Park Aerospace Corp (PKE) Q2 2025 Earnings Report

### Revenue Performance
- Q2 Revenue: $16.7 million
- YoY Growth: 43.56%
- QoQ Growth: 19.61%
- Gross Profit: $4.8 million
- Gross Profit Margin: 28.5%

### Profitability Metrics
- EBITDA: $3.2 million
- Operating Income: $2.6 million
- Net Income: $2.1 million
- EPS: $0.10

Despite the strong revenue growth, the gross margin fell slightly short of the company's target of 30% due to depreciation from new facility operations, which significantly impacted overall profitability.

### Balance Sheet Strength
- Cash and Cash Equivalents: $8.2 million
- Total Assets: $125.1 million
- Total Liabilities: $14.9 million
- Equity: $110.3 million

Park maintains a robust balance sheet, with no long-term debt, a current ratio of 9.11, indicating strong liquidity to handle operational costs while investing in growth initiatives.

### Market Conditions and Strategy
- Management Insights: "We are strategically bringing our new facility online to meet the needs of the coming Juggernaut, despite incurring higher operational costs during ramp-up phases."
- Sales Impact: Brian Shore noted that low-margin product sales made up significant portions of total sales in Q2, indicating the necessity to transition into higher-margin product development more aggressively.

### Supply Chain Challenges
- Quote: "The aerospace industry is not really in a happy place right now due to ongoing supply chain issues..."
This reflects management's acknowledgment of external pressures that could impact future performance if not addressed effectively.

Park Aerospace Corp stands at a critical junction poised for substantial revenue growth. Despite facing operational challenges tied to ramping new production capabilities and pressing supply chain problems, the firm’s strategic positioning with key partnerships, particularly within the aerospace defense sector, presents a fundamentally sound investment opportunity. Investors are encouraged to monitor evolving market conditions and the company's ability to convert production capacity into high-margin sales effectively.