PARK AEROSPACE CORP SEC 10-Q Report

Park Aerospace Corp, a leading provider of advanced composite materials and structures for the aerospace industry, has released its Form 10-Q report for the second quarter of fiscal year 2025. The report highlights significant financial improvements and operational recovery following storm-related disruptions in the previous year.

Financial Highlights

• Net Sales: $15.4 million, reflecting a 10.2% increase from the prior year period primarily due to recovery from storm-related disruptions.
• Gross Profit: $4.718 million, with a gross profit margin of 30.6%, up from 29.3% in the prior year, driven by higher sales volume and lower waste.
• Earnings from Operations: $2.419 million, a 16.2% increase compared to the prior year, attributed to higher sales and improved operational efficiency.
• Net Earnings: $2.080 million, representing a 109.5% increase from the prior year, largely due to the absence of storm damage charges that impacted the previous period.
• Basic Earnings Per Share: $0.10, doubling from $0.05 in the prior year, reflecting improved profitability and operational recovery.

Business Highlights

• Geographical Performance: The company's net sales in North America increased to $14.3 million in the 13 weeks ended June 1, 2025, compared to $12.0 million in the same period in 2024. Sales in Asia slightly decreased to $674,000 from $719,000, while sales in Europe significantly decreased to $411,000 from $1.3 million.
• Storm Impact: The company's operations were previously affected by a storm in May 2024, which caused significant damage to the facilities in Newton, Kansas. This led to a disruption in production and shipping, impacting sales in the first quarter of fiscal year 2025.
• Operational Recovery: Despite the storm damage in 2024, the company did not lose any sales for the 2025 fiscal year, although $1.8 million of sales were delayed. The production lines were restored to full capacity within two weeks of the storm.
• New Production Launches: The company ramped up new manufacturing lines to increase capacity in preparation for higher customer program volumes, which contributed to improved gross profit margins.
• Future Outlook: The company anticipates continued investment in working capital and property, plant, and equipment. It also expects to manage inflation and tariff impacts by adjusting pricing for a large portion of its sales.
• Supply Chain Challenges: The company noted that some programs it supplies are experiencing supply chain issues from other suppliers, which could result in production delays for certain customers.
• Long-term Contracts: The company has several long-term contracts with customers, which are primarily requirements-based and do not guarantee quantities. These contracts include a Business Partner Agreement with ArianeGroup SAS for the exclusive North American distribution of RAYCARB C2®B NG product.

SEC Filing: PARK AEROSPACE CORP [ PKE ] - 10-Q - Jul. 16, 2025