Executive Summary
Park Aerospace Corp (PKE) reported revenue of $13.97 million in Q1 2025, a decline from the previous quarter due to significant operational disruptions caused by storm damage to their facilities. The gross profit margin was 29.3%, with a net income of $993,000, reflecting a challenging quarter where sales were anticipated to be higher. Management highlighted operational resilience, noting that many production capabilities were restored two weeks after the storm. This quarter's results also included a one-time charge of $1.1 million related to the storm damages, impacting earnings. With a significant backlog in orders from well-regarded customers and enduring demand for their products in aerospace, Park Aerospace remains confident in future recovery despite current headwinds.
Key Performance Indicators
QoQ: -14.47% | YoY:11.93%
QoQ: -19.02% | YoY:-6.47%
QoQ: -62.81% | YoY:-43.13%
QoQ: -62.31% | YoY:-43.16%
Key Insights
**Total Revenue:** $13.97 million (QoQ: -14.47%, YoY: +11.93%)\n**Gross Profit:** $4.09 million (QoQ: -7.95%, YoY: +0.49%)\n**EBITDA:** $2.52 million (EBITDA Margin: 18.05%)\n**Net Income:** $993,000 (QoQ: -62.81%, YoY: -43.13%)\n**EPS:** $0.049 (Diluted: $0.0488)\n**Current Ratio:** 12.26\n**Debt-to-Equity Ratio:** 0.00111\n
Management reiterated that the storm caused approximately $2.5 million in missed shipments, highlighting the operational challenges manifested during the last two weeks of...
Financial Highlights
Total Revenue: $13.97 million (QoQ: -14.47%, YoY: +11.93%)\nGross Profit: $4.09 million (QoQ: -7.95%, YoY: +0.49%)\nEBITDA: $2.52 million (EBITDA Margin: 18.05%)\nNet Income: $993,000 (QoQ: -62.81%, YoY: -43.13%)\nEPS: $0.049 (Diluted: $0.0488)\nCurrent Ratio: 12.26\nDebt-to-Equity Ratio: 0.00111\n
Management reiterated that the storm caused approximately $2.5 million in missed shipments, highlighting the operational challenges manifested during the last two weeks of Q1, which contributed significantly to the decline in revenue. They have implemented better inventory strategies and longer delivery lead times to mitigate supply chain risks moving forward.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.97M |
11.93% |
-14.47% |
| Gross Profit |
4.10M |
0.49% |
-7.95% |
| Operating Income |
2.08M |
-6.47% |
-19.02% |
| Net Income |
993.00K |
-43.13% |
-62.81% |
| EPS |
0.05 |
-43.16% |
-62.31% |
Key Financial Ratios
operatingProfitMargin
14.9%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
Management Commentary
Operational Resilience: "Our team did an incredible job recovering from the storm; by June 3rd, we were fully operational again." (Brian Shore)\nRevenue Forecasts: "Although we projected $15.75 million to $16.25 million in sales, we faced challenges impacting our results." (Brian Shore)\nBacklog Strength: "We are fortunate to have a significant backlog with critical customers which includes orders from well-established firms like Airbus and Kratos." (Brian Shore)
"Our team did an incredible job recovering from the storm; by June 3rd, we were fully operational again."
— Brian Shore
"Although we projected $15.75 million to $16.25 million in sales, we faced challenges impacting our results."
— Brian Shore
Forward Guidance
Park Aerospace anticipates recovery of revenue streams as operational stability resumes post-storm. Management suggests revenues for Q2 2025 could reach between $15.9 million and $16.4 million, with a strong focus on capturing backlog orders. Continued investment in innovation and production capabilities aims to meet expected growth as demand remains robust in the aerospace sector. Management focuses on immediate improvements in supply chain management, seeing promise ahead despite ongoing disruptions in the aerospace industry due to global supply chain constraints.