Park Aerospace Corp. reported net sales of $16,939,000 for the fourth quarter of fiscal year 2025, ended March 2, 2025, an increase of 3.7% from $16,333,000 in the prior year's fourth quarter. For the full fiscal year 2025, net sales grew by 10.8% to $62,026,000, up from $56,004,000 in fiscal year 2024. Adjusted EBITDA for the fourth quarter was $3,418,000, and for the full year, it reached $11,649,000, representing a 6.0% increase from fiscal year 2024.
GAAP net earnings for Q4 FY2025 were $1,246,000, a decrease from $2,670,000 in Q4 FY2024, primarily due to a non-cash tax charge of $2,147,000 related to potential repatriation of foreign earnings. However, net earnings before special items for the quarter increased to $2,417,000 from $2,308,000. Full year GAAP net earnings were $5,882,000, while net earnings before special items were $7,867,000, up 2.6% from FY2024.
The company announced a planned major manufacturing expansion with an estimated capital budget of $35 million, plus or minus $5 million, to meet long-term demand in defense and commercial aerospace markets. Park Aerospace also entered an agreement to advance 4.56 million euros to ArianeGroup for C2B fabric capacity expansion, with $1.376 million already paid in Q1 FY2026. Management expects Q1 FY2026 EBITDA to be between $2.5 million and $3 million, with $1.2 million in forecasted C2B sales.
At quarter-end, cash and marketable securities stood at $68.8 million, though this is projected to reduce to approximately $21.5 million after planned expenditures for expansion, stock buybacks, and advances. The company reported a 6.5% weighted average price increase effective January 1 for its Middle River Aerostructure Systems Long-Term Agreement, including three new film adhesive formulations. Progress continues on a hypersonic missile program license, with further updates expected within six months.
The majority of required testing for the C2B fabric requalification was scheduled for completion by the end of May, with all completed tests to date being compliant with specifications. A recently certified lightning strike protection material is expected to generate approximately $500,000 in annual sales once fully ramped. The company also repurchased an additional $2.17 million in treasury shares in Q1 FY2025, bringing total repurchases under the 2022 authorization to $9.3 million.
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