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Park Aerospace's Q2 Earnings Rise Y/Y Despite Lower Sales
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Shares of Park Aerospace Corp. (PKE - Free Report) have gained 2.6% since the company announced its fiscal second-quarter results for the period ended Aug. 31, 2025. This performance contrasts with a 1.4% decline in the S&P 500 over the same span. Over the past month, Park Aerospace stock has climbed 11.1%, significantly outperforming the S&P 500’s modest 0.5% gain, reflecting investor optimism following the earnings report.
For the second quarter of fiscal 2026, Park Aerospace reported earnings per share (EPS) of 12 cents, which increased from 10 cents in the year-ago quarter.
Net sales of $16.4 million denoted a slight decline from $16.7 million in the prior-year quarter. Despite the modest top-line dip of about 2%, the company posted improved bottom-line results. Net earnings for the quarter rose 16.4% year over year to $2.4 million from $2.1 million.
Park Aerospace Corp. Price, Consensus and EPS Surprise
Park Aerospace delivered an improved gross margin in the quarter. The gross profit for the second quarter was $5.1 million, or 31.2% of net sales, compared to $4.8 million and 28.5% in the same quarter last year. This reflects a 2.7 percentage point improvement in the gross margin. Operating income increased to $2.9 million from $2.6 million, with the operating margin rising to 17.4% from 15.7% year over year.
Adjusted EBITDA for the quarter came in at $3.4 million, up from $3.2 million a year ago, a 6% increase.
PKE: Management Commentary
There were no reported special items for the quarter. This signals a clean operational performance with no one-time charges or adjustments. This contrasts with the prior year, which included $0.05 million in pre-tax charges related to storm damage during the second quarter.
Management's decision not to include any adjustments or non-recurring items suggests a stable quarter, with core operations driving the earnings performance. This likely contributed to the stock’s outperformance relative to the broader market.
Factors Influencing PKE’s Q2 Results
The earnings growth was achieved despite a slight decline in revenues, largely due to improved cost efficiency. The cost of sales decreased to $11.3 million in the quarter from $12 million a year ago, contributing to the higher gross margin. Selling, general and administrative (SG&A) expenses rose to $2.3 million from $2.1 million, but this increase was modest relative to revenues and was offset by stronger gross profit.
Additionally, Park benefited from higher interest and other income, which increased to $0.4 million from $0.2 million in the prior-year period. This further bolstered pre-tax earnings, which rose to $3.2 million from $2.8 million.
PKE’s Balance Sheet Highlights
As of Aug. 31, 2025, Park Aerospace reported cash and marketable securities of $61.6 million, down from $68.8 million at the end of the prior fiscal year. Total current assets stood at $83.3 million. Shareholders' equity was reported at $105.8 million, down slightly from $107.2 million six months earlier. Equity per share declined modestly to $5.31 from $5.36.
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Park Aerospace's Q2 Earnings Rise Y/Y Despite Lower Sales
Shares of Park Aerospace Corp. (PKE - Free Report) have gained 2.6% since the company announced its fiscal second-quarter results for the period ended Aug. 31, 2025. This performance contrasts with a 1.4% decline in the S&P 500 over the same span. Over the past month, Park Aerospace stock has climbed 11.1%, significantly outperforming the S&P 500’s modest 0.5% gain, reflecting investor optimism following the earnings report.
For the second quarter of fiscal 2026, Park Aerospace reported earnings per share (EPS) of 12 cents, which increased from 10 cents in the year-ago quarter.
Net sales of $16.4 million denoted a slight decline from $16.7 million in the prior-year quarter. Despite the modest top-line dip of about 2%, the company posted improved bottom-line results. Net earnings for the quarter rose 16.4% year over year to $2.4 million from $2.1 million.
Park Aerospace Corp. Price, Consensus and EPS Surprise
Park Aerospace Corp. price-consensus-eps-surprise-chart | Park Aerospace Corp. Quote
Operational Metrics and Margins of PKE
Park Aerospace delivered an improved gross margin in the quarter. The gross profit for the second quarter was $5.1 million, or 31.2% of net sales, compared to $4.8 million and 28.5% in the same quarter last year. This reflects a 2.7 percentage point improvement in the gross margin. Operating income increased to $2.9 million from $2.6 million, with the operating margin rising to 17.4% from 15.7% year over year.
Adjusted EBITDA for the quarter came in at $3.4 million, up from $3.2 million a year ago, a 6% increase.
PKE: Management Commentary
There were no reported special items for the quarter. This signals a clean operational performance with no one-time charges or adjustments. This contrasts with the prior year, which included $0.05 million in pre-tax charges related to storm damage during the second quarter.
Management's decision not to include any adjustments or non-recurring items suggests a stable quarter, with core operations driving the earnings performance. This likely contributed to the stock’s outperformance relative to the broader market.
Factors Influencing PKE’s Q2 Results
The earnings growth was achieved despite a slight decline in revenues, largely due to improved cost efficiency. The cost of sales decreased to $11.3 million in the quarter from $12 million a year ago, contributing to the higher gross margin. Selling, general and administrative (SG&A) expenses rose to $2.3 million from $2.1 million, but this increase was modest relative to revenues and was offset by stronger gross profit.
Additionally, Park benefited from higher interest and other income, which increased to $0.4 million from $0.2 million in the prior-year period. This further bolstered pre-tax earnings, which rose to $3.2 million from $2.8 million.
PKE’s Balance Sheet Highlights
As of Aug. 31, 2025, Park Aerospace reported cash and marketable securities of $61.6 million, down from $68.8 million at the end of the prior fiscal year. Total current assets stood at $83.3 million. Shareholders' equity was reported at $105.8 million, down slightly from $107.2 million six months earlier. Equity per share declined modestly to $5.31 from $5.36.