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1. Company Snapshot

1.a. Company Description

Park Aerospace Corp.develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe.It offers advanced composite materials, including film adhesives and lightning strike materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts.


The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications.In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry.The company was formerly known as Park Electrochemical Corp.


and changed its name to Park Aerospace Corp.in July 2019.Park Aerospace Corp.


was incorporated in 1954 and is based in Westbury, New York.

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1.b. Last Insights on PKE

Park Aerospace Corp.'s recent performance was driven by a regular quarterly cash dividend of $0.125 per share, payable August 1, 2025, to shareholders of record at the close of business on July 1, 2025. This dividend declaration demonstrates the company's commitment to returning value to its shareholders. Additionally, the company's solid balance sheet, aerospace exposure, and dividend history are positive indicators of its financial health.

1.c. Company Highlights

2. Park Aerospace Corp. Reports Q1 FY2026 Earnings

Park Aerospace Corp. reported sales of $15,400,000 and a gross profit of $4,718,000, with a gross margin of 30.6% for the first quarter of fiscal year 2026. Adjusted EBITDA was $2,993,000, with an EBITDA margin of 19.2%. The company's earnings per share (EPS) came out at $0.14, in line with estimates. The company's financial performance was driven by matched production and sales, which positively impacted margins.

Publication Date: Jul -17

📋 Highlights
  • Q1 Fiscal Year 2026 Financial Highlights: Sales were $15,400,000, with a gross profit of $4,718,000 and a gross margin of 30.6%, and adjusted EBITDA was $2,993,000 with an EBITDA margin of 19.2%.
  • Gross Margin Factors and Outlook: The company cited significant expenses for a new manufacturing factory, low-margin fabric sales, and production vs. sales as factors affecting gross margins, with Q2 sales estimated at $15-16 million and EBITDA of $3-3.4 million.
  • New Programs and Customer Updates: A significant agreement for up to 70 A321XLR aircraft was announced, worth $12,300,000,000, and the Boeing 777X program has 541 orders with over 1,400 flights and 4,000 flight hours in the test program.
  • Defense Systems and Expansion Plans: Park supports the Patriot missile defense system with specialty materials and received a proposed $40 million blanket purchase order, and plans to expand its manufacturing facilities with an estimated capital budget of $35 million.

Gross Margin and Production

The company's gross margin was affected by three factors: significant ongoing expenses related to operating a new manufacturing factory, sales of fabric at a low margin, and production versus sales. In Q1, production and sales were nicely matched, which positively impacted margins. According to CEO Brian Shore, "We had a good quarter, with sales and production being nicely matched, which helped our margins."

Segments and Customer Update

The company provided updates on various aerospace programs, including the AAMN four Aureole and the LEAP engine programs. The recall of a key customer, related to a business partner agreement for Ray Carb c two b fabric used for ablative composite materials, is imminent. The company also mentioned a large program that will grow significantly. Total missed shipments were 275,000, and the impact of tariffs and related costs on Q1 was minimal.

Valuation and Financials

Using valuation metrics, we can see that the stock is trading at a P/E ratio of 50.62, a P/B ratio of 3.36, and a P/S ratio of 5.54. The EV/EBITDA ratio is 39.82, and the dividend yield is 2.82%. The company's return on equity (ROE) is 6.49%, and the return on invested capital (ROIC) is 5.4%. With a net debt to EBITDA ratio of 0.04, the company's financial position appears solid.

Growth Outlook and Expansion Plans

The company estimates that Q2 sales will be between $15,000,000 to $16,000,000 and adjusted EBITDA between $2.5 to $3. The company has a new expansion plan for its manufacturing facilities, which will include lines for solution, hot melt film, and hypersonic material manufacturing. The estimated capital budget for the new plant and equipment is $35 million. The expansion is driven by the company's long-term business forecast, which has moved higher since May 15.

Defense Programs and Future Prospects

The company is involved in various defense programs, including the Patriot missile defense system and the Arrow3 and Arrow4 missile defense systems. A proposed $40 million blanket purchase order from a key OEM for C-2B fabric was received. The company's involvement in defense programs is significant, but some information cannot be disclosed due to sensitivity and confidentiality. With a 40-year dividend history and over $600 million in dividends paid, the company aims to be disciplined and not take shortcuts or chase shiny opportunities.

3. NewsRoom

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Head to Head Survey: Hexcel (NYSE:HXL) & Park Aerospace (NYSE:PKE)

Nov -23

Source: defenseworld.net

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Ethic Inc. Has $388,000 Holdings in Park Aerospace Corp. $PKE

Oct -30

Source: defenseworld.net

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Head-To-Head Review: Kratos Defense & Security Solutions (NASDAQ:KTOS) & Park Aerospace (NYSE:PKE)

Oct -26

Source: defenseworld.net

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Park Aerospace's Q2 Earnings Rise Y/Y Despite Lower Sales

Oct -15

Source: zacks.com

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Park Aerospace: Great Balance Sheet, Expensive Stock

Oct -10

Source: seekingalpha.com

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Park Aerospace Corp. (PKE) Q2 2026 Earnings Call Transcript

Oct -10

Source: seekingalpha.com

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Park Aerospace Corp. Reports Second Quarter Results

Oct -09

Source: globenewswire.com

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Park Aerospace Corp. Announces Date of Second Quarter Earnings Release and Conference Call

Oct -06

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Aerospace

Expected Growth: 8.5%

Park Aerospace Corp.'s 8.5% growth in Aerospace is driven by increasing demand for lightweight composite materials in aircraft production, growing adoption of unmanned aerial vehicles (UAVs), and rising defense spending. Additionally, the company's focus on innovation and R&D investments in advanced materials and manufacturing processes has enabled it to capitalize on emerging trends in the industry.

7. Detailed Products

Composite Materials

Park Aerospace Corp. offers a range of composite materials, including prepregs, adhesives, and resin systems, designed for aerospace, defense, and industrial applications.

Adhesive Films

The company provides a variety of adhesive films, including epoxy, acrylic, and silicone-based films, for bonding and sealing applications.

Ceramic Matrix Composites

Park Aerospace Corp. offers ceramic matrix composites (CMCs) for high-temperature applications, including heat shields, leading edges, and thermal protection systems.

Thermoplastic Composites

The company provides thermoplastic composites, including polyetheretherketone (PEEK) and polyphenylsulfone (PPSU), for aerospace, defense, and industrial applications.

Epoxy Resin Systems

Park Aerospace Corp. offers a range of epoxy resin systems, including high-temperature and high-performance resins, for aerospace, defense, and industrial applications.

8. Park Aerospace Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Park Aerospace Corp. is medium due to the availability of alternative materials and technologies that can replace the company's products.

Bargaining Power Of Customers

The bargaining power of customers for Park Aerospace Corp. is low due to the company's strong relationships with its customers and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Park Aerospace Corp. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Park Aerospace Corp. is low due to the high barriers to entry in the aerospace industry and the company's established position in the market.

Intensity Of Rivalry

The intensity of rivalry for Park Aerospace Corp. is high due to the competitive nature of the aerospace industry and the company's position as a leading supplier of advanced materials and solutions.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.16%
Debt Cost 3.95%
Equity Weight 99.84%
Equity Cost 6.39%
WACC 6.39%
Leverage 0.16%

11. Quality Control: Park Aerospace Corp. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sturm Ruger

A-Score: 5.6/10

Value: 2.9

Growth: 2.8

Quality: 5.0

Yield: 8.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Park Aerospace

A-Score: 5.4/10

Value: 0.8

Growth: 2.4

Quality: 6.4

Yield: 7.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Innovative Solutions and Support

A-Score: 5.3/10

Value: 4.3

Growth: 7.7

Quality: 7.2

Yield: 1.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

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Cadre Holdings

A-Score: 4.1/10

Value: 1.5

Growth: 6.4

Quality: 5.6

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Smith & Wesson Brands

A-Score: 4.0/10

Value: 4.1

Growth: 1.9

Quality: 4.3

Yield: 7.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
VirTra

A-Score: 3.3/10

Value: 3.6

Growth: 5.9

Quality: 5.8

Yield: 0.0

Momentum: 2.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.56$

Current Price

19.56$

Potential

-0.00%

Expected Cash-Flows