Park Aerospace Corp. Reports First Quarter Results
MWN-AI** Summary
Park Aerospace Corp. (NYSE: PKE) announced its first-quarter results for the fiscal year 2026, ending June 1, 2025. The company reported net sales of $15.4 million, representing an increase from $13.97 million in the same quarter last year but reflecting a decrease from $16.94 million in the fourth quarter of fiscal year 2025. Net earnings climbed to $2.08 million, a significant improvement from $993,000 in the prior-year quarter and $1.25 million from the previous quarter.
Notably, net earnings before special items totaled $2.08 million, up from $1.78 million year-over-year and down from $2.42 million in the preceding quarter. Adjusted EBITDA for Q1 2026 stood at $2.96 million, compared to $2.61 million in Q1 2025 and $3.42 million in Q4 2025. The company recorded no special items in the current quarter, contrasting with the previous year when Park incurred a $1.05 million charge due to storm damage.
Additionally, basic and diluted earnings per share reached $0.10, a rise from $0.05 in Q1 2025 but slightly down from $0.06 in Q4 2025. This growth in earnings performance underscores Park's ability to recover from previous setbacks and adapt to market conditions.
Looking ahead, Park Aerospace is set to conduct a conference call to elaborate on these results and provide insight into future prospects. The call is scheduled for 5:00 p.m. EDT, with details available through the company's website. The firm specializes in developing advanced composite materials for the aerospace industry, suggesting a strong potential for continued growth as the market for aerospace components evolves. Further information and performance metrics can be found in the company's comprehensive financial disclosures.
MWN-AI** Analysis
Park Aerospace Corp. (NYSE-PKE) has reported promising growth in its first quarter for the fiscal year 2026, showing a significant increase in net sales and earnings as compared to the previous year. The net sales of $15.4 million represent an increase from $13.97 million for the same period last year, although it fell short of the $16.94 million reported in the fourth quarter of FY 2025. The net earnings before special items have improved, signaling more robust operational efficiency.
The company's adjusted EBITDA rose to $2.96 million, reflecting a solid operational performance despite a decline from the fourth quarter. The absence of special charges in the current quarter suggests a stabilization in operations, which could be attractive to investors looking for consistent, less volatile growth.
Earnings per share (EPS) increased to $0.10, doubling the figure from the previous year. This encouraging trend enhances Park's attractiveness as a potential investment. However, it's crucial to note the sequential decline in sales and earnings from the fourth quarter, which might prompt investors to question whether the first quarter's growth is sustainable.
Given Park Aerospace's niche in advanced composite materials for the aerospace sector—a field expected to grow with increasing demand for commercial and military aircraft—the company is positioned well. Nevertheless, potential investors should watch for any indications of market fluctuations and operational challenges, particularly in supply chains and material costs that could impact future earnings.
As such, a cautious buy recommendation is appropriate for investors keen on aerospace and materials manufacturing sectors, with an emphasis on monitoring upcoming performance metrics and trends from the conference call. Long-term prospects remain strong, pending continued growth in key markets and operational stability.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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 Items 1 | $ | 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 Items 1 | $ | 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 Items 1 | $ | 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**
How does Park Aerospace Corp.'s recent performance compare to the previous fiscal year's results, particularly in relation to Park Electrochemical Corporation PKE's market position and growth strategy?
What factors contributed to Park Aerospace Corp.'s increased net sales in the first quarter, and how does this align with Park Electrochemical Corporation PKE's financial expectations moving forward?
Can you elaborate on the impacts of the storm damage charge reported in the previous fiscal year, and how the recovery efforts might affect future operations at Park Aerospace Corp. compared to Park Electrochemical Corporation PKE?
Considering the adjusted EBITDA figures, how does Park Aerospace Corp.'s operational performance reflect on Park Electrochemical Corporation PKE's overall financial health and strategic direction for the upcoming quarters?
**MWN-AI FAQ is based on asking OpenAI questions about Park Electrochemical Corporation (NYSE: PKE).
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