Park Aerospace(PKE) - 2026 Q2 - Quarterly Results

News Release Overview Park Aerospace Corp. announced its second quarter fiscal year 2026 financial results for the period ended August 31, 2025 Company Information & Reporting Period Park Aerospace Corp. reported its second quarter fiscal year 2026 financial results for the period ended August 31, 2025 - Company Name: Park Aerospace Corp. (NYSE-PKE)[1] - Reporting Period: Second Quarter Fiscal Year 2026 (ended August 31, 2025)[1] Conference Call Announcement The company announced a conference call on October 9, 2025, to discuss financial results, offering live webcast, presentation materials, and replay services - A conference call to discuss financial results and other important information will be held on October 9, 2025, at 5:00 PM Eastern Time[1][8] - Live audio webcast and presentation materials are available on the company's website and a designated link[1][10] - A replay of the conference call will be available from 8:00 PM Eastern Time on October 9, 2025, until 11:59 PM Eastern Time on October 16, 2025[9] Financial Highlights This section provides an overview of Park Aerospace Corp.'s financial performance for the second quarter and first half of fiscal year 2026, including key metrics and non-GAAP adjustments Second Quarter (Q2 FY2026) Performance Park Aerospace Corp. reported a slight decrease in net sales but growth in net earnings, net earnings before special items, and adjusted EBITDA, alongside improved EPS for Q2 FY2026 Second Quarter Financial Performance (in thousands of USD) | Metric | Q2 FY2026 (Ended Aug 31, 2025) | Q2 FY2025 (Ended Sep 1, 2024) | Year-over-Year Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net Sales | $16,381 | $16,709 | -1.96% | | Net Earnings | $2,404 | $2,066 | +16.36% | | Net Earnings Before Special Items | $2,404 | $2,092 | +14.92% | | Adjusted EBITDA | $3,401 | $3,206 | +6.08% | | Basic and Diluted EPS | $0.12 | $0.10 | +20.00% | | Basic and Diluted EPS Before Special Items | $0.12 | $0.10 | +20.00% | Six Months (H1 FY2026) Performance For the first half of fiscal year 2026, the company achieved growth in net sales, net earnings, and adjusted EBITDA, with a significant increase in earnings per share Six-Month Financial Performance (in thousands of USD) | Metric | H1 FY2026 (Ended Aug 31, 2025) | H1 FY2025 (Ended Sep 1, 2024) | Year-over-Year Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net Sales | $31,781 | $30,679 | +3.59% | | Net Earnings | $4,484 | $3,059 | +46.60% | | Net Earnings Before Special Items | $4,484 | $3,873 | +15.78% | | Adjusted EBITDA | $6,364 | $5,816 | +9.42% | | Basic EPS | $0.23 | $0.15 | +53.33% | | Diluted EPS | $0.22 | $0.15 | +46.67% | | Basic EPS Before Special Items | $0.23 | $0.19 | +21.05% | | Diluted EPS Before Special Items | $0.22 | $0.19 | +15.79% | Special Items and Non-GAAP Measures The company reported no special items in FY2026, contrasting with storm damage expenses in FY2025, and utilizes non-GAAP measures to assess ongoing operational performance - The company reported no special items for the second quarter and first six months of fiscal year 2026[5] - In the second quarter and first six months of fiscal year 2025, the company recorded pre-tax charges of $46 thousand and $1.098 million, respectively, related to storm damage at its Newton, Kansas facility[5] - The company discloses non-GAAP measures, including Adjusted EBITDA and operating results before special items, to help shareholders and other readers evaluate its operating performance, as special items are not part of its ongoing normal business operations[11] Company Business Overview Park Aerospace Corp. specializes in developing and manufacturing advanced composite materials and components for the global aerospace market, focusing on complex, small-scale projects Products and Services Park Aerospace Corp. develops and manufactures advanced composite materials, including film adhesives and lightning strike protection, and designs composite parts and structures for the global aerospace market - The company develops and manufactures solution and hot-melt advanced composite materials for the global aerospace market[12] - Advanced composite materials include film adhesives (Aeroadhere®) and lightning strike protection materials (Electroglide®)[12] - Composite materials are offered for both hand lay-up and automated fiber placement (AFP) manufacturing applications[12] Target Markets and Strategy The company's materials and components are widely used across various aerospace sectors, with a strategic focus on undertaking complex, small-scale, or challenging projects others are unwilling or unable to complete - Advanced composite materials are used in the manufacture of primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, unmanned aerial vehicles (UAVs), business jets, general aviation aircraft, and rotorcraft[12] - Specialty ablative materials for rocket motors and nozzles, and specially designed materials for radome applications are also provided[12] - The company designs and manufactures composite parts, structures, and assemblies, as well as low-volume tooling for the aerospace industry, including its proprietary SigmaStrut™ and AlphaStrut™ product lines[12] - The company's objective is to accomplish tasks that others are unwilling or unable to complete, or that are too difficult, too small, or too tedious[12] Detailed Financial Statements This section presents comprehensive financial statements, including performance tables, condensed balance sheets, operating statements, and non-GAAP reconciliation for various reporting periods Performance Table (GAAP & Non-GAAP) This section provides a detailed performance table, including net sales, net earnings (GAAP and before special items), EPS, and weighted average shares outstanding for 13-week and 26-week periods Performance Table (GAAP & Non-GAAP) (in thousands of USD, except per share data) | Metric | 13 Weeks Ended Aug 31, 2025 | 13 Weeks Ended Sep 1, 2024 | 13 Weeks Ended Jun 1, 2025 | 26 Weeks Ended Aug 31, 2025 | 26 Weeks Ended Sep 1, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Sales | $16,381 | $16,709 | $15,400 | $31,781 | $30,679 | | Net Earnings Before Special Items | $2,404 | $2,092 | $2,080 | $4,484 | $3,873 | | Storm Damage Expense (Net of Tax) | - | $(46) | - | - | $(1,098) | | Income Tax Impact of Pre-Tax Special Items | - | $20 | - | - | $284 | | Net Earnings | $2,404 | $2,066 | $2,080 | $4,484 | $3,059 | | Basic EPS | $0.12 | $0.10 | $0.10 | $0.23 | $0.15 | | Diluted EPS | $0.12 | $0.10 | $0.10 | $0.22 | $0.15 | | Weighted Average Shares Outstanding (Basic) | 19,875 | 20,216 | 19,919 | 19,897 | 20,234 | | Weighted Average Shares Outstanding (Diluted) | 19,986 | 20,291 | 19,968 | 19,977 | 20,331 | Condensed Comparative Balance Sheets The balance sheet indicates a decrease in total assets and total liabilities, with a slight reduction in stockholders' equity from March 2, 2025, to August 31, 2025 Condensed Comparative Balance Sheets (in thousands of USD, except per share data) | Metric | Aug 31, 2025 (Unaudited) | Mar 2, 2025 | Change | | :----------------------------------- | :-------------------------- | :------------ | :------- | | Cash and Marketable Securities | $61,553 | $68,834 | $(7,281) | | Total Current Assets | $83,306 | $90,294 | $(6,988) | | Total Assets | $116,448 | $122,108 | $(5,660) | | Total Current Liabilities | $4,741 | $9,261 | $(4,520) | | Total Liabilities | $10,653 | $14,954 | $(4,301) | | Stockholders' Equity | $105,795 | $107,154 | $(1,359) | | Equity Per Share | $5.31 | $5.36 | $(0.05) | Condensed Comparative Statements of Operations This section details the company's operating performance, showing gross profit and net earnings as a percentage of net sales for 13-week and 26-week periods, highlighting improved profitability Condensed Comparative Statements of Operations (in thousands of USD, except percentages) | Metric | 13 Weeks Ended Aug 31, 2025 | 13 Weeks Ended Sep 1, 2024 | 26 Weeks Ended Aug 31, 2025 | 26 Weeks Ended Sep 1, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Sales | $16,381 | $16,709 | $31,781 | $30,679 | | Cost of Sales | $11,265 | $11,952 | $21,947 | $21,823 | | Gross Profit | $5,116 | $4,757 | $9,834 | $8,856 | | Gross Profit as a % of Net Sales | 31.2% | 28.5% | 30.9% | 28.9% | | Selling, General and Administrative Expenses | $2,271 | $2,140 | $4,570 | $4,157 | | Selling, General and Administrative Expenses as a % of Net Sales | 13.9% | 12.8% | 14.4% | 13.5% | | Operating Earnings | $2,845 | $2,617 | $5,264 | $4,699 | | Net Earnings | $2,404 | $2,066 | $4,484 | $3,059 | | Net Earnings as a % of Net Sales | 14.7% | 12.4% | 14.1% | 10.0% | Reconciliation of Non-GAAP Financial Measures This section provides a reconciliation from GAAP net earnings to Adjusted EBITDA, detailing adjustments for income tax, interest, depreciation, stock-based compensation, and special items for 13-week and 26-week periods Reconciliation of Non-GAAP Financial Measures (in thousands of USD) | Adjustment Item | 13 Weeks Ended Aug 31, 2025 | 13 Weeks Ended Sep 1, 2024 | 26 Weeks Ended Aug 31, 2025 | 26 Weeks Ended Sep 1, 2024 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | GAAP Net Earnings | $2,404 | $2,066 | $4,484 | $3,059 | | Income Tax Expense | $831 | $750 | $1,525 | $1,126 | | Interest and Other Income | $(390) | $(245) | $(745) | $(584) | | Depreciation | $455 | $488 | $911 | $927 | | Stock-Based Compensation Expense | $101 | $101 | $189 | $190 | | Storm Damage Expense | - | $46 | - | $1,098 | | Adjusted EBITDA | $3,401 | $3,206 | $6,364 | $5,816 |