Park Aerospace Corp. (PKE) is a leading manufacturer of advanced composite materials and structures for the global aerospace industry. Celebrating its 70th anniversary this year, the company has carved out a reputation for innovation, quality, and unwavering commitment to its customers. From humble beginnings in the 1950s to its current status as a respected industry player, Park’s story is one of resilience, adaptation, and a relentless pursuit of excellence.
Company History
The company was founded in 1954 by Jerry Shore and Tony Chiesa, two visionaries who recognized the growing potential of the aerospace sector. Emerging from the post-World War II era and influenced by their experiences during the Great Depression, Shore and Chiesa established Park Aerospace with a strong emphasis on self-reliance and independence from government assistance. This founding principle has remained a cornerstone of the company’s ethos throughout its history.
In its early years, Park Aerospace focused on developing and manufacturing advanced composite materials for the aerospace industry. The company’s commitment to innovation and quality quickly earned it a reputation as a trusted supplier to major aircraft manufacturers. A significant milestone in Park’s growth came in 1960 when the company went public, listing its shares on the American Stock Exchange. This move provided additional capital and visibility, further fueling the company’s expansion.
Park Aerospace’s growth trajectory continued, and in 1984, the company achieved another major milestone by listing its shares on the New York Stock Exchange under the ticker symbol PKE. This transition to a more prominent exchange reflected the company’s increasing stature in the aerospace industry and provided greater access to capital markets.
Throughout its seven-decade history, Park Aerospace has demonstrated remarkable resilience in the face of various challenges. The company’s commitment to self-reliance was particularly evident during the recent COVID-19 pandemic. Unlike many of its industry peers, Park Aerospace chose not to accept any government assistance, including Paycheck Protection Program (PPP) funds. Instead, the company relied on its own resources and adaptability to navigate the crisis, staying true to its founding principles.
Today, Park’s portfolio includes a diverse range of advanced composite materials, including film adhesives, lightning strike protection materials, and specialty ablative materials for rocket motors and radomes. The company’s proprietary composite SigmaStrut and AlphaStrut product lines are also highly sought after for specialized applications in the aerospace industry.
Financial Snapshot
Despite the ongoing challenges posed by supply chain disruptions and global economic uncertainty, Park Aerospace has maintained a strong financial position. As of the company’s most recent 10-Q filing for the period ended September 1, 2024, Park reported net sales of $16.71 million and a gross profit margin of 28.5%. The company’s EBITDA for the quarter stood at $3.2 million.
For the fiscal year 2024, Park Aerospace reported revenue of $56.00 million, net income of $7.47 million, operating cash flow of $4.41 million, and free cash flow of $3.76 million. The company’s performance in the most recent quarter (Q2 2025) showed revenue of $16.71 million, net income of $2.07 million, operating cash flow of $1.02 million, and free cash flow of $1.01 million. Notably, the company achieved a year-over-year quarterly revenue growth of 33.9%.
The higher revenue in Q2 2025 compared to the prior year quarter was primarily due to increased sales to the commercial aerospace and military markets. However, gross profit margins declined from 32.7% to 28.5% due to a less favorable product mix, higher costs for raw materials, supplies, freight and labor from inflation, and higher depreciation and maintenance costs related to the new production facility. The company is currently ramping up capacity ahead of expected increases in customer demand.
While the COVID-19 pandemic and geopolitical tensions have had some impact on the company’s operations, Park has demonstrated resilience and adaptability. The company’s focus on diversifying its customer base and product portfolio has helped mitigate the risks associated with these external factors.
Operational Highlights
One of the key drivers of Park’s success has been its unwavering commitment to innovation and quality. The company has consistently invested in R&D, enabling it to stay ahead of the curve in developing cutting-edge composite materials and solutions.
Park’s strategic partnership with ArianeGroup, a leading European aerospace company, is a testament to the company’s technical expertise. Through this collaboration, Park manufactures and supplies fabric materials used in ablative programs and missile systems, further diversifying its revenue streams.
The company’s long-standing relationship with GE Aerospace is another highlight. Park’s composite materials are used in several GE engine programs, including the CFM LEAP-1A engine, which powers the popular Airbus A320neo aircraft family. This program alone is expected to generate significant revenue for Park in the coming years, as Airbus ramps up production to meet the growing demand for its narrow-body aircraft.
Navigating Challenges and Opportunities
While the aerospace industry has faced its fair share of headwinds, Park Aerospace has demonstrated its ability to adapt and thrive. The company’s recent investment in a new production facility, equipped with the latest automation and technology, is a testament to its commitment to staying ahead of the curve.
Moreover, Park’s involvement in emerging sectors, such as hypersonic missile programs and the development of advanced composites for the Comac C919 aircraft, positions the company for future growth. The company’s strong balance sheet, with no long-term debt and a cash position of $72 million as of September 1, 2024, provides the financial flexibility to capitalize on these opportunities.
Financials
Park Aerospace’s financial performance has remained solid despite industry challenges. The company’s focus on operational efficiency and cost management has helped maintain profitability. In addition to the previously mentioned quarterly results, Park has consistently delivered positive cash flow from operations, enabling it to fund its growth initiatives and return value to shareholders through dividends and share repurchases.
The company operates in two main product segments: Advanced Composite Materials and Composite Parts, Structures, and Assemblies. The Advanced Composite Materials segment develops and manufactures materials used in primary and secondary structures for various aircraft types, including large and regional transport aircraft, military aircraft, UAVs, business jets, and rotary wing aircraft. The Composite Parts, Structures, and Assemblies segment focuses on designing and fabricating composite parts for prototype and development aircraft, special mission aircraft, and spacecraft.
In terms of geographic performance, the majority of Park’s sales are in North America, accounting for $15.28 million or 91.5% of Q2 2025 revenue. Asia and Europe accounted for the remaining 8.5% of revenue.
Park Aerospace has provided guidance for the upcoming periods. For Q3 2025, the company forecasts sales of $13.5 million to $14.25 million and adjusted EBITDA of $3 million to $3.3 million. For the full fiscal year 2025, Park expects sales of $60 million to $65 million and adjusted EBITDA of $13 million to $15 million. These forecasts are subject to supply chain risks and limitations affecting the aerospace industry.
Liquidity
The company’s strong liquidity position is a key strength. With $72 million in cash and no long-term debt as of September 1, 2024, Park Aerospace has ample financial flexibility to weather economic uncertainties and invest in growth opportunities. This robust liquidity position also provides a buffer against potential industry downturns and allows the company to pursue strategic acquisitions or expand its product portfolio as opportunities arise.
Park’s financial health is further evidenced by its impressive liquidity ratios. The company boasts a current ratio of 9.11 and a quick ratio of 8.36, indicating a strong ability to meet short-term obligations. The debt-to-equity ratio stands at a minimal 0.0003627854668142, reflecting the company’s conservative approach to leverage.
In terms of available credit, Park Aerospace has two standby letters of credit totaling $140,000 to secure its workers’ compensation insurance program. The company has no other debt or credit facilities, underlining its strong financial position and self-reliance.
Conclusion
Park Aerospace’s 70-year history is a testament to its resilience, innovation, and unwavering commitment to excellence. As the aerospace industry navigates the challenges of the 21st century, Park’s proven track record, diverse product portfolio, and strategic partnerships position the company as a key player in the global composite materials market. With a strong financial foundation and a relentless focus on innovation, Park Aerospace is poised to continue its legacy of crafting aerospace excellence for decades to come.
The company’s consistent performance, evidenced by 39 consecutive years of uninterrupted quarterly cash dividends totaling $596 million or $29.10 per share since fiscal 2005, demonstrates its commitment to shareholder value. Park’s top supplier scores from major customers like MRAS further reinforce its reputation for quality and customer service. As the company expands capacity to meet expected growth in key programs like the Airbus A320neo family and COMAC C919, it is well-positioned to capitalize on the ongoing recovery and growth in the aerospace sector.
Disclaimer: This article is for informational purposes only. It does not constitute financial, legal, or other types of advice. While every effort has been made to ensure the accuracy of the information presented here, the author and the publisher do not make any guarantees about the completeness, reliability, and accuracy of this information.