Park Aerospace Corp. · NYSE:PKE
Park Aerospace — FY2025 Q4 Earnings Presentation
39 slides from Park Aerospace's earnings presentation, May 15, 2025
Slide 1: FY2025 Q4 Investor Conference Call
FY2025 Q4 Investor Conference Call May 15, 2025 ***Founded March 31, 1954***
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: Table of Contents
Table of Contents FY2025 Q4 Investor Presentation……………………………………...……………….Slide 1 Supplementary Financial Information……………………………………………..Appendix 1 99.7% Chance of Alien Life on Milky Way Planet K2-18 Only 124 Light Years from Earth Thank you, James Webb Space Telescope 051525 Slide 3
Slide 4: Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands)
Quarterly Results for FY2023, FY2024 and FY2025 (In Thousands)* FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4*** FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Sales $12,783 $13,875 $13,867 $13,530 $15,551 $12,481 $11,639 $16,333 $13,970 $16,709 $14,408 $16,939 Gross Profit $4,092 $4,086 $4,444 $
Slide 5: Quarterly Results for FY2023, FY2024 and FY2025 (Continued)
Quarterly Results for FY2023, FY2024 and FY2025 (Continued) FY2025 Q4 “Considerations”: Production vs. Sales…Remember, in our FY2025 Q3 Investor Presentation, we explained that: • Our Q3 “sales value of production” (we call it SVP) was $1.2 Million less than our Q3 sales • At Park, production (o
Slide 6: Quarterly Results for FY2023, FY2024 and FY2025 (Continued)
Quarterly Results for FY2023, FY2024 and FY2025 (Continued) • This “excess” production (or SVP) in Q4 had a significant positive impact on our Q4 EBITDA • This “excess” production also allowed us to build back our finished goods inventory to more acceptable levels ArianeGroup Business Partner Agre
Slide 7: Quarterly Results for FY2023, FY2024 and FY2025 (Continued)
Quarterly Results for FY2023, FY2024 and FY2025 (Continued) • Park sold $420 Thousand of ablative materials manufactured with C2B fabric in FY2025 Q4 and $2.0 Million in FY2025 As we also previously explained, our margins for producing and selling ablative materials manufactured with C2B fabric ar
Slide 8: Quarterly Results for FY2023, FY2024 and FY2025 (Continued)
Quarterly Results for FY2023, FY2024 and FY2025 (Continued) Impact of tariffs and tariff related costs and charges on FY2025 Q4: None… Possible future impact of tariffs and tariff charges discussed later in presentation 051525 Slide 8
Slide 9: FY2025 Q4 Top Five Customers (in Alphabetical Order)
FY2025 Q4 Top Five Customers (in Alphabetical Order) Aerojet Rocketdyne Kratos Defense and Security Solutions Middle River Aerostructure Systems (MRAS) and its subcontractors Tex Tech Industries Airbus A321LR Commercial Aircraft The Nordam Group Bombardier Global 7500 Business Jet Lockheed Martin PA
Slide 10: Park's Estimated Revenues by Aerospace Market Segment
Park’s Estimated Revenues by Aerospace Market Segment FY2021 FY2022 FY2025 FY2021 Revenues: FY2022 Revenues: $46.3 Million $53.6 Million FY2023 FY2024 FY2025 Revenues: $62.0 Million FY2023 Revenues: FY2024 Revenues: $54.1 Million $56.0 Million 051525 Slide 10
Slide 11: Park Loves "Niche" Military Aerospace Programs
Park Loves “Niche” Military Aerospace Programs Park’s Estimated FY2025 Military Revenues by Market Segment Mk21A Integrated Estimated FY2025 Military Revenues: Reentry Vehicle for European Space Agency $26.1 Million Sentinel System Warhead Vega-Consolidation Launcher Halcon SkyNight Northrop Grumman
Slide 12: 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 13: GE Aerospace Jet Engine Programs (Continued)
GE Aerospace Jet Engine Programs (Continued) Park Composite Materials are also Sole Source on primary structure component for Passport 20 Engines for Bombardier Global 7500/8000 (included in GE Aerospace LTA through 2030) Fan Case Containment Wrap for GE9X Engines for Boeing 777X Aircraft Prod
Slide 14: 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 7,256 Airplanes as of March 31, 2025 (Source: First Quarter 2025 edition of Aero Engin
Slide 15: 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 16: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Airbus A321XLR Aircraft Variant • The A321XLR is off to the races • “The A321XLR is changing to air map of the world” (CNN, February 13, 2025) • And Boeing has no response...and none planned Airbus A321XLR with LEAP-1A Engines 051525 Slide 16
Slide 17: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Comac C919 with CFM LEAP-1C Engines Comac is targeting 30 C919 Aircraft deliveries in 2025 Comac plans to increase C919 annual production capacity to 50 airplanes in 2025 Comac plans to achieve a production rate of 150 C919 Aircraft per
Slide 18: Update on GE Aerospace Jet Engine Programs (Continued)
Update on GE Aerospace Jet Engine Programs (Continued) Comac C909 (formerly the ARJ21) with GE CF34-10A Engines C909 Aircraft delivered to Lao Airlines and Vietjet Boeing 777X Aircraft with GE9X Engines B777X test flight certification program Comac C909 with GE CF34-10A Engines reportedly pr
Slide 19: 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: FY2020: $28.9 Million FY2025 Q1: $5.0 Million FY2021: $13.2 Million FY2025 Q2: $7.1 Million FY2022: $26.5 Million FY2025 Q3: $6.8 Million FY2023: $22.3 Million FY2025 Q4: $5.8
Slide 20: Park's Financial Performance History and Forecast Estimates
Park’s Financial Performance History and Forecast Estimates* Sales and Adjusted EBITDA history: Sales Adjusted EBITDA FY2023 Total $54.1 Million $11.5 Million FY2024 Q1 $15.6 Million $3.3 Million** FY2024 Q2 $12.5 Million $2.7 Million FY2024 Q3 $11.6 Million $1.8 Million FY2024 Q4 $16.3 Million $3
Slide 21: Historical Fiscal Year Results and FY2025 Forecast Estimates
Historical Fiscal Year Results and FY2025 Forecast Estimates (In Thousands)* FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024*** FY2025 Sales $31,837 $40,230 $51,116 $60,014 $46,276 $53,578 $54,055 $56,004 $62,026 Gross Profit $8,299 $11,288 $16,184 $18,673 $13,191 $17,917 $16,473 $16,534 $17
Slide 22: General Park Updates
General Park Updates New Agreement with ArianeGroup Remember that Park entered into a Business Partner Agreement with ArianeGroup in January 2022 under which Ariane appointed Park as its exclusive North American distributor or Ariane’s RAYCARB C2®B fabric used to produce ablative composite mater
Slide 23: General Park Updates (Continued)
General Park Updates (Continued) Park’s Lightning Strike Protection materials were certified on the GE Aerospace Passport 20 Engine used on the Bombardier Global 7500/8000 large business jet…revenues of approximately $500 Thousand per year expected for our LSP materials on this program Sales exp
Slide 24: General Park Updates (Continued)
General Park Updates (Continued) Park recently entered into a new LTA with GE Aerospace for CYs 2025 through 2030 Revenue from the LTA expected to ramp to approximately $5.0 Million per year Park is in discussions with two Asian industrial conglomerates relating to Asian manufacturing joint ve
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 for Park in the Military/Defense Mar
Slide 26: Recent Questions from Investor
Recent Questions from Investor Will the new C2B fabric manufacturing equipment funded, in part, by Park’s advance to ArianeGroup of 4,587,000€ be located at Ariane’s facility or Park’s facility? Ariane’s facility Who will own and operate the new equipment? Ariane will The Park/MRAS LTA pro
Slide 27: Park's Share Buy-back Authorization and Activity…an Update
Park’s Share Buy-back Authorization and Activity…an Update As announced on May 23, 2022, Park’s Board of Directors authorized Park’s purchase of up to 1,500,000 shares of the Company’s Common Stock on the open market and in privately negotiated transactions Under this authorization, Park has pur
Slide 28: Park's Incredible Cash Dividend History
Park’s Incredible Cash Dividend History Park has paid 40 consecutive years of uninterrupted regular quarterly cash dividends without ever skipping a dividend or reducing the amount of the dividend Park has paid $603.6 Million, or $29.475 per share, in cash dividends since the beginning of FY2005
Slide 29: Major New Expansion of Park's Manufacturing Facilities
Major New Expansion of Park’s Manufacturing Facilities Park is planning a major new expansion of its manufacturing facilities The planned expansion will include a new manufacturing plant The new manufacturing plant may be located at our Newton, Kansas campus or elsewhere Will it be a challen
Slide 30: Major New Expansion of Park's Manufacturing Facilities (Continued)
Major New Expansion of Park’s Manufacturing Facilities (Continued) Preliminary estimated capital budget for the new manufacturing plant and equipment: $35 Million +/- $5 Million Why are we doing this? Our new long-term business forecast requires it! • Significant new business opportunities f
Slide 31: Major New Expansion of Park's Manufacturing Facilities (Continued)
Major New Expansion of Park’s Manufacturing Facilities (Continued) Others may do these things differently…they may wait until the opportunities are mature and often risk missing out on them as a result…but, as you know, at Park, we are not like the others We are not sharing our new long-term bus
Slide 32: Park's Balance Sheet and Cash
Park’s Balance Sheet and Cash Park has zero long term debt! Park reported $68.8 Million in Cash and Marketable Securities as of the end of FY2025 Q4 The final Transition Tax installment payment of $5.1 Million is payable in June 2025 Thinking about our Cash Known or likely cash expenditure
Slide 33: Financial Outlooks for GE Aerospace Jet Engine Programs…the "Juggernaut"
Financial Outlooks for GE Aerospace Jet Engine Programs…the “Juggernaut” What is the “timing” for the Juggernaut? 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 051525 Slide 33
Slide 34: GE Aerospace Jet Engine Programs 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 35: Revenue Outlook…the "Juggernaut" (Continued)
GE Aerospace Jet Engine Programs Revenue Outlook…the “Juggernaut” (Continued) ¹ Except for the engine units per year assumption for the A320neo Aircraft Family, which is addressed in footnote 4 below, the engine units per year assumption estimates are based upon historical data, customer inputs and
Slide 36: Park Aerospace Corp. High-level Conceptual Financial Outlook
Park Aerospace Corp. High-level Conceptual Financial Outlook (in Millions) Sales EBITDA FY2024 Baseline Year $56.0 $11.0 Estimated GE Programs Incremental Sales¹ $40.3 Estimated Non-GE Programs Incremental Sales² $??? Estimated Revenue Outlook3 $??? Estimated EBITDA contribution from incremental sal
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Slide 38: Appendix 1 Continued
Park Aerospace Corp. Appendix 1 Continued May 15, 2025 Investor Conference Call – Supplementary Financial Information The financial and other data contained herein (the “Supplementary Data”) is being provided pursuant to the requirements of Regulation G promulgated by the U.S. Securities and Exchang
Slide 39: Appendix 1
Appendix 1 Before special items, earnings before income taxes for the 2025 fiscal year fourth quarter were $3.2 million, or 18.8% of sales, compared to $3.0 million, or 18.4% of sales, for the 2024 fiscal year fourth quarter and $2.1 million, or 14.8% of sales, for the 2025 fiscal year third quarter