What is Park Aerospace's gross profit margin?

What guidance did Park Aerospace's management provide for the next earnings period?

What is the revenue and EPS growth rate for Park Aerospace year over year?

What does Park Aerospace do and what are its main business segments?

Did Park Aerospace beat or miss consensus estimates last quarter?

What factors drove the changes in Park Aerospace's revenue and profit?

What were the key takeaways from Park Aerospace's earnings call?

What were the key takeaways from Park Aerospace’s earnings call?

- **Revenue growth & margins**: Q2 2026 revenue $16.38M, gross margin 31.2%, EBITDA $3.4M. FY26 revenue >$70M. 
- **Missile program expansion**: $9.8B Lockheed Martin award for 1,970 Patriot missiles (2,000/year target). Sole-source for specialty ablatives. 
- **Manufacturing investment**: $40-45M expansion for hypersonic materials, Solution Treating, and Hot Melt lines. 
- **A320neo momentum**: 8,000+ LEAP-1A engine orders, Airbus targeting 75/month deliveries. 
- **Defense priorities**: U.S. DoD pushing missile production on "breakneck" schedule, Park asked to increase output by orders of magnitude. 


**【CEO Summary Section】**
- Q2 2026 revenue: $16.381 million, gross profit: $5.116 million, gross margin: 31.2% (over 30% threshold). Adjusted EBITDA: $3.401 million (20.8% margin). 
- C2B fabric sales ($1.65 million) skewed margin mix: 60% fabric sales vs. 40% high-margin ablative materials. Stockpiling by defense customers driving imbalance. 
- ArianeGroup partnership: $4.587 million investment in C2B fabric capacity expansion; study underway for U.S.-based manufacturing (EUR 700k cost split). 
- Missile programs: Sole-source qualified for Patriot missile system; Lockheed Martin awarded $9.8B for 1,970 missiles (4x current production rate). 
- Manufacturing expansion: $40-45M capital budget for new lines (Solution Treating, Hot Melt film/tape, hypersonic materials). 
- Q3 2026 forecast: Sales $16.5-17.5M, EBITDA $3.7-4.1M. FY26 revenue expected >$70M. 

**【CFO Financial Commentary】**
- Q2 2026 financial highlights: 
  - Sales: $16.381M (vs. Q1 estimate $15-16M) 
  - Gross margin: 31.2% (vs. 30.5% Q1) 
  - EBITDA: $3.401M (20.8% margin) 
  - Operating expenses: $10.9M (includes $1.5M for new plant) 
- Tariff impact: Minimal ($1.7K Q2), costs passed through to customers. 
- Cash position: $61.6M (after $4.9M tax payment). No share buybacks Q2/Q3. 

**【Major Programs & Defense Initiatives】**
- **A320neo family**: 8,000+ LEAP-1A engine orders (64.7% market share). Airbus targeting 75/month deliveries (current rate 59/month). 
- **777X**: 565 orders, certification delayed due to FAA scrutiny. 
- **Patriot missile system**: 
  - Sole-source qualified for specialty ablatives. 
  - Lockheed Martin awarded $9.8B for 1,970 missiles (2,000/year target). 
  - Park asked to increase output by "significant orders of magnitude". 
- **Arrow 3/4**: Second-source qualified for Arrow 3, sole-source for Arrow 4. 
- **Comac C919**: 100,000+ orders, targeting 30 deliveries in 2025. 

**【Manufacturing Expansion】**
- New plant expansion includes: 
  - Solution Treating line 
  - Hot Melt film/tape lines 
  - Hypersonic materials line 
- Capital budget: $40-45M (up from prior $30-35M estimate). 
- Expansion rationale: Support missile programs, maintain flexibility/urgency, capitalize on "once-in-a-lifetime" opportunities. 

**【Q&A Highlights】**
- **Sales personnel**: Prefer technical/engineering staff over traditional sales. Business comes through industry relationships, not cold calls. 
- **Long-term forecast**: May provide more visibility in Q3 2026 call. FY26 revenue >$70M, FY27+ growth driven by missile programs. 
- **Research coverage**: Open to coverage but not a priority. 
- **C2B fabric/material mix**: Stockpiling driving imbalance, but production ramping post-qualification. 
- **Patriot missile timing**: Production ramp constrained by supply chain, but "breakneck" schedule per DoD. 


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

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