PARK AEROSPACE CORP Q1 FY2026 earnings call

• Associated with James Webb Space Telescope using Park proprietary Sigma struts.
• Discussed quarterly financial results, including sales, gross profit, and margins, and factors influencing margins.
• Recalled that the recall of c2b fabric for a key customer is imminent.
• Addressed top customers, niche military aerospace programs, and updates on programs like MRAS, GER, XLR, Triple Seven X, and GE Aerospace engine programs.
• Provided updates on agreements, tariffs, balance sheet (cash and marketable securities changes), share buyback, and plans for a new manufacturing facility expansion.

In the first quarter, Park Aerospace Corp reported sales of $15,400,000. Gross profit was $4,718,000 with a gross margin of 3.6%. Adjusted EBITDA was less than $3,000,000, and the EBITDA margin was 19.2%. The company noted factors affecting margins such as ongoing expenses related to a new manufacturing factory, fabric sales (e.g., $1,100,000 sales of fabric and $480,000 in materials made with fabric in Q1), and production vs. sales being nicely matched in Q1 which helped margins.

• Q1 sales were within the estimated range of $15,000,000 to $16,000,000. Adjusted EBITDA was near the top of the estimated range of 2.5 to 3 million.
• Forecasted Q2 sales for GE Aerospace jet engine programs to be 6.7 to 7.2 million. Sticking with fiscal 2026 forecast based on customer input.
• Preliminary capital budget for a new manufacturing plant equipment is estimated at $35,000,000 plus or minus 5, with the possibility of additional costs.

• Impact of tariffs and international trade issues, currently minimal but dynamic.
• Depletion of Patriot missile system stockpiles affecting military plans and supply to Ukraine.
• Sensitivity and confidentiality of defense programs making detailed discussion challenging.

Q: About differences in the LTA with GE Aerospace compared to previous ones A: Brian Shore explained that the LTA with GE Aerospace is different for different engine programs and materials, with GE Aerospace revenues included in sales history.

Q: When would they feel comfortable sharing long-term forecast details A: Brian Shore said they hope to have the plan complete by the end of the calendar year and then be in a position to share more details.

Q: Joke about Bitcoin mining A: Brian Shore responded humorously about not engaging in stupid business moves like investing in Bitcoin mining