-
Revenue: $15.4 million for Q1 fiscal 2026.
-
Gross Profit: $4.718 million.
-
Gross Margin: 30.6%.
-
Adjusted EBITDA: Slightly less than $3 million.
-
EBITDA Margin: 19.2%.
-
GE Aerospace Jet Engine Program Sales: $6.2 million in Q1.
-
Cash and Marketable Securities: $65.6 million at the end of Q1.
-
Share Buyback: $2.165 million worth of stock purchased in Q1.
-
Long-term Debt: Zero.
Release Date: July 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
Park Aerospace Corp (NYSE:PKE) reported a gross margin of 30.6% for Q1, which is above their target threshold.
-
The company achieved sales of $15.4 million, aligning with their forecasted range of $15 million to $16 million.
-
Park Aerospace Corp (NYSE:PKE) is the sole-source qualified supplier for specialty ablative materials on the PAC-3 Patriot Missile System, indicating a strong market position.
-
The company has zero long-term debt and maintains a strong cash position with $65.6 million in cash and marketable securities.
-
Park Aerospace Corp (NYSE:PKE) has a history of disciplined financial management, including over $600 million in dividends paid and a strategic approach to share repurchases.
-
The new manufacturing facility is underutilized, leading to significant ongoing expenses that drag down margins.
-
The requalification process for a key customer in the C2B fabric segment is delayed, impacting potential revenue growth.
-
Tariff-related costs, although minimal, continue to pose a potential risk to future financial performance.
-
The company is facing challenges in meeting the urgent demand for missile defense systems due to depleted stockpiles.
-
Park Aerospace Corp (NYSE:PKE) has not yet finalized its long-term expansion plans, which could delay the realization of potential growth opportunities.
Q: On Slide 21, you referenced a new LTA with GE Aerospace for ’25 through ’30. Is there anything different in that LTA compared to previous ones?A: The LTA we’ve been discussing is with MRAS, not GE Aviation. The new LTA is more associated with GE Aerospace and involves different engine programs and materials. All GE Aerospace revenues are included in our sales history and Juggernaut projections.
Q: At what point would you feel comfortable providing more details on your long-term forecast, especially when you mention terms like “blowing out the water”?A: We have internal models and are conducting due diligence. We hope to have our plans finalized by the end of the calendar year, and by our Q4 call in January, we might be in a position to provide more information.
