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Park's Q4 Earnings Jump Year Over Year on ArianeGroup C2B Sales
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Shares of Park Aerospace Corp. (PKE - Free Report) have declined 6.7% since the company reported results for the quarter ended March 1, 2026, underperforming the S&P 500’s 0.8% change over the same period. Over the past month, however, the stock gained 2.4%, though it still lagged the S&P 500’s 5% advance.
Park reported fiscal fourth-quarter 2026 earnings per share of 19 cents, which increased from 6 cents in the prior-year quarter.
Net sales of $24.2 million, up 42.8% from $16.9 million in the year-ago quarter.
Net earnings rose to $3.8 million from $1.2 million a year earlier, while adjusted EBITDA climbed 51.3% to $5.2 million from $3.4 million in the prior-year period.
Park Aerospace Corp. Price, Consensus and EPS Surprise
Gross profit in the fiscal fourth quarter increased 39.9% to $6.9 million from $5 million a year earlier. Gross margin, however, slipped to 28.7% from 29.3%.
Operating earnings rose to $4.6 million from $2.9 million, while net earnings margin expanded to 15.9% from 7.4%. Adjusted EBITDA margin improved to 21.4% from 20.2%.
The company ended the fiscal year with $89.4 million in cash and marketable securities and no long-term debt. Shareholders’ equity increased to $130 million from $107.2 million a year earlier. Management also highlighted 41 consecutive years of uninterrupted quarterly dividends.
Park’s top five customers accounted for approximately 72% of fourth-quarter sales, while the top 10 customers represented about 80% of sales.
Management Commentary
Management attributed the quarter’s strong revenue growth largely to demand tied to defense-related programs and its relationship with ArianeGroup. During the quarter, Park recorded $7.1 million in sales of ArianeGroup’s proprietary C2B fabric and an additional $1.3 million in sales of ablative materials manufactured using that fabric. Management noted that while C2B fabric sales carry relatively modest markups, the associated ablative-material sales generate significantly higher margins.
Executives also expressed optimism about long-term opportunities in both commercial aerospace and defense markets. The company highlighted growing demand tied to Airbus A320neo-family aircraft equipped with LEAP-1A engines, Boeing’s 777X program and China’s Comac C919 program. Management characterized these trends as part of a “Commercial Aircraft Juggernaut” that could drive future growth.
On the defense side, management pointed to heightened demand for missile-system materials, particularly products supporting the PAC-3 Patriot missile program, amid efforts to replenish missile inventories and expand production capacity.
Factors Influencing the Quarter
The company reported approximately $0.7 million in missed shipments during the quarter due primarily to supply-chain constraints and equipment downtime. Management said aerospace industry bottlenecks are reemerging as production rates recover and program ramp-ups accelerate.
Tariffs and tariff-related costs had only a minimal impact during the quarter, according to management, although executives acknowledged potential future exposure depending on evolving trade policies.
The significant contribution from C2B fabric and related ablative-material sales was another major driver of quarterly performance. These products supported both revenue growth and profitability during the period.
Fiscal 2026 Update
For the full fiscal year, sales increased 18.2% to $73.3 million, net earnings nearly doubled to $11.3 million from $5.9 million, and earnings per share rose to 56 cents from 29 cents.
Guidance
For first-quarter fiscal 2027, Park forecast sales between $17.7 million and $18.4 million and adjusted EBITDA between $4.1 million and $4.6 million. Management also projected fiscal 2027 revenue from GE Aerospace-related programs of $34 million to $38 million, compared with $29.3 million in fiscal 2026.
Other Developments
During the quarter, Park raised approximately $22.8 million through its previously announced at-the-market equity offering, selling 942,749 shares at an average price of $24.21 per share. Management said the proceeds will help fund a major new manufacturing plant and other growth investments.
The company is planning a new U.S. manufacturing facility designed to support its expanding commercial aerospace and missile-system businesses. Management indicated that the plant’s capacity and expected capital budget have increased from earlier plans and that total spending will likely exceed the previously discussed $50 million estimate. The company is also negotiating with ArianeGroup regarding expanded C2B fabric manufacturing capacity in the United States to support growing missile-program demand.
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Park's Q4 Earnings Jump Year Over Year on ArianeGroup C2B Sales
Shares of Park Aerospace Corp. (PKE - Free Report) have declined 6.7% since the company reported results for the quarter ended March 1, 2026, underperforming the S&P 500’s 0.8% change over the same period. Over the past month, however, the stock gained 2.4%, though it still lagged the S&P 500’s 5% advance.
Park reported fiscal fourth-quarter 2026 earnings per share of 19 cents, which increased from 6 cents in the prior-year quarter.
Net sales of $24.2 million, up 42.8% from $16.9 million in the year-ago quarter.
Net earnings rose to $3.8 million from $1.2 million a year earlier, while adjusted EBITDA climbed 51.3% to $5.2 million from $3.4 million in the prior-year period.
Park Aerospace Corp. Price, Consensus and EPS Surprise
Park Aerospace Corp. price-consensus-eps-surprise-chart | Park Aerospace Corp. Quote
Other Key Business Metrics
Gross profit in the fiscal fourth quarter increased 39.9% to $6.9 million from $5 million a year earlier. Gross margin, however, slipped to 28.7% from 29.3%.
Operating earnings rose to $4.6 million from $2.9 million, while net earnings margin expanded to 15.9% from 7.4%. Adjusted EBITDA margin improved to 21.4% from 20.2%.
The company ended the fiscal year with $89.4 million in cash and marketable securities and no long-term debt. Shareholders’ equity increased to $130 million from $107.2 million a year earlier. Management also highlighted 41 consecutive years of uninterrupted quarterly dividends.
Park’s top five customers accounted for approximately 72% of fourth-quarter sales, while the top 10 customers represented about 80% of sales.
Management Commentary
Management attributed the quarter’s strong revenue growth largely to demand tied to defense-related programs and its relationship with ArianeGroup. During the quarter, Park recorded $7.1 million in sales of ArianeGroup’s proprietary C2B fabric and an additional $1.3 million in sales of ablative materials manufactured using that fabric. Management noted that while C2B fabric sales carry relatively modest markups, the associated ablative-material sales generate significantly higher margins.
Executives also expressed optimism about long-term opportunities in both commercial aerospace and defense markets. The company highlighted growing demand tied to Airbus A320neo-family aircraft equipped with LEAP-1A engines, Boeing’s 777X program and China’s Comac C919 program. Management characterized these trends as part of a “Commercial Aircraft Juggernaut” that could drive future growth.
On the defense side, management pointed to heightened demand for missile-system materials, particularly products supporting the PAC-3 Patriot missile program, amid efforts to replenish missile inventories and expand production capacity.
Factors Influencing the Quarter
The company reported approximately $0.7 million in missed shipments during the quarter due primarily to supply-chain constraints and equipment downtime. Management said aerospace industry bottlenecks are reemerging as production rates recover and program ramp-ups accelerate.
Tariffs and tariff-related costs had only a minimal impact during the quarter, according to management, although executives acknowledged potential future exposure depending on evolving trade policies.
The significant contribution from C2B fabric and related ablative-material sales was another major driver of quarterly performance. These products supported both revenue growth and profitability during the period.
Fiscal 2026 Update
For the full fiscal year, sales increased 18.2% to $73.3 million, net earnings nearly doubled to $11.3 million from $5.9 million, and earnings per share rose to 56 cents from 29 cents.
Guidance
For first-quarter fiscal 2027, Park forecast sales between $17.7 million and $18.4 million and adjusted EBITDA between $4.1 million and $4.6 million. Management also projected fiscal 2027 revenue from GE Aerospace-related programs of $34 million to $38 million, compared with $29.3 million in fiscal 2026.
Other Developments
During the quarter, Park raised approximately $22.8 million through its previously announced at-the-market equity offering, selling 942,749 shares at an average price of $24.21 per share. Management said the proceeds will help fund a major new manufacturing plant and other growth investments.
The company is planning a new U.S. manufacturing facility designed to support its expanding commercial aerospace and missile-system businesses. Management indicated that the plant’s capacity and expected capital budget have increased from earlier plans and that total spending will likely exceed the previously discussed $50 million estimate. The company is also negotiating with ArianeGroup regarding expanded C2B fabric manufacturing capacity in the United States to support growing missile-program demand.