Park Aerospace Corp. · NYSE:PKE
Park Aerospace — Investor Presentation (January 2025)
31 slides from Park Aerospace's investor presentation, Jan 14, 2025
Slide 1: Company Presentation
Company Presentation January 14, 2025 ***Celebrating Park’s 70th Anniversary***
Slide 2: Forward Looking Disclaimer
Forward Looking Disclaimer This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operatin
Slide 3: Our Business
Our Business Park Aerospace Corp. develops and manufactures Solution and Hot-Melt Advanced Composite Materials used to produce composite structures for global aerospace markets: Wide array of prepreg materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing
Slide 4: Our Business (Continued)
Our Business (Continued) Park Aerospace also offers: Specialty Ablative materials for Rocket Motors and Nozzles Specially designed materials for Radome Applications (including RadarWave® materials) As a complement to our Advanced Composite Materials offering, Park Aerospace designs and fabri
Slide 5: Our History
Our History Park founded on March 31, 1954 by Jerry Shore and Tony Chiesa under the name Park Nameplate, Inc. with $40 Thousand Investment Original business was nameplate and decorative trim Company started in a 2,500 square feet “factory” (garage?) in Woodside, Queens with 5 employees Park’s
Slide 6: Our History (Continued)
Our History (Continued) November 17, 1960 Park changes name to Park Electrochemical Corp. and goes Public 1961 Park acquires New England Laminates Company (“Nelco”) in Stamford, CT for ~$200 Thousand 1962 Park develops Multilayer Printed Circuit Boards for Lockheed Sunnyvale for ICMBs 1969 Park goes
Slide 7: Our History (Continued)
Our History (Continued) 1985 Park commences regular Quarterly Cash Dividend Jan 2007 Park commits to Aerospace as second major area of business focus Jan 17, 2008 Ground-breaking of Park’s New 54,000 square feet Aerospace Composite Materials Facility in an empty field in Newton, KS August 2009 Park
Slide 8: Our History (Continued)
Our History (Continued) December 2018 Park announces Major 90,000 square feet Expansion of Newton, KS Facility December 2018 Park sells its Electronics Business to AGC Inc. of Tokyo, Japan December 2018 Park’s transformation from an Electronics Company into an Aerospace Company is complete July 17,
Slide 9: Major Expansion of Newton, KS Facilities
Major Expansion of Newton, KS Facilities December 2018…Park announces Major 90,000 square feet Expansion of Newton, KS Manufacturing and Development Facilities Redundant Plant for GE Aerospace, MRAS and their Aircraft OEM Customers Plant is also needed for Manufacturing Capacity Expansion do
Slide 10: FY2025 Q3 Top Five Customers
FY2025 Q3 Top Five Customers (in Alphabetical Order) Aerojet Rocketdyne Aerospheres, Inc. Kratos Defense and Security Solutions Middle River Aerostructure Systems Comac C909 Regional Jet Gulfstream G280 Business Jet (MRAS) and its subcontractors (formerly the ARJ21) The Nordam Group Kratos XQ-58 Val
Slide 11: Aerospace Market Segment
Park’s Estimated Revenues by Aerospace Market Segment FY2021 FY2022 FY2021 Revenues: FY2022 Revenues: $46.3 Million $53.6 Million FY2023 FY2025 First 9 Months FY2024 Revenues: $45.1 Million FY2023 Revenues: FY2024 Revenues: $54.1 Million $56.0 Million 011218 slide 11 040425 Slide 11
Slide 12: Park Loves "Niche" Military Aerospace Programs
Park Loves “Niche” Military Aerospace Programs Park’s Estimated FY2025 First 9 Months Military Revenues by Market Segment MK56 Guided Missile Estimated FY2025 First 9 Months Vertical Launch System Military Revenues: $17.4 Million Long Range Precision Guided Anti Ship-Missile LRASM Lockheed Sunnyvale
Slide 13: GE Aerospace Jet Engine Programs
GE Aerospace Jet Engine Programs Firm Pricing LTA (Requirements Contract) from 2019 through 2029 with Middle River Aerostructure Systems (MRAS), a subsidiary of ST Engineering Aerospace (STE) Redundant Factory…Factory is in production! Sole Source for Composite Materials for Engine Nacelles an
Slide 14: GE Aerospace Jet Engine Programs (Continued)
GE Aerospace Jet Engine Programs (Continued) Fan Case Containment Wrap for GE9X Engines for Boeing 777X Aircraft Produced with Park’s “AFP” and other Composite Materials MRAS/Park LTA was amended to include Three Proprietary Park Film Adhesive Formulation Product Forms for composite bond and m
Slide 15: Update on GE Aerospace Jet Engine Programs
Update on GE Aerospace Jet Engine Programs A320neo Aircraft Family (includes A319neo, A320neo, A321neo, A321LR and A321XLR Aircraft Variants) Airbus has a huge backlog of A320neo Aircraft Family firm orders of 7,221 Airplanes as of November 30, 2024 (Source: January 2025 edition of Aero Engine N
Slide 16: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Approved Engines for the A320neo Aircraft Family • The A320neo Aircraft Family offers two approved engine options, namely the CFM LEAP-1A engine and the Pratt PW1100G (GTF) engine • Park supplies into the A320neo Family Aircraft using the CFM
Slide 17: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Airbus A321XLR Aircraft Variant • First delivery (with LEAP-1A engines) to Iberia Airlines on October 30, 2024 • First Commercial Flight on November 6, 2024 • First Commercial Transatlantic Flight on November 14, 2024 • According to Airbus, it
Slide 18: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Comac C919 with CFM LEAP-1C Engines Comac plans to deliver 54 C919 Aircraft in 2025, 84 in 2026, 110 in 2027 and 126 in 2028 Comac plans to achieve a production rate of 150 C919 Aircraft per year by 2028 Comac reported to have over 1,000
Slide 19: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Boeing 777X Aircraft with GE9X Engines Boeing’s certification and first delivery target for the B777X Aircraft is 2026 As of September 2024, Boeing reportedly had 503 B777X Aircraft open orders Boeing 777X undergoing Cold Weather Testing i
Slide 20: GE Aerospace Jet Engine Programs Sales History and Forecast Estimates
GE Aerospace Jet Engine Programs Sales History and Forecast Estimates GE Aerospace Programs sales history: GE Aerospace Programs Sales Forecast FY2020: $28.9 Million Estimates*: FY2021: $13.2 Million FY2025: $23.5 Million to $24.0 Million FY2026: $28.0 Million to $32.0 Million** FY2022
Slide 21: Historical Fiscal Year Results and FY2025 Forecast Estimates
Historical Fiscal Year Results and FY2025 Forecast Estimates (In Thousands)* FY2025 Forecast FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024*** Estimates $60,000 to Sales $31,837 $40,230 $51,116 $60,014 $46,276 $53,578 $54,055 $56,004 $61,000 Gross Profit $8,299 $11,288 $16,184 $18,673 $13,1
Slide 22: General Park Updates
General Park Updates Solution Treater Project… Project budget is approximately $7.5 Million Especially important for the new missile program opportunities Major OEM supplier has asked Park to “partner” with them on the purchase of an additional manufacturing line to support critical defense
Slide 23: General Park Updates (Continued)
General Park Updates (Continued) Essential large high profile Missile Defense Program… Park is Sole Source Qualified on this high-profile Missile Defense System Program Initial revenues expected for Park later this year and program is expected to ramp quickly from there What is the Program?
Slide 24: General Park Updates (Continued)
General Park Updates (Continued) New LTA with GE Aerospace for CYs 2025 through 2030 under which GE awarded two additional products to Park… Incremental revenue from the two additional products is expected to be approximately $3.0 Million per year LTA is complete and executed Potential JV wi
Slide 25: New Park Emphasis on Military/Defense Markets
New Park Emphasis on Military/Defense Markets New Park emphasis on Military/Defense Markets and Programs Why this new emphasis? • How many new commercial aircraft programs are in the works? The Boeing 777X The Comac C929 And? • Significant opportunities materializing for Park in the Milita
Slide 26: Balance Sheet, Cash and Incredible Cash Dividend History
Park’s Balance Sheet, Cash and Incredible Cash Dividend History Park has zero long term debt! Park reported $70.0 Million in Cash and Marketable Securities as of the end of our FY2025 Q3 Park has paid 40 consecutive years of uninterrupted regular quarterly cash dividends without ever skipping
Slide 27: Financial Outlooks for GE Aerospace Jet Engine Programs and for Park
Financial Outlooks for GE Aerospace Jet Engine Programs and for Park…the “Juggernaut” What is the “timing” for the Financial Outlooks? We are not sure, but the Juggernaut is coming, it can’t be stopped and we better be ready! Airbus A321neo with LEAP-1A Engine 011218 slide 27 040425 Slide 27
Slide 28: Revenue Outlook...the "Juggernaut"
GE Aerospace Jet Engine Programs Revenue Outlook…the “Juggernaut” Engine Units per Year Revenue per Engine Annual Revenues per Program Assumptions¹ Unit Estimates² Program Estimates 4 A320neo³ 1080 $30,500 $32,940K 5 PP20 90 $49,000 $4,410K 6 C919 300 $26,500 $7,950K 7 C909 72 $29,500 $2,125K 8 GE9X
Slide 29: Park Aerospace Corp. High-level Conceptual Financial Outlook
Park Aerospace Corp. High-level Conceptual Financial Outlook Sales EBITDA FY2024 Baseline Year $56.0M* $11.0M Estimated GE Programs Incremental Sales¹ $37.6M Estimated Non-GE Programs Incremental Sales² $15.0M Estimated Revenue Outlook $108.6M Estimated EBITDA contribution from incremental sales3 $1
Slide 30: High-level Conceptual Financial Outlook (Continued)
Park Aerospace Corp. High-level Conceptual Financial Outlook (Continued) ¹ GE Programs Outlook Sales of $58.7M minus FY2024 GE Programs Sales of $21.1M equals $37.6M. ² FY2024 Non-GE Programs Sales are $34.9M (FY24 total sales of $56.0M minus FY24 GE Programs Sales of $21.1M equals $34.9M). The Comp
Slide 31: 011218 slide 31 040425 Slide 31
011218 slide 31 040425 Slide 31
Park Aerospace — Investor Presentation (January 2025) on 6ix