"The excess production... allowed us to build back our finished goods inventory to more acceptable levels by about $1 million, compared to Q3." - Brian Shore
— Brian Shore
03Detailed Report
PKE
Park Aerospace Corp
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 13, 2026
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Executive Summary
Park Aerospace Corp reported solid financial results for Q4 2025, with revenues growing to $16.94 million, exceeding projections primarily due to strong production outputs in its advanced composite materials sector. The quarter highlighted a gross margin of 29.3%, supported by enhanced production efficiency and a successful ramp-up of operations. However, net income saw a decline of 53.33% year-over-year to $1.25 million, which may concern investors regarding profitability despite the growth in revenue. CEO Brian Shore emphasized a commitment to long-term strategic investments, including a major facility expansion to support the anticipated demand from military programs, notably in hypersonic technologies and missile defense systems.
Key Performance Indicators
Revenue
Increasing
16.94M
QoQ: 17.57% | YoY: 3.71%
Gross Profit
Increasing
4.96M
29.27% margin
QoQ: 29.52% | YoY: 11.34%
Operating Income
Increasing
2.85M
QoQ: 54.44% | YoY: 10.89%
Net Income
Decreasing
1.25M
QoQ: -20.99% | YoY: -53.33%
EPS
Decreasing
0.06
QoQ: -21.29% | YoY: -52.23%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $16.94 million (up 17.57% QoQ and 3.71% YoY)
- Gross Profit: $4.96 million (29.3% margin)
- Operating Income: $2.85 million (16.8% margin)
- Net Income: $1.25 million (0.06 EPS)
- Cash Position: $21.62 million at quarter-end, with $68.83 million cash and short-term investments
- Current Ratio: 9.75 indicating strong liquidity
- Debt Level: Total debt at $358,000, reflecting a debt-to-equity ratio of just 0.00334.
Key drivers for growth include demand for C2B fabric which generated $4.4 million in sales in Q4, and an overall sales strategy that remains focused on maintaining organic growth through production efficiencies. Management also reiterated their commitment to integrity in financial reporting, as they do not engage in 'guidance padding' to create favorable investor outlooks.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
16.94M
3.71%
17.57%
Gross Profit
4.96M
11.34%
29.52%
Operating Income
2.85M
10.89%
54.44%
Net Income
1.25M
-53.33%
-20.99%
EPS
0.06
-52.23%
-21.29%
Key Financial Ratios
Gross Profit Margin
Fair
29.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
16.80%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Fair
7.36%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.16%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
9.75
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
54.97x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
2.56x
Price-to-book ratio reasonable for profitable companies
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