Park Aerospace Q4 2025 slides: Revenue hits $16.9M as aerospace demand strengthens

Introduction & Market Context

Park Aerospace Corp (NYSE:PKE) reported strong fourth quarter results for fiscal year 2025, with revenue reaching $16.9 million, as detailed in the company’s investor presentation on May 15, 2025. The aerospace materials specialist closed out the fiscal year with total revenue of $62 million, demonstrating continued growth in both commercial and military aerospace segments.

The company’s performance reflects the ongoing recovery in commercial aviation and increasing defense spending, with Park’s strategic positioning as a supplier to major aerospace programs driving results. With zero long-term debt and substantial cash reserves, Park is preparing for significant manufacturing expansion to capitalize on future growth opportunities.

Quarterly Performance Highlights

Park Aerospace delivered solid financial results in the fourth quarter of FY2025, showing improvement across key metrics compared to previous quarters. The company achieved $16.9 million in sales, $5.0 million in gross profit (29.3% margin), and $3.4 million in adjusted EBITDA (20.2% margin).

As shown in the following quarterly results table, the company has maintained relatively consistent performance throughout fiscal year 2025, with Q4 representing the strongest quarter:

The company’s Q4 production exceeded sales by $1.4 million, which positively impacted EBITDA and allowed Park to rebuild finished goods inventory to more acceptable levels. A significant contributor to Q4 results was $4.4 million in sales of C2B fabric under the ArianeGroup Business Partner Agreement, which made Park the exclusive North American distributor of RAYCARB C2®B fabric for ablative composite materials.

Detailed Financial Analysis

Park Aerospace’s full-year FY2025 results show continued improvement in the company’s financial performance. Total (EPA:TTEF) sales reached $62.0 million, up from $56.0 million in FY2024, representing a 10.7% year-over-year increase. Adjusted EBITDA for FY2025 was $11.6 million, compared to $11.0 million in FY2024.

The following table illustrates Park’s historical fiscal year results, demonstrating consistent growth since FY2017:

The company’s revenue mix has evolved over recent years, with military aerospace programs growing in importance. In FY2025, military applications accounted for 42% of revenue, commercial aircraft 48%, and business aircraft 10%. This represents a strategic shift from FY2021, when commercial aircraft dominated at 51% of revenue.

The following chart shows the evolution of Park’s revenue distribution across aerospace market segments:

Within the military segment, which generated approximately $26.1 million in FY2025, rocket nozzles represented the largest portion at 44%, followed by aircraft structures (33%), drones (16%), and radomes (7%). This diverse portfolio of military applications provides Park with multiple growth avenues in the defense sector.

Strategic Initiatives

Park Aerospace announced plans for a major expansion of its manufacturing facilities with an estimated capital budget of $35 million (±$5 million). The expansion will include a new manufacturing plant that may be located at the company’s Newton, Kansas campus or elsewhere, featuring new manufacturing lines for solution treating, hot melt film, hot melt tape, hypersonic materials, and support equipment.

According to the presentation, this expansion is driven by the company’s long-term business forecast and significant new opportunities in both hot-melt and solution composite materials, particularly for defense and missile programs. The investment will also provide flexibility to support GE Aerospace programs as they continue to ramp up production.

Park also entered into a new agreement with ArianeGroup, advancing 4,587,000€ against future purchases of C2B fabric. These funds will help finance new manufacturing equipment for ArianeGroup’s production of C2B fabric, with the goal of increasing manufacturing capacity. The payments will be made in three installments over 2025, 2026, and 2027.

Competitive Industry Position

Park Aerospace maintains strong relationships with key customers in the aerospace industry. The company’s top five customers in Q4 FY2025 included Aerojet Rocketdyne, Kratos Defense (NASDAQ:KTOS) and Security Solutions, Middle River Aerostructure Systems (MRAS) and its subcontractors, Tex Tech Industries, and The Nordam Group.

The following slide highlights these key customer relationships and associated aerospace programs:

Park’s relationship with GE Aerospace remains particularly important, with the company serving as the sole source for composite materials for engine nacelles and thrust reversers across multiple programs. The firm pricing long-term agreement (LTA) with MRAS extends from 2019 through 2029 and was recently amended to include three proprietary Park film adhesive formulation product forms.

The company maintains a perfect supplier scorecard with MRAS, achieving a 12-month rolling composite score of 100.00, along with 100.00 ratings for acceptance rate and SU rate. This exemplary performance strengthens Park’s competitive position as a critical supplier in the aerospace supply chain.

Forward-Looking Statements

For the first quarter of FY2026, Park Aerospace forecasts sales between $15.0 million and $16.0 million, with adjusted EBITDA between $2.5 million and $3.0 million. The company expects total FY2026 sales from GE Aerospace programs to reach $28.0 million to $32.0 million.

Looking further ahead, Park provided a conceptual revenue outlook for its GE Aerospace jet engine programs, estimating potential annual revenues of approximately $61.4 million once production rates reach full capacity. This represents a significant growth opportunity compared to the $21.1 million in GE Aerospace program sales achieved in FY2024.

The company’s financial position remains strong, with $68.8 million in cash and marketable securities reported at the end of FY2025 Q4 and zero long-term debt. After accounting for known or likely cash expenditures, including the final transition tax installment payment of $5.1 million due in June 2025, stock buyback expenditures, advance payments to ArianeGroup, and the major expansion project, Park estimates remaining cash of approximately $21.5 million.

Park’s board of directors previously authorized the purchase of up to 1,500,000 shares of common stock, with 718,234 shares purchased to date at an average price of $12.94 per share. Since March 6, 2025, the company has purchased 166,955 shares at an average price of $12.97 per share, all within FY2026 Q1.

The company also highlighted its 40-year history of uninterrupted regular quarterly cash dividends, with total dividend payments of $603.6 million, or $29.475 per share, since the beginning of FY2005.

Full presentation:

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