PKE earnings analysis
What we found in PKE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Park Aerospace delivered a strong fiscal first quarter: revenue increased 18.9% year over year to $18.312 million, gross margin expanded 420 basis points to 34.8%, and diluted EPS rose to $0.17 from $0.10. Operating margin improved to 21.9% and operating cash flow increased to $2.720 million, while the company retained $89.407 million in cash and marketable securities with no long-term debt. Sequentially, however, revenue declined from the prior quarter's $24.187 million and EPS declined from $0.19, while inventory and supplier advances consumed working capital. Management provided no numerical sales or earnings guidance, but expects Tulsa facility construction to begin in fiscal 2027.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 18.9% year over year
- Revenue rose $2.912 million, or 18.9%, year over year to $18.312 million, driven by higher commercial-market sales under GE Aerospace jet-engine programs and higher military-market sales.
- Gross-margin expansion accelerated
- Gross margin expanded 420 basis points to 34.8% from 30.6%, producing a 35.1% increase in gross profit to $6.376 million. Management cited greater fixed-cost absorption and a more favorable mix, partly offset by higher waste.
- Operating leverage drove profit growth
- Operating income increased 66.0% to $4.015 million from $2.419 million; the implied operating margin rose to 21.9% from 15.7%. SG&A grew only 2.7% to $2.361 million and declined to 12.9% of sales from 14.9%.
- EPS rose 70% year over year
- Net earnings increased 69.9% to $3.533 million and diluted EPS rose to $0.17 from $0.10. Interest and other income more than doubled to $0.786 million from $0.355 million, supported by higher investment balances.
- Cash conversion and capex remained strong
- Operating cash flow increased to $2.720 million from $1.590 million. With only $0.113 million of PP&E purchases, free cash flow was approximately $2.607 million and capex was about 0.6% of sales.
- Large net-cash liquidity position
- Cash, cash equivalents and marketable securities were essentially flat at $89.407 million versus $89.368 million at March 1, 2026, with no long-term debt. The current ratio remained very high at 15.3x.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Sequential revenue and EPS declined
- Sales of $18.312 million were below the prior quarter's $24.187 million, while diluted EPS of $0.17 was below $0.19. This sequential reset follows an unusually strong preceding quarter despite solid year-over-year growth.
- Working-capital investment increased
- Working capital declined $0.795 million to $101.919 million. Inventory rose 5%, accounts payable declined 5%, and the company paid a $2.156 million supplier advance during the quarter, creating a near-term use of liquidity.
- Supplier commitment and program delays
- The remaining ArianeGroup supplier advance is €1.376 million, due in the first quarter of fiscal 2028, and Park has committed to purchase C2B product through December 2033 at an estimated €36.000 million cost. Customer programs also face third-party supply-chain delays that may affect demand.
- No material risk-factor update
- Item 1A reports no material changes to risks disclosed in the March 1, 2026 Form 10-K. The new Tulsa sublease has an initial 25-year term and initial annual rent of $269,469, adding execution and future-facility investment exposure.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.17
- Gross margin
- 34.8%
- Operating margin
- 21.9%
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management expects construction of its Tulsa composites facility to begin in fiscal 2027 and states that financial resources are sufficient for at least the 12 months following the filing and for the foreseeable future thereafter.
The filing reads better than the one before it.
What came before.
- 10-K · May 29, 2026
- Park Aerospace Corp. (PKE) reported an 18% increase in revenue for fiscal year 2026, totaling $73.30 million, driven by growth in military and commercial aircraft markets. The company's operating margin improved to…
- 10-Q · January 13, 2026
- Park Aerospace Corp. reported strong third-quarter fiscal 2026 results with revenues increasing 20.3% year-over-year to $17.3 million and diluted EPS rising 87.5% to $0.15. The gross profit margin improved significantly…
- 10-Q · October 14, 2025
- Park Aerospace Corp. reported a slight decrease in revenue for Q2 2026, generating $16.4 million, down 2% year-over-year, but net earnings grew 16.4% to $2.4 million driven by improved gross margins. Management…
- 10-Q · July 16, 2025
- Park Aerospace Corp. (PKE) reported a positive financial performance for Q1 2026, with total revenue reaching $15.4 million, a 10.2% increase from $14.0 million in Q1 2025. Gross margins improved to 30.6%, up from…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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