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1. Company Snapshot

1.a. Company Description

Park Aerospace Corp.develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe.It offers advanced composite materials, including film adhesives and lightning strike materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts.


The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications.In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry.The company was formerly known as Park Electrochemical Corp.


and changed its name to Park Aerospace Corp.in July 2019.Park Aerospace Corp.


was incorporated in 1954 and is based in Westbury, New York.

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1.b. Last Insights on PKE

Park Aerospace Corp.'s recent performance was driven by a regular quarterly cash dividend of $0.125 per share, payable August 1, 2025, to shareholders of record at the close of business on July 1, 2025. This dividend declaration demonstrates the company's commitment to returning value to its shareholders. Additionally, the company's solid balance sheet, aerospace exposure, and dividend history are positive indicators of its financial health.

1.c. Company Highlights

2. Park Aerospace Corp. Posts Steady Q3 Earnings Amid Rising Demand

Park Aerospace Corp. reported sales of $17,333,000, a gross profit of $5,003,000, and a gross margin of 34.1% for the third quarter of fiscal year 2026. Adjusted EBITDA was $4,228,000, with an adjusted EBITDA margin of 24.4%. The earnings per share (EPS) came in at $0.14, in line with analyst estimates. The company's financial performance was within the estimated range provided, with sales estimated to be between $16.5 and $17.5 million and adjusted EBITDA between $3,700,000 and $4,100,000.

Publication Date: Jan -14

📋 Highlights
  • Financial Performance Alignment:: Q3 sales ($17.33M) and adjusted EBITDA ($4.23M) met guidance ranges ($16.5–$17.5M sales, $3.7–$4.1M EBITDA), with gross margin at 34.1%.
  • C2B Fabric Sales Momentum:: Zero direct sales of Arian Group’s C2B fabric, but $1M in materials produced using the fabric, signaling indirect adoption in advanced missile programs.
  • Shipments Surge:: Q3 total shipments rose to 740,000 units due to supply chain bottlenecks and engineering challenges, reflecting industry-wide recovery pressures.
  • A320neo Program Pivotal Role:: Airbus’s 75 A320neo/month target (1,160 LEAP-1A engines/year) positions Park’s CFM engine nacelle program as its largest, leveraging 64.5% engine market share.
  • Composite Plant Expansion:: $50M investment to double manufacturing capacity by 2028, targeting $200M in composite sales by FY30–31, with ROI projected from current $72M to $200M in 4–5 years.

Business Segment Performance

The company's Erie Business Partner Agreement with Arian Group contributed to sales, although there were zero sales of the C2B fabric in Q3, there was $1 million in sales of materials manufactured with C2B product. Total shipments in Q3 were approximately 740,000, up significantly due to international freight supply chain and customer spec and engineering issues. The top five customers for Q3 were disclosed, with a pie chart showing the distribution of its business across different sectors.

Program Updates and Outlook

Park Aerospace is involved in various programs, including the GE Aerospace jet engine programs, with a firm pricing LTA from 2019 to 2029 with Middle River Aerostructure Systems. Airbus is targeting a delivery rate of 75 A320neo aircraft per month in 2027, representing a 50% increase from current levels. The A320neo family has two approved engines: the CFM LEAP-1A and the Pratt & Whitney PW1100G, with Park involved in the CFM program. The CFM LEAP-1A engine has a 64.5% market share of firm engine orders for the A320neo program.

Valuation and Growth Prospects

With a P/E Ratio of 63.29 and an EV/EBITDA of 35.29, the company's valuation suggests high expectations for future growth. Analysts estimate next year's revenue growth at -18.4%. The company's long-term sales outlook for composite materials is approximately $200 million, based on known sales, programs, and customers. The new composite materials manufacturing plant, expected to be completed in the second half of 2027, will approximately double Park's current composite materials manufacturing capacity.

Investment and Return on Investment

The estimated capital budget for the new plant is $50 million, which will be funded through cash, cash flow, and potentially a public offering. The ROI for the $50,000,000 investment in the new plant seems attractive, with projected sales of $200,000,000, up from $72,000,000 this year. A $50,000,000 at-the-market public offering of common stock was announced to replenish funds for the new composite plant and to take advantage of future opportunities.

3. NewsRoom

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Park Aerospace Rises 35% in 6 Months: Should You Buy the Stock?

Feb -02

Source: zacks.com

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Defense Demand Fuels PKE's Q3 Earnings, Stock Up 5%

Jan -19

Source: zacks.com

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Park Aerospace Has Everything I Want, Except The Right Price

Jan -14

Source: seekingalpha.com

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Why Park Aerospace Stock Popped Today

Jan -14

Source: fool.com

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Park Aerospace Corp. (PKE) Q3 2026 Earnings Call Transcript

Jan -14

Source: seekingalpha.com

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Park Aerospace Corp. Reports Third Quarter Results

Jan -13

Source: globenewswire.com

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Park Aerospace Corp. Announces Date of Third Quarter Earnings Release and Conference Call

Jan -08

Source: globenewswire.com

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Park Aerospace (NYSE:PKE) and Rocket Lab (NASDAQ:RKLB) Head-To-Head Survey

Jan -07

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Aerospace

Expected Growth: 8.5%

Park Aerospace Corp.'s 8.5% growth in Aerospace is driven by increasing demand for lightweight composite materials in aircraft production, growing adoption of unmanned aerial vehicles (UAVs), and rising defense spending. Additionally, the company's focus on innovation and R&D investments in advanced materials and manufacturing processes has enabled it to capitalize on emerging trends in the industry.

7. Detailed Products

Composite Materials

Park Aerospace Corp. offers a range of composite materials, including prepregs, adhesives, and resin systems, designed for aerospace, defense, and industrial applications.

Adhesive Films

The company provides a variety of adhesive films, including epoxy, acrylic, and silicone-based films, for bonding and sealing applications.

Ceramic Matrix Composites

Park Aerospace Corp. offers ceramic matrix composites (CMCs) for high-temperature applications, including heat shields, leading edges, and thermal protection systems.

Thermoplastic Composites

The company provides thermoplastic composites, including polyetheretherketone (PEEK) and polyphenylsulfone (PPSU), for aerospace, defense, and industrial applications.

Epoxy Resin Systems

Park Aerospace Corp. offers a range of epoxy resin systems, including high-temperature and high-performance resins, for aerospace, defense, and industrial applications.

8. Park Aerospace Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Park Aerospace Corp. is medium due to the availability of alternative materials and technologies that can replace the company's products.

Bargaining Power Of Customers

The bargaining power of customers for Park Aerospace Corp. is low due to the company's strong relationships with its customers and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Park Aerospace Corp. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Park Aerospace Corp. is low due to the high barriers to entry in the aerospace industry and the company's established position in the market.

Intensity Of Rivalry

The intensity of rivalry for Park Aerospace Corp. is high due to the competitive nature of the aerospace industry and the company's position as a leading supplier of advanced materials and solutions.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.16%
Debt Cost 3.95%
Equity Weight 99.84%
Equity Cost 6.39%
WACC 6.39%
Leverage 0.16%

11. Quality Control: Park Aerospace Corp. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Park Aerospace

A-Score: 5.2/10

Value: 0.9

Growth: 2.4

Quality: 6.5

Yield: 6.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Cadre Holdings

A-Score: 5.1/10

Value: 2.6

Growth: 6.4

Quality: 6.1

Yield: 2.0

Momentum: 8.0

Volatility: 5.3

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Sturm Ruger

A-Score: 4.2/10

Value: 4.2

Growth: 2.8

Quality: 5.0

Yield: 6.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Innovative Solutions and Support

A-Score: 4.1/10

Value: 2.7

Growth: 6.3

Quality: 7.2

Yield: 0.0

Momentum: 7.0

Volatility: 1.3

1-Year Total Return ->

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Smith & Wesson Brands

A-Score: 4.1/10

Value: 5.4

Growth: 1.9

Quality: 4.3

Yield: 7.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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VirTra

A-Score: 3.2/10

Value: 4.7

Growth: 5.9

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.85$

Current Price

24.85$

Potential

-0.00%

Expected Cash-Flows