Park-Ohio Raises 2026 Sales and Adjusted Earnings Outlook

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue reached a record $459 million, up 15% from a year earlier, and the company lifted its full-year sales range to $1.750 billion to $1.770 billion.

Park-Ohio Holdings Corp. (PKOH) reported record third-quarter revenue of $459 million, up 15% from a year earlier, and raised its full-year 2026 sales and adjusted earnings outlook after year-over-year growth in all three reportable segments.

The Cleveland-based industrial supplier said the acceleration followed 10% year-over-year growth in the second quarter and 4% in the first. Gross margin was 17.9%, up 120 basis points from 16.7% in the 2025 third quarter. Operating income rose 54% to $26.6 million from $17.3 million. GAAP earnings from continuing operations were $0.97 a share, compared with $0.39 a year earlier. Adjusted EPS was $1.04, up 60% from $0.65, which the company said was the highest level in two years.

Chairman and Chief Executive Officer Matthew V. Crawford said demand had been favorable to expectations throughout the year and that the company was increasing both its revenue and earnings outlook again for 2026. He pointed to semiconductor, electrical infrastructure and aerospace and defense as markets showing particular strength, and said many end markets remain supply constrained. The company said it expects that strength to continue well into 2027.

Supply Technologies was the largest segment, with record revenue of $225.2 million, up 21% from a year earlier after 12% growth in the second quarter. The company attributed the increase to semiconductor, AI data center, heavy-duty truck, powersports and aerospace and defense end markets. Segment operating income increased 23%, and operating margins were 9.5%. Proprietary fastener sales increased 12%.

Assembly Components revenue increased 7% to $103.6 million, the same year-over-year rate as in the second quarter. Operating margins improved to 5.4% from 4.8% a year ago. The segment designs and manufactures fluid-routing systems for traditional, hybrid and electric vehicle applications.

Engineered Products posted record revenue of $129.7 million, up 12% after 10% growth in the second quarter. Operating income rose to $9.1 million from $3.4 million a year earlier, and operating margin improved to 7.0% from 2.9%. The company said the margin gain reflected growth in engineered capital equipment, aftermarket parts and services and better operating performance in forged and machined products. New equipment bookings totaled $53 million in the third quarter, down from $66 million in the second. Equipment backlog reached $242 million at September 30, up 18% from year-end 2025.

The company raised its full-year 2026 sales outlook to $1.750 billion to $1.770 billion from $1.700 billion to $1.730 billion, an increase of 9% to 11% over 2025. Adjusted EPS guidance moved to $3.35 to $3.50 a diluted share from $3.10 to $3.30, an increase of 24% to 30% over 2025. EBITDA margin guidance of 8.5% to 9.0% of net sales and free cash flow of $20 million to $30 million were unchanged. Park-Ohio said the raised outlook reflects revenue growth and continued margin expansion in Supply Technologies and Engineered Products, including semiconductor, AI data center, electrical steel, aerospace and defense, oil and gas and other industrial markets, and increased operating efficiency across all three segments.

Operating cash flows were $16 million in the third quarter, and free cash flow was $7 million. The company expects $35 million to $45 million of free cash flow in the fourth quarter of 2026. Cash and cash equivalents were $58.9 million at September 30. Calculated availability under the revolving credit facility was $94.7 million.

A formal review of strategic alternatives for Southwest Steel Processing, including a potential sale, remains ongoing. The 2026 outlook includes about $15 million of SSP revenue and a loss of about $0.46 a diluted share. SSP contributed about $0.13 a diluted share of net loss in the three months ended September 30. Park-Ohio said the outcome of the review represents potential upside to the current outlook and that there can be no assurance it will result in any transaction.