PARK AEROSPACE CORP Q4 FY2025 earnings call

• James Webb Space Telescope: Featured for using Park's SIGMA STRUT technology, detected gases suggesting biological processes on K2-18 planet. - Q4 Results: Production exceeded sales, positively impacting EBITDA. Finished goods inventory built back by about $1 million. - C2B Fabric Sales: Sold $4.4 million in Q4, $7.5 million in '25; also sold $420,000 of ablative materials made with C2B fabric. - Requal Status: In progress, customer expected results by end of May. - New Factory: Ramping up despite not needing for capacity, burdening P&L. - Agreements: New agreement with Ariane, advancing €4,587,000 for C2B fabric manufacturing equipment. - Certification: Line strike protection material certified for Passport 20 Engine. - Hypersonic Missile: Phase 2 manufacturing trials ongoing. - Major Expansion: Planning major manufacturing expansion with $35 million plus or minus $5 million budget, focusing on new lines for hot melt film, tape, hypersonic materials.

In Q4, sales were $16.939 million (in thousands). $4.4 million of these sales were from C2B fabric. Gross margin was 29.3%. For '25, total C2B fabric sales were $7.5 million. In Q4, Park sold $420,000 of ablative materials manufactured with C2B fabric out of $2.025 million in related sales. The revenue contribution of C2B fabric in Q4 was significant, with $4.4 million out of $16.939 million, and $7.5 million in '25 contributing to the overall financials.

• Q1 Forecast: Sales estimated 15-16 million, EBITDA 2.5-3 million. - '26 Guidance: Forecasted sales 28-32 million. - Pad Forecasting: Park does not pad forecasts, states what they think will happen, acknowledging they may be wrong.

• Tariffs/Trade Conflicts: Uncertainties with impact on business, currently no Q4 impact but monitoring future. - Supply Chain Issues: International shipment problems, with 175,000 missed shipments in Q4. - Requal Uncertainty: Status of C2B fabric requal unclear with delays from earlier expectations.

Q: Comment on tariffs and how it might play out with airlines and Airbus, and supply chain issues, and biggest worry for Juggernaut.

A: Brian and Mark discussed tariffs as uncertain with many opinions, supply chain issues still present with Airbus building gliders due to engine shortages, and biggest worry for Juggernaut is timing but belief it will happen.

Q: Confidence in major expansion even before Juggernaut and if Company will grow while planning.

A: Brian stated they are building towards capacity needed in 2031 to be ready for new opportunities, and it's reasonable to assume the company will grow while planning for future capacity.