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Sep 30, 2022

Park-Ohio Q3 2022 Earnings Report

Park-Ohio reported a strong third quarter with revenue growth and improved earnings, driven by demand across all business segments and effective cost reduction activities.

Key Takeaways

Park-Ohio announced strong Q3 2022 results, with revenues up 22% to $436 million. GAAP EPS was $0.22, a significant improvement from a loss of $(0.60) in Q3 2021, and adjusted EPS was $0.52, up from a loss of $(0.32). The company benefited from strong demand in each business segment and expects these trends to continue into 2023.

Q3 2022 Revenues of $436 million, up 22% from Q3 2021 driven by strong demand in each business segment

Q3 2022 GAAP EPS of $0.22 compared to a loss of $(0.60) in Q3 2021; Adjusted EPS of $0.52, up from a loss of $(0.32) in Q3 2021

Sales growth was at or near record levels in each segment during the third quarter.

Earnings momentum improved due to significant commercial and cost reduction activities.

Total Revenue
$436M
Previous year: $359M
+21.6%
EPS
$0.52
Previous year: -$0.32
-262.5%
EBITDA
$28.5M
Previous year: $13.3M
+114.3%
Gross Profit
$50.4M
Previous year: $40.1M
+25.7%
Cash and Equivalents
$53.7M
Previous year: $59.6M
-9.9%
Free Cash Flow
-$1.4M
Previous year: -$13.1M
-89.3%
Total Assets
$1.43B
Previous year: $1.37B
+4.5%

Park-Ohio

Park-Ohio

Park-Ohio Revenue by Segment

Forward Guidance

The company continues to expect record revenues for the full year 2022, with growth estimated at approximately 18% year-over-year. They also expect significant improvement in profitability for the full year 2022 compared to 2021, and improved adjusted operating results in the fourth quarter compared to the third quarter of 2022.

Challenges Ahead

  • Continuing macroeconomic headwinds
  • Demand volatility
  • Inflation
  • Supply chain constraints

Revenue & Expenses

Visualization of income flow from segment revenue to net income