Park Aerospace Corp. Reports Second Quarter Results

Rhea-AI Summary

Park Aerospace (NYSE: PKE) reported results for the 2026 fiscal second quarter ended August 31, 2025. Net sales were $16.381M vs $16.709M a year earlier and $15.400M last quarter; six‑month sales were $31.781M vs $30.679M prior year. Net earnings for the quarter were $2.404M ($0.12 basic and diluted) vs $2.066M a year earlier; six‑month net earnings were $4.484M vs $3.059M prior year. Adjusted EBITDA for the quarter was $3.401M and $6.364M for six months. Gross margin improved to 31.2% from 28.5% year‑over‑year. The company hosted a conference call and made presentation materials and a replay available online.

Positive

• Six‑month net earnings +46.7% to $4.484M
• Quarter gross margin improved by 270 basis points to 31.2%
• Conference call and investor presentation available via webcast

Negative

• Quarter net sales declined 1.96% year‑over‑year to $16.381M
• Cash and marketable securities decreased ~10.6% to $61.553M since March 2, 2025
• Income taxes payable fell sharply from $5.390M to $0.125M (timing variability)

Insights

Corporate Finance Analyst

Quarter shows modest revenue softness but clear profit and margin improvement, driven by higher earnings and Adjusted EBITDA.

Sales for the 13 weeks ended August 31, 2025 were $16,381,000, slightly below prior-year $16,709,000 but above the prior quarter $15,400,000; six‑month sales rose to $31,781,000 from $30,679,000. Net earnings increased to $2,404,000 for the quarter from $2,066,000 a year earlier, and basic/diluted EPS rose to $0.12 from $0.10, supported by gross margin expansion to 31.2% and Adjusted EBITDA growth to $3,401,000.

Key dependencies and risks are clear in the numbers: cash and marketable securities declined from $68,834,000 to $61,553,000, current liabilities fell materially due to reduced income taxes payable, and there were no special items this quarter versus storm‑damage charges in the prior year. Monitorable items include the company conference call on Oct 9, 2025, next quarter sales trend, gross margin sustainability, and cash balance evolution over the next quarter as indicators of operational strength.

NEWTON, Kan., Oct. 09, 2025 (GLOBE NEWSWIRE) -- Park Aerospace Corp. (NYSE-PKE) reported results for the 2026 fiscal year second quarter ended August 31, 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/qarc64p9 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 $16,381,000 for the 2026 fiscal year second quarter ended August 31, 2025 compared to $16,709,000 for the 2025 fiscal year second quarter ended September 1, 2024 and $15,400,000 for the 2026 fiscal year first quarter ended June 1, 2025. Park’s net sales for the six months ended August 31, 2025 were $31,781,000 compared to $30,679,000 for the six months ended September 1, 2024. Net earnings for the 2026 fiscal year second quarter were $2,404,000 compared to $2,066,000 for the 2025 fiscal year second quarter and $2,080,000 for the 2026 fiscal year first quarter. Net earnings were $4,484,000 for the current year’s first six months compared to $3,059,000 for last year’s first six months.

Net earnings before special items for the 2026 fiscal year second quarter were $2,404,000 compared to $2,092,000 for the 2025 fiscal year second quarter and $2,080,000 for the 2026 fiscal year first quarter. Net earnings before special items for the six months ended August 31, 2025 were $4,484,000 compared to $3,873,000 for last fiscal year’s first six months.

Adjusted EBITDA for the 2026 fiscal year second quarter was $3,401,000 compared to $3,206,000 for the 2025 fiscal year second quarter and $2,963,000 for the 2026 fiscal year first quarter. Adjusted EBITDA for the current fiscal year’s first six months was $6,364,000 compared to $5,816,000 for last fiscal year’s first six months.

During the 2026 fiscal year second quarter and first six months, the Company did not report any special items. During the 2025 fiscal year second quarter and first six months, respectively, the Company recorded $46,000 and $1,098,000 of pre-tax charges related to storm damage to the Company’s facilities in Newton, Kansas.

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

Park reported basic and diluted earnings per share of $0.23 and $0.22, respectively, for the 2026 fiscal year’s first six months compared to $0.15 and $0.15, respectively, for the 2025 fiscal year’s first six months. Basic and diluted earnings per share before special items were $0.23 and $0.22, respectively, for the 2026 fiscal year’s first six months compared to $0.19 and $0.19, respectively, for the 2025 fiscal year’s first six months.

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 13756197.

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, October 16, 2025. The conference call replay will be available at https://edge.media-server.com/mmc/p/qarc64p9 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 13756197.

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 a special item, a charge related to storm damage. 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

Performance table, including non-GAAP information (in thousands, except per share amounts –unaudited):
	13 Weeks Ended				13 Weeks Ended					13 Weeks Ended			26 Weeks Ended
	August 31, 2025				September 1, 2024					June 1, 2025			August 31, 2025				September 1, 2024
Sales	$	16,381			$	16,709				$	15,400		$	31,781			$	30,679
Net Earnings before Special Items1	$	2,404			$	2,092				$	2,080		$	4,484			$	3,873
Special Item, Net of Tax:
Storm Damage Charge		-				(46	)				-			-				(1,098	)
Income Tax Effect on Pretax Special Items		-				20					-			-				284
Net Earnings	$	2,404			$	2,066				$	2,080		$	4,484			$	3,059
Basic Earnings per Share:
Basic Earnings before Special Items1	$	0.12			$	0.10				$	0.10		$	0.23			$	0.19
Special Item:
Storm Damage Charge		-				-					-			-				(0.05	)
Income Tax Effect on Pretax Special Items		-				-					-			-				0.01
Basic Earnings per Share	$	0.12			$	0.10				$	0.10		$	0.23			$	0.15
Diluted Earnings before Special Items1	$	0.12			$	0.10				$	0.10		$	0.22			$	0.19
Special Item:
Storm Damage Charge		-				-					-			-				(0.05	)
Income Tax Effect on Pretax Special Items		-				-					-			-				0.01
Diluted Earnings per Share	$	0.12			$	0.10				$	0.10		$	0.22			$	0.15
Weighted Average Shares Outstanding:
Basic		19,875				20,216					19,919			19,897				20,234
Diluted		19,986				20,291					19,968			19,977				20,331
1 Refer to "Reconciliation of non-GAAP financial measures" below for information regarding Special Items.

Condensed comparative balance sheets (in thousands):
	August 31, 2025			March 2, 2025
Assets	(unaudited)
Current Assets
Cash and Marketable Securities	$	61,553		$	68,834
Accounts Receivable, Net		12,640			12,903
Inventories		8,101			7,213
Prepaid Expenses and Other Current Assets		1,012			1,344
Total Current Assets		83,306			90,294
Fixed Assets, Net		21,403			21,650
Operating Right-of-use Assets		282			308
Other Assets		11,457			9,856
Total Assets	$	116,448		$	122,108
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable	$	3,324		$	2,513
Accrued Liabilities		1,250			1,318
Operating Lease Liability		42			40
Income Taxes Payable		125			5,390
Total Current Liabilities		4,741			9,261
Long-term Operating Lease Liability		296			318
Deferred Income Taxes		5,541			5,304
Other Liabilities		75			71
Total Liabilities		10,653			14,954
Shareholders’ Equity		105,795			107,154
Total Liabilities and Shareholders' Equity	$	116,448		$	122,108
Additional information
Equity per Share	$	5.31		$	5.36

Condensed comparative statements of operations (in thousands – unaudited):
	13 Weeks Ended					13 Weeks Ended					13 Weeks Ended					26 Weeks Ended
	August 31, 2025					September 1, 2024					June 1, 2025					August 31, 2025					September 1, 2024
Net Sales	$	16,381				$	16,709				$	15,400				$	31,781				$	30,679
Cost of Sales		11,265					11,952					10,682					21,947					21,823
Gross Profit		5,116					4,757					4,718					9,834					8,856
% of net sales		31.2	%				28.5	%				30.6	%				30.9	%				28.9	%
Selling, General & Administrative Expenses		2,271					2,140					2,299					4,570					4,157
% of net sales		13.9	%				12.8	%				14.9	%				14.4	%				13.5	%
Earnings from Operations		2,845					2,617					2,419					5,264					4,699
Storm Damage Charge		-					(46	)				-					-					(1,098	)
Interest and Other Income:		390					245					355					745					584
Earnings from Operations before Income Taxes		3,235					2,816					2,774					6,009					4,185
Income Tax Provision		831					750					694					1,525					1,126
Net Earnings	$	2,404				$	2,066				$	2,080				$	4,484				$	3,059
% of net sales		14.7	%				12.4	%				13.5	%				14.1	%				10.0	%

Reconciliation of non-GAAP financial measures (in thousands – unaudited):
Reconciliation of GAAP Net Earnings to Adjusted EBITDA
	13 Weeks Ended					13 Weeks Ended					13 Weeks Ended					26 Weeks Ended					26 Weeks Ended
	August 31, 2025					September 1, 2024					June 1, 2025					August 31, 2025					September 1, 2024
GAAP Net Earnings	$	2,404				$	2,066				$	2,080				$	4,484				$	3,059
Adjustments:
Income Tax Provision		831					750					694					1,525					1,126
Interest and Other Income		(390	)				(245	)				(355	)				(745	)				(584	)
Depreciation		455					488					456					911					927
Stock Option Expense		101					101					88					189					190
Special Item:
Storm Damage Charge		-					46					-					-					1,098
Adjusted EBITDA	$	3,401				$	3,206				$	2,963				$	6,364				$	5,816

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

FAQ

What were Park Aerospace (PKE) net sales and net earnings for Q2 2026 ended August 31, 2025?

Net sales were $16.381M and net earnings were $2.404M (basic and diluted EPS $0.12) for Q2 2026.

How did Park Aerospace (PKE) six‑month results to August 31, 2025 compare year‑over‑year?

Six‑month net sales were $31.781M (vs $30.679M) and net earnings were $4.484M (vs $3.059M).

What was Park Aerospace's (PKE) Adjusted EBITDA for Q2 2026 and year‑to‑date?

Adjusted EBITDA was $3.401M for the quarter and $6.364M for the first six months of fiscal 2026.

Did Park Aerospace (PKE) report any special items in Q2 2026?

No; the company reported no special items during the 2026 fiscal second quarter or first six months.

How did Park Aerospace's (PKE) profitability margins change in Q2 2026?

Gross margin rose to 31.2% in Q2 2026 from 28.5% a year earlier, improving operating profitability.

Where can investors access Park Aerospace (PKE) Q2 2026 presentation and replay?

The live webcast and replay are available at the company's investor conference calls page and at the provided media‑server webcast link.