings Report
Park-Ohio Q4 2025 Earnings Report
Key Takeaways
Park-Ohio reported a 2% year-over-year revenue increase in Q4 2025, driven by growth in Supply Technologies and Assembly Components. Despite a GAAP net income decrease due to non-cash asset impairment charges in the Engineered Products segment, the company generated strong free cash flow of $36 million and significantly reduced debt. Management highlighted record bookings and a growing backlog as key drivers for expected growth in 2026.
Revenue increased 2% year-over-year to $395 million in the fourth quarter.
Strong free cash flow of $36 million allowed for a $40 million reduction in revolving credit facility borrowings.
Supply Technologies segment saw operating margins improve by 240 basis points to 11.1%.
Engineered Products segment recorded non-cash asset impairment charges of $8.9 million, impacting GAAP EPS.
Revenue by Segment
Forward Guidance
For the full year 2026, Park-Ohio expects revenue growth of 5% to 7% and significant expansion in Adjusted EPS.
Positive Outlook
- Full year 2026 net sales projected between $1.675 billion and $1.710 billion.
- Adjusted EPS expected to grow 7% to 19% year-over-year.
- Record bookings of $217 million in 2025 provide a strong foundation for 2026.
- Alignment with secular trends in data centers, aerospace, and electrical infrastructure.
- Expected EBITDA margin between 8% and 9% of net sales.
Challenges Ahead
- Free cash flow guidance of $20-$30 million is lower than the Q4 2025 annualized run rate.
- Ongoing impact of non-cash asset impairment charges in specific product groups.
- Exposure to cyclical automotive and heavy-duty truck industries.
- Potential for continued restructuring and business optimization costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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