Park Aerospace Corp. Reports 10.2% Revenue Increase to $15.4 Million

Park Aerospace Corp. reported a notable increase in financial performance for the 13 weeks ended June 1, 2025, with total net sales reaching $15.4 million, up from $13.97 million in the same period last year. This 10.2% increase in revenue was primarily attributed to the recovery from production and shipping disruptions caused by storm damage in the previous fiscal year. The company's gross profit margin improved to 30.6%, compared to 29.3% in the prior year, reflecting higher sales volume and lower waste, despite some costs associated with ramping up new manufacturing lines.

The company's earnings from operations before income taxes surged to $2.77 million, a 102.6% increase from $1.37 million in the previous year. Net earnings also saw a significant rise, reaching $2.08 million compared to $993,000 in the prior year, resulting in basic and diluted earnings per share of $0.10, up from $0.05. The absence of storm damage charges in the current fiscal period contributed to this improvement, as the previous year had recorded a $1.05 million charge related to storm damage repairs.

Operationally, Park Aerospace continues to navigate challenges such as inflation in raw material costs and supply chain issues affecting its customers. The company has been able to mitigate some of these impacts by adjusting pricing for a significant portion of its sales. Additionally, the company has entered into long-term contracts with key customers, which provide a stable revenue stream, although these contracts do not guarantee specific quantities.

In terms of strategic developments, Park Aerospace has advanced funds to ArianeGroup SAS for future purchases of its proprietary C2®B product, totaling €4.59 million, payable in installments through 2027. This agreement is expected to enhance the company's supply chain for critical aerospace materials. The company also repurchased 166,955 shares of its common stock during the quarter, reflecting its commitment to returning value to shareholders.

Looking ahead, Park Aerospace maintains a positive outlook, with management expressing confidence in the company's financial resources to support ongoing investments in working capital and property, plant, and equipment. The company believes its balance sheet remains strong, positioning it well for future growth despite potential market fluctuations and operational challenges.