Park-Ohio Holdings Corp. (PKOH): Business Model Canvas [Dec-2025 Updated]

You're looking for the nuts and bolts of how Park-Ohio Holdings Corp. actually makes its money heading into 2026, and honestly, it's a fascinating hybrid model. We're talking about a company balancing high-touch, just-in-time supply chain services-which brought in $186 million in Q3 alone-with the manufacturing of critical forged components and capital equipment, all while managing a massive global footprint of about 130 facilities. With net sales projected between $1.600 billion and $1.620 billion for the full year 2025, understanding the nine blocks of their Business Model Canvas is key to seeing where the margin improvements are coming from. Dive into the table below for the precise breakdown of their partnerships, costs, and value propositions.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Park-Ohio Holdings Corp. (PKOH) relies on to keep its global manufacturing and supply chain services running as of late 2025. These partnerships are critical, especially following major financial restructuring.

Global network of raw material and component suppliers

Park-Ohio Holdings Corp. relies on a vast network to feed its three main segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies segment, in particular, focuses on supplier selection and management for world-class international manufacturing companies. The company operates approximately 130 facilities for manufacturing, distribution, and service worldwide. This scale necessitates deep, reliable relationships with raw material and component providers across various geographies.

Financial institutions for the $350 million senior notes refinancing

A key recent partnership involved the capital markets to strengthen the balance sheet. Park-Ohio Industries, Inc., a subsidiary, priced an offering of $350 million aggregate principal amount of senior secured notes due 2030. These notes carry an interest rate of 8.500% per annum and were priced at 99.500% of par. The proceeds were earmarked to redeem all outstanding $350 million of the 6.625% Senior Notes due 2027. The expected closing date for this offering was July 31, 2025. While the specific initial purchasers were not detailed in the public announcements, the transaction was advised upon by the law firm Latham & Watkins.

Technology partners for specialized manufacturing equipment

The Engineered Products segment, which supplies capital equipment like induction heating and melting gear, depends on technology partners for specialized manufacturing capabilities. This segment showed significant activity, achieving all-time record quarterly bookings of new capital equipment totaling $85 million in the second quarter of 2025. The backlog in Engineered Products stood at $185 million as of the third quarter of 2025, up 28% year-to-date.

Here's a quick look at the scale of the business that these partnerships support:

Logistics and freight carriers for global supply chain management

Park-Ohio Holdings Corp. manages the physical flow of product for its customers globally, utilizing a network of logistics and freight carriers. The company's operational footprint includes roughly 130 facilities for manufacturing, distribution, and service worldwide. A notable development in governance related to logistics expertise was the appointment of Andrew C. Clarke, former Chief Financial Officer of C.H. Robinson Worldwide, Inc., to Park-Ohio's Board of Directors, effective September 30, 2025. This signals a focus on high-level strategic oversight for their supply chain operations.

The company employs about 6,400+ people globally to manage these complex operations.

• Supply Technologies segment generated $187 million in sales in Q2 2025.
• Assembly Components reported Q3 2025 revenue of $97 million.
• The company projects FY 2025 net sales between $1.600 billion and $1.620 billion.
• FY 2025 Adjusted EPS guidance is set at $2.70 to $2.90 per diluted share.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Key Activities

You're looking at the core actions Park-Ohio Holdings Corp. takes to generate revenue and execute its strategy as of late 2025. These activities are centered around managing complex supply chains and manufacturing specialized components, all while pushing through a significant portfolio transformation.

Managing complex, outsourced supply chains for fasteners and components

This activity focuses on the Supply Technologies segment, which handles the distribution of fasteners and components. The company emphasizes cost discipline and pricing actions here to maintain profitability amidst varying end-market demand.

For the third quarter ended September 30, 2025, the Supply Technologies segment reported:

Growth in this area was supported by the electrical, semiconductor, and heavy-truck markets, which helped offset weaker industrial and consumer electronics demand.

Manufacturing engineered products like forged and machined components

The Engineered Products segment manufactures custom metal parts, including forged and machined components. The company is actively implementing plant floor improvements in its 2 forging plants to drive higher margins as sales volumes recover.

Key figures for the Engineered Products segment as of the third quarter of 2025 include:

• Revenue: $116 million
• Total Backlog: $185 million (up 28% Year-to-Date)

The Assembly Components part of the business, which also falls under this manufacturing umbrella, saw over $50 million of new business launching through 2026.

Producing and selling capital equipment, including induction heating systems

This involves the industrial equipment business within Engineered Products, which sees strong demand for both new equipment and aftermarket services. New equipment orders remain very strong, with bookings reaching record levels at most locations.

Specific data points related to capital equipment activity include:

• Q2 2025 Record Order: An $85 million order was secured by the Industrial Equipment Group.
• Q1 2025 New Equipment Sales Growth: Increased by 12% year-over-year.
• Q1 2025 New Equipment Backlog: Totaled $136 million at March 31, 2025.

Executing a portfolio transformation to improve margins and cash flow

Park-Ohio Holdings Corp. is executing a transformation to become a higher growth, higher margin, and less capital-intense business. This involves shedding underperforming assets and investing in areas with clear competitive moats.

Financial metrics reflecting this transformation focus for the full year 2025 outlook include:

The transformation progress is also visible in cash flow execution; Q3 2025 Free Cash Flow was $7 million, representing a $28 million sequential improvement. The company also completed a refinancing of senior notes and its revolving credit facility, extending maturity dates by 5 years.

Operational consolidation is part of this, with management noting the closing of over one million square feet of U.S. footprint.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Key Resources

Global network of approximately 130 manufacturing and logistics facilities

Park-Ohio Holdings Corp. maintains a significant physical footprint to support its global operations across its three segments: Supply Technologies, Assembly Components, and Engineered Products. As of mid-2025 reports, the company operates roughly 130 manufacturing sites and supply chain logistics facilities worldwide. This network supports the decentralized structure that empowers its various brands.

Proprietary supply chain management software and systems

The company relies on its internal systems to manage vendor managed inventory (VMI), kitting, and assembly services within the Supply Technologies segment. Investment in these systems is ongoing, as evidenced by capital spending in Q1 2025.

Patent-pending technology for induction heating equipment

This technology is a core asset within the Engineered Products segment, which also includes forged and machined products. The segment showed strength with record quarterly bookings of new capital equipment totaling $85 million in Q2 2025. The backlog for capital equipment stood at $185 million as of Q3 2025.

Skilled workforce of over 6,400 employees worldwide

The human capital base supports the manufacturing and logistics operations globally. The most recent reported headcount indicates a slight adjustment from prior years.

• Total Employee Count (2025 estimate): 6,300
• Employee Count (2023): 7,100
• Revenue per Employee (2025 estimate): $252,778
• Total Acquisitions over 30 years: 75+

The company's operational philosophy, the Crawford Culture, emphasizes a decentralized structure that empowers its various brands. Finance: draft 13-week cash view by Friday.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Value Propositions

You're looking at the core value Park-Ohio Holdings Corp. (PKOH) delivers across its three main operating segments, which is key to understanding their financial resilience, especially given the mixed industrial environment we saw through the third quarter of 2025. Honestly, the value proposition hinges on being deeply embedded in critical supply chains, not just selling parts.

Supply Technologies: Outsourced, just-in-time supply chain management for small components.

This segment is all about taking the headache out of managing small, critical components for customers. They offer total supply management, which means everything from engineering support to final delivery, right when the customer needs it-that's the just-in-time part. For context, this was their largest revenue contributor in 2024, bringing in $775.80 million, which was 46.8% of their total revenue that year. Even with some volatility, in the third quarter of 2025, this segment still pulled in $186 million in revenue, showing its consistent role in the business.

The value here is proven by their ability to maintain margins even when sales dip. For instance, in Q3 2025, their adjusted margins improved sequentially to 9.9% due to cost discipline and pricing actions. They serve diverse, high-growth areas; in 2024, they saw large increases in aerospace and defense, which continued to be encouraging in Q3 2025 alongside electrical and semiconductor markets.

Here's a quick look at the revenue contribution from the Supply Technologies segment:

Engineered Products: High-value capital equipment and strong aftermarket service revenue.

This group provides the big-ticket items-the capital equipment-but the real stickiness comes from the aftermarket parts and services. That recurring service revenue is what smooths out the lumpy nature of new equipment sales. You see this play out in the numbers; in Q1 2025, their aftermarket sales grew 5% year-over-year, while new equipment sales grew 12%.

The management team is clearly focused on building this future revenue stream, as evidenced by the backlog. At the end of Q3 2025, the backlog totaled $185 million, which was up 28% year-to-date. This backlog visibility, especially with strength in defense and infrastructure, is a major value driver for future quarters.

The segment's revenue performance shows its importance:

• Revenue: $116 million in Q3 2025.
• Revenue: $120.7 million in Q1 2025.
• New Equipment Backlog: $136 million as of March 31, 2025.

Assembly Components: Critical forged and machined products for complex assemblies.

Park-Ohio Holdings Corp. supplies forged and machined products that are essential for their customers' final, complex assemblies. This isn't a place where a customer can easily swap suppliers without significant re-engineering. The value proposition here is reliability for mission-critical parts. While this segment saw lower unit volumes in Q3 2025, resulting in revenue of $97 million, they are securing future work.

The concrete action showing future value is the pipeline of new work. They have over $50 million of new business launching through 2026, which should help stabilize volumes after the Q3 2025 revenue of $97 million and the Q2 2025 revenue of $95.1 million.

Mitigating customer risk through a diversified, multi-industry platform.

This is perhaps the most important strategic value proposition, especially when you look at the consolidated results. You see the benefit of this diversity clearly in the full-year 2024 results where consolidated net sales were $1.656 billion, yet no single segment dominates to the point of making the whole company vulnerable to one industry's downturn. The CEO highlighted this strength in Q1 2025, noting the diversity across products, end markets, and geographies.

Geographically, they operate across the United States, Asia, Canada, Mexico, and Europe. For the revenue breakdown available, Europe accounted for 57.8% of a reported subset of revenue, with Asia at 37.6%. This global footprint helps them navigate regional economic shifts. When you look at the overall financial picture, the company's ability to maintain a gross margin of 17.0% in 2024, despite market softness, points to this diversification working to offset weakness in specific areas. The full-year 2025 outlook projects net sales between $1.600 billion and $1.620 billion, showing management expects continued stability from this platform.

The platform's performance metrics underscore this stability:

• Full Year 2024 Consolidated Net Sales: $1.656 billion.
• FY 2025 Net Sales Guidance Range: $1.600 billion to $1.620 billion.
• Q3 2025 EBITDA Margin: 8.6%, showing operational resilience.
• Geographic Reach: Operations in the US, Asia, Canada, Mexico, and Europe.

Finance: draft 13-week cash view by Friday.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Customer Relationships

Park-Ohio Holdings Corp. focuses on making a long-term commitment to the organizations it serves, which is key to its B2B contract structure. The company is actively working to become a higher growth, more predictable business, which relies on sustained customer relationships. As of late 2025, the company is projecting full-year net sales in the range of $1.600 billion to $1.620 billion. The strength of these forward-looking commitments is reflected in the backlog, which stood at $185 million as of September 30, 2025, marking an increase of 28% since the end of 2024. This backlog provides good visibility into 2026, suggesting that the current relationships are translating into future committed business.

As a trusted supply chain partner, Park-Ohio Holdings Corp. supports a variety of Global 2000 infrastructure and consumer goods companies. The company maintains a significant physical presence to support these relationships, operating roughly 130 facilities for manufacturing, distribution, and service globally, employing about 6,400+ people. A substantial portion of the business is regionally focused, with a two-thirds domestic revenue base, which helps mitigate risks like tariffs. The company's strategy is built on providing world-class customers with supply chain management outsourcing services and manufactured components.

Here's a quick look at some key 2025 operational and financial metrics that underpin these customer-facing activities:

The high-touch support for capital equipment is evident in the performance of the Engineered Products segment, which includes capital equipment sales. For the first quarter of 2025, customer demand showed specific strength in this area, which is critical for installation and ongoing operation. You can see this in the year-over-year growth rates reported for that quarter:

• New equipment sales growth was 12% year-over-year in Q1 2025.
• Aftermarket products and services sales growth was 5% year-over-year in Q1 2025.

The company is also focused on operational discipline, which helps ensure the quality of service delivery. For instance, the consolidated gross margin expanded to 17.0% in Q2 2025, up from 16.8% in the prior quarter, showing improved operating leverage that supports service quality. Finance: draft 13-week cash view by Friday.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Channels

You're looking at how Park-Ohio Holdings Corp. (PKOH) gets its products and services-from supply chain management to capital equipment-into the hands of its customers. The channel strategy here is deeply integrated with the manufacturing floor of its clients, relying on a mix of direct engagement and a broad physical footprint.

The core of the channel strategy involves a direct sales force to major global manufacturers (OEMs). This isn't about selling off a shelf; it's about embedding Park-Ohio Holdings Corp. into the customer's production process. This direct contact is crucial for the Supply Technologies segment, which specializes in supplier selection and management, planning, implementing, and managing the physical flow of production parts and materials directly to customer assembly lines. This close relationship supports the company's goal of optimizing manufacturing processes for its Global 2000 infrastructure and consumer goods clients.

The physical backbone supporting this direct sales effort is the global network of distribution and service centers. Park-Ohio Holdings Corp. operates roughly 130 facilities worldwide that cover manufacturing, distribution, and service functions. This extensive network allows for localized support and rapid deployment, which is key when dealing with just-in-time manufacturing environments. This infrastructure underpins the entire operation, which generated trailing twelve-month revenue of $1.59 Billion USD as of late 2025, with full-year 2025 net sales projected to fall between $1.6 billion to $1.7 billion.

The third channel element, direct shipment from manufacturing sites to customer assembly lines, is the execution arm of the Supply Technologies segment. This is where the company acts as an outsourced logistics and supply partner. The effectiveness of this channel is reflected in the segment-level performance, though demand softness has caused some fluctuations in the near term.

Here's a quick look at how the sales from these channels broke down by segment in the second quarter of 2025, giving you a snapshot of the revenue flow:

The reliance on these direct and embedded channels means the company's success ties directly to the operational health of its major customers. For instance, in Q2 2025, the Supply Technologies segment saw sales of $187 million, while Assembly Components brought in $95 million. The Engineered Products segment, which deals with capital equipment, booked an all-time record quarterly amount of new capital equipment orders totaling $85 million in that same quarter.

The overall channel strategy is supported by a large, geographically dispersed workforce:

• Total global employees are reported at over 6,400 people.
• The network includes facilities dedicated to manufacturing, distribution, and service.
• The business geographically amplifies across the United States, Asia, Europe, Canada, and Mexico.

If onboarding new supply chain solutions takes longer than expected, churn risk rises defintely.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Customer Segments

You're looking at the customer base for Park-Ohio Holdings Corp. as of late 2025, based on their reported segment performance through the third quarter.

Park-Ohio Holdings Corp. serves a diverse set of industrial customers, with demand trends in late 2025 showing strength in specific areas while others softened. The company's total revenue for the third quarter ended September 30, 2025, was $399 million. The trailing twelve months (TTM) revenue was $1.59 Billion USD.

The customer segments are best understood through the lens of Park-Ohio Holdings Corp.'s operating segments:

• Supply Technologies revenue for Q3 2025 was $186 million.
• Assembly Components revenue for Q3 2025 was $97 million.
• Engineered Products revenue for Q3 2025 was $116 million.

Here's a breakdown of the end markets driving those segment results:

The company noted that demand trends from several end markets-specifically electrical, semiconductor, heavy-duty truck and defense-remain encouraging as of the Q3 2025 report. Structural growth drivers supporting these customers include manufacturing reshoring, infrastructure spending, and electrification. The full-year 2025 net sales guidance was set between $1.600 billion to $1.620 billion.

You can see the specific revenue figures for the quarter:

• Supply Technologies revenue: $186 million.
• Assembly Components revenue: $97 million.
• Engineered Products revenue: $116 million.

Finance: draft 13-week cash view by Friday.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Park-Ohio Holdings Corp.'s operations as of late 2025. Honestly, the cost structure is heavily weighted toward the direct costs of making and supplying their products, which makes sense given their industrial focus.

High cost of goods sold (COGS) due to raw materials and manufacturing is the largest component. For the second quarter of 2025, the Cost of Sales was reported at $331.9 million on net sales of $400.1 million. This resulted in a gross margin of 17.0% for that quarter. On a trailing twelve months (TTM) basis ending September 30, 2025, the Cost of Revenue stood at $1,325 million. Management noted that tariff costs, estimated between $25-$35 million in 2025, were expected to be fully recovered, primarily within the Supply Technologies segment.

Significant interest expense from debt, impacted by the refinancing, is another key cost driver. In Q2 2025, interest costs totaled $11 million, or $11.2 million according to another report. This was an improvement from approximately $12 million in the prior year period, driven by lower average interest rates and lower average debt balances. However, the recent refinancing activity is a near-term headwind. ParkOhio completed a $350 million private offering of senior secured notes due in 2030 at an 8.50% interest rate, using the proceeds to redeem its 6.625% Senior Notes due 2027. This move, while extending maturities, is projected to increase interest expense in the second half of 2025, reducing the full-year Adjusted EPS guidance by about $0.20. The TTM interest expense as of September 30, 2025, was $46.1 million.

Selling, General, and Administrative (SG&A) expenses reflect the company's efforts in cost containment. For Q2 2025, SG&A expenses were exactly $46.8 million. This represented 11.7% of net sales for the quarter. The TTM figure for Selling, General & Admin expenses was $179.9 million.

Capital expenditures for facility and information system investments are necessary to support operations and the portfolio transformation. While a specific CapEx figure for 2025 isn't explicitly stated in the Q2 release, the impact is visible in cash flow. First-half operating cash flow was negative at -$23.7 million, and free cash flow was negative at -$40.6 million, with management citing receivables growth and CapEx as contributing factors. The company guided for full-year 2025 free cash flow to be between $20 million and $30 million, with the second half expected to generate approximately $65 million.

Here's a quick look at the key cost structure elements from the Q2 2025 period and TTM data:

You should also keep in mind the other operating costs that factor into the overall expense base. These include:

• Operating Income for Q2 2025 fell 18.3% to $20.1 million.
• The effective income tax rate for Q2 2025 was 17%.
• The company expects full-year 2025 net sales in the range of $1.620 billion to $1.650 billion.
• Merger & Restructuring Charges for the TTM ending September 2025 were -$7.6 million.

Finance: draft 13-week cash view by Friday.

Park-Ohio Holdings Corp. (PKOH) - Canvas Business Model: Revenue Streams

You're looking at how Park-Ohio Holdings Corp. (PKOH) brings in its money as of late 2025. It's a mix of services and manufactured goods, clearly segmented across its operations.

The revenue streams are directly tied to the performance of its three main operating groups. For the third quarter ended September 30, 2025, the segment revenues looked like this:

The total reported revenue for that quarter was $399 million, showing how these three areas combine to form the top line. Honestly, the consistency across these segments in Q3 was a key point for management.

Looking ahead, the full-year expectation for 2025 net sales is set within a specific band, reflecting current market conditions and the ongoing transformation efforts. Here are the key projections for the full fiscal year 2025:

• Full-year 2025 net sales projected to be between $1.600 billion and $1.620 billion.
• The backlog as of September 30, 2025, stood at $185 million, up 28% from year-end 2024, which gives good visibility into future revenue.

Within the segments, there are specific drivers for revenue generation. For instance, the Engineered Products group saw record bookings, which is definitely a positive sign for future revenue streams, especially given the strength in defense and infrastructure markets.

The revenue generation relies on these core activities:

• Sales of supply chain management services and components (Supply Technologies: $186 million in Q3 2025).
• Sales of manufactured components (Assembly Components: $97 million in Q3 2025).
• Sales of capital equipment and aftermarket parts (Engineered Products: $116 million in Q3 2025).

Finance: draft 13-week cash view by Friday.