Park Aerospace Corp. reported a total net sales of $62.0 million for the fiscal year ending March 2, 2025, marking an 11% increase from $56.0 million in the previous year. The growth was primarily driven by increased sales in military and commercial aircraft markets, alongside a modest rise in the business aircraft sector. However, the company's gross profit margin decreased to 28.4% from 29.5% in 2024, attributed to a less favorable sales mix and rising labor and overhead costs as the company ramped up manufacturing capacity in anticipation of increased customer program volumes.
The company's earnings from operations rose to $9.4 million, slightly up from $8.4 million in 2024, reflecting a decrease in selling, general, and administrative expenses. Despite the increase in sales, net earnings fell to $5.9 million from $7.5 million in the prior year, impacted by a $1.1 million charge related to storm damage and a higher effective tax rate of 38.1%, compared to 20.8% in 2024. The tax rate increase was primarily due to a deferred tax provision on undistributed foreign earnings that were previously considered indefinitely reinvested.
Operationally, Park Aerospace maintained a workforce of 132 employees as of March 2, 2025, and reported a backlog of $25.8 million in unfilled orders, down from $31.1 million a year earlier. The company continues to face challenges related to supply chain disruptions, particularly due to geopolitical events affecting raw material availability. Despite these challenges, Park Aerospace is optimistic about future sales growth, particularly in defense spending, which may benefit from increased global military expenditures.
In terms of strategic developments, Park Aerospace entered into a funding agreement with ArianeGroup SAS, committing to advance €4.6 million for future purchases of proprietary products. This agreement is expected to enhance the company's manufacturing capabilities and product offerings. The company also completed significant repairs to its manufacturing facilities in Newton, Kansas, following storm damage, with repairs expected to be fully completed by early 2026. Looking ahead, Park Aerospace anticipates continued growth in its core markets, although it remains vigilant regarding potential economic and geopolitical risks that could impact operations.
About PARK AEROSPACE CORP
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