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Here are 1-2 brief analogies to describe Park Aerospace (PKE):

• Think of it as a highly specialized **DuPont** or **3M**, but exclusively focused on advanced composite materials for the aerospace industry.

• It's like a materials-focused **Precision Castparts (PCC)**, supplying critical high-tech composite materials specifically for aircraft and other aerospace applications.

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• Aerospace Prepregs: High-performance composite materials used for manufacturing aerospace structures and components.
• Thin Laminates and Advanced Composites: Specialized composite materials engineered for high-performance electronic and structural applications.
• Flexible Circuit Materials: Materials designed for the fabrication of flexible printed circuits used in various electronic devices.
• Thermal Management Materials: Advanced materials utilized for effective heat dissipation and thermal control in electronic systems.

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Park Aerospace Corp. (PKE) sells primarily to other companies in the aerospace and defense industry. Its products are advanced composite materials and assemblies used in aircraft structures, engines, and other high-performance aerospace applications.

The company's customer base is highly concentrated. According to its latest annual report (10-K), sales to its largest customer accounted for approximately 35% of its consolidated net sales for the fiscal year ended February 25, 2024, and its top five customers accounted for approximately 70% of its consolidated net sales for the same period. While specific customer names are typically not disclosed in financial filings for competitive reasons, based on industry information and historical context, its major customers include leading companies in:

• Aerospace Engine Manufacturing: Companies that produce commercial and military aircraft engines, which utilize Park Aerospace's advanced composite materials for various components.
  • General Electric Aerospace (Symbol: GE)
  • Safran S.A. (Symbol: SAF.PA on Euronext Paris)
• Aerospace Original Equipment Manufacturers (OEMs) and Major Subcontractors: These companies incorporate Park's materials into airframe structures, nacelles, and other critical aircraft systems. Examples of the types of companies in this category include:
  • Major airframe manufacturers (e.g., Boeing, Airbus, although sales are often indirect through Tier 1 suppliers)
  • Companies specializing in aerostructures and advanced components for defense and commercial aircraft.

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• DIC Corporation (TSE: 4631)
• Shin-Etsu Chemical Co., Ltd. (TSE: 4063)
• Mitsubishi Chemical Group Corporation (TSE: 4188)
• Furukawa Electric Co., Ltd. (TSE: 5801)
• Panasonic Holdings Corporation (TSE: 6752)
• AGC Inc. (TSE: 5201)
• Nippon Electric Glass Co., Ltd. (TSE: 5214)

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Brian E. Shore, Chairman of the Board and Chief Executive Officer

Brian E. Shore has a long tenure with Park Aerospace, serving as its Chief Executive Officer since November 1996 and as Chairman of the Board since July 2004. He has been a director of the company since 1983 and an employee since 1988. His father, Jerry Shore, co-founded Park Electrochemical Corp. (now Park Aerospace Corp.) in 1954. There is no information suggesting he founded or managed other companies, sold companies he was previously involved with to an acquirer, or has a pattern of managing private equity-backed companies.

Christopher Goldner, Vice President, Finance, Principal Financial Officer and Principal Accounting Officer

Christopher Goldner was appointed as the new principal accounting officer and principal financial officer (CFO) for Park Aerospace, with the retirement of P. Matthew Farabaugh, effective either November 1, 2024, or the end of May 2024. Prior to joining Park Aerospace, he served as Corporate Controller and Interim CFO of Spruce Power Holdings Corporation, a public company, from 2021 through 2023. Before that, he held positions of increasing responsibility at Hasbro, Inc., another public company, from 2000 through 2021, culminating in the role of Vice President, Fiscal Responsibility. Goldner is a CPA and holds a Bachelor of Science degree in Business Administration from Boston College. There is no information indicating he founded or sold companies, or has a pattern of managing private equity-backed firms.

Mark A. Esquivel, President and Chief Operating Officer

Mark A. Esquivel has served as President and Chief Operating Officer of Park Aerospace since November 2020, having been Executive Vice President and COO since May 2019. He began his career with Neltec, a former subsidiary of Park, in 1994 as a Metal Stamper and progressed through various leadership roles within Park and its subsidiaries, including Senior Vice President-Aerospace and President of Park Aerospace Technologies Corp. Neltec Inc. was acquired by AGC Inc. as part of Park's Electronics Business sale in December 2018. He holds a Bachelor of Science degree in Applied Management from Grand Canyon University.

Cory Nickel, Senior Vice President and General Manager

Cory Nickel was appointed Senior Vice President and General Manager in August 2022. He joined Park Aerospace Corp. in 2011 as a Solution Treater Operator and advanced through various production and management roles, including Production Supervisor, Production Manager, Materials Manufacturing Manager, Production Control Manager, and Operations Manager. Before joining Park, Nickel was a high school science teacher.

John Jamieson, Senior Vice President, Project Management

John Jamieson was elected Senior Vice President of Project Management in July 2024. He previously served as Vice President of Supply Chain for Park Aerospace from 2014 to 2018. His experience also includes serving as Chief Operating Officer of Active Dynamics Group from 2018 to 2022, General Manager of Active Metals Company from 2012 to 2013, and Vice President of Global Manufacturing and Engineering of Sanmina Corporation from 2003 to 2012. Jamieson holds a Bachelor's Degree in Mechanical Engineering from James Watt College in the United Kingdom.

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1. Customer Concentration: A substantial portion of Park Aerospace's net sales is derived from affiliate and non-affiliate sub-tier suppliers of GE Aerospace, a leading manufacturer of aerospace engines. For example, during the company’s 2025, 2024, and 2023 fiscal years, sales to these suppliers accounted for 39.8%, 37.7%, and 41.2% of total worldwide net sales, respectively. The loss of GE Aerospace or a group of major customers could have a material adverse effect on Park Aerospace’s business, consolidated results of operations, or financial position.
2. Cyclical Nature of the Aerospace Industry: The company's business is significantly dependent on the aerospace industry, which is inherently cyclical. This industry volatility can lead to fluctuations in revenue streams and overall market impact.
3. Valuation Concerns and Profitability Challenges: Park Aerospace has shown inconsistent earnings growth and has faced challenges such as underutilized facilities and margin pressures. Some analyses suggest the stock may be overvalued, with a high price-to-earnings (P/E) ratio compared to its historical averages and industry median, despite modest earnings per share (EPS) growth.

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Park Aerospace Corp. (PKE) primarily operates in the aerospace market, focusing on advanced composite materials, structures, and assemblies. The addressable markets for their main products and services are significant and global in scope.

The global aerospace composites market was valued at approximately USD 37.31 billion in 2024 and is projected to grow to about USD 109.11 billion by 2034, with a compound annual growth rate (CAGR) of 11.33% from 2025 to 2034. Another estimate for the global aerospace composites market placed its value at USD 29.4 billion in 2024, with an estimated CAGR of 12.8% from 2025 to 2034. North America held the dominant share of the aerospace composite market in 2024.

More broadly, the global aerospace materials market, which includes composites, was valued at USD 41.6 billion in 2023 and is poised to reach USD 89.6 billion by 2032, growing at a CAGR of 8.90% during the forecast period (2025-2032). Another report estimates the global aerospace materials market size at USD 26.1 billion in 2024, with a projected increase to USD 37.6 billion by 2033, exhibiting a CAGR of 3.94% from 2025 to 2033. North America dominates this market due to advanced technological capabilities and a well-established aerospace sector.

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Park Aerospace (PKE) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:

1. Robust Demand in Defense and Aerospace Programs: Park Aerospace anticipates significant long-term growth from missile and aerospace programs, driven by strong demand in the defense sector. The company is a sole-source qualified supplier for critical programs such as the Patriot missile, Arrow 4, and materials for the Airbus A320neo, which position it for sustained revenue streams. The urgent need to replenish U.S. and allied defense stockpiles, exacerbated by geopolitical instability, has led to a monumental surge in demand, with calls to quadruple production rates for missile systems. Park Aerospace has been specifically asked to significantly ramp up its output for these programs, particularly for specialty ablative materials on the Patriot missile system.
2. Manufacturing Facility Expansion: To meet the escalating demand, Park Aerospace is undertaking a major expansion of its manufacturing facilities. The company has allocated a capital budget of $40-45 million for this expansion, which is deemed essential for supporting the anticipated long-term growth in the defense and aerospace markets. This strategic investment in capacity aims to capitalize on what management refers to as "once-in-a-lifetime opportunities" in missile rearmament.
3. Continued Strength in GE Aerospace Programs: Sales from GE Aerospace programs are a significant and ongoing driver of revenue. Fiscal year 2026 revenue for these programs is projected to be between $27.5 million and $29 million. Park Aerospace supplies materials for the CFM LEAP-1A engine, which powers the Airbus A320neo, a program with a substantial backlog of over 7,000 firm aircraft orders. Despite some short-term supply chain bottlenecks, particularly with engine supply, improving engine constraints and Airbus's plans to open new final assembly lines indicate a strong, guaranteed long-term volume for Park's materials.
4. Growth in Specialized Composite and Ablative Materials: Increased sales of specialized fabric-based composite materials and ablative materials are contributing to revenue growth. These materials are crucial for defense and aerospace applications, including rocket motors, nozzles, and radome applications. The rising demand for advanced composite materials across various sectors, driven by technological advancements and increased applications, presents ongoing growth opportunities for Park Aerospace to leverage its expertise and enhance its market share.

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Share Repurchases

• On May 18, 2022, Park Aerospace's Board of Directors authorized the repurchase of up to 1,500,000 shares of its Common Stock, representing approximately 7% of the total outstanding shares at that time. This authorization superseded previous ones.
• During the fiscal year ended March 3, 2024, the company repurchased 221,099 shares for a total cost of $2,880.
• In the first fiscal quarter of 2026 (ended June 1, 2025), Park Aerospace repurchased $2.2 million in shares.
• As of October 9, 2025, no shares were purchased in the second or third fiscal quarters of 2026, and management does not anticipate significant repurchases in the near future.

Share Issuance

• No significant share issuances, such as secondary offerings, have been identified over the last 3-5 years. The number of outstanding shares has seen a slight decrease during this period, primarily influenced by share repurchases.

Outbound Investments

• Park Aerospace advanced approximately $5 million (€4,587,000) to ArianeGroup SAS to support the production of C2®B product, which involves financing the purchase and installation of new manufacturing equipment in France. The first installment of about $1.5 million was paid in the first fiscal quarter of 2026 (ended June 1, 2025).

Capital Expenditures

• Park Aerospace is planning a significant expansion of its manufacturing facilities, with a projected capital budget of $40-45 million, aimed at meeting increasing demand, particularly in the defense sector, and preparing for future programs.
• Capital expenditures for the last 12 months (prior to late 2025) totaled $1.35 million.
• The company does not anticipate making material capital expenditures for environmental control facilities in its current or succeeding fiscal year.