Park Aerospace Corp. announced robust financial results for the first quarter of fiscal year 2026, ended June 1, 2025. Net sales increased by 10.2% year-over-year to $15,400,000, up from $13,970,000 in Q1 FY2025. Net earnings more than doubled to $2,080,000, compared to $993,000 in the prior year's first quarter.
Net earnings before special items for Q1 FY2026 were $2,080,000, a 16.8% increase from $1,781,000 in Q1 FY2025. Adjusted EBITDA also saw a significant rise of 13.5% to $2,963,000, up from $2,610,000 in the comparable period. Basic and diluted earnings per share were $0.10, a substantial increase from $0.05 in Q1 FY2025.
The company reported heightened demand for its specialty materials in defense programs, specifically for the PAC-3 Patriot missile, with an unspecific request to increase output by 'significant orders of magnitude.' Park Aerospace also noted a proposed $40 million purchase order from a key OEM. The requalification of C2B fabric, critical for advanced missile systems, is 'imminent' and 'must happen' due to Park's single-source position and the program's expected growth.
Park advanced $1.5 million in Q1 FY2026 as part of a planned $5 million investment to expand ArianeGroup's C2B fabric capacity, signaling expectations of elevated future demand. The company's gross margin improved to 30.6%, benefiting from a normalized product mix and aligned production, despite ongoing expenses from an underutilized new manufacturing facility. Total missed shipments for the quarter were $275,000, and the impact of tariffs was minimal.
Air Asia inked a $12.3 billion agreement for up to 70 A321XLR aircraft on July 5, 2025, which is an important program for Park. This highlights the continued growth opportunities in commercial aerospace alongside the surging defense sector.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.