Park-Ohio Holdings Corp. Reports Slight Decline in Net Sales for Fiscal Year 2024

Park-Ohio Holdings Corp. reported a slight decline in net sales for the fiscal year ending December 31, 2024, totaling $1.656 billion, down 0.2% from $1.660 billion in 2023. The decrease was primarily attributed to lower sales in the Assembly Components segment, which saw a 6.8% drop to $398.7 million, while the Supply Technologies segment experienced a 1.6% increase to $775.8 million. The Engineered Products segment also reported growth, with net sales rising 2.8% to $481.7 million. The company's gross margin improved to 17.0%, up from 16.4% in the previous year, driven by profit improvement initiatives and higher sales in its capital equipment business.

In terms of profitability, Park-Ohio's income from continuing operations increased by 20% to $39.5 million, compared to $33.0 million in 2023. This growth was reflected in earnings per share, which rose to $3.27 from $2.76. The company also reported a reduction in selling, general, and administrative expenses, which increased to $187.4 million, or 11.3% of net sales, compared to 10.9% in the prior year. The company recorded restructuring charges of $4.9 million, down from $6.6 million in 2023, indicating a focus on cost management.

Strategically, Park-Ohio completed the acquisition of EMA Indutec GmbH in February 2024 for $11 million, enhancing its Engineered Products segment with advanced induction heating technology. Additionally, the company sold its Aluminum Products business to Angstrom Automotive Group for approximately $50 million in cash and promissory notes, which has been classified as a discontinued operation. This divestiture is expected to streamline operations and focus on core business segments.

Operationally, Park-Ohio employed approximately 6,300 people as of December 31, 2024, with a significant portion of its workforce located outside the United States. The company serves over 7,500 customers globally, with its top five customers accounting for approximately 34% of sales in the Supply Technologies segment. The company continues to face challenges related to labor shortages and inflation, which have impacted its cost structure and operational efficiency.

Looking ahead, Park-Ohio anticipates continued demand for its products, particularly in the aerospace, defense, and heavy-duty truck markets. However, the company remains cautious about potential economic downturns and their impact on customer demand. The management expects to maintain compliance with financial covenants and continue to generate positive cash flow to support operations and capital expenditures. The company plans to focus on integrating recent acquisitions and enhancing its product offerings to drive future growth.