Park Aerospace Corp. Reports Fourth Quarter and Fiscal Year Results
- Annual revenue increased 10.8% to $62M from $56M
- Q4 net sales grew 3.7% YoY to $16.9M
- Adjusted EBITDA improved to $11.6M from $11M YoY
- Net earnings before special items increased to $7.9M from $7.7M
- Net earnings declined 21.3% to $5.9M from $7.5M YoY
- Q4 net earnings decreased 53.3% to $1.2M from $2.7M
- $1.1M pre-tax charge from storm damage to facilities
- $2.1M non-cash tax charge for potential repatriation of foreign earnings
Insights
Park Aerospace shows 11% annual revenue growth but 21% net earnings decline, with adjusted figures showing modest improvement despite special items impact.
Park Aerospace's FY2025 results reveal a company with solid revenue growth but pressure on bottom-line performance. The company reported
However, the headline net earnings figures show concerning trends. Annual net earnings declined
The earnings decline is primarily attributable to special items, most notably a
Adjusted EBITDA, another measure of operational performance, increased
The balance sheet reflects a conservative financial position, with
For investors, the key question is whether the revenue growth can translate to improved earnings. While special items obscured this year's performance, the modest improvement in adjusted earnings and EBITDA suggests underlying stability. The company's aerospace focus positions it in a growing sector, but the declining cash position and tax complications introduce cautionary notes for the outlook.
NEWTON, Kan., May 15, 2025 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2025 fiscal year fourth quarter and full fiscal year ended March 2, 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/bnajz2w5 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
Net earnings before special items for the 2025 fiscal year fourth quarter were
Adjusted EBITDA for the 2025 fiscal year fourth quarter was
During the 2025 fiscal year, the Company recorded
Park reported basic and diluted earnings per share of
Park reported basic and diluted earnings per share of
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 passcode for attendance by phone is 13753688.
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 Thursday, May 22, 2025. The conference call replay will be available at https://edge.media-server.com/mmc/p/bnajz2w5 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 13753688.
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 website 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, reductions in uncertain tax positions, activist shareholder defense costs, losses on sales of investments, charges for modification of previously granted stock options, tax deductions becoming unavailable, costs to settle an insurance claim, and recruiting fees. 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 | 14 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||||
| March 2, 2025 | March 3, 2024 | December 1, 2024 | March 2, 2025 | March 3, 2024 | ||||||||||||||||||
| Sales | $ | 16,939 | $ | 16,333 | $ | 14,408 | $ | 62,026 | $ | 56,004 | ||||||||||||
| Net Earnings before Special Items1 | $ | 2,417 | $ | 2,308 | $ | 1,577 | $ | 7,867 | $ | 7,664 | ||||||||||||
| Special Items, Net of Tax: | ||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | - | (570 | ) | ||||||||||||||||
| Stock Option Modification | - | - | - | - | (109 | ) | ||||||||||||||||
| Loss on Sale of Marketable Securities | - | - | - | - | (65 | ) | ||||||||||||||||
| Insurer Bankruptcy Cost | - | (70 | ) | - | - | (70 | ) | |||||||||||||||
| Recruiting Fees | - | (38 | ) | - | - | (38 | ) | |||||||||||||||
| Storm Damage Charge | - | - | - | (1,098 | ) | - | ||||||||||||||||
| Income Tax Effect on Pretax Special Items | 19 | 37 | - | 303 | 228 | |||||||||||||||||
| Tax Provision on Foreign Earnings | (2,147 | ) | - | - | (2,147 | ) | - | |||||||||||||||
| Reduction in Uncertain Tax Positions | 957 | 657 | - | 957 | 657 | |||||||||||||||||
| Tax Impact of Cancelled Stock Options | - | (224 | ) | - | - | (224 | ) | |||||||||||||||
| Net Earnings | $ | 1,246 | $ | 2,670 | $ | 1,577 | $ | 5,882 | $ | 7,473 | ||||||||||||
| Basic Earnings per Share: | ||||||||||||||||||||||
| Basic Earnings before Special Items1 | $ | 0.12 | $ | 0.11 | $ | 0.08 | $ | 0.39 | $ | 0.38 | ||||||||||||
| Special Items: | ||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | - | (0.03 | ) | ||||||||||||||||
| Stock Option Modification | - | - | - | - | (0.01 | ) | ||||||||||||||||
| Loss on Sale of Marketable Securities | - | - | - | - | - | |||||||||||||||||
| Storm Damage Charge | - | - | - | (0.05 | ) | - | ||||||||||||||||
| Income Tax Effect on Pretax Special Items | - | - | - | 0.01 | 0.01 | |||||||||||||||||
| Tax Provision on Foreign Earnings | (0.11 | ) | - | - | (0.11 | ) | - | |||||||||||||||
| Reduction in Uncertain Tax Positions | 0.05 | 0.03 | - | 0.05 | 0.03 | |||||||||||||||||
| Tax Impact of Cancelled Stock Options | - | (0.01 | ) | - | - | (0.01 | ) | |||||||||||||||
| Basic Earnings per Share | $ | 0.06 | $ | 0.13 | $ | 0.08 | $ | 0.29 | $ | 0.37 | ||||||||||||
| Diluted Earnings before Special Items1 | $ | 0.12 | $ | 0.11 | $ | 0.08 | $ | 0.39 | $ | 0.38 | ||||||||||||
| Special Items: | ||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | - | (0.03 | ) | ||||||||||||||||
| Stock Option Modification | - | - | - | - | (0.01 | ) | ||||||||||||||||
| Loss on Sale of Marketable Securities | - | - | - | - | - | |||||||||||||||||
| Insurer Bankruptcy Cost | - | - | - | - | - | |||||||||||||||||
| Recruiting Fees | - | - | - | - | - | |||||||||||||||||
| Storm Damage Charge | - | - | - | (0.05 | ) | - | ||||||||||||||||
| Income Tax Effect on Pretax Special Items | - | - | - | 0.01 | 0.01 | |||||||||||||||||
| Tax Provision on Foreign Earnings | (0.11 | ) | - | - | (0.11 | ) | - | |||||||||||||||
| Reduction in Uncertain Tax Positions | 0.05 | 0.03 | - | 0.05 | 0.03 | |||||||||||||||||
| Tax Impact of Cancelled Stock Options | - | (0.01 | ) | - | - | (0.01 | ) | |||||||||||||||
| Diluted Earnings per Share | $ | 0.06 | $ | 0.13 | $ | 0.08 | $ | 0.29 | $ | 0.37 | ||||||||||||
| Weighted Average Shares Outstanding: | ||||||||||||||||||||||
| Basic | 19,945 | 20,253 | 19,982 | 20,099 | 20,304 | |||||||||||||||||
| Diluted | 20,022 | 20,357 | 20,077 | 20,190 | 20,393 | |||||||||||||||||
| 1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items. | ||||||||||||||||||||||
Comparative balance sheets (in thousands):
| March 2, 2025 | March 3, 2024 | ||||||
| Assets | (unaudited) | ||||||
| Current Assets | |||||||
| Cash and Marketable Securities | $ | 68,834 | $ | 77,211 | |||
| Accounts Receivable, Net | 12,903 | 12,381 | |||||
| Inventories | 7,213 | 6,404 | |||||
| Prepaid Expenses and Other Current Assets | 1,344 | 2,849 | |||||
| Total Current Assets | 90,294 | 98,845 | |||||
| Fixed Assets, Net | 21,650 | 23,499 | |||||
| Operating Right-of-use Assets | 308 | 95 | |||||
| Other Assets | 9,856 | 9,870 | |||||
| Total Assets | $ | 122,108 | $ | 132,309 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current Liabilities | |||||||
| Accounts Payable | $ | 2,513 | $ | 3,514 | |||
| Accrued Liabilities | 1,318 | 1,986 | |||||
| Operating Lease Liability | 40 | 53 | |||||
| Income Taxes Payable | 5,390 | 4,105 | |||||
| Total Current Liabilities | 9,261 | 9,658 | |||||
| Long-term Operating Lease Liability | 318 | 82 | |||||
| Non-current Income Taxes Payable | - | 5,259 | |||||
| Deferred Income Taxes | 5,304 | 3,222 | |||||
| Other Liabilities | 71 | 1,174 | |||||
| Total Liabilities | �� | 14,954 | 19,395 | ||||
| Shareholders’ Equity | 107,154 | 112,914 | |||||
| Total Liabilities and Shareholders' Equity | $ | 122,108 | $ | 132,309 | |||
| Additional information (unaudited) | |||||||
| Equity per Share | $ | 5.36 | $ | 5.58 | |||
Comparative statements of operations (in thousands – unaudited):
| 13 Weeks Ended | 14 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | |||||||||||||||||||
| March 2, 2025 | March 3, 2024 | December 1, 2024 | March 2, 2025 | March 3, 2024 | |||||||||||||||||||
| Net Sales | $ | 16,939 | $ | 16,333 | $ | 14,408 | $ | 62,026 | $ | 56,004 | |||||||||||||
| Cost of Sales | 11,981 | 11,880 | 10,580 | 44,384 | 39,470 | ||||||||||||||||||
| Gross Profit | 4,958 | 4,453 | 3,828 | 17,642 | 16,534 | ||||||||||||||||||
| % of net sales | 29.3 | % | 27.3 | % | 26.6 | % | 28.4 | % | 29.5 | % | |||||||||||||
| Selling, General & Administrative Expenses | 2,107 | 1,882 | 1,982 | 8,246 | 8,154 | ||||||||||||||||||
| % of net sales | 12.4 | % | 11.5 | % | 13.8 | % | 13.3 | % | 14.6 | % | |||||||||||||
| Earnings from Operations | 2,851 | 2,571 | 1,846 | 9,396 | 8,380 | ||||||||||||||||||
| Storm Damage Charge | - | - | - | (1,098 | ) | - | |||||||||||||||||
| Interest and Other Income: | |||||||||||||||||||||||
| Interest Income | 335 | 329 | 290 | 1,209 | 1,053 | ||||||||||||||||||
| Earnings from Operations before Income Taxes | 3,186 | 2,900 | 2,136 | 9,507 | 9,433 | ||||||||||||||||||
| Income Tax Provision | 1,940 | 230 | 559 | 3,625 | 1,960 | ||||||||||||||||||
| Net Earnings | $ | 1,246 | $ | 2,670 | $ | 1,577 | $ | 5,882 | $ | 7,473 | |||||||||||||
| % of net sales | 7.4 | % | 16.3 | % | 10.9 | % | 9.5 | % | 13.3 | % | |||||||||||||
Reconciliation of non-GAAP financial measures (in thousands – unaudited):
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
| Reconciliation of GAAP Net Earnings to Adjusted EBITDA | |||||||||||||||||||||||
| 13 Weeks Ended | 14 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | |||||||||||||||||||
| March 2, 2025 | March 3, 2024 | December 1, 2024 | March 2, 2025 | March 3, 2024 | |||||||||||||||||||
| GAAP Net Earnings | $ | 1,246 | $ | 2,670 | $ | 1,577 | $ | 5,882 | $ | 7,473 | |||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Income Tax Provision | 1,940 | 230 | 559 | 3,625 | 1,960 | ||||||||||||||||||
| Interest Income | (335 | ) | (329 | ) | (290 | ) | (1,209 | ) | (1,118 | ) | |||||||||||||
| Depreciation | 460 | 418 | 464 | 1,851 | 1,402 | ||||||||||||||||||
| Stock Option Expense | 107 | 104 | 105 | 402 | 420 | ||||||||||||||||||
| Special Items: | |||||||||||||||||||||||
| Activist Shareholder Defense Costs | - | - | - | - | 570 | ||||||||||||||||||
| Stock Option Modification Charge (a) | - | - | - | - | 109 | ||||||||||||||||||
| Pre-tax Losses on Sales of Investments (b) | - | - | - | - | 65 | ||||||||||||||||||
| Insurer Bankruptcy Cost | - | 70 | - | - | 70 | ||||||||||||||||||
| Recruiting Fees | - | 38 | - | - | 38 | ||||||||||||||||||
| Storm Damage Charge | - | - | - | 1,098 | - | ||||||||||||||||||
| Adjusted EBITDA | $ | 3,418 | $ | 3,201 | $ | 2,415 | $ | 11,649 | $ | 10,989 | |||||||||||||
| (a) pre-tax charge for the modification of previously granted stock options in connection with the special | |||||||||||||||||||||||
| dividend in the 2024 fiscal year first quarter | |||||||||||||||||||||||
| (b) to fund the | |||||||||||||||||||||||
| on March 9, 2023 | |||||||||||||||||||||||
FAQ
What were Park Aerospace's (PKE) Q4 2025 earnings?
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