In This Article:
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Consolidated Net Sales: Approximately $1.7 billion in 2024, consistent with 2023.
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GAAP Earnings Per Share: Increased 18% to $3.19 per diluted share from $2.72 last year.
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Adjusted Earnings Per Share: Improved to $3.59 from $3.07 in 2023, an increase of 17% year-over-year.
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Gross Margins: Improved 60 basis points to 17% of net sales in 2024.
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SG&A Expenses: 11.3% of sales, up from 10.9% in 2023.
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Adjusted Operating Income: $94 million, a 4% increase from $90 million in 2023.
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Interest Expense: $47 million, up from $45 million in 2023.
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Effective Income Tax Rate: 11% in 2024, with expectations of 21% to 23% in 2025.
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EBITDA: $152 million in 2024, a 13% increase from $134 million in 2023.
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Operating Cash Flow: $35 million in 2024.
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Free Cash Flow: $15 million in 2024.
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Net Debt Leverage: Improved to 3.8 times.
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Supply Technologies Segment Sales: Record $779 million, up 2% from $766 million in 2023.
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Assembly Components Segment Sales: $399 million, down 7% from $428 million in 2023.
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Engineered Products Segment Sales: Record $482 million, up 3% from $469 million in 2023.
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Fourth Quarter Net Sales: $388 million, consistent with the fourth quarter of 2023.
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Fourth Quarter Adjusted Earnings Per Share: $0.67, up 24% from $0.54 in the prior year quarter.
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Fourth Quarter EBITDA: $37 million, a 27% increase from the prior year quarter.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Park-Ohio Holdings Corp (NASDAQ:PKOH) achieved record levels of gross margin and improved leverage metrics and liquidity in 2024.
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The company reported all-time highs in sales and profitability for its supply chain management, proprietary fastener manufacturing, and industrial equipment businesses.
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GAAP earnings per share from continuing operations increased by 18% to $3.19 per diluted share, with adjusted earnings per share improving by 17% year-over-year.
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The supply technologies segment achieved record sales of $779 million, driven by strong demand in aerospace and defense, heavy-duty truck, consumer electronics, and electrical distribution markets.
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Park-Ohio Holdings Corp (NASDAQ:PKOH) expects revenue growth of 2% to 4% in 2025, with improvements in adjusted operating income, adjusted net income, EBITDA, and free cash flow.
Negative Points
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Sales in the assembly components segment declined by 7% year-over-year due to lower unit volumes on auto platforms and end-of-life programs.
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SG&A expenses increased in 2024 due to the acquisition of EMA induction, higher employee-related costs, and general inflationary increases.
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Interest expense rose to $47 million from $45 million in 2023, primarily due to higher interest rates.
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The engineered products segment experienced a decline in operating income due to lower production of rail forging products, affecting margins.
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The company anticipates potential cost increases due to tariffs on goods manufactured abroad, which could impact certain raw materials and components.