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Park-Ohio
🇺🇸 NASDAQ:PKOH
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Sep 30, 2023

Park-Ohio Q3 2023 Earnings Report

Park-Ohio reported strong financial results for the third quarter of 2023, driven by a diversified business model and operational improvements.

Key Takeaways

Park-Ohio announced a 9% increase in net sales, reaching $419 million, and a 71% increase in GAAP EPS to $0.99. The company's gross margin improved by 300 basis points to 16.7%, and operating income increased to $27 million. Strong demand across most end markets, excluding those affected by UAW strikes, contributed to the positive results.

Net sales increased by 9% to $419 million compared to Q3 2022.

GAAP EPS from continuing operations rose by 71% year-over-year to $0.99 per diluted share.

Gross margin improved by 300 basis points year-over-year to 16.7%.

Operating income improved to $27 million from $12 million in Q3 2022.

Total Revenue
$419M
Previous year: $436M
-3.9%
EPS
$0.99
Previous year: $0.52
+90.4%
EBITDA
$38.5M
Previous year: $28.5M
+35.1%
Gross Profit
$70M
Previous year: $50.4M
+38.9%
Cash and Equivalents
$51.2M
Previous year: $53.7M
-4.7%
Free Cash Flow
$16.6M
Previous year: -$1.4M
-1285.7%
Total Assets
$1.46B
Previous year: $1.43B
+1.8%

Park-Ohio

Park-Ohio

Park-Ohio Revenue by Segment

Forward Guidance

Park-Ohio expects revenues from continuing operations to increase 10-15% year-over-year and anticipates improvement in adjusted operating income, EBITDA, free cash flow, and adjusted EPS for 2023. The UAW strike is expected to negatively impact fourth quarter revenues by $25 to $30 million per month.

Positive Outlook

  • Revenues from continuing operations expected to increase 10-15% year-over-year.
  • Expect year-over-year improvement in adjusted operating income.
  • EBITDA is expected to improve year-over-year.
  • Free cash flow is projected to increase in 2023.
  • Adjusted EPS is also expected to improve in 2023.

Challenges Ahead

  • Fourth quarter revenues will be negatively impacted by the UAW strike.
  • OEM plants affected by the strike will reduce monthly revenue by approximately $25 to $30 million.
  • The full impact of the strike on fourth quarter revenues is difficult to estimate due to production ramp-up uncertainties.
  • UAW strike affects customers across Assembly Components and Supply Technologies segments.
  • Backlogs remain above historical levels, and demand is stable across most end markets with the notable exception of customers affected by UAW strikes, which will provide a headwind during the fourth quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Park-Ohio