Park Aerospace Corp. Reports First Quarter Results

Rhea-AI Summary

Park Aerospace Corp. (NYSE:PKE) reported its fiscal year 2026 first quarter results with notable growth in key metrics. The company achieved net sales of $15.4 million, up from $14.0 million in the same quarter last year. Net earnings significantly improved to $2.08 million ($0.10 per share), compared to $993,000 ($0.05 per share) in Q1 FY2025.

The company demonstrated strong operational performance with an Adjusted EBITDA of $2.96 million, up from $2.61 million year-over-year. Gross profit margin improved to 30.6% of net sales, while maintaining a healthy balance sheet with $65.57 million in cash and marketable securities.

Positive

• Net earnings increased by 109% year-over-year to $2.08 million
• Net sales grew 10.2% year-over-year to $15.4 million
• Gross profit margin improved to 30.6% from 29.3% year-over-year
• Strong financial position with $65.57 million in cash and marketable securities
• Adjusted EBITDA increased 13.5% year-over-year to $2.96 million

Negative

• Sequential revenue decline of 9.1% from Q4 FY2025 ($16.94 million)
• Sequential decrease in Adjusted EBITDA from $3.42 million in Q4 FY2025
• Selling, General & Administrative expenses increased to 14.9% of net sales from 14.4% year-over-year

NEWTON, Kan., July 15, 2025 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2026 fiscal year first quarter ended June 1 2025. The Company will conduct a conference call to discuss its financial results and other matters at 5:00 p.m. EDT today. A live audio webcast of the event, along with presentation materials, will be available at https://edge.media-server.com/mmc/p/zjageqqm at 5:00 p.m. EDT today. The presentation materials will also be available at approximately 4:15 p.m. EDT today at https://parkaerospace.com/shareholders/investor-conference-calls/ and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page.

Park reported net sales of $15,400,000 for the 2026 fiscal year first quarter ended June 1, 2025 compared to $13,970,000 for the 2025 fiscal year first quarter ended June 2, 2024 and $16,939,000 for the 2025 fiscal year fourth quarter ended March 2, 2025. Net earnings for the 2026 fiscal year first quarter were $2,080,000 compared to $993,000 for the 2025 fiscal year first quarter and $1,246,000 for the 2025 fiscal year fourth quarter.

Net earnings before special items for the 2026 fiscal year first quarter were $2,080,000 compared to $1,781,000 for the 2025 fiscal year first quarter and $2,417,000 for the 2025 fiscal year fourth quarter.

Adjusted EBITDA for the 2026 fiscal year first quarter was $2,963,000 compared to $2,610,000 for the 2025 fiscal year first quarter and $3,418,000 for the 2025 fiscal year fourth quarter.

During the 2026 fiscal year first quarter, the Company had no special items. During the 2025 fiscal year first quarter, the Company recorded a $1,052,000 pre-tax charge related to storm damage to the Company’s facilities in Newton Kansas. During the 2025 fiscal year fourth quarter, the Company recorded a non-cash tax charge of $2,147,000 related to the potential repatriation by the Company of undistributed foreign earnings on certain funds held by the Company’s Singapore subsidiary. The Company also recorded a tax benefit of $957,000 in the 2025 fiscal year fourth quarter related to the “running” or expiration of the statute of limitations for certain provisions for uncertain tax positions previously established by the Company.

Park reported basic and diluted earnings per share of $0.10 for the 2026 fiscal year first quarter compared to $0.05 for the 2025 fiscal year first quarter and $0.06 for the 2025 fiscal year fourth quarter. Basic and diluted earnings per share before special items were $0.10 for the 2026 fiscal year first quarter compared to $0.09 for the 2025 fiscal year first quarter and $0.12 for the 2025 fiscal year fourth quarter.

The Company will conduct a conference call to discuss its financial results at 5:00 p.m. EDT today. Forward-looking and other material information may be discussed in this conference call. The conference call dial-in number is (877) 407-3982 in the United States and Canada, and (201) 493-6780 in other countries. The required conference ID for attendance by phone is 13754804.

For those unable to listen to the call live, a conference call replay will be available from approximately 8:00 p.m. EDT today through 11:59 p.m. EDT on Tuesday, July 22, 2025. The conference call replay will be available at https://edge.media-server.com/mmc/p/zjageqqm and on the Company’s website at www.parkaerospace.com under “Investor Conference Calls” on the “Shareholders” page. It can also be accessed by dialing (844) 512-2921 in the United States and Canada, and (412) 317-6671 in other countries. The required passcode for accessing the replay by phone is 13754804.

Any additional material financial or statistical data disclosed in the conference call, including the investor presentation, will also be available at the time of the conference call on the Company's web site at
https://parkaerospace.com/shareholders/investor-conference-calls/.

Park believes that an evaluation of its ongoing operations would be difficult if the disclosure of its operating results were limited to accounting principles generally accepted in the United States of America (“GAAP”) financial measures, which include special items, such as a charge related to storm damage, a non-cash tax charge, and reductions in uncertain tax positions. Accordingly, in addition to disclosing its operating results determined in accordance with GAAP, Park discloses non-GAAP measures, including Adjusted EBITDA, and operating results that exclude special items in order to assist its shareholders and other readers in assessing the Company’s operating performance, since the Company’s on-going, normal business operations do not include such special items. The detailed operating information presented below includes a reconciliation of the non-GAAP operating results before special items to earnings determined in accordance with GAAP and a reconciliation of GAAP pre-tax earnings to Adjusted EBITDA. Such non-GAAP financial measures are provided to supplement the results provided in accordance with GAAP.

Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park’s advanced composite materials include film adhesives (Aeroadhere^®) and lightning strike protection materials (Electroglide^®). Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Park’s advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as “drones”), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park’s advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park’s composite parts and structures (which include Park’s proprietary composite SigmaStrut™ and AlphaStrut™ product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft. Park’s objective is to do what others are either unwilling or unable to do. When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up.

Additional corporate information is available on the Company’s website at www.parkaerospace.com

Contact: Donna D’Amico-Annitto                                                                                                         
486 North Oliver Road, Bldg. Z
Newton, Kansas 67114                                                                                                                                                                                       
(316) 283-6500

Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):

	13 Weeks Ended					13 Weeks Ended					13 Weeks Ended
	June 1, 2025					June 2, 2024					March 2, 2025
Sales	$	15,400				$	13,970				$	16,939
Net Earnings before Special Items1	$	2,080				$	1,781				$	2,417
Special Items, Net of Tax:
Storm Damage Charge		-					(1,052	)				-
Income Tax Effect on Pretax Special Items		-					264					19
Tax Provision on Foreign Earnings		-					-					(2,147	)
Reduction in Uncertain Tax Positions		-					-					957
Net Earnings	$	2,080				$	993				$	1,246
Basic Earnings per Share:
Basic Earnings before Special Items1	$	0.10				$	0.09				$	0.12
Special Items:
Storm Damage Charge		-					(0.05	)				-
Income Tax Effect on Pretax Special Items		-					0.01					-
Tax Provision on Foreign Earnings		-					-					(0.11	)
Reduction in Uncertain Tax Positions		-					-					0.05
Basic Earnings per Share	$	0.10				$	0.05				$	0.06
Diluted Earnings before Special Items1	$	0.10				$	0.09				$	0.12
Special Items:
Storm Damage Charge		-					(0.05	)				-
Income Tax Effect on Pretax Special Items		-					0.01					-
Tax Provision on Foreign Earnings		-					-					(0.11	)
Reduction in Uncertain Tax Positions		-					-					0.05
Diluted Earnings per Share	$	0.10				$	0.05				$	0.06
Weighted Average Shares Outstanding:
Basic		19,919					20,253					19,945
Diluted		19,968					20,371					20,022
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

Comparative balance sheets (in thousands):

	June 1, 2025			March 2, 2025
Assets	(unaudited)
Current Assets
Cash and Marketable Securities	$	65,571		$	68,834
Accounts Receivable, Net		12,953			12,903
Inventories		6,763			7,213
Prepaid Expenses and Other Current Assets		2,045			1,344
Total Current Assets		87,332			90,294
Fixed Assets, Net		21,675			21,650
Operating Right-of-use Assets		295			308
Other Assets		11,416			9,856
Total Assets	$	120,718		$	122,108
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable	$	1,710		$	2,513
Accrued Liabilities		1,613			1,318
Operating Lease Liability		41			40
Income Taxes Payable		6,764			5,390
Total Current Liabilities		10,128			9,261
Long-term Operating Lease Liability		307			318
Deferred Income Taxes		5,260			5,304
Other Liabilities		72			71
Total Liabilities		15,767			14,954
Shareholders’ Equity		104,951			107,154
Total Liabilities and Shareholders' Equity	$	120,718		$	122,108
Additional information
Equity per Share	$	5.29		$	5.36

Comparative statements of operations (in thousands – unaudited):

	13 Weeks Ended					13 Weeks Ended					13 Weeks Ended
	June 1, 2025					June 2, 2024					March 2, 2025
Net Sales	$	15,400				$	13,970				$	16,939
Cost of Sales		10,682					9,871					11,981
Gross Profit		4,718					4,099					4,958
% of net sales		30.6	%				29.3	%				29.3	%
Selling, General & Administrative Expenses		2,299					2,017					2,107
% of net sales		14.9	%				14.4	%				12.4	%
Earnings from Operations		2,419					2,082					2,851
Storm Damage Charge		-					(1,052	)				-
Interest and Other Income:
Interest Income		355					339					335
Earnings from Operations before Income Taxes		2,774					1,369					3,186
Income Tax Provision		694					376					1,940
Net Earnings	$	2,080				$	993				$	1,246
% of net sales		13.5	%				7.1	%				7.4	%

Reconciliation of non-GAAP financial measure (in thousands – unaudited):

Reconciliation of Non-GAAP Financial Measures
Reconciliation of GAAP Net Earnings to Adjusted EBITDA
	13 Weeks Ended					13 Weeks Ended					13 Weeks Ended
	June 1, 2025					June 2, 2024					March 2, 2025
GAAP Net Earnings	$	2,080				$	993				$	1,246
Adjustments:
Income Tax Provision		694					376					1,940
Interest Income		(355	)				(339	)				(335	)
Depreciation		456					439					460
Stock Option Expense		88					89					107
Special Items:
Storm Damage Charge		-					1,052					-
Adjusted EBITDA	$	2,963				$	2,610				$	3,418

FAQ

What were Park Aerospace's (PKE) earnings per share in Q1 FY2026?

Park Aerospace reported basic and diluted earnings of $0.10 per share for Q1 FY2026, compared to $0.05 per share in Q1 FY2025.

How much revenue did Park Aerospace (PKE) generate in Q1 FY2026?

Park Aerospace generated net sales of $15.4 million in Q1 FY2026, a 10.2% increase from $14.0 million in Q1 FY2025.

What is Park Aerospace's (PKE) current cash position?

As of June 1, 2025, Park Aerospace held $65.57 million in cash and marketable securities, compared to $68.83 million at the end of the previous quarter.

What was Park Aerospace's (PKE) gross profit margin in Q1 FY2026?

Park Aerospace achieved a gross profit margin of 30.6% in Q1 FY2026, an improvement from 29.3% in Q1 FY2025.

How did Park Aerospace's (PKE) Adjusted EBITDA perform in Q1 FY2026?

Park Aerospace's Adjusted EBITDA was $2.96 million in Q1 FY2026, up 13.5% from $2.61 million in Q1 FY2025.