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    PKE
    Earnings call· Jun 2026(Q1 FY27)

    PARK AEROSPACE CORP PKE

    Jul 20, 2026 Source

    Executive summary

    Park Aerospace Q1 FY27 — Strong Margins, Missile Systems Expansion, and New Plant Development

    Park Aerospace delivered solid Q1 FY27 results, meeting its sales and adjusted EBITDA forecasts, driven by strong gross margin recovery. The company is strategically expanding its manufacturing footprint with a new $65 million plant in Tulsa and committing $25 million to a U.S.-based C2B fabric plant with Aireon, positioning itself for significant growth in both commercial aerospace and missile systems. Management highlighted the critical need for increased missile system production and the long-term revenue potential from these investments, while acknowledging short-term supply chain and freight concerns.

    Highlights

    5

    • Q1 FY27 sales of $18.3 million were within the forecast range of $17.7 million to $18.4 million.

    • Q1 FY27 adjusted EBITDA of $4.6 million was at the high end of the forecast range of $4.1 million to $4.6 million.

    • Gross margin recovered to 34.8% in Q1 FY27, up from below 30% in Q4 FY26.

    • Completed ATM offering raising nearly $50 million at an average price of $27.58 per share, significantly higher than the average buyback price of $12.94 per share.

    • Secured a term sheet agreement with Aireon for a U.S.-based C2B fabric manufacturing plant, with Park committing $25 million in advance payments against future purchases.

    Concerns

    3

    • Supply chain and international freight risks are noted as potential short-term impacts on Q2 FY27 performance.

    • The additional French C2B manufacturing capacity coming online in FY28 will not be adequate to support the PAC-3 MSE missile program ramp-up.

    • The timing of C2B fabric sales versus prepreg sales can skew quarterly gross margins due to lower fabric-only markup.

    Guidance & targets

    13
    CategoryTargetConfidence
    Q1 FY27 Sales
    $17.7 million to $18.4 million
    medium materiality
    High
    Q1 FY27 Adjusted EBITDA
    $4.1 million to $4.6 million
    medium materiality
    High
    Q2 FY27 GE Aerospace Engine Program Sales
    $7.5 million to $8.5 million
    medium materiality
    Medium
    FY27 GE Aerospace Engine Program Sales
    $34 million to $38 million
    high materiality
    Medium
    Q2 FY27 Sales
    $19.5 million to $21 million
    high materiality
    Medium
    Q2 FY27 Adjusted EBITDA
    $4.3 million to $5.1 million
    high materiality
    Medium
    Airbus A320 Aircraft Family Delivery Rate
    70 to 75 airplanes per month
    high materiality
    High
    Boeing 777X Certification
    early to mid-'27
    medium materiality
    High
    Boeing 777X Entry into Service
    mid-'27
    medium materiality
    High
    COMAC C919 Production Rate
    150 aircraft per year
    low materiality
    Medium
    Aireon U.S. C2B Fabric Manufacturing Plant Online
    as soon as possible
    high materiality
    High
    New Manufacturing Plant Completion
    fiscal '28
    high materiality
    High
    New Manufacturing Plant Production Start
    fiscal '29
    high materiality
    High

    Operational metrics

    30
    Sales
    $18,312,000
    Q1 FY27

    Reported sales for the first quarter of fiscal year 2027.

    Gross Profit
    $6,376,000
    Q1 FY27

    Reported gross profit for the first quarter of fiscal year 2027.

    Gross Margin
    34.8%up from below 30% in Q4 FY26
    Q1 FY27

    Gross margin recovery attributed to a more balanced mix of C2B fabric and prepreg sales.

    Adjusted EBITDA
    $4,576,000
    Q1 FY27

    Reported adjusted EBITDA for the first quarter of fiscal year 2027.

    Adjusted EBITDA Margin
    25%
    Q1 FY27

    Reported adjusted EBITDA margin for the first quarter of fiscal year 2027.

    C2B Fabric Sales
    0
    Q1 FY27

    No C2B fabric sales in Q1, which positively impacted gross margin as prepreg sales have higher margins.

    Ablative Material Sales (Prepreg)
    $1.9 million
    Q1 FY27

    Sales of prepreg using C2B fabric, which carry very good margins.

    GE Aerospace Engine Program Sales
    $28.9 million
    FY20

    Historical peak sales before the pandemic.

    GE Aerospace Engine Program Sales
    $29.2 million
    FY26

    Sales returned to pre-pandemic levels in FY26.

    GE Aerospace Engine Program Sales
    $7.1 million
    Q1 FY27

    Reported sales for the first quarter of fiscal year 2027 for GE Aerospace programs.

    Shares Purchased (Buyback)
    718,000
    cumulative

    Total shares purchased under the buyback authorization. No shares were bought in Q1 or Q2 FY27.

    ATM Offering Proceeds
    $49,996,000
    total

    Total proceeds from the At-The-Market offering, completed in Q2 FY27. This amount is before commissions.

    ATM Shares Sold
    943,000
    Q4 FY26

    Shares sold during Q4 FY26 from the ATM offering, before commissions.

    ATM Shares Sold
    170,000
    June 2026 (Q2 FY27)

    Shares sold in June 2026 from the ATM offering, before commissions.

    Cash and Marketable Securities
    $89.4 million
    Q1 FY27

    Reported balance at the end of Q1 FY27.

    Cash and Marketable Securities (Estimated)
    $114 million
    June 2026

    Estimated balance at the end of June 2026, reflecting the impact of the ATM offering.

    Cash Dividends Paid
    $613.7 million
    since 2005

    Total cash dividends paid since the beginning of 2005.

    Cash Dividend Per Share
    $0.125
    Q1 FY27

    Regular cash dividend declared for Q1 FY27.

    Cash Dividends Paid
    over $30 per share
    since 2005

    Cumulative cash dividends paid since the beginning of 2005, including the August 3 payment.

    Airbus A320neo Family Deliveries
    271up from 232 in first 6 months CY25
    first 6 months CY26

    Airbus is ahead of last year's delivery pace.

    CFM LEAP-1A Market Share
    66.2%creeping up
    current

    Market share of firm engine orders for the A320neo family.

    LEAP-1A Engines per Year
    1,192
    annualized

    Projected engine demand based on Airbus's target delivery rate and CFM's market share.

    Firm LEAP-1A Engine Orders
    8,472
    as of March 31, '26

    Huge amount of revenue for Park.

    PAC-3 MSE Production Capacity
    2,000 per yearup from 600 per year
    future

    Significant ramp-up in production capacity for the PAC-3 MSE missile system.

    Investment in Solid Rocket Motor Business
    $1 billion
    January 2026

    Investment to support solid rocket motor production for PAC-3 and other missile systems.

    Advance Payment for C2B Fabric Capacity
    EUR 4,587,000
    March 2025

    One installment remaining in Q1 FY28. This capacity will not be adequate for PAC-3 MSE ramp-up.

    New Manufacturing Plant Size
    150,000
    future

    New plant to be built at Tulsa International Airport.

    New Manufacturing Plant Budget
    $65 million
    FY27-FY29

    Estimated capital outflow for the new manufacturing plant.

    Hot Melt and Film Adhesive Manufacturing Capacity Increase
    approximately doublevs current
    future

    Principally for commercial aircraft programs.

    Solution Treating Manufacturing Capacity Increase
    approximately triplevs current
    future

    Used for Missile Systems programs, compared to current capacity in Newton, Kansas.

    Industry KPIs

    4
    MetricValueDetails
    Defense program awards$1 billionUSD
    Unit deliveries by program271airplanes
    Production rates by program70 to 75airplanes per month
    Production capacity expansion2,000interceptors per year

    Deals & partnerships

    4
    ArianeGroupExclusive distributorship for Raycarb C2B fabric in North America.

    ArianeGroup appointed Park as their exclusive distributor for Raycarb C2B fabric in North America in January 2022.

    ArianeGroupAdvance payment for future C2B fabric purchases to fund manufacturing capacity expansion.EUR 4,587,000

    In March 2025, Park agreed to advance Aireon EUR 4,587,000 against future C2B fabric purchases. This advance funds 50% of the cost for new French manufacturing capacity.

    ArianeGroupTerm sheet for the construction and establishment of a U.S.-based C2B fabric manufacturing plant.

    Entered on July 18, 2026. This plant is intended to provide adequate C2B fabric capacity to support the PAC-3 MSE missile program ramp-up. Aireon will proceed with construction based on this term sheet.

    Large Defense ContractorLetter of agreement related to the Aireon U.S. C2B fabric plant and PAC-3 MSE program.

    Entered on July 9, 2026, with a contractor Park works with on the PAC-3 MSE missile program. It ties into the Aireon term sheet agreement.

    Capital programs

    1
    New Manufacturing Plantunderway$65 million

    Benefit: approximately double hot melt/film adhesive manufacturing capacity; approximately triple solution treating manufacturing capacity

    Located at Tulsa International Airport, 150,000 sq ft. Budgeted outflow: $25M in FY27, $35M in FY28, $5M in FY29. Production expected to commence in FY29. Site allows for additional plant in future.

    Risks & headwinds

    5
    Supply Chain and International Freight Risksshort term (Q2 FY27)

    a little concerned about some of these things short term and whether -- and to what extent they will impact Q2.

    Mitigation: Management is flagging this as a concern, implying active monitoring and management.

    Depletion of Missile Systems Stockpilesongoing

    very bad depletion of missile systems based on the war in Europe, Ukraine and last year's 12-day war. And now the war in Iran, it's a pretty dire situation

    Mitigation: Urgent need to replenish, with targets to quadruple production of exquisite weapon systems like PAC-3 MSE. Park is investing in capacity to support this.

    Pratt & Whitney Engine Reliability and Shortage Issuesongoing

    struggled with serious reliability issues

    Mitigation: This is a headwind for a competitor engine, potentially leading to greater market share for CFM LEAP-1A, which Park supplies.

    COMAC C919 Ramp-up Constraintsnear term

    lack of availability of the engines has been reported to be limiting COMAC's ability to ramp up.

    Mitigation: Management believes CFM is prioritizing Boeing and Airbus, limiting COMAC's near-term impact on Park's revenue, but also limiting potential upside.

    Timing Mismatch of C2B Fabric vs. Prepreg Salesquarter-to-quarter

    whether we sell -- to the extent we sell fabric or the extent we sell prepreg maybe a fabric that can affect our margins.

    Mitigation: Management highlights this as a factor that can skew quarterly margins, but notes that 100% of fabric eventually becomes higher-margin prepreg, balancing out long-term.

    What to watch in Q2 FY27

    5

    Q2 FY27 Sales Performance

    Next quarter (Q2 FY27 results)
    CurrentQ1 FY27 Sales: $18.3 million
    TargetWithin $19.5 million to $21 million range

    Why it matters

    To assess the impact of noted supply chain and international freight risks on overall revenue.

    Our estimate for Q2, $19.5 million to $21 million of sales... we're a little concerned about some of these things short term and whether -- and to what extent they will impact Q2.

    Q&A highlights

    8

    Will C2B fabric sales in Q2 impact margins similarly to Q4, or is it more balanced?

    Management expects Q2 C2B sales to be more balanced between fabric and prepreg, so no significant impact on the bottom line is anticipated. They also flagged international freight as a potential concern.

    “it's more balanced between the fabric and the fruit break, at least that's what we're expecting. We also mentioned a little concern about international freight, and so that could have an effect on it. It's not significant. If we expected something that would have a significant impact on the bottom line, we would have brought that up.”

    asked by James Ricchiuti · answered by Brian Shore

    2 min read7 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Park Aerospace reported Q1 FY27 sales of $18.3 million and adjusted EBITDA of $4.6 million, both within or at the high end of management's forecast. Gross margin recovered to 34.8% from below 30% in the prior quarter, primarily due to a more balanced mix of C2B fabric sales versus higher-margin prepreg sales. The company emphasized that its forecasts are genuine estimates, not targets to be beaten.

    02

    Missile Systems Juggernaut and PAC-3 MSE

    The company highlighted the critical and urgent need to replenish depleted missile system stockpiles, particularly the PAC-3 MSE missile system, which is extensively used by U.S. allies. Lockheed Martin's announced ramp-up of PAC-3 MSE production from 600 to 2,000 per year underscores the demand. Park is the sole source qualified for advanced composite materials for solid rocket motors for this program.

    03

    Aireon Partnership and U.S. C2B Fabric Plant

    Park entered a term sheet agreement with Aireon for a U.S.-based C2B fabric manufacturing plant to support the PAC-3 MSE ramp-up. Park will invest $25 million in advance payments, which will be fully applied against future C2B fabric purchases starting in FY30. This plant is crucial as existing French capacity will be inadequate. The entire output of the U.S. plant will be allocated to Park.

    04

    New Manufacturing Plant in Tulsa

    Park selected Tulsa, Oklahoma International Airport as the site for its new 150,000 sq ft manufacturing plant, budgeted at $65 million. The plant is expected to be completed in FY28 and commence production in FY29. It will approximately double hot melt/film adhesive capacity and triple solution treating capacity, supporting both commercial aircraft and missile systems programs. The site also allows for future expansion.

    05

    Commercial Aircraft Juggernaut

    The "commercial aircraft juggernaut" is now considered "here," driven by Airbus's aggressive A320neo ramp-up targeting 70-75 airplanes per month by end of CY27, the expected certification and entry into service of the Boeing 777X in CY27, and COMAC's planned C919 ramp-up. The CFM LEAP-1A engine, for which Park is a supplier, holds a 66.2% market share for the A320neo family.

    06

    ATM Offering and Capital Management

    Park completed an At-The-Market (ATM) offering, selling 1.8 million shares for nearly $50 million at an average price of $27.58 per share. This compares favorably to the average buyback price of $12.94 per share for 718,000 shares. The company ended Q1 FY27 with $89.4 million in cash and marketable securities, estimated to be $114 million by end of June 2026, providing capital for the new plant and Aireon investment.

    07

    PAC-3 ASC Development

    Lockheed Martin announced a new PAC-3 ASC missile, which Park views as "gravy" and a potential big positive, as it does not impact the existing PAC-3 MSE business. The ASC is designed for cruise missiles and drones, complementing the MSE's focus on long-range ballistic missiles.

    AI-generated summary of the company’s earnings call. Not investment advice.