Park-Ohio Holdings Corp. announced its first-quarter 2025 results, reporting net sales from continuing operations of $405.4 million, a decrease from $417.6 million in the first quarter of 2024. This decline was primarily driven by lower customer demand in the Supply Technologies and Assembly Components segments. Gross margin for the quarter was 16.8%, down from 17.1% in the prior year period.
Income from continuing operations attributable to common shareholders was $8.5 million, or $0.61 per diluted share, in Q1 2025. Adjusted EPS from continuing operations was $0.66 per diluted share, compared to $0.85 per diluted share in Q1 2024, primarily due to the lower sales levels. EBITDA for the period was $33.9 million, down from $37.8 million in Q1 2024.
Despite overall sales headwinds, the Engineered Products segment saw a 6.3% increase in net sales to $120.7 million, driven by higher sales in its industrial equipment business. Customer demand for both new equipment and aftermarket products and services remains strong, with new equipment sales up 12% and aftermarket sales up 5%. The new equipment backlog for this segment totaled $136 million at March 31, 2025.
The company reported a use of $10 million in operating cash flow from continuing operations in Q1 2025, compared to positive operating cash flow of $2.3 million in Q1 2024, mainly due to higher accounts receivable. Free cash flow was a use of $19.5 million. Total liquidity at March 31, 2025, was $209.5 million, including $54.5 million in cash.
For the full year 2025, Park-Ohio estimates net sales will be in the range of $1.6 billion to $1.7 billion and adjusted earnings per share will be in the range of $3.00 to $3.50. The company continues to expect its free cash flow to improve year over year. Management is working to mitigate the impact of added costs from tariffs through supply chain and commercial solutions.
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