PARK OHIO HOLDINGS CORP
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
PKOH$43.39+9.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000076282-26-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0000076282-26-000035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 95 previous paragraphs and 96 current paragraphs.
48 unchanged; 31 reworded; 17 added; 15 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
We provide global OEMs and industrial customers with supply-chain management services, engineered production components, and industrial equipment and related aftermarket support. Our businesses include customized component sourcing and fulfillment, engineered fastening and fluid-routing products, thermal-processing and power-management equipment, and specialty forged and machined products. We report these activities through three segments: Supply Technologies, Assembly Components and Engineered Products.
Current report
Supply Technologies provides OEM customers with customized supply-chain management programs, including global sourcing, quality assurance, inventory planning, kitting, and point-of-use delivery of components used in manufacturing. These programs are supported by engineering and design assistance and other value-added services. The segment also designs and manufactures engineered specialty fasteners and other products, including proprietary fastening technologies. Customers span transportation, semiconductor equipment, electrical distribution, aerospace and defense, and other industrial markets.
Current report
Assembly Components designs and manufactures engineered fluid-routing products and assemblies, including fuel-delivery systems, hose and tubing products, and molded rubber and plastic components. Its manufacturing capabilities support fluid transfer and thermal-management applications, principally for automotive OEM platforms and related transportation markets. These capabilities may also support additional industrial applications over time.
Current report
Engineered Products designs and manufactures industrial thermal-processing and power-management equipment, specialty forged and machined products, and related aftermarket parts and services. Equipment includes induction heating and melting systems, power supplies, transformers, inverters and specialized forming equipment. The segment serves aerospace and defense, electrical steel and power infrastructure, semiconductor and materials processing, oil and gas, power generation and other industrial applications. Its aftermarket activities support customers’ installed equipment alongside new equipment demand.
Current report
Not meaningful
Current report
Interest expense, net was $12.2 million in the third quarter of 2026 compared to $12.5 million in the 2025 third quarter. The decrease was due primarily to lower interest rates and lower borrowings on our revolving credit facility in the 2026 third quarter compared to the same quarter a year ago.
Current report
Income Tax Expense/Benefit
Current report
Nine Months Ended September 30, 2026 Compared with Nine Months Ended September 30, 2025
Current report
During the first nine months of 2025, the Company recorded $5.1 million in connection with restructuring and other special charges, which included $1.4 million in our Supply Technologies segment, $2.0 million in our Assembly Components segment, $1.5 million in our Engineered Products segment and $0.2 million at Corporate.
Current report
Net sales increased 21.4% to $225.2 million, primarily reflecting higher demand for the supply-chain management business across semiconductor equipment, AI data-center infrastructure, heavy-duty truck, powersports, and aerospace and defense markets. Sales in the engineered fastener manufacturing business increased 7.9%, including demand for proprietary fastener products across multiple regions.
Current report
Segment operating income increased to $21.4 million from $17.4 million, while operating margin was 9.5% compared with 9.4% a year ago. Higher volume supported operating-income growth, alongside ongoing automation and productivity programs.
Current report
Net sales increased 6.8% to $103.6 million, primarily from higher volumes on automotive programs launched in 2025.
Current report
Segment operating income rose to $5.6 million from $4.7 million, with operating margin increasing to 5.4% from 4.8%. The increase reflected higher sales and the comparison with restructuring costs in the prior-year period. The segment continues to focus on program execution and productivity across its fluid-routing and related component businesses.
Current report
Segment operating income increased to $15.8 million in the nine months ended September 30, 2026 compared to $15.6 million in the 2025 period, due to higher sales levels in the 2026 period and restructuring charges in the 2025 period, offset by unfavorable mix in the 2026 period compared to the 2025 period.
Current report
Net sales increased 11.7% to $129.7 million, reflecting demand across defense, electrical steel processing, oil and gas, agriculture, AI data-center infrastructure, semiconductor and other industrial markets. Forged and machined products sales increased 33% year over year.
Current report
Segment operating income increased to $9.1 million from $3.4 million, and operating margin improved to 7.0% from 2.9%, reflecting higher sales and improved operating execution in capital equipment and forged products. Demand for aftermarket parts and services also contributed to the segment’s activity.
Current report
Capital expenditures totaled $31.9 million in the first nine months of 2026, compared with $27.6 million in the prior-year period, and supported capacity expansion, automation, existing operations and information-system implementations.
Removed paragraphs (15)
Previous report
We are a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. We operate through three reportable segments: Supply Technologies, Assembly Components and Engineered Products.
Previous report
Supply Technologies provides our customers with Total Supply Management™, a proactive solutions approach that manages the efficiencies of every aspect of supplying production parts and materials to our customers’ manufacturing floor, from strategic planning to program implementation. Total Supply Management™ includes such services as engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing services and ongoing technical support. Our Supply Technologies business services customers in the following principal industries: heavy-duty truck; power sports and recreational equipment; aerospace and defense; semiconductor equipment; electrical distribution and controls; consumer electronics; bus and coaches; automotive; agricultural and industrial equipment; HVAC; lawn and garden; plumbing; and medical devices.
Previous report
Assembly Components manufactures products oriented towards fuel efficiency and reduced emission standards. Assembly Components designs, develops and manufactures highly efficient, high pressure direct fuel injection fuel rails and pipes; fuel filler pipes that route fuel from the gas cap to the gas tank; flexible multi-layer plastic and rubber assemblies used to transport fuel from the vehicle's gas tank and then, at extreme high pressure, to the engine's fuel injector nozzles. Our product offerings include gasoline direct injection systems and fuel filler assemblies, and industrial hose and injected molded rubber and plastic components. Our products are primarily used in the following industries: including automotive and light-vehicle; agricultural equipment; construction equipment; heavy-duty truck; and bus.
Previous report
Engineered Products operates a diverse group of niche manufacturing businesses that design and manufacture a broad range of highly-engineered products, including induction heating and melting systems, pipe threading systems, generators and transformers, inverters and forged and machined products. Engineered Products also produces and provides services and spare parts for the equipment it manufactures. The principal customers of Engineered Products are OEMs, sub-assemblers and end users in the following industries: power generation and energy; general steel processing; automotive and heavy vehicles; aerospace and defense; semiconductor; precious metals and industrial materials; oil and gas; general industrial; and rail.
Previous report
Interest expense, net was $12.3 million in the second quarter of 2026 compared to $11.2 million in the 2025 second quarter. The increase was due primarily to the August 2025 refinancing of all of our outstanding 6.625% Senior Notes due 2027 (the “2027 Notes”), which resulted in a higher interest rate on our 8.500% Senior Secured Notes due 2030 (the “2030 Notes”) compared to the 2027 Notes. This adverse interest impact was partially offset by lower interest rates on our revolving credit facility in the 2026 second quarter compared to the same quarter a year ago.
Previous report
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
Previous report
During the first six months of 2026, the Company recorded $2.6 million in connection with restructuring and other special charges, which included $0.3 million in our Supply Technologies segment, $0.7 million in our Assembly Components segment, $1.1 million in our Engineered Products segment and $0.5 million at Corporate.
Previous report
Income Tax Expense
Previous report
Net sales increased 11.9% in the three months ended June 30, 2026 compared to the 2025 period due primarily to higher customer demand in certain end markets, including the semiconductor, AI data center, powersports, aerospace and defense, heavy-duty truck and agricultural and industrial equipment end markets. Sales in our fastener manufacturing business were up 5.8% year-over-year, driven by higher customer demand for our proprietary products, particularly in Asia.
Previous report
Segment operating income was $18.5 million in the 2026 period compared to $16.3 million in the 2025 period. Operating income margin was 8.8% in the 2026 quarter compared to 8.7% in the 2025 quarter. The increases reflect profit flow-through from the higher sales, continued sales growth of our proprietary products in our fastener manufacturing business, various profit-enhancement initiatives and our ongoing investments in automation initiatives designed to improve productivity and reduce operating costs across the business.
Previous report
Segment operating income in the 2026 period decreased by $0.3 million, and segment operating income margin decreased by 70 basis points, compared to the corresponding period of 2025. The decreases in operating income and margin in the second quarter of 2026 compared to the 2025 period were due to unfavorable mix.
Previous report
Segment operating income decreased to $10.2 million in the six months ended June 30, 2026 compared to $10.9 million in the 2025 period, a decrease of 6.4%, and margins decreased by 60 basis points. The decreases were due to unfavorable mix.
Previous report
Net sales were $129.4 million in the 2026 second quarter, an increase of 9.8%, compared to $117.9 million in last year's second quarter. The increase was driven by higher demand across defense, electrical steel processing, oil and gas, agriculture, AI data center, semiconductor and other general industrial end markets. In our forged and machined products group, second quarter 2026 sales were up 25% compared to the same quarter a year ago, driven by higher customer demand.
Previous report
Segment operating income in the 2026 period increased by $3.0 million compared to the corresponding 2025 period, and operating margins were up 190 basis points compared to the corresponding 2025 period. The increases in the 2026 period were driven by the higher sales and improved operational efficiencies in both our capital equipment and forged and machined products group.
Previous report
Capital expenditures of $23.5 million and $16.9 million in the six months ended June 30, 2026 and 2025, respectively, were primarily to provide increased capacity and automation for future growth, to maintain existing operations and for information system implementations.
Reworded paragraphs (31)
Previous wording
As part of its ongoing portfolio optimization strategy, the Company is conducting a formal review of strategic alternatives for its Southwest Steel Processing (“SSP”) business, including a potential sale or other transaction. SSP is part of our Engineered Products segment. This review reflects our continued focus on aligning capital and resources toward higher-growth, higher-margin opportunities across our portfolio. The Company has not set a deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this review process will result in any transaction or particular outcome.
Current wording
As part of its ongoing portfolio optimization strategy, the Company is conducting a formal review of strategic alternatives for its Southwest Steel Processing (“SSP”) business, including a potential sale or other transaction. SSP is included in our Engineered Products segment. This review reflects our continued focus on aligning capital and resources toward higher-growth, higher-margin opportunities across our portfolio. The Company has not set a deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this review process will result in any transaction or particular outcome.
Previous wording
Net sales increased 10.0% to $440.1 million in the second quarter of 2026 compared to $400.1 million in the same period in 2025. This increase was primarily due to higher demand in each of our business segments.
Current wording
Net sales increased 15.0% to $458.5 million in the third quarter of 2026 compared to $398.6 million in the same period in 2025. This increase was primarily due to higher demand in each of our business segments.
Previous wording
Cost of sales increased to $361.2 million in the second quarter of 2026 compared to $331.9 million in the same period in 2025. The increase in cost of sales was primarily due to the increase in net sales in the 2026 period compared to the corresponding period in 2025. Gross margin was 17.9% in the 2026 period compared to 17.0% in the corresponding 2025 period, with the increase driven by the profit flow-through from the higher net sales and ongoing profit-enhancement activities throughout the company.
Current wording
Cost of sales increased to $376.3 million in the third quarter of 2026 compared to $332.0 million in the same period in 2025. The increase in cost of sales was due to the increase in net sales in the 2026 period compared to the corresponding period in 2025. Gross margin increased to 17.9% in the third quarter of 2026 from 16.7% in the corresponding 2025 period. The improvement reflected profit contribution from higher sales and continued operating initiatives across the business, including productivity improvements, automation and improved manufacturing execution.
Previous wording
SG&A expenses were $53.1 million in the second quarter of 2026 compared to $46.8 million in the comparable period in 2025. As a percentage of net sales, SG&A expenses were 12.1% in the second quarter of 2026 compared to 11.7% in corresponding 2025 period. The increases were driven by ongoing inflation, higher employee costs and support for the higher sales levels.
Current wording
SG&A expenses were $54.2 million in the third quarter of 2026 compared to $46.5 million in the comparable period in 2025. As a percentage of net sales, SG&A expenses were 11.8% in the third quarter of 2026 compared to 11.7% in corresponding 2025 period. The increases were driven by ongoing inflation, higher employee costs and support for the higher sales levels.
Previous wording
During the second quarter of 2025, the Company recorded charges of $1.3 million in connection with restructuring and other special charges, which included $0.4 million in our Supply Technologies segment, $0.5 million in our Assembly Components segment and $0.4 million in our Engineered Products segment.
Current wording
During the third quarter of 2026, the Company recorded charges of $1.4 million in connection with restructuring and other special charges, which included $0.4 million in our Supply Technologies segment, $0.1 million in our Assembly Components segment, $0.8 million in our Engineered Products segment and $0.1 million at Corporate.
Previous wording
During the second quarter of 2026, the Company recorded charges of $1.3 million in connection with restructuring and other special charges, which included $0.3 million in our Supply Technologies segment, $0.3 million in our Assembly Components segment, $0.6 million in our Engineered Products segment and $0.1 million at Corporate.
Current wording
During the third quarter of 2025, the Company recorded charges of $2.8 million in connection with restructuring and other special charges, which included $1.0 million in our Supply Technologies segment, $1.3 million in our Assembly Components segment, $0.3 million in our Engineered Products segment and $0.2 million at Corporate.
Previous wording
Other components of pension and OPEB income, net was $2.2 million in the quarter ended June 30, 2026 compared to $1.8 million in the corresponding quarter in 2025. This increase was due to higher return on plan assets in the 2026 period compared to the 2025 period.
Current wording
Other components of pension and OPEB income, net was $2.1 million in the quarter ended September 30, 2026 compared to $1.7 million in the corresponding quarter in 2025. This increase was due to a higher return on plan assets in the 2026 period compared to the 2025 period.
Previous wording
In the three months ended June 30, 2026, income tax expense was $2.4 million on pre-tax income from continuing operations of $14.4 million, representing an effective income tax rate of 17%. In the three months ended June 30, 2025, income tax expense was $1.8 million on pre-tax income of $10.7 million, representing an effective income tax rate of 17%. The rates for the three months ended June 30, 2026 and 2025 are lower than the statutory rate due primarily to increased federal research and development tax credit benefit.
Current wording
In the three months ended September 30, 2026, income tax expense was $3.1 million on pre-tax income from continuing operations of $16.5 million, representing an effective income tax rate of 19%. The effective rate for the three-month period is lower than the U.S. statutory rate due primarily to federal research and development tax credit benefit. In the three months ended September 30, 2025, income tax benefit was $0.4 million on pre-tax income of $4.5 million. The tax benefit in the three-month period is primarily due to federal research and development tax credit benefit.
Previous wording
Net sales increased 6.9% to $861.1 million in the first six months of 2026 compared to $805.5 million in the same period in 2025. This increase was primarily due to higher customer demand in each of our business segments.
Current wording
Net sales increased 9.6% to $1,319.6 million in the first nine months of 2026 compared to $1,204.1 million in the same period in 2025. This increase was primarily due to higher customer demand in each of our business segments.
Previous wording
The factors explaining the changes in segment net sales for the six months ended June 30, 2026 compared to the corresponding 2025 period are contained in the “Segment Results” section below.
Current wording
The factors explaining the changes in segment net sales for the nine months ended September 30, 2026 compared to the corresponding 2025 period are contained in the “Segment Results” section below.
Previous wording
Cost of sales increased to $709.5 million in the first six months of 2026 compared to $669.2 million in the same period in 2025, driven by the increase in net sales. Gross margin was 17.6% in the 2026 period compared to 16.9% in the corresponding 2025 period, with the year-over-year gross margin increase driven by the profit flow-through from the higher sales and ongoing profit-enhancement activities throughout the company.
Current wording
Cost of sales increased to $1,085.8 million in the first nine months of 2026 compared to $1,001.2 million in the same period in 2025, driven by the increase in net sales. Gross margin was 17.7% in the 2026 period compared to 16.9% in the corresponding 2025 period, with the year-over-year gross margin increase driven by the profit flow-through from the higher sales and ongoing profit-enhancement activities throughout the Company.
Previous wording
SG&A expenses were $104.8 million in the first six months of 2026, compared to $95.0 million in the same period in 2025. As a percentage of net sales, SG&A expenses were 12.2% in the first six months of 2026 compared to 11.8% in the comparable period in 2025. The increases were driven by ongoing inflation, higher employee costs and support for the higher sales levels.
Current wording
SG&A expenses were $159.0 million in the first nine months of 2026, compared to $141.5 million in the same period in 2025. As a percentage of net sales, SG&A expenses were 12.0% in the first nine months of 2026 compared to 11.8% in the comparable period in 2025. The increases were driven by ongoing inflation, higher employee costs and support for the higher sales levels.
Previous wording
During the first six months of 2025, the Company recorded $2.3 million in connection with restructuring and other special charges, which included $0.4 million in our Supply Technologies segment, $0.7 million in our Assembly Components segment and $1.2 million in our Engineered Products segment.
Current wording
During the first nine months of 2026, the Company recorded $4.0 million in connection with restructuring and other special charges, which included $0.7 million in our Supply Technologies segment, $0.8 million in our Assembly Components segment, $1.9 million in our Engineered Products segment and $0.6 million at Corporate.
Previous wording
Other components of pension and OPEB income, net was $4.3 million in the first six months of 2026 compared to $3.6 million in the corresponding period in 2025. This increase was due to higher return on plan assets in 2026 compared to 2025.
Current wording
Other components of pension and OPEB income, net was $6.4 million in the first nine months of 2026 compared to $5.3 million in the corresponding period in 2025. This increase was due to a higher return on plan assets in 2026 compared to 2025.
Previous wording
Interest expense, net was $24.6 million in the first six months of 2026 compared to $22.2 million in the 2025 period. The increase was due primarily to the higher rate of 8.500% on our 2030 Notes compared to the 2027 Notes and higher average outstanding debt balances in the 2026 period compared to the same period a year ago, partially offset by lower rates on our revolving credit facility.
Current wording
Interest expense, net was $36.8 million in the first nine months of 2026 compared to $34.7 million in the 2025 period. The increase was due primarily to the higher rate on our 8.500% Senior Secured Notes due 2030 (the “2030 Notes”) compared to our 6.625% Senior Notes due 2027 (the “2027 Notes”) and higher average outstanding debt balances in the 2026 period compared to the same period a year ago, partially offset by lower rates on our revolving credit facility.
Previous wording
In the six months ended June 30, 2026, income tax expense was $4.0 million on pre-tax income from continuing operations of $23.9 million, representing an effective income tax rate of 17%. In the six months ended June 30, 2025, income tax expense was $3.7 million on pre-tax income of $20.4 million, representing an effective income tax rate of 18%. The rates for the six months ended June 30, 2026 and 2025 are lower than the statutory rates due primarily to federal research and development tax credit benefit.
Current wording
In the nine months ended September 30, 2026, income tax expense was $7.1 million on pre-tax income from continuing operations of $40.4 million, representing an effective income tax rate of 18%. In the nine months ended September 30, 2025, income tax expense was $3.3 million on pre-tax income of $24.9 million, representing an effective income tax rate of 13%. The rates for the nine months ended September 30, 2026 and 2025 are lower than the U.S. statutory rate due primarily to federal research and development tax credit benefit.
Previous wording
Net sales increased 7.9% in the six months ended June 30, 2026 compared to the 2025 period due primarily to higher customer demand in certain end markets in our supply chain business, including the semiconductor, AI data center, powersports, aerospace and defense, heavy-duty truck and agricultural and industrial equipment end markets. Sales in our fastener manufacturing business were up 1.9% year-over-year.
Current wording
Net sales increased 12.3% in the nine months ended September 30, 2026 compared to the 2025 period due primarily to higher customer demand in certain end markets in our supply chain business, including the semiconductor, AI data center, heavy-duty truck, powersports, aerospace and defense and agricultural and industrial equipment end markets. Sales in our fastener manufacturing business were up 3.9% year-over-year.
Previous wording
Segment operating income was $36.0 million in the 2026 period compared to $34.1 million in the 2025 period. Operating income margin was 8.9% in the six months ended June 30, 2026 compared to 9.1% in the 2025 period. Segment operating income margin was 20 basis points lower in the 2026 period compared to the same period a year ago due primarily to higher tariffs in the 2026 period, which impacted gross margins.
Current wording
Segment operating income was $57.4 million in the 2026 period compared to $51.5 million in the 2025 period. Operating income margin was 9.1% in the nine months ended September 30, 2026 compared to 9.2% in the 2025 period.
Previous wording
Net sales were $201.6 million, or 5.0% higher, in the six months ended June 30, 2026 compared to the 2025 period. The increase was due primarily to increased unit volumes on new business launched throughout 2025.
Current wording
Net sales were $305.2 million, or 5.6% higher, in the nine months ended September 30, 2026 compared to the 2025 period. The increase was due primarily to increased unit volumes on new business launched throughout 2025.
Previous wording
Net sales were $255.1 million in the six months ended June 30, 2026 compared to $238.6 million in comparable 2025 period, up 6.9%. The year-over-year increase was driven by higher customer demand across defense, electrical steel processing, oil and gas, agriculture, AI data center, semiconductor and other general industrial end markets. In our forged and machined products group, 2026 sales were up 15% compared to the same quarter a year ago, driven by higher customer demand.
Current wording
Net sales were $384.8 million in the nine months ended September 30, 2026 compared to $354.7 million in comparable 2025 period, up 8.5%. The year-over-year increase was driven by higher customer demand across defense, electrical steel processing, oil and gas, agriculture, AI data center, semiconductor and other general industrial end markets. In our forged and machined products group, 2026 sales were up 21% compared to the corresponding 2025 period, driven by higher customer demand.
Previous wording
Segment operating income in the 2026 period increased by $4.9 million compared to the corresponding 2025 period, driven by higher sales and improved operational efficiencies in both our capital equipment and forged and machined products group.
Current wording
Segment operating income in the 2026 period increased by $10.6 million compared to the corresponding 2025 period, driven by higher sales and improved operational efficiencies in both our capital equipment and forged and machined products group.
Previous wording
In the six months ended June 30, 2026, we generated cash of $1.4 million compared to a use of $23.7 million in the same period of 2025. Cash flow from operating activities improved in 2026 due to higher income and lower working capital needs.
Current wording
In the nine months ended September 30, 2026, we generated cash of $16.9 million compared to a use of $6.4 million in the same period of 2025. Cash flow from operating activities improved in 2026 due to higher income and lower working capital needs.
Previous wording
During the six months ended June 30, 2026, we had net debt borrowings of $31.6 million to fund capital expenditures and working capital needs. In addition, the Company made cash dividend payments to shareholders totaling $3.6 million and payments of withholding taxes on share awards of $2.0 million.
Current wording
During the nine months ended September 30, 2026, we used net debt borrowings of $38.5 million to fund capital expenditures and working capital needs. In addition, the Company made cash dividend payments to shareholders totaling $5.4 million and payments of withholding taxes on share awards of $3.4 million.
Previous wording
Our liquidity needs are primarily for working capital, capital expenditures, dividends and acquisitions. Our primary sources of liquidity have been funds provided by operations, funds available from existing bank credit arrangements and the sale of our debt securities. Our existing financial resources (working capital, available bank borrowing arrangements and our at-the-market program) and anticipated cash flow from operations are expected to be adequate to meet anticipated cash requirements for at least the next twelve months and the foreseeable future thereafter, including but not limited to our ability to maintain current operations and fund capital expenditure requirements, service our debt, pursue acquisitions, pay dividends and repurchase common shares. For more information about our at the market program and other sales of common stock, see Note 12, “Weighted-Average Number of Shares Used in Computing Earnings Per Share,” to the condensed consolidated financial statements, included elsewhere herein.
Current wording
Our liquidity needs are primarily for working capital, capital expenditures, dividends and acquisitions. Our primary sources of liquidity have been funds provided by operations, funds available from existing bank credit arrangements and the sale of our debt securities. Our existing financial resources (working capital, available bank borrowing arrangements and our at-the-market program) and anticipated cash flow from operations are expected to be adequate to meet anticipated cash requirements for at least the next twelve months and the foreseeable future thereafter, including but not limited to our ability to maintain current operations and fund capital expenditure requirements, service our debt, pursue acquisitions, pay dividends and repurchase common shares.
Previous wording
As of June 30, 2026, we had total liquidity of $189.1 million, which included $48.3 million of cash and cash equivalents and $140.8 million of unused borrowing availability under our credit agreements, which includes $7.1 million of suppressed availability.
Current wording
As of September 30, 2026, we had total liquidity of $194.9 million, which included $58.9 million of cash and cash equivalents and $136.0 million of unused borrowing availability under our credit agreements, which includes $10.6 million of suppressed availability.
Previous wording
The Company had cash and cash equivalents held by foreign subsidiaries of $36.9 million at June 30, 2026 and $34.1 million at December 31, 2025. We do not expect restrictions on repatriation of cash held outside the U.S. to have a material effect on our overall liquidity, financial condition or results of operations for the foreseeable future.
Current wording
The Company had cash and cash equivalents held by foreign subsidiaries of $48.0 million at September 30, 2026 and $34.1 million at December 31, 2025. We do not expect restrictions on repatriation of cash held outside the U.S. to have a material effect on our overall liquidity, financial condition or results of operations for the foreseeable future.
Previous wording
In July 2025, Park-Ohio completed the sale, in a private offering, of $350.0 million aggregate principal amount of the 2030 Notes bearing interest 8.500%. The net proceeds from the offering of the 2030 Notes, along with cash on hand, were used to redeem in full the 2027 Notes and pay related fees and expenses. Interest on the Notes is payable semi-annually in arrears on January 31 and July 31 of each year.
Current wording
In July 2025, Park-Ohio completed the sale, in a private offering, of $350.0 million aggregate principal amount of the 2030 Notes bearing interest at 8.500%. The net proceeds from the offering of the 2030 Notes, along with cash on hand, were used to redeem in full the 2027 Notes and pay related fees and expenses. Interest on the Notes is payable semi-annually in arrears on January 31 and July 31 of each year.
Previous wording
In July 2025, Park-Ohio amended its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), in order to, among other things, (a) extend the maturity date to the fifth anniversary from the closing of the revolving credit facility amendment, (b) permit the issuance of the 2030 Notes and (c) permit the 2030 Notes to be secured by (i) a first-priority lien on the substantially all of the U.S. equipment (including machinery) of the Park-Ohio and the Park-Ohio’s existing and future domestic subsidiaries (the “Guarantors”) that guarantee debt under the Credit Agreement (the “Notes Priority Collateral”) and (ii) a second-priority lien (junior to the Credit Agreement) on substantially all of the U.S. assets of Park-Ohio and the Guarantors (including the 65% pledge of the foreign equity owned by the Guarantors), other than assets constituting Notes Priority Collateral, securing the revolving credit facility (the “ABL Priority Collateral”). The Credit Agreement provides for a revolving credit facility in the amount of $405.0 million, including a $40.0 million Canadian revolving subcommitment and a European revolving subcommitment in the amount of $30.0 million. Pursuant to the Credit Agreement, Park-Ohio has the option to increase the availability under the revolving credit facility.
Current wording
In July 2025, Park-Ohio amended its Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), in order to, among other things, (a) extend the maturity date to the fifth anniversary from the closing of the revolving credit facility amendment, (b) permit the issuance of the 2030 Notes and (c) permit the 2030 Notes to be secured by (i) a first-priority lien on substantially all of the U.S. equipment (including machinery) of Park-Ohio and its existing and future domestic subsidiaries (the “Guarantors”) that guarantee debt under the Credit Agreement (the “Notes Priority Collateral”) and (ii) a second-priority lien (junior to the Credit Agreement) on substantially all of the U.S. assets of Park-Ohio and the Guarantors (including the 65% pledge of the foreign equity owned by the Guarantors), other than assets constituting Notes Priority Collateral, securing the revolving credit facility (the “ABL Priority Collateral”). The Credit Agreement provides for a revolving credit facility in the amount of $405.0 million, including a $40.0 million Canadian revolving subcommitment and a European revolving subcommitment in the amount of $30.0 million. Pursuant to the Credit Agreement, Park-Ohio has the option to increase the availability under the revolving credit facility.
Previous wording
As of June 30, 2026, the Company had finance leases totaling $15.3 million.
Current wording
As of September 30, 2026, the Company had finance leases totaling $14.5 million.
Previous wording
The future availability of bank borrowings under the revolving credit facility provided by the Credit Agreement is based on (1) our calculated availability under the Credit Agreement and (2) if such calculated availability decreases below $50.625 million, our ability to meet a debt service ratio covenant. If our calculated availability is less than $50.625 million, our debt service coverage ratio must be greater than 1.0. At June 30, 2026, our calculated availability under the Credit Agreement was $101.9 million; therefore, the debt service ratio covenant did not apply.
Current wording
The future availability of bank borrowings under the revolving credit facility provided by the Credit Agreement is based on (1) our calculated availability under the Credit Agreement and (2) if such calculated availability decreases below $50.625 million, our ability to meet a debt service ratio covenant. If our calculated availability is less than $50.625 million, our debt service coverage ratio must be greater than 1.0. At September 30, 2026, our calculated availability under the Credit Agreement was $94.7 million; therefore, the debt service ratio covenant did not apply.
Previous wording
The Company declared and paid dividends to shareholders of $3.6 million during the six months ended June 30, 2026. On July 17, 2026, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on August 14, 2026 to shareholders of record as of the close of business on July 31, 2026 and will result in a cash outlay of approximately $1.8 million. Although we currently intend to pay a quarterly dividend on an ongoing basis, all future dividend declarations will be at the discretion of our Board of Directors and dependent upon then-existing conditions, including our operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that our Board of Directors may deem relevant.
Current wording
The Company declared and paid dividends to shareholders of $5.4 million during the nine months ended September 30, 2026. On October 30, 2026, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on November 27, 2026 to shareholders of record as of the close of business on November 13, 2026 and will result in a cash outlay of approximately $1.8 million. Although we currently intend to pay a quarterly dividend on an ongoing basis, all future dividend declarations will be at the discretion of our Board of Directors and dependent upon then-existing conditions, including our operating results and financial condition, capital requirements, contractual restrictions, business prospects and other factors that our Board of Directors may deem relevant.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Net sales increased 6.6% in the three months ended June 30, 2026 compared to the 2025 period, due primarily to increased unit volumes on new business launched in 2025.