PARK AEROSPACE CORP Q2 FY2025 earnings call

• Quarterly results: Q2 sales $16,709,000, gross profit $757,000, EBITDA $3,204,000, within estimated ranges. - ArianeGroup partnership: Approximately $2.2 million of RAYCARB, C2B NG product sales, low margins but leading to higher margin products later. - New production facility: $1,260,000 per year depreciation expense, affecting gross margin. - Missed shipments: $600,000 in Q2 due to international issues and wars, no impact on sales/earnings. - Storm damage: $46,000 expense, no other impact on Q2. - Top customers: Aerojet Rocketdyne, Aerospheres, GKN, Kratos, Middle River Aerostructure Jet. - GE Aerospace programs: MRAS/Park LTA with price increase, GE9X program ramping, MRAS/Park LTA amended to include film adhesive product forms. - Juggernaut: Financial outlook for GE Aerospace jet engine programs and Park, coming soon.

In Q2, sales were $16,709,000, gross profit was $757,000, and EBITDA was $3,204,000. There was approximately $2.2 million of ArianeGroup RAYCARB, C2B NG product sales during Q2 under Park's business partnership with ArianeGroup. The sales were within the estimated range of $15.9 million to $16.4 million, and EBITDA was within the range of $3 million to $3.3 million.

• Q3 sales forecast: $13.5 million to $14.25 million, EBITDA $3 million to $3.3 million. - Yearly sales forecast: $60 million to $65 million, EBITDA $13 million to $15 million. - GE Aerospace jet engine programs Q3 sales forecast: $6.25 million to $7 million, yearly forecast $23 million to $26 million.

• Supply chain issues: Affecting the aerospace industry and forecasts. - Project delays: Solution treater project taking 3 years, potential capacity concerns. - Uncertainty with new programs: Capital investments needed for new programs with no guarantees of success.

Q: On share repurchase and automation, what's your perspective?

A: Appreciative of share repurchase, automation in some projects like the potential JV. Current lines have staff but automation could be in larger projects.

Q: Where would you be disappointed with Airbus' ramp-up of deliveries?

A: Disappointed if deliveries are under 75 per month, key is to be ready for the ramp as they will get to 75 eventually.