Park Aerospace(PKE) - 2026 Q1 - Quarterly Results

First Quarter Fiscal 2026 Financial Highlights Net sales increased 10.2% year-over-year to $15.4 million, with net earnings rising to $2.08 million or $0.10 per diluted share Q1 FY2026 Key Financial Metrics Comparison | Metric | Q1 FY2026 (USD) | Q1 FY2025 (USD) | Q4 FY2025 (USD) | | :--- | :--- | :--- | :--- | | Net Sales | $15,400,000 | $13,970,000 | $16,939,000 | | Net Earnings | $2,080,000 | $993,000 | $1,246,000 | | Diluted EPS | $0.10 | $0.05 | $0.06 | Q1 FY2026 Non-GAAP Financial Metrics Comparison | Non-GAAP Metric | Q1 FY2026 (USD) | Q1 FY2025 (USD) | Q4 FY2025 (USD) | | :--- | :--- | :--- | :--- | | Net Earnings before Special Items | $2,080,000 | $1,781,000 | $2,417,000 | | Adjusted EBITDA | $2,963,000 | $2,610,000 | $3,418,000 | | Diluted EPS before Special Items | $0.10 | $0.09 | $0.12 | Non-GAAP Financial Measures and Special Items The company uses non-GAAP measures to assess operational performance, with no special items reported in Q1 FY2026 - Park discloses non-GAAP measures, including Adjusted EBITDA and operating results excluding special items, to provide a clearer assessment of the Company's ongoing, normal business operations[10] - The company reported no special items for the first quarter of fiscal year 2026. Special items in prior periods included: - Q1 FY2025: A $1,052,000 pre-tax charge for storm damage - Q4 FY2025: A $2,147,000 non-cash tax charge for potential repatriation of foreign earnings - Q4 FY2025: A $957,000 tax benefit from the expiration of the statute of limitations for uncertain tax positions[5] Business Overview Park Aerospace Corp. develops and manufactures advanced composite materials for the global aerospace industry, serving diverse markets - The company develops and manufactures solution and hot-melt advanced composite materials for composite structures in the global aerospace markets[11] - Key products include film adhesives (Aeroadhere®), lightning strike protection materials (Electroglide®), and proprietary composite SigmaStrut™ and AlphaStrut™ product lines[11] - Target markets include jet engines, transport aircraft, military aircraft, UAVs, business jets, and spacecraft. The company also offers specialty ablative materials for rocket motors and nozzles[11] Financial Statements This section presents the company's detailed financial statements, including performance, balance sheets, and operations Performance Table (including non-GAAP information) Comparative performance metrics for Q1 FY2026, Q1 FY2025, and Q4 FY2025, including GAAP and non-GAAP figures Performance Summary (in thousands, except per share) | Metric | Q1 FY2026 | Q1 FY2025 | Q4 FY2025 | | :--- | :--- | :--- | :--- | | Sales | $15,400 | $13,970 | $16,939 | | Net Earnings before Special Items | $2,080 | $1,781 | $2,417 | | Net Earnings (GAAP) | $2,080 | $993 | $1,246 | | Diluted EPS before Special Items | $0.10 | $0.09 | $0.12 | | Diluted EPS (GAAP) | $0.10 | $0.05 | $0.06 | Comparative Balance Sheets Balance sheet summary as of June 1, 2025, showing total assets, cash, liabilities, and equity per share Balance Sheet Summary (in thousands) | Account | June 1, 2025 | March 2, 2025 | | :--- | :--- | :--- | | Cash and Marketable Securities | $65,571 | $68,834 | | Total Current Assets | $87,332 | $90,294 | | Total Assets | $120,718 | $122,108 | | Total Liabilities | $15,767 | $14,954 | | Shareholders' Equity | $104,951 | $107,154 | - Equity per share decreased from $5.36 on March 2, 2025, to $5.29 on June 1, 2025[15] Comparative Statements of Operations Statement of operations for Q1 FY2026, detailing net sales, gross profit, and gross margin performance Statement of Operations Summary (in thousands) | Metric | Q1 FY2026 | Q1 FY2025 | Q4 FY2025 | | :--- | :--- | :--- | :--- | | Net Sales | $15,400 | $13,970 | $16,939 | | Gross Profit | $4,718 | $4,099 | $4,958 | | Gross Margin | 30.6% | 29.3% | 29.3% | | Earnings from Operations | $2,419 | $2,082 | $2,851 | | Net Earnings | $2,080 | $993 | $1,246 | Reconciliation of Non-GAAP Financial Measures Reconciliation of GAAP Net Earnings to Adjusted EBITDA, detailing adjustments for taxes, depreciation, and other items Reconciliation of GAAP Net Earnings to Adjusted EBITDA (in thousands) | Line Item | Q1 FY2026 | Q1 FY2025 | Q4 FY2025 | | :--- | :--- | :--- | :--- | | GAAP Net Earnings | $2,080 | $993 | $1,246 | | Income Tax Provision | $694 | $376 | $1,940 | | Interest Income | ($355) | ($339) | ($335) | | Depreciation | $456 | $439 | $460 | | Stock Option Expense | $88 | $89 | $107 | | Storm Damage Charge | - | $1,052 | - | | Adjusted EBITDA | $2,963 | $2,610 | $3,418 |