ParkOhio — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached a record $459 million, a 15% increase year-over-year compared to $398.6 million in Q3 2025.
• Year-to-date revenue for the nine months ended September 30, 2026, was $1.3 billion, up 10% year-over-year from $1.2 billion in the prior period.
• Gross margin improved to 17.9% in Q3 2026 from 16.7% in Q3 2025, an increase of 120 basis points.
• Operating income increased 54% year-over-year to $26.6 million in Q3 2026, compared to $17.3 million in Q3 2025.
• GAAP diluted EPS was $0.97 in Q3 2026, up 149% from $0.39 in Q3 2025.
• Adjusted diluted EPS was $1.04 in Q3 2026, up 60% from $0.65 in Q3 2025, marking the highest level in two years.
• Year-to-date GAAP diluted EPS was $2.41, up 44% from $1.67 in the prior year period.
• Year-to-date Adjusted diluted EPS was $2.61, up 27% from $2.06 in the prior year period.
• Operating cash flow for Q3 2026 was $16 million, with free cash flow of $7 million.
• EBITDA, as defined, was $40.9 million for Q3 2026, up from $34.2 million in Q3 2025.
• Total debt increased to $667.4 million (current portion of $7.0 million and long-term of $660.4 million) as of September 30, 2026, from $629.0 million at December 31, 2025.
• Cash and cash equivalents were $58.9 million at September 30, 2026, compared to $44.8 million at December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 sales outlook was raised to $1.750 billion to $1.770 billion, representing a 9% to 11% increase over 2025.
• Full-year 2026 Adjusted EPS outlook was raised to $3.35 to $3.50 per diluted share, representing a 24% to 30% increase over 2025.
• Full-year 2026 EBITDA, as defined, remains 8.5% to 9.0% of Net Sales.
• Full-year 2026 free cash flow guidance remains $20 million to $30 million.
• The company expects free cash flow of $35 million to $45 million in the fourth quarter of 2026.
• Management expects demand strength to continue well into 2027 due to supply constraints in key end markets.
• The 2026 outlook includes the impact of the Southwest Steel Processing (SSP) business, expected to contribute approximately $15 million in revenue and a loss of approximately $0.46 per diluted share.
• The outcome of the strategic review of SSP represents potential upside to the current outlook.

Business Segments and Product Lines:

• Supply Technologies: Record revenue of $225.2 million, up 21% year-over-year, driven by semiconductor, AI data center, heavy-duty truck, powersports, and aerospace and defense markets. Operating income increased 23% with operating margins of 9.5%. Proprietary fastener sales increased 12%.
• Assembly Components: Revenue increased 7% to $103.6 million, driven by new programs and higher demand across automotive platforms. Operating margins improved to 5.4% from 4.8% a year ago.
• Engineered Products: Record revenue increased 12% to $129.7 million, with operating income rising to $9.1 million from $3.4 million a year ago. Operating margin improved to 7.0% from 2.9%. New equipment bookings totaled $53 million, and equipment backlog reached $242 million at September 30, up 18% from year-end 2025.
• All three business segments reported year-over-year sales growth in Q3 2026.

Market and Competitive Landscape:

• Strong demand was observed across aerospace and defense, AI data center, electrical steel, and semiconductor end markets.
• The global industrial economy, led by North America, continues to underpin accelerating business performance.
• Broad-based improvements were seen in the industrial economy and key markets.
• The company is expanding applications for engineered technologies and growing aftermarket and service capabilities.
• Investments are being made in automation, systems, and manufacturing productivity to support revenue growth and margin expansion.

Risks and Challenges:

• The outcome of the strategic review of the SSP business is uncertain and may not result in a transaction.
• The company faces risks related to supply chain and logistic issues, substantial indebtedness, and the uncertainty of the global economic environment.
• Competitive factors include pricing pressures and product innovation.
• Risks include labor disturbances affecting customers, raw material availability and pricing, and fluctuations in energy costs.
• The company must maintain compliance with financial covenants in its credit agreement, including a debt service ratio covenant if calculated availability drops below $50.625 million.
• Dependence on the automotive and heavy-duty truck industries, which are highly cyclical, poses a risk.
• Potential impacts from geopolitical unrest, trade barriers, and changing government policies are noted.

Management Commentary and Tone:

• Matthew V. Crawford, Chairman and CEO, stated that demand has been favorable to expectations throughout the year.
• Management expressed pleasure in increasing both revenue and earnings outlook for 2026.
• The company recognized excellent execution by teammates, citing strengthening margins driven by volume and ongoing productivity improvements.
• The tone reflects confidence in the continued strength of key end markets and the ability to maintain margin expansion.

Other Key Points:

• The company engaged an investment banking firm on May 6, 2026, to assist in a formal review of strategic alternatives for the Southwest Steel Processing (SSP) business, including a potential sale.
• In the three and nine months ended September 30, 2026, the share of net loss attributable to SSP was approximately $0.13 and $0.35 per diluted share, respectively.
• The company operates approximately 125 manufacturing sites and supply chain logistics facilities worldwide.
• Dividends per common share were $0.125 for the quarter and $0.375 for the nine months ended September 30, 2026.
• The company does not provide reconciliations of forward-looking non-GAAP financial measures to GAAP measures due to the inherent difficulty in forecasting certain items.
• A live webcast and conference call were scheduled for November 5, 2026, at 9:00 a.m. Eastern Time.