Park Ohio Holdings's biggest risks in the FY2024 10-K
- Park-Ohio’s risk profile is dominated by cyclical automotive and heavy-duty truck market exposure, customer concentration, and raw material cost inflation driven by tariffs.
The risks most specific to Park Ohio Holdings
- Risks Relating to Economic Conditions
Given recent inflationary trends and forecasts for rising inflation rates in the future, we expect further raw material price increases and higher labor costs, which may continue to adversely affect our business and operating results, particularly in the Assembly Components segment
Tariffs announced by the new U.S. administration on goods from China, Mexico, Canada, steel, and aluminum will increase raw material and component costs, especially in the Assembly Components segment.
- Risks Relating to Our Business and Operations
Because a significant portion of our sales is to the automotive and heavy-duty truck industries, a decrease in the demand of these industries or the loss of any of our major customers in these industries could adversely affect our financial health
A significant portion of sales goes to the highly cyclical automotive and heavy-duty truck industries, making the company vulnerable to demand decreases or customer loss.
- Risks Relating to Our Business and Operations
Our Supply Technologies customers are generally not contractually obligated to purchase products and services from us
Supply Technologies customers generally purchase under purchase orders rather than long-term contracts, and those contracts often lack minimum purchase or exclusivity requirements.
- Risks Relating to Our Business and Operations
We are dependent on key customers
The ten largest customers accounted for approximately 24% of net sales in 2024, creating dependence on key accounts with fluctuating order levels.
- Risks Relating to Our Business and Operations
Our Supply Technologies business depends upon third parties for substantially all of our component parts
The Supply Technologies business purchases substantially all component parts from third-party suppliers, exposing the company to tariff-driven price increases and delivery delays.
- Risks Relating to Our Business and Operations
We have a significant amount of goodwill, and any future goodwill impairment charges could adversely impact our results of operations
The company held $111.7 million in goodwill as of December 31, 2024, which is at risk of future impairment charges from adverse business changes.
- Risks Relating to Human Capital
Some of our employees belong to labor unions, and strikes or work stoppages could adversely affect our operations
Approximately 2,100 full-time employees are covered by eight collective bargaining agreements, risking strikes or work stoppages if contract negotiations fail.
- Risks Relating to Human Capital
The loss of key executives could adversely impact us
The loss of key executives like Chairman, CEO, and President Matthew Crawford could harm operations, and his departure could trigger a default under the revolving credit facility.
- Risks Relating to Our Debt
Adverse global economic conditions may have significant effects on our customers that would result in our inability to borrow or to meet our debt service coverage ratio in our revolving credit facility
Declines in automotive demand and sales volumes could impair the company's ability to maintain compliance with debt service coverage ratio covenants in its revolving credit facility.
- Risks Relating to Our Common Stock
Our Chairman of the Board, Chief Executive Officer and President and former President collectively beneficially own a significant portion of Holdings’ outstanding common stock and their interests may conflict with yours
Chairman, CEO, and President Matthew Crawford and former President Edward Crawford collectively owned approximately 28% of outstanding common stock as of December 31, 2024.
All 26 risk factors
Headings as the filing states them, in filing order.
Risks Relating to Economic Conditions
- 01The industries in which we operate are cyclical and are affected by the economy in general
- 02Adverse credit market conditions may significantly affect our access to capital, cost of capital and ability to meet liquidity needs
- 03Adverse global economic conditions may have significant effects on our customers and suppliers that could result in material adverse effects on our business and operating results
- 04Given recent inflationary trends and forecasts for rising inflation rates in the future, we expect further raw material price increases and higher labor costs, which may continue to adversely affect our business and operating results, particularly in the Assembly Components segment
Risks Relating to Our Business and Operations
- 05Because a significant portion of our sales is to the automotive and heavy-duty truck industries, a decrease in the demand of these industries or the loss of any of our major customers in these industries could adversely affect our financial health
- 06Our Supply Technologies customers are generally not contractually obligated to purchase products and services from us
- 07We are dependent on key customers
- 08We operate in highly competitive industries
- 09Our Supply Technologies business depends upon third parties for substantially all of our component parts
- 10The raw materials used in our production processes and by our suppliers of component parts are subject to price and supply fluctuations that could continue to increase our costs of production and adversely affect our results of operations
- 11The energy costs involved in our production processes and transportation are subject to fluctuations that are beyond our control and could significantly increase our costs of production
- 12Operating problems in our business may materially adversely affect our financial condition and results of operations
- 13We have a significant amount of goodwill, and any future goodwill impairment charges could adversely impact our results of operations
- 14Our business and operating results may be adversely affected by natural disasters, other catastrophic events or public health issues, all of which are beyond our control
- 15The insurance that we maintain may not fully cover all potential expenses
Risks Relating to Human Capital
- 16Some of our employees belong to labor unions, and strikes or work stoppages could adversely affect our operations
- 17Labor shortages could continue to adversely affect our business, results of operations and financial condition
- 18The loss of key executives could adversely impact us
Risks Relating to Legal, Compliance and Regulatory Matters
- 19Potential product liability risks exist from the products that we sell
- 20We operate and source internationally, which exposes us to the risks of doing business abroad
- 21We are subject to significant environmental, health and safety laws and regulations and related compliance expenditures and liabilities
- 22We may be exposed to certain regulatory and financial risks related to climate change
Risks Relating to Our Debt
- 23Adverse global economic conditions may have significant effects on our customers that would result in our inability to borrow or to meet our debt service coverage ratio in our revolving credit facility
Risks Relating to the Execution of our Strategy
- 24We may encounter difficulty in expanding our business through targeted acquisitions
- 25We have pursued, and may continue to pursue, targeted acquisition opportunities that we believe would complement our business. We cannot assure you that we will be successful in consummating any acquisitions
Risks Relating to Our Common Stock
- 26Our Chairman of the Board, Chief Executive Officer and President and former President collectively beneficially own a significant portion of Holdings’ outstanding common stock and their interests may conflict with yours
Other Park Ohio Holdings 10-Ks
- FY2025 10-K risk factors27 risks1 new5 reworded
The company added a risk regarding the adoption of AI technologies.
Filed Mar 05, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.