Park Aerospace Corp. (PKE) Q2 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 09 2025
0mins
Should l Buy PKE?
Source: SeekingAlpha
Sales $16.381 million, a slight increase from the previous quarter's estimate of $15 million to $16 million. The increase was attributed to higher-than-expected sales of C2B fabric and other materials.
Gross Profit $5.116 million, with a gross margin of 31.2%. The gross margin was impacted by the sales mix, including a higher proportion of low-margin C2B fabric sales, and ongoing expenses related to the new manufacturing facility.
Adjusted EBITDA $3.401 million, with an adjusted EBITDA margin of 20.8%. This was at the higher end of the company's estimate of $3 million to $3.4 million, driven by better-than-expected sales performance.
C2B Fabric Sales $1.65 million in Q2. The sales were driven by defense industry customers stockpiling the fabric, which led to a higher ratio of fabric sales compared to materials manufactured with the fabric, negatively impacting margins.
Ablative Materials Sales $415,000 in Q2. These materials, manufactured with C2B fabric, have very high margins, partially offsetting the impact of low-margin fabric sales.
Missed Shipments $510,000 in Q2, significantly higher than previous quarters. The increase was due to customer certification and testing delays, rather than international shipment issues.
Cash and Marketable Securities $61.6 million at the end of Q2, down from $65.6 million in Q1. The decrease was primarily due to a $4.9 million transition tax installment payment.
Patriot Missile System Revenue Significant revenue potential as the company is sole-source qualified for specialty ablative materials used in the system. The Department of War is pushing for a quadrupling of production to 2,000 missiles per year, which would greatly benefit Park.
GE Aerospace Jet Engine Program Sales $7.5 million in Q2, slightly above the forecasted range of $6.7 million to $7.2 million. The increase was attributed to higher-than-expected production and sales alignment.
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Analyst Views on PKE
About PKE
Park Aerospace Corp. is an aerospace company. The Company develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Its advanced composite materials include film adhesives (Aeroadhere) and lightning strike protection materials (Electroglide). It offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Its advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (drones), business jets, general aviation aircraft and rotary wing aircraft. It also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. It also designs and fabricates composite parts, structures and assemblies and low-volume tooling for the aerospace industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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