Park Aerospace (PKE) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 sales were $16.38M, up from $15.40M in Q1 FY2026 and slightly down from $16.71M in Q2 FY2025, with gross margin at 31.2% and adjusted EBITDA of $3.40M, both improved year-over-year.

• Net earnings for Q2 FY2026 were $2.40M (14.7% of sales), up from $2.07M in Q2 FY2025 and $2.08M in Q1 FY2026, with EPS at $0.12.

• Strong demand in aerospace and defense, especially missile systems, is driving growth and necessitating major manufacturing expansion.

• The company is sole source qualified on key programs like the A320neo, Patriot missile, and Arrow 4, positioning it for long-term revenue streams.

• Top five customers accounted for 65% of sales, with the top 20 making up 84%.

Financial highlights

• Q2 FY2026 gross profit was $5.12M, with gross margin at 31.2% and adjusted EBITDA margin at 20.8%.

• GE Aerospace program sales in Q2 were $7.5M, above forecast.

• Cash and marketable securities at quarter-end were $61.6M after a $4.9M tax payment.

• Over $606M in cash dividends paid since 2005.

• No share repurchases occurred in Q2; 781,766 shares remain authorized for buyback.

Outlook and guidance

• Q3 FY2026 sales estimated at $16.5–17.5M, adjusted EBITDA at $3.7–4.1M.

• Fiscal 2026 revenue expected to exceed $70M, with GE Aerospace program sales forecast for FY26 revised to $27.5–29M.

• Anticipates significant long-term growth from missile and aerospace programs, with expansion plans to support demand.

• Management expects financial resources to be sufficient for ongoing operations, investments, and shareholder returns for at least the next 12 months.

• Inflationary pressures on costs are being mitigated by price adjustments to customers.