Financial Data and Key Metrics Changes - In Q1, the company reported sales of $15.4 million, with a gross profit of $4.718 million and a gross margin of 3.6%, which is below the desired level of over 30% [10][11] - Adjusted EBITDA was just under $3 million, resulting in an EBITDA margin of 19.2% [11] - The sales estimate for Q1 was set between $15 million and $16 million, with actual results landing in the middle of that range [12] Business Line Data and Key Metrics Changes - Sales of C2B fabric were $1.1 million in Q1, significantly lower than the $4.4 million reported in the previous quarter, which had negatively impacted margins [15] - The company experienced a more balanced production-to-sales ratio in Q1, which positively influenced margins [16] Market Data and Key Metrics Changes - Total shipments in Q1 were 275,000, slightly up from Q4, primarily due to international shipment issues [21] - The impact of tariffs on Q1 was minimal, with costs being less than a few thousand dollars [21] Company Strategy and Development Direction - The company is focusing on expanding its manufacturing capacity to meet increasing demand, particularly in defense and missile programs [81][83] - A new agreement with Aireon to increase C2B fabric manufacturing capacity was highlighted as a strategic move to support growing orders [72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in defense programs, particularly in light of recent geopolitical events [59][61] - The company is preparing for significant increases in production capacity to meet urgent needs for missile defense systems [72][73] Other Important Information - The company has zero long-term debt and reported $65.6 million in cash and marketable securities at the end of Q1, down from $68.8 million at the end of Q4 [53][54] - A share buyback of $2.165 million was executed in Q1, with no purchases anticipated in Q2 [52] Q&A Session Summary Question: Is there anything different about the new LTA with GE Aerospace compared to previous ones? - The new LTA is negotiated with GE Aerospace and involves different engine programs and materials compared to the previous LTA with MRAS [98][99] Question: When will the company feel comfortable providing long-term forecast details? - The company is conducting internal reviews and expects to provide more information by the end of the calendar year when they have more confidence in their plans [101][103]

Financial Performance - FY2026 Q1 - Sales reached $154 million, with a gross profit of $4718 thousand and a gross margin of 306%[10] - Adjusted EBITDA was $2963 thousand, representing 192% of sales[10] - The company reported $656 million in cash and marketable securities[62] Key Agreements and Business Updates - Park entered into a Business Partner Agreement with ArianeGroup, selling $11 million of C2B fabric and $480 thousand of ablative materials manufactured with C2B fabric in FY2026 Q1[13] - A new agreement with ArianeGroup involves Park advancing €4587 million against future C2B fabric purchases, with the first installment of €1376 million paid in FY2026 Q1[54] - Lightning Strike Protection materials were certified on the GE Aerospace Passport 20 Engine, expecting approximately $500 thousand per year in revenues[56] GE Aerospace Programs - FY2026 Q1 sales for GE Aerospace programs were $62 million[45] - The company forecasts GE Aerospace programs sales to be between $67 million and $72 million for FY2026 Q2 and between $280 million and $320 million for the total FY2026[47] - CFM LEAP-1A engine had a 652% market share of firm engine orders for the A320neo Family of Aircraft as of March 31, 2025[34] Share Repurchase Program - During FY2026 Q1, Park purchased 166955 shares of its common stock at an average price of $1297 per share, totaling $2165453[59] - As of the report, the company has purchased a total of 718234 shares at an average price of $1294 per share, costing $9296401[59] Future Expansion - The company is planning a major new expansion of its manufacturing facilities, with a preliminary estimated capital budget of $35 million +/- $5 million[84]