41 added · 53 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
NOTE 4 — Asset Impairment Charges During 2025, the Company recorded non-cash asset impairment charges in its Engineered Products segment totaling $ 8.9 million to write-down the carrying value of certain assets, primarily at its forging operations in Arkansas.
Year Ended December 31, 2025 2024 2023 Net sales $ — $ — $ 180.6 Cost of sales — — 164.9 Selling, general and administrative — — 15.8 Operating loss — — ( 0.1 ) Interest expense — — ( 3.3 ) Loss from operation of discontinued operations — — ( 3.4 ) Loss on sale of discontinued operations ( 1.3 ) ( 12.9 ) ( 28.3 ) Loss on classification as held-for-sale — — — Income tax benefit 0.3 2.5 5.5 Loss from discontinued operations, net of tax $ ( 1.0 ) $ ( 10.4 ) $ ( 26.2 ) NOTE 8 — Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows: Supply Technologies Assembly Components Engineered Products Total Balance at January 1, 2024 $ 21.8 $ 51.4 $ 37.0 $ 110.2 Acquisition — — 3.9 3.9 Disposal — — ( 0.5 ) ( 0.5 ) Currency translation ( 0.2 ) 0.1 ( 1.8 ) ( 1.9 ) Balance at December 31, 2024 21.6 51.5 38.6 111.7 Currency translation 1.0 — 3.1 4.1 Balance at December 31, 2025 $ 22.6 $ 51.5 $ 41.7 $ 115.8 53 Table of Contents PARK-OHIO HOLDINGS CORP.
Auditing management’s quantitative goodwill impairment assessment for certain of its reporting units was complex due to the use of a valuation methodology in the determination of the estimated fair values of the reporting units.
NOTE 5 — Plant Closure and Consolidation During 2025, in connection with its ongoing profit-improvement actions, the Company recorded plant closure and consolidation costs totaling $ 2.6 million across all three of its segments. 51 Table of Contents PARK-OHIO HOLDINGS CORP.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) During 2024 and 2023, the Company paid $ 3.0 million and $ 2.9 million, respectively, as scheduled, related to deferred purchase price for the 2022 acquisitions of Charter Automotive (Changzhou) Co.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 9 — Other Intangible Assets December 31, 2025 December 31, 2024 Weighted Average Remaining Useful Life (Years) Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships 9.5 $ 98.9 $ 71.0 $ 27.9 $ 96.9 $ 65.8 $ 31.1 Indefinite-lived tradenames * 27.3 * 27.3 26.6 * 26.6 Technology 9.8 26.4 12.7 13.7 25.1 11.3 13.8 Other 3.4 4.9 4.6 0.3 4.8 4.4 0.4 Total $ 157.5 $ 88.3 $ 69.2 $ 153.4 $ 81.5 $ 71.9 * Not applicable, as these tradenames have an indefinite life.
Amortization expense of other intangible assets was as follows: Year Ended December 31, 2025 2024 2023 Amortization expense $ 6.9 $ 6.8 $ 6.7 We estimate amortization expense for the five years subsequent to 2025 as follows: 2026 $ 6.5 2027 $ 6.4 2028 $ 5.5 2029 $ 3.8 2030 $ 2.5 NOTE 10 — Financing Arrangements Debt consists of the following: Carrying Value at Maturity Date Interest Rate at December 31, 2025 December 31, 2025 December 31, 2024 Senior Secured Notes July 31, 2030 8.500 % $ 348.4 $ — Senior Notes April 15, 2027 6.625 % — 350.0 Revolving credit facility July 17, 2030 5.19 % 257.4 248.6 Finance leases Various Various 16.6 17.0 Other Various Various 13.3 13.1 Total debt 635.7 628.7 Less: Current portion of long-term debt and short-term debt ( 8.3 ) ( 8.4 ) Less: Unamortized debt issuance costs ( 6.7 ) ( 2.0 ) Total long-term debt, net $ 620.7 $ 618.3 On July 31, 2025, Park-Ohio Industries, Inc.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) the net proceeds from the offering of the 2030 Notes, along with cash on hand, to redeem all $ 350.0 million aggregate principal amount of 6.625 % Senior Notes due 2027 (the “2027 Notes”) and pay related fees and expenses.
On July 17, 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 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”).
NOTE 11 — Income Taxes (Loss) income from continuing operations before income taxes consists of the following: Year Ended December 31, 2025 2024 2023 United States $ ( 21.3 ) $ ( 5.9 ) $ 0.2 Outside the United States 45.1 50.3 41.3 $ 23.8 $ 44.4 $ 41.5 55 Table of Contents PARK-OHIO HOLDINGS CORP.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Income tax expense consists of the following: Year Ended December 31, 2025 2024 2023 Current expense: Federal $ 0.3 $ 2.8 $ 1.7 State 1.0 1.1 0.1 Foreign 15.4 15.6 13.9 16.7 19.5 15.7 Deferred (benefit) expense: Federal ( 9.1 ) ( 11.9 ) ( 7.1 ) State ( 0.7 ) ( 1.8 ) ( 1.2 ) Foreign ( 4.1 ) ( 0.9 ) 1.1 ( 13.9 ) ( 14.6 ) ( 7.2 ) Income tax expense $ 2.8 $ 4.9 $ 8.5 In 2025, the effective income tax rate of 11.8 % was less than the U.S. statutory rate of 21%, primarily as a result of the tax benefit of the research and development tax credit partially offset by the impact of non-deductible expenses Several countries in which Park-Ohio Holdings does business have proposed or enacted new tax laws or are actively considering changes to their tax laws to align with the Organization for Economic Co-operation and Development (“OECD”) proposals.
The provision (benefit) for income taxes differs from the amount that would result by applying the applicable federal income tax rate to income before incomes taxes, as follows: Year Ended December 31, 2025 Amount Percent US federal statutory income tax $ 5.0 21.0 % State and local income taxes, net of federal effect 1 Changes in valuation allowance 0.8 3.3 % Other ( 0.7 ) ( 2.7 ) % Foreign tax effects Mexico Foreign rate differential 1.0 4.0 % Prior period adjustment ( 0.7 ) ( 2.8 ) % Other ( 0.8 ) ( 3.3 ) % Other jurisdictions 1.6 6.8 % Effect of cross-border tax laws Global intangible low-taxed income 0.6 2.5 % 56 Table of Contents PARK-OHIO HOLDINGS CORP.
No longer disclosed
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Year Ended December 31, 2024 2023 2022 Net sales $ — $ 180.6 $ 210.4 Cost of sales — 164.9 220.0 Selling, general and administrative — 15.8 14.2 Restructuring and other special charges — — 3.9 Goodwill impairment — — — Operating loss — ( 0.1 ) ( 27.7 ) Interest expense — ( 3.3 ) ( 2.8 ) Loss from operation of discontinued operations — ( 3.4 ) ( 30.5 ) Loss on sale of discontinued operations ( 12.9 ) ( 28.3 ) — Loss on classification as held-for-sale — — ( 1.8 ) Income tax benefit 2.5 5.5 8.0 Loss from discontinued operations, net of tax $ ( 10.4 ) $ ( 26.2 ) $ ( 24.3 ) NOTE 5 — Plant Closure and Consolidation During 2024, the Company consolidated an Assembly Components facility and closed an Engineered Products operation in Ohio.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 7 — Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows: Supply Technologies Assembly Components Engineered Products Total Balance at January 1, 2023 $ 21.1 $ 51.3 $ 36.5 $ 108.9 Currency translation 0.7 0.1 0.5 1.3 Balance at December 31, 2023 21.8 51.4 37.0 110.2 Acquisition — — 3.9 3.9 Disposal — — ( 0.5 ) ( 0.5 ) Currency translation ( 0.2 ) 0.1 ( 1.8 ) ( 1.9 ) Balance at December 31, 2024 $ 21.6 $ 51.5 $ 38.6 $ 111.7 NOTE 8 — Other Intangible Assets December 31, 2024 December 31, 2023 Weighted Average Remaining Useful Life (Years) Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships 9.7 $ 96.9 $ 65.8 $ 31.1 $ 94.5 $ 60.5 $ 34.0 Indefinite-lived tradenames * 26.6 * 26.6 25.9 * 25.9 Technology 10.8 25.1 11.3 13.8 22.8 10.0 12.8 Other 3.5 4.8 4.4 0.4 4.8 4.2 0.6 Total $ 153.4 $ 81.5 $ 71.9 $ 148.0 $ 74.7 $ 73.3 * Not applicable, as these tradenames have an indefinite life.
Auditing management’s quantitative goodwill impairment assessment for certain of its reporting units was complex and highly judgmental due to the significant estimation required to determine the fair value of the reporting units.
As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of EMA Indutec GmbH (“EMA”), which is included in the 2024 consolidated financial statements of the Company and constituted less than 3% of total assets as of December 31, 2024 and less than 2% of total revenues for the year then ended.
The allocation of the purchase price of EMA was finalized in 2024 and is summarized as follows: (In millions) Accounts receivable $ 6.0 Inventories 4.7 Other current assets 0.5 Property, plant and equipment 1.3 Goodwill 3.9 Intangibles 6.8 Other assets 0.1 Accounts payable and accrued expenses ( 10.0 ) Deferred income tax liability ( 2.3 ) Total purchase price, net of cash acquired $ 11.0 During 2024, the Company paid $ 3.0 million, as scheduled, related to deferred purchase price for the 2022 acquisitions of Charter Automotive (Changzhou) Co.
Amortization expense of other intangible assets was as follows: Year Ended December 31, 2024 2023 2022 Amortization expense $ 6.8 $ 6.7 $ 6.6 We estimate amortization expense for the five years subsequent to 2024 as follows: 2025 $ 6.9 2026 $ 6.5 2027 $ 6.4 2028 $ 5.5 2029 $ 3.8 NOTE 9 — Financing Arrangements 55 Table of Contents PARK-OHIO HOLDINGS CORP.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Debt consists of the following: Carrying Value at Maturity Date Interest Rate at December 31, 2024 December 31, 2024 December 31, 2023 Senior Notes due 2027 April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility January 14, 2027 6.15 % 248.6 263.5 Finance leases Various Various 17.0 16.3 Other Various Various 13.1 15.9 Total debt 628.7 645.7 Less: Current portion of long-term debt and short-term debt ( 8.4 ) ( 9.4 ) Less: Unamortized debt issuance costs ( 2.0 ) ( 2.9 ) Total long-term debt, net $ 618.3 $ 633.4 In September 2023, Park-Ohio Industries, Inc.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 10 — Income Taxes (Loss) income from continuing operations before income taxes consists of the following: Year Ended December 31, 2024 2023 2022 United States $ ( 5.9 ) $ 0.2 $ ( 21.3 ) Outside the United States 50.3 41.3 32.0 $ 44.4 $ 41.5 $ 10.7 Income tax expense (benefit) consists of the following: Year Ended December 31, 2024 2023 2022 Current expense (benefit): Federal $ 2.8 $ 1.7 $ ( 1.6 ) State 1.1 0.1 ( 0.2 ) Foreign 15.6 13.9 9.4 19.5 15.7 7.6 Deferred (benefit) expense: Federal ( 11.9 ) ( 7.1 ) ( 8.0 ) State ( 1.8 ) ( 1.2 ) 0.8 Foreign ( 0.9 ) 1.1 ( 1.1 ) ( 14.6 ) ( 7.2 ) ( 8.3 ) Income tax expense (benefit) $ 4.9 $ 8.5 $ ( 0.7 ) In 2024, the effective tax rate of 11.0 % was less than the U.S. statutory rate of 21%, primarily as a result of the tax benefit of the research and development tax credit and the release of certain valuation allowances.
Cash Flow Information for 2024, 2023 and 2022 2024 2023 2022 Amounts included in the Consolidated Statements of Cash Flows: Operating cash outflows for operating leases $ ( 15.1 ) $ ( 14.3 ) $ ( 14.5 ) Operating cash outflows for finance leases $ ( 0.9 ) $ ( 1.0 ) $ ( 0.3 ) Financing cash inflows for finance leases $ 0.7 $ 0.9 $ 8.5 62 Table of Contents PARK-OHIO HOLDINGS CORP.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years: Postretirement Benefits Pension Benefits Gross Expected Medicare Subsidy Net including Medicare Subsidy 2025
On December 29, 2023, the Company sold this business to Angstrom Automotive Group (“Angstrom”) for approximately $ 50 million in cash and promissory notes, plus the assumption of approximately $ 3 million of financial lease obligations.
It is reasonably possible that, within the next twelve months, the amount of gross unrecognized tax benefits could be reduced by approximately $ 0.4 million as a result of the closure of tax statutes related to existing uncertain tax positions.