PARK OHIO HOLDINGS CORP

SEGMENT PERFORMANCE DEMAND DRIVERS

In our Supply Technologies segment, our outsourced supply chain and component distribution platform generated $187 million in sales during the quarter, down 8% YOY caused by demand softness in certain North American industrial markets. Demand in this segment continues to be driven by reshoring trends, steady growth in Europe, and long-standing vendor managed inventory programs embedded with OEM customers. As customers prioritize regional suppliers for cost and reliability, ParkOhio remains well positioned to capture share.

Assembly Components, which produces engineered assemblies for transportation and industrial markets, reported Q2 sales of $95 million, down from $103 million in the prior year. The decline reflects lower volumes in fuel rail and rubber products, delays in new OEM platform launches, and the expiration of favorable pricing on legacy programs. Demand in this segment is closely linked to OEM launch schedules, overall vehicle production, and customer consolidation of the supply base. We continue to win new business across all product lines, with over $50 million of incremental business launching in the second half of 2025 and throughout 2026. Our strong reputation for quality, scale, and continuity continues to make ParkOhio a trusted partner.

Engineered Products, our capital equipment and forged components segment serving diversified end markets including infrastructure and defense, delivered $118 million in revenue for the quarter, compared to $127 million a year ago. The 2024 closure of a small manufacturing facility and lower railcar demand impacted forged products, while industrial equipment sales remained steady. Segment demand is being driven by sustained investment in defense, infrastructure, and electrical steel capacity expansion. The quarter’s record $85 million in new capital equipment bookings — including a record $47 million induction heating order utilizing our patent pending technology that enables the most uniform heating profile available in today’s markets — pushed backlog to $172 million, providing multi-quarter visibility.