SEC Form 10-Q filed by Park Aerospace Corp.

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

PARK AEROSPACE CORP. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

---

 

 

* The Condensed Consolidated Balance Sheet at March 2, 2025 has been derived from the audited Consolidated Financial Statements at that date.

 

See Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

PARK AEROSPACE CORP. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

---

 

 

See Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

PARK AEROSPACE CORP. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(Amounts in thousands)

---

 

 

See Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

PARK AEROSPACE CORP. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Amounts in thousands, except share and per share amounts)

---

 

 

---

 

 

See Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

PARK AEROSPACE CORP. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

---

 

 

See Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

PARK AEROSPACE CORP. AND SUBSIDIARIES

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share (unless otherwise stated), per share and option amounts)

---

 

1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

The Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Shareholders’ Equity as of August 31, 2025, the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Earnings for the 13 weeks and 26 weeks ended August 31, 2025 and September 1, 2024, and the Condensed Consolidated Statements of Cash Flows for the 26 weeks ended August 31, 2025 and September 1, 2024 have been prepared by Park Aerospace Corp. (the “Company”), without audit. In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at August 31, 2025 and the results of operations and cash flows for all periods presented. The Condensed Consolidated Statements of Operations are not necessarily indicative of the results to be expected for the full fiscal year or any subsequent interim period.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 2, 2025. There have been no significant changes to such accounting policies during the 26 weeks ended August 31, 2025.

 

2.	FAIR VALUE MEASUREMENTS

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

 

Fair value measurements are broken down into three levels based on the reliability of inputs as follows:

 

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

 

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals or current market) and contractual prices for the underlying financial instrument, as well as other relevant economic measures.

 

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

 

9

---

 

 

The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to their short-term nature. Certain assets and liabilities of the Company are required to be recorded at fair value on either a recurring or non-recurring basis. On a recurring basis, the Company records its marketable securities at fair value using Level 1 or Level 2 inputs. (See Note 3)

 

The Company’s non-financial assets measured at fair value on a non-recurring basis include goodwill and any long-lived assets written down to fair value. To measure fair value of such assets, the Company uses Level 3 inputs consisting of techniques including an income approach and a market approach. The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis require the exercise of significant judgment, including judgment about appropriate discount rates, terminal values, growth rates and the amount and timing of expected future cash flows. With respect to goodwill, the Company first assesses qualitative factors to determine whether it is more likely than not that fair value is less than carrying value. If, based on that assessment, the Company believes it is more likely than not that fair value is less than carrying value, a goodwill impairment test is performed. There have been no changes in events or circumstances which required impairment charges to be recorded during the 13 weeks and 26 weeks ended August 31, 2025.

 

3.	MARKETABLE SECURITIES

 

All marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, included in comprehensive earnings. Realized gains and losses, amortization of premiums and discounts, and interest and dividend income are included in interest and other income in the Condensed Consolidated Statements of Operations. The costs of securities sold are based on the specific identification method.

 

The following is a summary of available-for-sale securities:

 

		August 31, 2025
		Total				Level 1				Level 2				Level 3
U.S. Treasury and other government securities		$	32,010			$	32,010			$	-			$	-
Total marketable securities		$	32,010			$	32,010			$	-			$	-

 

		March 2, 2025
		Total				Level 1				Level 2				Level 3
U.S. Treasury and other government securities		$	47,213			$	47,213			$	-			$	-
Total marketable securities		$	47,213			$	47,213			$	-			$	-

 

10

---

 

 

The following table shows the amortized cost basis of, and gross unrealized gains and losses on, the Company’s available-for-sale securities:

 

		Amortized Cost Basis				Gross Unrealized Gains				Gross Unrealized Losses
August 31, 2025:
U.S. Treasury and other government securities		$	32,304			$	9			$	303
Total marketable securities		$	32,304			$	9			$	303
March 2, 2025:
U.S. Treasury and other government securities		$	48,124			$	24			$	935
Total marketable securities		$	48,124			$	24			$	935

 

The estimated fair values of such securities at August 31, 2025 by contractual maturity are shown below:

 

Due in one year or less		$	28,132
Due after one year through five years			3,878
		$	32,010

  

4.	INVENTORIES

 

Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. The Company writes down its inventory for estimated obsolescence or unmarketability based upon the age of the inventory and assumptions about future demand for the Company’s products and market conditions. Work-in-process and finished goods inventories cost valuations include direct material costs as well as a portion of the Company’s overhead expenses.  The Company’s overhead expenses that are applied to its finished goods inventories are based on actual expenses related to the procurement, storage, shipment and production of the finished goods. Inventories consisted of the following:

 

		August 31,				March 2,
		2025				2025
Inventories:
Raw materials		$	5,553			$	4,768
Work-in-process			1,099				727
Finished goods			1,449				1,718
		$	8,101			$	7,213

 

 

11

---

 

  

5.

LEASES

 

The Company has operating leases related to land, office space, warehouse space and equipment. All of the Company’s leases have been assessed to be operating leases. Renewal options are included in the lease term to the extent the Company is reasonably certain to exercise the option. The exercise of lease renewal options is at the Company’s sole discretion. The incremental borrowing rate represents the Company’s ability to borrow on a collateralized basis over a term similar to the lease term. The leases typically contain renewal options for periods ranging from one year to ten years and require the Company to pay real estate taxes and other operating costs. The latest land lease expiration is 2068 assuming exercise of all applicable renewal options by the Company. The Company’s existing leases are not subject to any restrictions or covenants which preclude its ability to pay dividends, obtain financing or exercise its available renewal options.

 

Future minimum lease payments under non-cancellable operating leases as of August 31, 2025 are as follows:

 

Fiscal Year:
2026		$	29
2027			59
2028			61
2029			65
2030			59
Thereafter			143
Total undiscounted operating lease payments			416
Less imputed interest			(78	)
Present value of operating lease payments		$	338

 

The above payment schedule includes renewal options that the Company is reasonably likely to exercise. Leases with an initial term of 12 months or less are not recorded on the Company’s Condensed Consolidated Balance Sheet. The Company recognizes lease expense for these leases on a straight-line basis over the terms of the leases.

 

For the 13 weeks and 26 weeks ended August 31, 2025, the Company’s operating lease expenses were $17 and $34, respectively. Cash payments of $28, pertaining to operating leases, are reflected in the cash flow statement under cash flows from operating activities.

 

The following table sets forth the right-of-use assets and operating lease liabilities as of August 31, 2025:

 

Operating right-of-use assets		$	282
Operating lease liabilities		$	42
Long-term operating lease liabilities			296
Total operating lease liabilities		$	338

 

The Company’s weighted average remaining lease term for its operating leases is 6.0 years.

 

12

---

 

  

6.	STOCK-BASED COMPENSATION

 

As of August 31, 2025, the Company had a 2018 Stock Option Plan (the “2018 Plan”) and no other stock-based compensation plan. The 2018 Plan was adopted by the Board of Directors of the Company on May 8, 2018, approved by the shareholders of the Company at the Annual Meeting of Shareholders of the Company on July 24, 2018, and amended by the shareholders of the Company on July 18, 2024 and provides for the grant of options to purchase up to 1,550,000 shares of common stock of the Company. Prior to the 2018 Plan, the Company had the 2002 Stock Option Plan (the “2002 Plan”) which had been approved by the Company’s shareholders and provided for the grant of stock options to directors and key employees of the Company. All options granted under the 2018 Plan and 2002 Plan have exercise prices equal to the fair market value of the underlying common stock of the Company at the time of grant which, pursuant to the terms of such Plans, is the reported closing price of the common stock on the New York Stock Exchange on the date preceding the date the option is granted. Options granted under the Plans become exercisable 25% one year after the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant, and expire 10 years after the date of grant. Upon termination of employment or service as a director, all options held by the optionee that have not previously become exercisable shall terminate and all other options held by such optionee may be exercised, to the extent exercisable on the date of such termination, for a limited time after such termination. Any shares of common stock subject to an option under the 2018 Plan, which expires or is terminated unexercised as to such shares, shall again become available for issuance under the 2018 Plan.

 

During the 26 weeks ended August 31, 2025, the Company granted options to its directors and certain of its employees under the 2018 Plan to purchase a total of 148,700 shares of common stock. The future compensation expense to be recognized in earnings before income taxes is $476 and will be recorded on a straight-line basis over the requisite service period. The weighted average fair value of the granted options was $3.32 per share using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of 4.10%-4.35%; expected volatility factor of 24.0%-27.3%; expected dividend yield of 3.57%; and estimated option term of 5.9-9.2 years.

 

The risk-free interest rates were based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated terms of the options at the date of the grant. Volatility factors were based on historical volatility of the Company’s common stock. The expected dividend yields were based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the 13 weeks and 26 weeks ended August 31, 2025. The estimated term of the options was based on evaluations of the historical and expected future employee exercise behavior.

 

The future compensation expense to be recognized in earnings before income taxes for options outstanding at August 31, 2025 was $970, which is expected to be recognized ratably over a weighted average vesting period of 1.47 years.

 

13

---

 

 

The following is a summary of option activity for the 26 weeks ended August 31, 2025:

 

		Outstanding Options				Weighted Average Exercise Price				Weighted Average Remaining Contractual Term (in years)				Aggregate Intrinsic Value
Balance, March 2, 2025			718,950			$	12.15
Granted			148,700				14.00
Exercised			(70,110	)			9.48
Terminated or expired			(24,475	)			12.88
Balance, August 31, 2025			773,065			$	12.73				6.94			$	4,648
Vested and exercisable, August 31, 2025			450,748			$	12.26				5.57			$	2,919

  

7.	EARNINGS PER SHARE

 

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities; and the number of dilutive options is computed using the treasury stock method.

 

The following table sets forth the calculation of basic and diluted earnings per share:

 

		13 Weeks Ended								26 Weeks Ended
		August 31, 2025				September 1, 2024				August 31, 2025				September 1, 2024
Net earnings		$	2,404			$	2,066			$	4,484			$	3,059
Weighted average common shares outstanding for basic EPS			19,875				20,216				19,897				20,234
Net effect of dilutive options			111				75				80				97
Weighted average shares outstanding for diluted EPS			19,986				20,291				19,977				20,331
Basic earnings per share		$	0.12			$	0.10			$	0.23			$	0.15
Diluted earnings per share		$	0.12			$	0.10			$	0.22			$	0.15

 

Potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were 147,000 and 84,000 for the 13 weeks ended August 31, 2025 and September 1, 2024, respectively, and 241,000 and 42,000 for the 26 weeks ended August 31, 2025 and September 1, 2024, respectively.

 

8.	SHAREHOLDERS’ EQUITY

 

On May 23, 2022, the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,500,000 additional shares of its common stock. This authorization supersedes any unused prior Board of Directors’ authorizations to purchase shares of the Company’s common stock. The Company purchased 166,955 and 149,633 shares of its common stock during the 26 weeks ended August 31, 2025 and September 1, 2024, respectively. As a result, the Company is authorized to purchase up to a total of 781,766 shares of its common stock, representing approximately 3.9% of the Company’s 19,905,823 total outstanding shares as of the close of business on October 7, 2025. There is no assurance the Company will purchase any shares pursuant to this Board of Directors’ authorization. Shares purchased by the Company, if any, will be retained as treasury stock and will be available for use under the Company’s stock option plan and for other corporate purposes.

 

14

---

 

  

9.	INCOME TAXES

 

For the 13 weeks and 26 weeks ended August 31, 2025, the Company recorded income tax provisions from operations of $831 and $1,525, respectively, which included discrete income tax provisions of $(10) and $(38), respectively. For the 13 weeks and 26 weeks ended September 1, 2024, the Company recorded income tax provisions from operations of $750 and $1,126, respectively, which included discrete income tax provisions of $22 and $41, respectively.

 

The Company’s effective tax rates for the 13 weeks and 26 weeks ended August 31, 2025 were 25.7% and 25.4%, respectively, compared to 26.6% and 26.9% in the comparable prior periods. The effective tax rates for the 13 weeks and 26 weeks ended August 31, 2025 were higher than the U.S. statutory rate of 21% primarily due to state and local taxes and a discrete income tax provision for the accrual of interest related to unrecognized tax benefits. The effective rates for the 13 weeks and 26 weeks ended September 1, 2024 were higher than the U.S. statutory rate of 21% primarily due to state and local taxes and a discrete income tax provision for the accrual of interest related to unrecognized tax benefits.

 

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA"). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. ASC 740, "Income Taxes", requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. The Company has completed its initial assessment of the OBBBA corporate tax provisions which were enacted on July 4, 2025. OBBBA contained a number of U.S. corporate tax provisions of which the Company elected to expense U.S. incurred research or experimental expenditures immediately and full bonus depreciation for certain assets placed into service after January 19, 2025. As a result of the Company's elections, it is expected that in 2025 U.S. cash taxes will decrease with no material impact to its effective tax rate.

 

10.	GEOGRAPHIC REGIONS

 

The Company’s products are sold to customers in North America, Asia and Europe. The Company’s manufacturing facility is located in Kansas. Sales are attributed to geographic regions based upon the region in which the materials were delivered to the customer. All of the Company’s long-lived assets are located in North America.

 

15

---

 

 

Financial information regarding the Company’s continuing operations by geographic region is as follows:

 

		13 Weeks Ended								26 Weeks Ended
		August 31, 2025				September 1, 2024				August 31, 2025				September 1, 2024
Sales:
North America		$	15,811			$	15,284			$	30,126			$	27,270
Asia			49				176				460				895
Europe			521				1,249				1,195				2,514
Total sales		$	16,381			$	16,709			$	31,781			$	30,679

  

11.	STORM DAMAGE CHARGE

 

The Company recorded a charge of $46 and $1,098, respectively, for storm damage in the 13 weeks and 26 weeks ended September 1, 2024.

 

On May 19, 2024, the Company’s manufacturing facilities in Newton, Kansas were damaged by a strong storm which transited the area.  None of the Company’s manufacturing lines or equipment were damaged by the storm.  Although the building structures were secure, the roofs on all three buildings in the Company’s Newton, Kansas campus were damaged and required significant repairs.  Also, multiple specialty HVAC units were damaged or destroyed.  These specialty HVAC units are necessary to control the temperature and humidity in certain manufacturing areas, quality laboratories and R&D laboratories, which is required by certain specifications and certifications the Company is subject to.  The Company’s production lines were returned to full production within two weeks of the storm.

 

The Company did not lose any sales for the 2025 fiscal year; however, $1.8 million of sales originally planned to be delivered could not be delivered before the end of the first quarter ended June 2, 2024 due to storm related delays.

 

The Company paid its employees for the days immediately following the storm despite many not being able to work while others worked on the clean-up of the storm damage to the facilities. The Company incurred $78 of payroll and related costs for lost production time and employees working on clean-up.

 

The charge recorded by the Company in fiscal 2025 included an asset damage charge, emergency services by outside contractors, rental of temporary HVAC units and the cost of employee downtime or time spent on the clean-up of the storm damage to the facilities. There were no such charges in fiscal 2026.

 

12.	CONTINGENCIES

 

Litigation

 

The Company is subject to a small number of immaterial proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. The Company believes that the ultimate disposition of such proceedings, lawsuits and claims will not have a material adverse effect on the liquidity, capital resources, business, consolidated results of operations or financial position of the Company.

 

16

---

 

 

Environmental Contingencies

 

The Company and certain of its subsidiaries have been named by the Environmental Protection Agency (the “EPA”) or a comparable state agency under the Comprehensive Environmental Response, Compensation and Liability Act (the “Superfund Act”) or similar state law as potentially responsible parties in connection with alleged releases of hazardous substances at three sites.

 

Under the Superfund Act and similar state laws, all parties who may have contributed any waste to a hazardous waste disposal site or contaminated area identified by the EPA or comparable state agency may be jointly and severally liable for the cost of cleanup. Generally, these sites are locations at which numerous persons disposed of hazardous waste. In the case of the Company’s subsidiaries, generally the waste was removed from their manufacturing facilities and disposed at waste sites by various companies which contracted with the subsidiaries to provide waste disposal services. Neither the Company nor any of its sub‐sidiaries have been accused of or charged with any wrongdoing or illegal acts in connection with any such sites. The Company believes it maintains an effective and comprehensive environmental compliance program.

 

The insurance carriers which provided general liability insurance coverage to the Company and its subsidiaries for the years dur‐ing which the Company’s subsidiaries’ waste was disposed at these three sites have in the past reimbursed the Company and its subsidiaries for 100% of their legal defense and remediation costs associated with two of these sites.

 

The Company does not record environmental liabilities and related legal expenses for which the Company believes that it and its subsidiaries have general liability insurance coverage for the years during which the Company’s subsidiaries’ waste was disposed at two sites for which certain subsidiaries of the Company have been named as potentially responsible parties. Pursuant to such general liability insurance coverage, three insurance carriers reimburse the Company and its subsidiaries for 100% of the legal defense and remediation costs associated with the two sites.

 

Included in selling, general and administrative expenses are charges for actual expenditures and accruals, based on estimates, for certain environmental mat‐ters described above. The Company accrues estimated costs asso‐ciated with known environmental matters when such costs can be reasonably estimated and when the outcome appears probable. The Company believes that the ultimate disposition of known environmental matters will not have a material adverse effect on the Company’s results of operations, cash flows or financial position.

 

Commitments

 

On March 27, 2025, Park and ArianeGroup SAS entered into an agreement under which Park would advance funds to ArianeGroup SAS against future purchases of C2®B product in the total amount of €4,587 payable in three installments in 2025, 2026, and 2027. The advance would be paid as follows: €1,376 was paid in April 2025 (actual cost of $1,564), €1,835 to be paid in the first quarter of fiscal 2027 (approximately $2,149 based on October 7, 2025 exchange rates) and €1,376 to be paid in the first quarter of fiscal 2028 (approximately $1,611 based on October 7, 2025 exchange rates). These advanced funds are to be used to help fund the purchase and installation, by ArianeGroup SAS, of additional manufacturing equipment for ArianeGroup SAS’ production of C2®B product. Under the agreement, the Company commits to purchase C2®B product through December 2033 at an estimated cost of €36,000. The Company has a remaining advance of $1,608 in Other Assets on the Condensed Consolidated Balance Sheet at August 31, 2025.

 

13.	OPERATING SEGMENT

 

The Company operates in a single segment. The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM assesses the performance of this reportable segment and allocates resources on a consolidated basis using the entity-wide revenues and expense information reported on the Condensed Consolidated Statements of Operations. The primary measure of segment profit is consolidated net income as reported on the Condensed Consolidated Statements of Operations. In addition, segment assets reviewed by the CODM are reported on the Company’s Condensed Consolidated Balance Sheets as total assets.

 

17

---

 

  

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

 

General:

 

Park Aerospace Corp. (“Park” or the “Company”) develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park’s advanced composite materials include film adhesives and lightning strike protection materials. Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (“AFP”) manufacturing applications. Park’s advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (“UAV”s commonly referred to as “drones”), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park’s advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park’s composite parts and structures (which include Park’s proprietary composite Sigma Strut^TM and Alpha Strut^TM product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft.

 

Financial Overview

 

On May 19, 2024, the Company’s manufacturing facilities in Newton, Kansas were damaged by a strong storm which transited the area.  None of the Company’s manufacturing lines or equipment were damaged by the storm.  The roofs on all three buildings in the Company’s Newton, Kansas campus required repairs or replacement.  Also, multiple specialty HVAC units were damaged or destroyed. The Company recorded a charge of $1.1 million in the 26 weeks ended September 1, 2024 related to the damage and repair and downtime costs. There were no corresponding charges in the 26 weeks ended August 31, 2025.

 

The Company's net sales in the 13 weeks and 26 weeks ended August 31, 2025 were $16.4 million and $31.8 million, respectively, compared to $16.7 million and $30.7 million, respectively, in the 13 weeks and 26 weeks ended September 1, 2024. Net sales for the 13 weeks ended August 31, 2025 were marginally lower than in the comparable period of the prior fiscal year while net sales for the 26 weeks ended August 31, 2025 were higher than in the comparable period of the prior fiscal year. The decrease for the 13 weeks period was due to lower sales to military markets. Sales in the 13 weeks ended September 1, 2024 were positively impacted by shipments that were delayed in the 13 weeks ended June 2, 2024 due to the storm damage that occurred late in that period. The increase in sales for the 26 weeks ended August 31, 2025 was due to higher sales to commercial markets offset by lower sales in the business aircraft market.

 

The Company’s gross profit in the 13 weeks ended August 31, 2025 was higher than the gross profit in the prior year’s comparable period despite lower sales levels in the 13 weeks ended August 31, 2025 compared to the prior year’s comparable period. This was due to a more favorable product mix partially offset by higher overhead costs including costs related to bring up new manufacturing lines to ramp up capacity in preparation for increases in customer program volumes as well as higher freight costs. The Company’s gross profit in the 26 weeks ended August 31, 2025 was higher than the gross profit in the prior year’s comparable period due to slightly higher sales levels and a more favorable sales mix partially offset by the higher costs noted above.

 

 

The Company’s gross profit margins, measured as percentages of sales, were 31.2% and 30.9%, respectively, in the 13 weeks and 26 weeks ended August 31, 2025, compared to 28.5% and 28.9%, respectively, in the 13 weeks and 26 weeks ended September 1, 2024. The higher gross profit margins for the 13 and 26 weeks ended August 31, 2025 compared to the prior year’s comparable periods were primarily due to a more favorable sales mix as well as sales price increases and lower waste in the 26 weeks ended August 31, 2025 partially offset by the increased overhead costs noted above.

 

The Company’s earnings before income taxes and net earnings increased 14.9% and 16.4%, respectively, in the 13 weeks ended August 31, 2025, compared to the 13 weeks ended September 1, 2024, primarily as a result of higher gross profit margins mentioned above and higher interest and other income partially offset by higher selling, general and administrative costs, including higher salaries and fringe benefits, travel expenses, and professional fees.

 

The Company’s earnings before income taxes and net earnings increased 43.6% and 46.6%, respectively, in the 26 weeks ended August 31, 2025, compared to the 26 weeks ended September 1, 2024, primarily due to the higher gross profit margins mentioned above, the charges incurred in the prior year related to the storm damage and higher interest and other income partially offset by higher selling, general and administrative expenses.

 

The Company continues to experience inflation in costs of raw materials and supplies, freight costs and other costs and expenses. The impact of inflation on the Company’s profits has been largely mitigated by the Company’s ability to adjust pricing for a large portion of its sales to pass the impact of inflation through to its customers.

 

Programs in which the Company participates as a supplier are, in some cases, experiencing supply chain issues from other suppliers to the programs that could result in delays in production for certain customers of the Company. The Company’s sales may be impacted by these supply chain challenges that its customers are experiencing from other suppliers.

 

The Company has a number of long-term contracts pursuant to which certain of its customers, some of which represent a substantial portion of the Company’s revenue, place orders. Long-term contracts with the Company’s customers are primarily requirements-based and do not guarantee quantities. An order forecast is generally agreed concurrently with pricing for any applicable long-term contract. This order forecast is then typically updated periodically during the term of the contract. Purchase orders are generally received by the Company more than three months in advance of delivery.

 

Under a Business Partner Agreement with ArianeGroup SAS of Les Mureaux, France, Park is the exclusive North American distributor of ArianeGroup’s RAYCARB C2®B NG proprietary product.  RAYCARB C2®B NG is used to produce ablative composite materials for critical rocket and missile systems. Park is a long-term customer of ArianeGroup and uses ArianeGroup’s RAYCARB C2®B NG product in the production of many of Park’s key ablative materials, which Park supplies into critical rocket and missile programs. On March 27, 2025, Park and ArianeGroup entered into an agreement under which Park would advance funds to ArianeGroup against future purchases of C2®B product in the total amount in Euros of €4,587,000 payable in three installments in 2025, 2026, and 2027. These advanced funds are to be used to help fund the purchase and installation, by ArianeGroup, of additional manufacturing equipment for ArianeGroup’s production of C2®B product.

 

 

Results of Operations:

 

The following table sets forth the components of the Condensed Consolidated Statements of Operations:

 

		13 Weeks Ended												26 Weeks Ended
(Amounts in thousands, except per share amounts)		August 31,				September 1,				%				August 31,				September 1,				%
		2025				2024				Change				2025				2024				Change
Net sales		$	16,381			$	16,709				(2.0	)%		$	31,781			$	30,679				3.6	%
Cost of sales			11,265				11,952				(5.7	)%			21,947				21,823				0.6	%
Gross profit			5,116				4,757				7.5	%			9,834				8,856				11.0	%
Selling, general and administrative expenses			2,271				2,140				6.1	%			4,570				4,157				9.9	%
Earnings from operations			2,845				2,617				8.7	%			5,264				4,699				12.0	%
Storm damage charge			-				(46	)			(100.0	)%			-				(1,098	)			(100.0	)%
Interest and other income			390				245				59.2	%			745				584				27.6	%
Earnings from operations before income taxes			3,235				2,816				14.9	%			6,009				4,185				43.6	%
Income tax provision (Note 9)			831				750				10.8	%			1,525				1,126				35.4	%
Net earnings		$	2,404			$	2,066				16.4	%		$	4,484			$	3,059				46.6	%
Earnings per share:
Basic:
Basic earnings per share		$	0.12			$	0.10				20.0	%		$	0.23			$	0.15				53.3	%
Diluted:
Diluted earnings per share		$	0.12			$	0.10				20.0	%		$	0.22			$	0.15				46.7	%

 

Net Sales

 

The Company's net sales in the 13 weeks and 26 weeks ended August 31, 2025, were $16.4 million and $31.8 million, respectively, compared to $16.7 million and $30.7 million, respectively, in the 13 weeks and 26 weeks ended September 1, 2024. Sales for the 13 weeks ended August 31, 2025 were lower than the comparable period of the prior year, primarily due to lower sales to the military markets. In addition, sales for the 13 weeks ended September 1, 2024 were positively impacted by delayed shipments in the first quarter of fiscal year 2025 due to the storm damage incurred to the Company’s facility in May of 2024. Sales for the 26 weeks ended August 31, 2025 were higher than the comparable period of the prior year, primarily due to higher sales to the commercial markets partially offset lower sales to the business aircraft market.

         

Gross Profit

 

The Company’s gross profit in the 13 weeks ended August 31, 2025 was higher than the gross profit in the prior year’s comparable period despite lower sales levels in the 13 weeks ended August 31, 2025, compared to the comparable period in the prior year due to a more favorable product mix as well as sale price increases partially offset by higher labor costs, higher freight costs and higher overhead costs related to bringing up new manufacturing lines to ramp up capacity in preparation for increases in customer program volumes. The Company’s gross profit in the 26 weeks ended August 31, 2025 was higher than the gross profit in the prior year’s comparable period due to higher sales as well as a more favorable sales mix and sales price increases partially offset by higher labor costs and the higher overhead costs mentioned above.

 

 

The Company’s gross profit margins, measured as a percentage of sales, were 31.2% and 30.9%, respectively, in the 13 weeks and 26 weeks ended August 31, 2025, compared to 28.5% and 28.9%, respectively, in the 13 weeks and 26 weeks ended September 1, 2024. The higher gross profit margins for the 13 and 26 weeks ended August 31, 2025 compared to the prior year’s comparable periods, were primarily due to a more favorable sales mix as well as sales price increases and lower waste in the 26 weeks ended August 31, 2025 partially offset by the increased overhead costs noted above.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses increased by $131,000, or 6.1%, during the 13 weeks ended August 31, 2025 compared to the 13 weeks ended September 1, 2024, and these expenses, measured as percentages of sales, were 13.9% in the 13 weeks ended August 31, 2025 compared to 12.8% in the 13 weeks ended September 1, 2024. The increase in selling, general and administrative expenses during the 13 weeks ended August 31, 2025 was primarily due to higher salaries, fringe benefits, travel expenses, research and development expenses and professional fees partially offset by lower freight out, advertising and tradeshow expenses and lower supplies expense.

 

Selling, general and administrative expenses increased by $413,000, or 9.9%, during the 26 weeks ended August 31, 2025 compared to the 26 weeks ended September 1, 2024, and these expenses, measured as a percentage of sales, were 14.4% in the 26 weeks ended August 31, 2025 compared to 13.5% in the 26 weeks ended September 1, 2024. The increase in selling, general and administrative expenses during the 26 weeks ended August 31, 2025 was primarily due to the expenses noted above.

 

Selling, general and administrative expenses included stock option expenses of $101,000 and $189,000, respectively, for the 13 weeks and 26 weeks ended August 31, 2025, compared to stock option expenses of $101,000 and $190,000 for the 13 weeks and 26 weeks ended September 1, 2024.

 

Earnings from Operations

 

For the reasons set forth above, the Company’s earnings from operations were $2.8 million and $5.3 million, respectively, for the 13 weeks and 26 weeks ended August 31, 2025, compared to $2.6 million and $4.7 million, respectively, for the 13 weeks and 26 weeks ended September 1, 2024.

 

Interest and Other Income

 

Interest and other income were $390,000 and $745,000, respectively, for the 13 weeks and 26 weeks ended August 31 ,2025, compared to $245,000 and $584,000, respectively, for the prior year's comparable periods. Interest income increased 59.2% and 27.6%, respectively, for the 13 weeks and 26 weeks ended August 31, 2025, primarily due to interest received on tax refunds in the 13 weeks ended August 31, 2025 and a foreign exchange gain recorded related to a long-term supplier advance. During the 13 weeks and 26 weeks ended August 31, 2025, the Company earned interest income principally from its investments, which consisted primarily of short-term instruments and money market funds as well the tax refund noted above.

 

 

Income Tax Provision

 

For the 13 weeks and 26 weeks ended August 31 , 2025, the Company recorded income tax provisions of $831,000 and $1.5 million, respectively, which included discrete income tax provisions of $(10,000) and $(38,000), respectively, for excess tax benefits from stock option exercises offset by the accrual of interest related to unrecognized tax benefits. For the 13 weeks and 26 weeks ended September 1, 2024, the Company recorded income tax provisions of $750,000 and $1.1 million, respectively, which included discrete income tax provisions of $22,000 and $41,000, respectively, for the accrual of interest related to unrecognized tax benefits.

 

The Company’s effective tax rates for the 13 weeks and 26 weeks ended August 31, 2025 were 25.7% and 25.4%, respectively, compared to 26.6% and 26.9%, respectively, in the prior year’s comparable periods. The effective tax rates for the 13 weeks and 26 weeks ended August 31, 2025 were higher than the U.S. statutory rate of 21% primarily due to state and local taxes and liabilities, and the accrual of interest related to unrecognized tax benefits offset by excess tax benefits on stock option exercises. The effective rates for the 13 weeks and 26 weeks ended September 1, 2024 were higher than the U.S. statutory rate of 21% primarily due to state and local taxes and the accrual of interest related to unrecognized tax benefits.

 

Net Earnings

 

For the reasons set forth above, the Company's net earnings for the 13 weeks and 26 weeks ended August 31, 2025 were $2.4 million and $4.5 million, respectively, compared to net earnings of $2.1 million and $3.1 million, respectively, for the 13 weeks and 26 weeks ended September 1, 2024.

 

Basic and Diluted Earnings Per Share

 

In the 13 weeks and 26 weeks ended August 31, 2025, basic earnings per share were $0.12 and $0.23, respectively, and diluted earnings per shares were $0.12 and $0.22, respectively, compared to basic and diluted earnings per share of $0.10 and $0.15, respectively, in the 13 weeks and 26 weeks ended September 1, 2024.

 

Liquidity and Capital Resources - Continuing Operations:

 

(Amounts in thousands)		August 31,				March 2,
		2025				2025				Change
Cash and cash equivalents and marketable securities		$	61,553			$	68,834			$	(7,281	)
Working capital			78,565				81,033				(2,468	)

 

 

		26 Weeks Ended
(Amounts in thousands)		August 31,				September 1,
		2025				2024				Change
Net cash (used in) provided by operating activities		$	(527	)		$	1,023			$	(1,550	)
Net cash provided by investing activities			14,931				7,489				7,442
Net cash used in financing activities			(6,482	)			(6,926	)			444

 

Cash and Marketable Securities

 

Of the $61.6 million of cash and cash equivalents and marketable securities at August 31, 2025, $31.7 million was owned by one of the Company’s wholly-owned foreign subsidiaries.

 

The change in cash and cash equivalents and marketable securities at August 31, 2025 compared to March 2, 2025 was the result of capital expenditures, the purchase of treasury shares, dividends paid to shareholders, the Company’s transition tax installment payment, and a number of additional factors. The significant changes in cash (used in) provided by operating activities was as follows:

 

●

accounts receivable decreased by 2% at August 31, 2025 compared to March 2, 2025 primarily due to lower sales in the 13 weeks ended August 31, 2025 than in the comparable period in the prior year;

 

●

inventories increased by 12% at August 31, 2025 compared to March 2, 2025 primarily due to timing of raw materials purchases;

 

●

prepaid and other current assets decreased by 25% at August 31, 2025 compared to March 2, 2025 primarily due to lower prepaid tax balances;

 

●

other assets increased $1.6 million during the 26 weeks ended August 31, 2025 due to a long-term supplier advance paid during the quarter;

 

●

accounts payable increased by 32% at August 31, 2025 compared to March 2, 2025 primarily due to timing of vendor payments;

 

●

accrued liabilities decreased by 5% at August 31, 2025 compared to March 2, 2025 primarily due to decreases in bonus, profit sharing and property tax accruals; and

 

●

income taxes payable decreased by 98% at August 31, 2025 compared to March 2, 2025 due to the payment of a $4.9 million transition tax installment payment in June 2025.

 

In addition, the Company paid $5.0 million in cash dividends in the 26-week period ended August 31, 2025 compared to $5.1 million in the 26-week period ended September 1, 2024. During the 26 weeks ended August 31, 2025, the Company repurchased shares of $2.2 million compared to $1.9 million of repurchases in the 26 weeks ended September 1, 2024.

 

 

Working Capital         

 

The decrease in working capital at August 31, 2025 compared to March 2, 2025 was primarily due to a decrease in cash as a result of the payment of the long-term supplier advance of $1.6 million, treasury share repurchases of $2.2 million and the payment of $5.0 million of dividends.

 

The Company's current ratio (the ratio of current assets to current liabilities) was 17.6 to 1.0 at August 31, 2025, compared to 9.7 to 1.0 at March 2, 2025.

 

Cash Flows

 

During the 26 weeks ended August 31, 2025, the Company's net earnings, adjusted for depreciation and amortization, deferred income taxes, stock-based compensation, amortization of bond premium, provision for credit losses, loss on sale of marketable securities and changes in operating assets and liabilities, resulted in a $0.5 million operating cash outflow compared to a cash inflow of $1.0 million for the 26 weeks ended September 1, 2024. The decrease was driven by the payment of a $1.6 million long-term supplier advance during the 26 weeks ended August 31, 2025. During the same 26-week period, the Company expended $664,000 for the purchase of property, plant and equipment compared with $206,000 during the 26 weeks ended September 1, 2024. The Company paid $5.0 million in cash dividends in the 26-week period ended August 31, 2025 compared to $5.1 million in the 26-week period ended September 1, 2024. The Company purchased treasury shares of $2.2 million in the 26-week period ended August 31, 2025 compared to $1.9 million in the 26-week period ended September 1, 2024.

 

Other Liquidity Factors

 

The Company believes its financial resources will be sufficient, through the 12 months following the filing of this Form 10-Q Quarterly Report and for the foreseeable future thereafter, to provide for continued investment in working capital and property, plant and equipment and for general corporate purposes. The Company’s financial resources are also available for purchases of the Company's common stock, cash dividend payments, and appropriate acquisitions and other expansions of the Company's business.

 

The Company is not aware of any circumstances or events that are reasonably likely to occur that could materially affect its liquidity. The Company further believes its balance sheet and financial position to be very strong.

 

Contractual Obligations:

 

The Company’s contractual obligations and other commercial commitments to make future payments under contracts, such as lease agreements, consist only of (i) operating lease commitments and (ii) commitments to purchase raw materials. In March 2025, the Company entered into an agreement with a supplier, ArianeGroup SAS, under which the Company would advance funds against future purchases. The agreement requires payments of €4,587 over three years, of which €1,376 was paid in April 2025 (actual cost of $1,564), €1,835 (approximately $2,149 based on October 7, 2025 exchange rates) is due in the first quarter of fiscal 2027 and €1,376 (approximately $1,611 based on October 7, 2025 exchange rates) is due in the first quarter of fiscal 2028. Under the agreement, the Company commits to purchase C2®B product through December 2033 at an estimated cost, in aggregate, of €36,000. The Company has no other long-term debt, capital lease obligations, unconditional purchase obligations or other long-term obligations, standby letters of credit, guarantees, standby repurchase obligations or other commercial commitments or contingent commitments, other than two standby letters of credit in the total amount of $140,000, that secure the Company’s obligations under its workers’ compensation insurance program.

 

 

Off-Balance Sheet Arrangements:

 

The Company’s liquidity is not dependent on the use of, and the Company is not engaged in, any off-balance sheet financing arrangements, such as securitization of receivables or obtaining access to assets through special purpose entities.

 

Critical Accounting Policies and Estimates:

 

The foregoing Discussion and Analysis of Financial Condition and Results of Operations is based upon the Company’s Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these Condensed Consolidated Financial Statements requires the Company to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to sales allowances, allowances for credit losses, inventories, valuation of long-lived assets, income taxes, contingencies and litigation, and employee benefit programs. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

The Company’s critical accounting policies that are important to the Condensed Consolidated Financial Statements and that entail, to a significant extent, the use of estimates and assumptions and the application of management’s judgment are described in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 2, 2025. There have been no significant changes to such accounting policies during the 2026 fiscal year second quarter.

 

Contingencies:

 

The Company is subject to a small number of immaterial proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters.

 

Factors That May Affect Future Results.

 

Certain portions of this report which do not relate to historical financial information may be deemed to constitute forward-looking statements that are subject to various factors which could cause actual results to differ materially from the Company’s expectations or from results which might be projected, forecasted, estimated or budgeted by the Company in forward-looking statements. Such factors include, but are not limited to, general conditions in the aerospace industry, the Company’s competitive position, the status of the Company’s relationships with its customers, economic conditions in international markets, the cost and availability of raw materials, transportation and utilities, and the various factors set forth under the caption “Factors That May Affect Future Results” in Item 1 and in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended March 2, 2025.

 

 

Item 3.   Quantitative and Qualitative Disclosures About Market Risk.

 

The Company’s market risk exposure at August 31, 2025 is consistent with, and not greater than, the types of market risk and amount of exposures presented in the Annual Report on Form 10-K for the fiscal year ended March 2, 2025.

 

Item 4.   Controls and Procedures.

 

(a)    Disclosure Controls and Procedures.

 

The Company’s management, with the participation of the Company’s Chief Executive Officer and principal financial officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of August 31, 2025, the end of the quarterly fiscal period covered by this quarterly report. Based on such evaluation, the Company’s Chief Executive Officer and principal financial officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

(b)    Changes in Internal Control Over Financial Reporting.

 

There has not been any change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

PART II. OTHER INFORMATION

 

Item 1.      Legal Proceedings.

 

None.

 

Item 1A.      Risk Factors.

 

There have been no material changes in the risk factors as previously disclosed in the Company’s Form 10-K Annual Report for the fiscal year ended March 2, 2025.

 

Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds.

 

The following table provides information with respect to shares of the Company’s common stock acquired by the Company during each month included in the Company’s 2026 fiscal year second quarter ended August 31, 2025.

 

Period		Total Number of Shares (or Units) Purchased				Average Price Paid Per Share (or Unit)				Total Number of Shares (or Units) Purchased As Part of Publicly Announced Plans or Programs				Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
June 2 - July 2			-			$	-				-				0
July 3 - August 3			-			$	-				-				0
August 4 - August 31			-			$	-				-				0
Total			-			$	-				-				781,766	(a)

 

(a)

Aggregate number of shares available to be purchased by the  Company pursuant to a share purchase authorization announced on May 23, 2022. Pursuant to such  authorization, the Company is authorized to purchase its shares from time to time on the open market or in  privately negotiated transactions.

 

Item 3.      Defaults Upon Senior Securities.

 

None.

 

Item 4.      Mine Safety Disclosures.

 

None.

 

 

Item 5.      Other Information.

 

None.

 

Item 6.      Exhibits.

 

31.1

Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

 

31.2

Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

 

32.1

Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

32.2

Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

101

The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2025, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at August 31, 2025 (unaudited) and March 2, 2025; (ii) Condensed Consolidated Statements of Operations for the 13 weeks and 26 weeks ended August 31, 2025 and September 1, 2024 (unaudited); (iii) Condensed Consolidated Statements of Comprehensive Earnings for the 13 weeks and 26 weeks ended August 31, 2025 and September 1, 2024 (unaudited); (iv) Condensed Consolidated Statements of Shareholders’ Equity at August 31, 2025 (unaudited) and September 1, 2024; and (v) Condensed Consolidated Statements of Cash Flows for the 26 weeks ended August 31, 2025 and September 1, 2024 (unaudited). * +

 

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

*

Filed electronically herewith.

 

+

Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 

 

EXHIBIT INDEX

 

Exhibit No. -----------	Name --------------
31.1	Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
31.2	Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
32.1	Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at August 31, 2025 (unaudited) and March 2, 2025; (ii) Condensed Consolidated Statements of Operations for the 13 weeks and 26 weeks ended August 31, 2025 and September 1, 2024 (unaudited); (iii) Condensed Consolidated Statements of Comprehensive Earnings for the 13 weeks and 26 weeks ended August 31, 2025 and September 1, 2024 (unaudited); (iv) Condensed Consolidated Statements of Shareholders’ Equity at August 31, 2025 (unaudited) and September 1, 2024; and (v) Condensed Consolidated Statements of Cash Flows for the 26 weeks ended August 31, 2025 and September 1, 2024 (unaudited). * +
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*	Filed electronically herewith.
+	Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 

 

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.         

 

 

	Park Aerospace Corp. ------------------------------
		(Registrant)
Date: October 14, 2025		/s/ Brian E. Shore -----------------------------------
		Brian E. Shore
		Chief Executive Officer
		(principal executive officer)
Date: October 14, 2025		/s/ Christopher Goldner          -----------------------------------
		Christopher Goldner
		Vice President – Finance
		(principal financial officer)
		(principal accounting officer)