Park Aerospace 2026 Q3 Earnings 87.1% Net Income Surge and 20.3% Revenue Growth

Park Aerospace (PKE) reported fiscal 2026 Q3 earnings on January 13, 2026, with revenue rising 20.3% year-over-year to $17.33 million and net income surging 87.1% to $2.95 million. The company exceeded internal revenue and adjusted EBITDA estimates, while Q4 2026 guidance of $23.5–$24.5 million in revenue and $4.75–$5.25 million in adjusted EBITDA reflects optimism about long-term demand.

Revenue

Park Aerospace’s total revenue for 2026 Q3 increased by 20.3% to $17.33 million, up from $14.41 million in the same period last year. This growth reflects robust demand across key programs, including the GE Aerospace jet engine initiatives and U.S. defense contracts.

Earnings/Net Income

Park Aerospace’s earnings per share (EPS) rose 87.5% to $0.15 in 2026 Q3 from $0.08 in 2025 Q3. Net income surged 87.1% to $2.95 million, driven by improved operational efficiency and strong revenue performance. The significant 87.5% EPS increase indicates robust earnings performance, reflecting strong net income growth.

Post-Earnings Price Action Review

The strategy of buying Park Aerospace shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days has historically shown promising returns. Over the past three years, this approach yielded a 20.77% return, with the highest performance of 20.77% in Q3 2025 following a strong revenue announcement. While returns fluctuated across quarters—14.95% in Q3 2024, 10.47% in Q1 2025, and 5.23% in Q2 2025—the overall trend underscores the strategy’s profitability when the company’s financial performance is robust. Holding the stock for 30 days post-earnings appears critical, as the majority of gains occur during this period. However, investors must remain mindful of market volatility and broader economic factors beyond immediate earnings reactions.

CEO Commentary

Brian Shore, Chairman of Park Aerospace Corp, highlighted the company’s Q3 performance, noting revenue of $17.3 million and adjusted EBITDA of $4.2 million, exceeding internal estimates. He emphasized growth drivers such as the GE Aerospace jet engine programs and the U.S. defense industry’s surge in missile production. Strategic priorities include expanding manufacturing capacity via a $50 million new plant to support long-term demand, particularly for military programs.

Guidance

Park provided Q4 2026 revenue guidance of $23.5–$24.5 million and adjusted EBITDA of $4.75–$5.25 million. Full-year 2026 revenue is estimated at $72.5–$73.5 million, with EBITDA of $14.5–$15.5 million. These figures include $7.2 million of C2B fabric sales in Q4 and $9.8 million annually, which will pressure margins due to low-margin fabric sales. The company also outlined a $50 million capital budget for the new plant, funded by cash, cash flow, and a $50 million at-the-market equity offering.

Additional News

Park Aerospace announced a $50 million manufacturing expansion to double capacity, addressing surging demand for composite materials in defense and aerospace programs. CEO Brian Shore acknowledged supply chain bottlenecks but framed these as signs of industry recovery. The company also highlighted its exclusive role in the Patriot missile system’s ablative materials and its involvement in the A320neo and COMAC 919 jet engine programs. Meanwhile, C2B fabric sales, while contributing to revenue, are expected to dilute margins. Investors should monitor the impact of the new plant’s operational timeline, set for 2028, on long-term growth.