PKOH Filings — Park Ohio Holdings Corp - FilingSpy
PKOH
Park Ohio Holdings Corp
A maker of industrial goods and services headquartered in the US, ParkOhio works through three businesses. Its Supply Technologies arm runs sole-source Total Supply Management™ outsourcing for over 280,000 production components, while Assembly Components builds fuel, rubber, and plastic parts focused on fuel efficiency and vehicle electrification, and Engineered Products designs niche equipment like induction heating systems and forged components. Together they serve diverse industrial markets around the globe.
All three segments grew in Q2 2026, driving a 10% revenue increase and the highest gross margin in over five years.
Park-Ohio returned to broad-based growth for the second straight quarter. rose 10% to $440.1 million and widened 0.9 points to 17.9% as higher demand across all three segments flowed through to profit. The recovery is taking hold, but higher interest costs from the debt refinancing are now a permanent feature of the income statement.
Key takeaways
rose 10.0% to $440.1 million, the second consecutive quarter of growth after a year of declines, as all three segments reported higher customer demand.
widened 0.9 points to 17.9%, the highest quarterly rate in the data provided, driven by profit flow-through on higher sales and profit-enhancement activities.
Supply Technologies led the recovery with an 11.9% sales increase, citing strength in semiconductor, AI data center, aerospace/defense, and heavy-duty truck end markets.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 10% to $440.1M with gross margin expanding to 17.9%, driven by higher demand across all three segments.
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Consolidated Q2 2026 grew 10.0% to $440.1M, with all three segments reporting higher demand.
improved to 17.9% from 17.0% a year ago, reflecting profit flow-through on higher sales and profit-enhancement activities.
Supply Technologies Q2 sales rose 11.9% on strength in semiconductor, AI data center, aerospace/defense, and heavy-duty truck end markets.
Engineered Products rose 50% to $9.0 million and its margin expanded 1.9 points to 7.0%, driven by higher sales and improved efficiencies.
Assembly Components sales grew 6.6%, though its contracted 0.7 points to 5.2% due to unfavorable product mix.
swung to a $1.4 million inflow in the first half of 2026 from a $23.7 million outflow a year ago, aided by higher income and lower needs.
What changed
The demand recovery flagged in Q1 2026 broadened and accelerated: growth rose from 3.8% to 10.0%, with Supply Technologies' growth jumping from 3.9% to 11.9% on semiconductor and AI data center demand.
The $12.3 million quarterly run rate from Q1 2026 held, confirming the higher 8.500% coupon on the $350 million notes is a permanent cost increase; a 100-basis-point rate rise on floating-rate borrowings would now add $1.4 million over six months.
The strategic review of Southwest Steel Processing disclosed in Q1 2026 remains unresolved, with no sale or recorded in Q2.
Assembly Components' return to growth at 6.6% builds on the 3.8% gain in Q1 2026, suggesting the multi-year legacy program roll-off may be stabilizing as new program launches begin to contribute.
What to watch
Whether Supply Technologies can sustain double-digit growth in Q3 2026, and whether its recovers from the tariff-related dip noted in Q1 as semiconductor and AI data center demand continues.
Whether the strategic review of Southwest Steel Processing results in a sale or in Q3 2026, and what impact that has on Engineered Products' trajectory.
Whether the quarterly run rate of approximately $12.3 million holds or rises further if floating-rate borrowings reprice, with each 100-basis-point increase adding $0.7 million per quarter.
Whether Assembly Components can sustain growth and stabilize its above 5% as the product mix shifts from legacy programs to new launches.
Engineered Products Q2 jumped 50% to $9.0M and margin expanded 190 to 7.0% on higher sales and improved efficiencies.
Assembly Components Q2 margin contracted 70 to 5.2% despite 6.6% sales growth, pressured by unfavorable mix.
swung to a $1.4M inflow in H1 2026 from a $23.7M outflow a year ago, aided by higher income and lower needs.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risk, including changes in interest rates. As of June 30, 2026, we are subject to interest rate risk on borrowings under the floating rate revolving credit facility provided by our Credit Agreement. A 100-basis-point increase in the interest rate would h…
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We are exposed to market risk, including changes in interest rates. As of June 30, 2026, we are subject to interest rate risk on borrowings under the floating rate revolving credit facility provided by our Credit Agreement. A 100-basis-point increase in the interest rate would have resulted in an increase in interest expense on these borrowings of approximately $1.4 million during the six-month period ended June 30, 2026.
Our foreign subsidiaries generally conduct business in local currencies. We face translation risks related to the changes in foreign currency exchange rates. Amounts invested in our foreign operations are translated in U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting translation adjustments are recorded as a component of Accumulated other comprehensive loss in the Shareholders' Equity section of the accompanying Condensed Consolidated Balance Sheets. Sales and expenses at our foreign operations are translated into U.S. dollars at the applicable monthly average exchange rates. Therefore, changes in exchange rates may either positively or negatively affect our net sales and expenses from foreign operations as expressed in U.S. dollars.
Our largest exposures to commodity prices relate to metal and rubber compounds, which have fluctuated widely in recent years. In 2026 and 2025, we entered into agreements to hedge foreign currency. These agreements did not have a material impact on the results of the Company. We have no other commodity swap agreements or forward purchase contracts.
Company states no pending litigation is expected to materially affect its financial condition, including 120 asbestos cases.
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The company is a co-defendant in 120 asbestos cases involving 163 plaintiffs alleging personal injury from asbestos-containing products.
Plaintiffs assert theories of negligence, gross negligence, and , seeking compensatory and sometimes .
Most complaints do not specify monetary damages or only cite ($25,000–$75,000) applying to all named defendants.
Management believes ultimate resolution will not have a material adverse effect, citing historical dismissals and plaintiffs' inability to establish causation or injury.
Defense costs for asbestos cases have not been material to date and are not expected to become material in the future.
There have been no material changes in the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Investors should not interpret the disclosure of any risk factor to imply that the risk has not already materialized. 32…
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There have been no material changes in the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Investors should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.
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