Park-Ohio Holdings Corp. Reports Decline in Financial Performance for Q2 and First Half of 2025

Park-Ohio Holdings Corp. reported a decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company recorded net sales of $400.1 million, a decrease of 7.5% from $432.6 million in the same period of 2024. The decline in revenue was attributed to lower demand across all three business segments: Supply Technologies, Assembly Components, and Engineered Products. Operating income also fell to $20.1 million from $24.6 million year-over-year, reflecting an 18.3% decrease. Net income attributable to common shareholders was $9.2 million, down from $11.9 million in the prior year.

In the first half of 2025, Park-Ohio's net sales decreased by 5.3% to $805.5 million compared to $850.2 million in the first half of 2024. The cost of sales also declined to $669.2 million from $705.6 million, primarily due to reduced sales volumes. The gross margin remained relatively stable at 16.9%, compared to 17.0% in the previous year. The company reported a significant drop in income from continuing operations, which fell to $16.7 million from $21.5 million, marking a 22.3% decrease.

Operationally, Park-Ohio's segments experienced varying impacts. The Supply Technologies segment saw net sales decrease to $187.1 million from $202.6 million, while the Assembly Components segment's sales fell to $95.1 million from $103.1 million. The Engineered Products segment reported a decline in sales to $117.9 million from $126.9 million. The company noted that these declines were primarily due to lower customer demand in key markets, including power sports, heavy-duty trucks, and aerospace.

In terms of strategic developments, Park-Ohio completed a private offering of $350 million in senior secured notes due 2030 on July 31, 2025, intended to refinance existing debt. The company also amended its credit agreement to extend the maturity date to five years from the closing of the amendment. As of June 30, 2025, Park-Ohio had total liquidity of $189.4 million, which included $45.6 million in cash and cash equivalents and $143.8 million in unused borrowing capacity.

Looking ahead, Park-Ohio's management expressed cautious optimism, noting that while current macroeconomic conditions and trade actions may pose challenges, they are working to mitigate the impact of increased costs and demand softness. The company remains focused on aligning costs with demand and enhancing operational efficiencies to navigate the evolving market landscape.