Park Aerospace (PKE) Q2 Fiscal 2027 Earnings Call: Missile Growth and GE Outlook
Source Tradingkey
Key Takeaways
- Park Aerospace Corp. reported fiscal Q2 2027 sales of $20.791 million, gross profit of $7.135 million and adjusted EBITDA of $5.285 million.
- Gross margin was 34.3%, while adjusted EBITDA margin reached 25.4%. Sales were within management’s $19.5 million-$21 million forecast, and adjusted EBITDA exceeded its $4.3 million-$5.1 million range.
- Missile system program sales reached $5.7 million. Management said this level is sustainable and expects an aggressive ramp across missile and GE Aerospace programs, although quarterly variability may continue.
- GE Aerospace engine program sales were $8.3 million. Park reduced its fiscal 2027 forecast for these programs to $32 million-$35 million, reflecting a more realistic Q4 ramp rather than weaker end demand.
- Management forecast fiscal Q3 sales of $21 million-$22.5 million. GE Aerospace engine program sales are expected to be $8 million-$8.5 million.
- Park ended the quarter with $114.75 million in cash and marketable securities and no long-term debt, ahead of planned investments in its Tulsa facility and ArianeGroup’s U.S. C2B fabric plant.
Core Financial Data
| Metric | Fiscal Q2 2027 | Management commentary |
|---|---|---|
| Sales | $20.791 million | Within the $19.5 million-$21 million forecast range |
| Gross profit | $7.135 million | — |
| Gross margin | 34.3% | Management prefers gross margins in the 30% range |
| Adjusted EBITDA | $5.285 million | Above the $4.3 million-$5.1 million forecast range |
| Adjusted EBITDA margin | 25.4% | — |
| Sales value of production | $21.1 million | Described as a post-electronics divestiture record |
| Missile system program sales | $5.7 million | Missile systems represented a growing share of the business mix |
| Advanced composite materials for GE Aerospace programs | $8.5 million | Key commercial aerospace product category |
| GE Aerospace engine program sales | $8.3 million | Fiscal 2027 forecast reduced to $32 million-$35 million |
| C2B fabric sales | $1.5 million | Applied materials produced with C2B fabric generated $1.8 million |
| Cash and marketable securities | $114.75 million | Quarter-end balance |
| Long-term debt | $0 | — |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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