Park Aerospace Corp.

Q4 2026 Earnings Call — May 28, 2026

Nick Ripostella (NR Management): I just wanted to, I've been thinking about this one for a while. On the C2B fabric, is there any alternative that's used in any missile programs that you know of?

Executive: That's a complicated question. There are stockpiles of two different types of fabric which are available, but they're not in production anymore, and there's no plan to put them back in production. So, interesting, since you brought it up. This is my perspective on it. But not only mine. Until a couple of months ago, I think some of the defense contractors were kind of counting on using those stockpiles. Oh, we got a long man. Stockpile lasts for many, many years. But when you take everything and multiply it by four, they start to panic, like these stockpiles are not going to last very long at all. And that probably is one of the reasons that there's kind of a hyper-interest in C2B. Now, there are always going to be efforts to develop new products that would maybe be, you know, would be, let's say, equivalent to C2B. serve the same purpose that C2B serves. But what's existing in the market now, there are, that are at the level of C2B. There are other ablative products that are not at the level of C2B in terms of capability. There are two products that are kind of close, but there are stockpiles that are being depleted and limited. So it's important, it's an interesting question, and the answer is maybe a little more complicated.

Nick Ripostella (NR Management): Okay, so do you consider that a risk? I mean, you know, necessity is the mother of invention, you know.

Executive: Yeah, sure, it's a risk. But, of course, we would like to be involved. Right. And that's our attitude. We don't. I don't want to say too much more about it, actually, Nick, but, yeah, we're not sitting back passively and saying, okay, so, I mean, we want to be the driver of new products as well. And at the same time, supporting everything we're doing with Aerie and our partner, you know, we never undermine them or do anything to hurt them. We would not do that.

Nick Ripostella (NR Management): Okay, so by the way, so all the manufacturing, you know, that area, they have plants in France. So is that where tariffs would hit if there were any, you know, like, you know, on a product like that? Or are you shielded from that somewhat? Would tariffs apply to the product that's being shipped?

Executive: Yeah, well, I think the answer would be yes. I mean, you know, I think it's pretty obvious the answer is yes. Now, the tariff situation is changing, of course, and dynamic, but, you know, tariffs did apply to products that were being imported from France.

Nick Ripostella (NR Management): Well, it's just I find it interesting, you know, that the Department of War wants to, you know, quadruple, you know, the material is important. And it would seem like, you know, they're shooting themselves in the foot by tariffing something that, you know.

Executive: Yeah. That's an interesting point. It's been brought up by us. Yeah. I mean, to the Department of War.

Nick Ripostella (NR Management): Okay, so is it fair to say that the missile programs, you know, throughout the world that, you know, are using, mostly using C2B, or is that an incorrect statement?

Executive: Missile programs, other programs? Yeah. So other missile programs? Oh, there's many different kind of missiles and many different kind of ablated materials. C2B is considered to be, you know, my opinion, but not only my opinion, it's a premier material, a plated material, fabric for stopped rocket motors.

Nick Ripostella (NR Management): Okay. All right. Fair enough. Okay. I'm sorry. You know, you can stop me if I'm going too much. But I've asked this before, and you already have a lot on your plate. But is there any content or work developing on anything with SpaceX or Blue Origin or other?

Executive: So, Mark, if you want to chime in, that's fine. I think we do a little bit of work with Blue Origin. My opinion is we'd love to do work with SpaceX. They're not solid rocket motor people. Solid rocket motors are for defense. They're one-shots. You know, you can't reuse a solid rocket motor. So when you think about SpaceX, they're big into reusing their rocket systems. You know, they have a whole different kind of psychology about it. My opinion, and we talk about this internally, I'd love to be able to, you know, work with SpaceX. I'm not sure we're doing very much. Mark, Blue Origin, I think we're doing a little bit of Blue Origin, aren't we?

Mark: Yeah, we're doing a little bit. I think most of that works in our parts business, Brian, our structure business. But we do supply some material. But lately it's been we've been building some parts for them.

Nick Ripostella (NR Management): Good. Okay, fair enough. One other thing. So are we expecting to do additional, you know, aftermarket stock sales? You know, maybe do you need to raise more capital?

Executive: Yeah, so it's a $50 million ATM. I think we explained how much we raised so far. And it was only in our Q4, you know, as we explained. We haven't raised any since the end of Q4. So the balance is still available. And we'll see. Well, I think we try to be very intelligent and very disciplined about the ATM. We said no a lot. In other words, you know, on pricing. So no, no, it's not going to work for us. We're trying to protect our existing shareholders. And I think we did, you know, quite an outstanding job of that. If you don't mind my saying so, Nick. We were quite disciplined, and we've got offers. No, no, that's not going to work for us. So we want to be careful about how we do it, and I think we're quite disciplined, like I said. And I think it worked out fine. I was very happy with the results. And, yeah, we'd like to raise some more money, and we'll have to see what happens.

Nick Ripostella (NR Management): Okay. You know how I feel you've done, yes, an excellent job of caring for shareholders. There's no question about that. And just one little other thing here. You know, you've been in this business for a long time, as you said. So, you know, with the new facilities you're building, you know, are they much different? I know you highlighted some things in the call, but in terms of the technology, you know, because... I don't know, at some point in the last couple of years, you've talked about automation and things like that. I'm just curious, because there is a lot going on in terms of extensive robotics and things like that, but maybe you're just not the type of process that could avail yourself of those things. But I'm just curious about your...

Executive: Yeah, so we want to use those things as tools intelligently. You know, we don't want to go into automation because it's quote-unquote cool, you know, so we could show people in a factory, look how automated it is. Automation is complicated, you know, and it's not – we probably meant multiple edge to that sword. We talked about this internally, but it's, you know, an important point. Often automation is really good if you want to do the same exact thing every time, because machine, you're going to not make the mistakes people make. But if your kind of culture is about flexibility, responsiveness, urgency, change things quickly, that's not really what automation is best at. That's what people are best at. So that's why I say, yeah, we want to use automation, but we want to be intelligent about it. We want to figure through where would we like to use automation and where can it be helpful to us.

Nick Ripostella (NR Management): I hear you. I guess I'm just one of those nerds that I watch too many videos of, you know, aircraft engines being built and all those. You know, I find them fascinating. So I just thought I'd...

Executive: It's amazing the things that are... You know, people don't realize how complex it is, particularly on aircraft engines. But anyway. But all right. Thank you for your time. And... I just have to say, you know, there's an old Bruce Springsteen song from Small Things Mama, Big Things One Day Come, and that is Park, you know.

Nick Ripostella (NR Management): Thank you very much. I've looked that one up. I'm not familiar with that one, but I'll go check it out. Thank you very much.

Executive: Thank you so much. Thank you. You take care. All right. Good night.

Management: Operator, do we have any?

Operator: Go ahead, yeah. I was just going to say

as a reminder, if there are any more questions, you can just press star 1 to get yourself in queue.

Management: Okay. It looks like there are no further questions

at this time, so I'd like to turn the floor back to Brian Shore for closing remarks.

Brian Shore (Executive): Thank you, Robert, and thank all of you for listening and being patient with us. I know we went on really long. I appreciate you taking the time to listen. I guess at the beginning of the summer, have a wonderful summer. We'll talk to you again pretty soon, I guess mid-July when we announce our Q1. Of course, if you have any questions, any follow-up questions, feel free to give us a call anytime. Thanks. Have a great day. Take care. Bye.

Management: Thank you. And with that, ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines

at this time and have a wonderful rest of your day.

Q3 2026 Earnings Call — January 13, 2026

Management: Well, we already gave you those numbers. And then we have estimates, forecast estimates. Remember, we said this is not guidance. This is what Mark and I think is going to happen through Sometimes it's wrong, sometimes it's higher, sometimes it's lower, but we're telling you what we think is going to happen. Q4, $23.5 million to $24.5 million EBITDA of $4.75 to $5.25 million. Now, a lot of smart people are thinking, well, what's going on here? Q3 sales were 17.3 million. Q4 sales, a lot more. Q3 EBITDA, 4.2 million. So why isn't the forecast for Q4 EBITDA a lot more? We have a lot more sales. Well, you've got to look at the footnote. There's two asterisks. Forecasted to include approximately 7.2 million C2B fabric sales. So that's that small market, very, very light margins. And that's what's going on there. That's what you need to understand. That's why with those kind of sales, we're not seeing much higher EBITDA numbers. And then while we're at it, let's look at the total for forecast total for 26. This is just adding down, taking into account the Q4 forecast, 72.5 million to 73.5 million. And here's your EBITDA number. And again, look at the footnote, three asterisks forecast to include approximately 9.8 million of C2-bent fabric sales, mostly in Q4, it looks like. All right?

Management: Okay, let's go on to slide 21. So this is just some history on the right-hand column, the 26 forecast estimate included, the estimate we just went over with you, so we won't go over that again. I think what's interesting is look at the top line of sales starting in 17, 18, 19, 20 went up 10 million approximately per year from 17 to 20, and then it fell off a cliff. Because there you have the pandemic and the supply chain issues and the industry chaos that resulted for a long time. And even last year in 25, we still had barely gotten back to that fiscal 20 number. Now we start to see in fiscal 26, we start to see some acceleration getting out of that rut that the industry has been in for a long time, like five years. It's been a long five years, I would say. So it is what it is, but it's been a long five years.

Management: Let's look at the notes down here. Supply chain limitations affecting your, your industry. That's what we just discussed when we looked at the sales numbers ramping up, of course, for the juggernaut. And again, reminding you, the fiscal 25 sales include $7.5 million of C2B fabric, and the 26 sales include $9.8 million of C2B fabric. Very important to understand those things. And until now, I should just go back and say, The OEMs have been stocked by lots and lots of C2B fabric, much more than what we're producing in terms of how that would translate into producing prepreg with the C2B fabric.

Management: So let's go on to slide 22, change gears a little bit. Our buyback authorization and activity, an update. Okay, so we announced in May 22 our board authorized the purchase of 1.5 million shares of our common stock. Under this authorization, Parker's purchased a total of 718,000 shares of its common stock at an average price of $12.94. So you have to say we're some kind of geniuses. I mean, considering the stock prices now, I mean, I don't know what you think, but we probably should be invited on CNBC or maybe to talk and be a guest lecturer at the Wharton School of Economics.

Management: Let's keep going. We don't have to talk about it. Well, except that we didn't buy any stock in Q2 or Q3. We haven't bought any stock so far in Q4.

Management: Let's go on to slide 23. Trying to rush here a little bit. Sorry. Our balance sheet cash and very incredible cash dividend history. We have zero long-term debt. $63.6 million of cash at the end of Q3, 41 consecutive years of uninterrupted regular quarterly cash dividends, and now paid $608.6 million or $29.72.5 per share in cash dividends since the beginning of 2005. We're kind of sneaking up on that $30 per share number. Park founders always kind of like to include this photo with the cash dividend history because this is really at the beginning of Park when we really had almost nothing. We started with basically nothing.

Management: Let's go on to slide 24. It's a lot of money, a lot of dividends, I would say, for a company to start with basically nothing. Slide 24, financial outlook for GE aerospace generation programs, the juggernaut. We've used that term for a while now. The timing, we're not sure. The juggernaut is coming as now with a capital N-O-W. Can't be stopped. Better be ready.

Management: Let's go on to slide 25. I'm rushing a little bit. I just want to stop and say for a second, for some of you new shareholders, if you want a more detailed explanation of some of these things, please just call us. We happen to go over these items in more detail. We're kind of rushing through them. We just want to get to some of the newer items toward the end of the presentation. Slide 25, so we're talking about engineers per year assumptions, and there is a footnote explaining how we came up with those assumptions. Revenue per engine, that information is provided to us by our customer, and the annual revenue per program just multiplying across. We end up with a total of $61.8 million per year at the outlook year.

Management: So a couple notes here. Our revenue per engine unit estimates are updated. We've been given updated information from our customer. And here's something we haven't really touched on, why the engine units per year assumptions may be conservative. Let's just try to explain this quickly. 1820 NEO, let's look at that one. We have 1,080 engines we're talking about per year. That's based upon 75 airplanes per month, two engines per airplane, a 60% market share for LEAP. Just do the math. That's 880. All right. So that's based on how many A320 airplanes will be built with LEAP engines. Do you think that every engine itself structure that's produced will end up with those engines? That would be a really ideal situation, but you know, something called scrap and fallout and things get rejected sometimes. We're not taking that into account at all. We're not taking spares into account either. So that's why this assumption about NGUs per year might be a little conservative. I just want to touch on that, okay?

Management: Slide 26, we don't have to go over this. These are all footnotes related to how we computed the numbers and did the math on slide 25. Let's keep going. Okay, now we're to changing gears completely. Warren Peace Park's new juggernaut. Actually, that term, the new juggernaut, came from one of our investors. We liked it, so we decided to stick with it. Some of this is a review from last quarter. Some of it's a little new.

Management: Unprecedented demand for missile systems. Missile system stockpiles have been seriously depleted by the wars in Europe and Mideast. There's an urgent need to replenish those depleted missile system stockpiles. According to Wall Street Journal reporting, the Pentagon is pushing defense OEMs to double or even quadruple missile system production on a breakneck schedule. That's a direct quote, obviously. The list of Pentagon targeted missile systems include the Patriot missile system, the LRASM, and the SM-6, Patriot probably being a particular priority, APARC actively participates in all of those missile systems.

Management: Review of and update on the Patriot missile defense system. That's the big one for us. Also, we focus on it because it's public. We're not providing any confidential inside information. Everything we're providing you is based upon public information. There's just lots and lots of public information about the Patriot missile system. You know, President Trump talks about it sometimes. The large deployment of PAK-3 Patriot missile defense systems, largest, sorry, in history, occurred in response to Iran's ballistic missile strikes on our forward air base in Qatar. That was, I guess, a few months ago after we bombed Iran, bombed our nuclear sites.

Management: On slide 38, so what happened here is, we moved the Patriot missile systems to Qatar in anticipation of this attack from South Korea and Japan. But I don't know if South Korea and Japan are so happy about that. The Department of War wants a very significant increase in Patriot missile stockpiles in Asia. So we just took a lot of them out of Asia. So obviously we've got a problem on our hands in terms of Patriot missile systems availability. Israel's and Ukraine's supplies of Patriot missile systems have been seriously depleted as a result of those wars.

Management: Recent news from U.S. defense OEMs, including RTX, Boeing, Lockheed, L3, indicating significant ramp-up of Patriot missile system production. It's apparent that U.S. plans to do much more than just replenish the depleted stockpiles. On September 3, 1925, Lockheed's Missile and Fire Control Division received its biggest contract in history, a $9.8 billion, with a B, award from the U.S. Army. That's the branch that uses the Patriot systems for about 2,000, just a little less than 2,000 Patriot missiles. It's a lot.

Management: Flight 29, here's some big stuff. Flight 29, all new. January 6, 2006, what was that, about a week ago, yeah, about a week ago, Lockheed announced it reached a seven-year agreement. This is all being driven by the Department of War. With the U.S. Department of War to increase its Patriot pack-free missile segment enhancement, MSC interceptor, these are basically Patriot missiles, production to a capacity of from 600 to 2,000, 600 to 2,000. You see that number? Over the last two years, this is even more interesting in a way. Blockade already increases production of Patriot, Pac-3 interceptors by 60%. So doing the math, if it was increased by 60% to get to 600, that means it was 375 two years ago. So we're going from, I'm just doing the math, 375 to 2,000. Get those numbers? It's kind of unheard of.

Management: The new seven-year agreement framework is designed to encourage Lockheed and its suppliers to make the capital investments necessary. This is a theme, again, for Department of War. They want the Defense Department to be making capital investments necessary, rather than paying dividends and buybacks and stuff like that, necessary to boost production capacity, the levels needed to support to dramatically increase factory missile program requirements. Do we need encouragement? No. We don't need any encouragement. We're already building our factory. We'll get to that in a minute. We're planning to build a factory to support this program.

Management: Lockheed reportedly supplied factory missile supplies, sorry, missile systems to the U.S. and 60 other countries. There are a lot of countries that want this system and aren't getting it right now. Breaking news. This is this morning. The U.S. Department of War is investing $1 billion in L-3 Harris solid rocket business, that's Airjet, to boost critical solid rocket production for Patriot and other missile systems. This is a separate report. A new separate publicly traded company will be created in connection with this investment. This is a big deal, and it's a big deal for Park as well. But you see what's going on here? This is Department of War driving all this stuff. It's new world order, as we say later on in the presentation.

Management: Let's go to slide 30. The story continues. So what do we have to do with the Patriot Missile System? Park supports the factory Patriot Missile System with specially-deblated materials produced with Aering Group. There's an Aering Group name again. They're proprietary C2B fabric. This one probably should be in bold, but we're trying to be modest about it. Park is sole source qualified for specialty ablated materials on the PAC-3 missile system program. You just think about that. Then think about all we just talked about, what we discussed regarding this program.

Management: Park has recently asked to increase our expected output of specialty ablated materials for the program by significant orders of magnitude. So how are we going to do that? We'll fully support this request with the additional manufacturing capacity provided by parks, major facilities expansion discussed below. We didn't need any incentive or encouragement. We're already there.

Management: Okay, let's keep going. Now we've got to go back and talk about the area group a little bit more, not from the perspective of how it affects our quarters, from a kind of bigger picture perspective. We have agreements with Aering Group, a really wonderful French aerospace company, JV between Airbus and Safran, relating to their proprietary C2B fabric used by Park to produce a plate of composite materials for the Patriot missile system and other missile systems.

Management: Then we entered into a business partner agreement. That's what they call it. because they referred to us as their partner, very nice, with Arian in January of 22, under which Arian appointed Park as its exclusive North American distributor of their C2B fabric.

Management: Slide 31. On March 27, 25, we entered into what they call a new agreement with Arian under which Park agreed to advance €4,587,000 to Arian against future purchases by Park of C2P fabric. Now, that was a 50-50 deal. Park, this advances to be used by Arian to increase its C2P manufacturing capacity in Europe. They kicked in the same amount. We went 50-50 on this investment to increase their capacity in Europe, and we already paid our first installment of that amount.

Management: Aaron Group and Park are partnering on a study to investigate the economic and other considerations relating to potential establishment of a major C2B fabric manufacturing facility in the U.S. PARC committed to contribute, again, it's a 50-50 deal, 350,000 euros to the study. We expect that amount to be expensed in our Q4. Originally, we said Q3, it's probably going to be Q4. But that's another 50-50 deal. This is something we're partnering on this study.

Management: At the bottom, PARC is engaged in ongoing discussions with airing group relating to potentially significantly increasing C2B fabric manufacturing capacity in the U.S. to support critical Department of War missile programs, including the Patriot Missile System Program. It's very important that we highlight this because there's a significant need for much more C2B fabric capacity. So it's very important that this additional capacity be installed to support these programs as they ramp up aggressively.

Management: Let's go on to slide 32. So we've referenced the Patriot missile system. I already explained this a little bit. It's a very high-profile, well-known, numerous other critical missile programs currently in production or in development, which PARCC is actively supporting. Unfortunately, many of these programs are too confidential or sensitive for us to identify

at this time.

But please understand that certain of these programs represent very significant revenue opportunities for PARCC over long periods of time.

Management: So last thing on war and peace, how about the U.S. defense industry's new world order? We talked about this a little bit. President Trump wants to increase the U.S. defense budget to $1.5 trillion, with a T, in order to build our dream military. So this is a two-edged sword for the defense industry. What is it? Somebody give us and take us away. Here's to take us away. But according to President Trump, the defense industry needs to get its act together. So buybacks, dividends, no, why don't you invest in defense programs, CEO, even the CEO of pay limits.

Management: So there's been a real issue with the aerospace industry generally. programs getting um being not on time and not in budget and i think that the department of war doesn't really like that very much they're asking the defense industry to kind of get its act together well what do we think about the new world order we think it's great parkinson's is great it's wonderful flight 33 okay let's talk about our new plan sorry it's going on so long um I'm rushing as you probably can hear through this as quickly as I can.

Management: Park's new, major new composite materials manufacturing plant. So now we're going to give you a little bit more information about this new plant. We're planning to build a major new composite material manufacturing plant. The new plant is being designed to be fully functioning and integrated, a fully functioning, sorry, and integrated composite material manufacturing plant. It will include the following manufacturing lines, solution treating, hot melt film, hot melt tape, confidential manufacturing lines, and support equipment.

Management: The new plant will also include full production, lab facilities, office space storage, and freezer and ancillary equipment necessary to support all plant manufacturing activities and operations. So it's like a fully integrated plant with everything that's needed. The new plant is being designed to produce and support parks completely Composite materials product line, including film adhesives and lightning strike materials.

Management: Slide 34, the plant is not being designed currently anyway to produce our composite parts, structures, and assemblies. Plant size, it's getting pretty big, 120,000 square feet. This could change, but that's our current guesstimate on the plant size. When the plant is complete and operational, the new plant will approximately double parts current composite materials manufacturing capacity. So that's, you know, you can see why the plant is that big.

Management: When will the new plant be completed? Well, we have some internal discussion about that, maybe debate, but let's just say for now the second half of calendar 27, and when will it be operational? What do you mean by operational? Not fully ramped up, that means we're producing and selling some product, you know, some product that's been qualified for production and sale. Maybe second half of, let's say, calendar year 28 would be a target for when the plant will be operational.

Management: Estimated capital budget for new plant, approximately $50 million. What's the timing of the capital spend on the plant? Again, this is planning in flux. At this point, fiscal year 27, that's the coming fiscal year, probably 60% of that money. Fiscal year 28, maybe 30% of the money. Fiscal year 29, maybe 10% of the money. That's how the money will be going out the door.

Management: How will we fund the capital spend for the new plant? Well, with our cash, with our cash flow, and to some extent from the offering that we just announced, if that offering is successful. But is the new plant project dependent on the public offering discussed below? Absolutely not. We're doing this. There's no question about it. Nothing has to be decided. It's going to be done. We're just finishing the planning. It's not dependent on anything. It's something we're committed to doing for very good reasons for PARC and for our investors.

Management: Okay, let's go on to slide 35. Stolen a new plant. Where will the new plant be located? We have a finalist location in Midwest, but we're still waiting for approvals from local community, economic development. These things, for us, go much more slowly than we'd like. Why are we building this new plant? Well, that's obviously the $64,000 question or maybe the $50 million question. Our juggernauts, plural, you know, both our juggernauts we've talked about require it.

Management: Our long-term business and sales outlooks require it. Significant additional composite materials manufacturing capacity is required to support our juggernauts and long-term business and sales outlooks. And we're doing this to ensure we continue to have the manufacturing capacity needed for Park to be Park. So we're doing this to ensure Park is able to continue to be the company of yes, the can-do company, the yes-we-can company.

Management: So we're not looking to become a mill. We're not going to abandon how we got here, why we have the great, in my opinion, success we have, why we have more opportunities than we could ever handle. So it would be really foolish for us to abandon how we got there and become a mill company where, you know, we just run our factory like a mill and then somebody wants, a customer wants something, okay, we can help you out maybe a year from next month. I'm not exaggerating. That's really what happens in this industry. That's not for us.

Management: Let's go on to slide 36. What are our calling cards? Flexibility, responsive, that's an urgency. So we're doing this to ensure Parker's able to continue to do those things which got us here. It would be a very unfortunate mistake for us to abandon the things which got us here, a very bad mistake.

Management: So our new plan needs to be designed with being park in mind, meaning being flexible, being responsive, having urgency, saying, yes, we can. You need something, we're going to move everything around. We were just talking yesterday, maybe Friday, about whenever large customers, they want to move so many things around. If it was any other supplier, we'd say, well, sorry. We don't ever say sorry. Sure, we'll move everything around a lot. It requires us to juggle a lot. It requires production to juggle a lot. But that's what we do for a living, okay? And that's why we have the success that we have, in my opinion.

Management: When our new manufacturing plant is complete and fully operational, what will PARCC's total composite materials manufacturing capacity be? Well, you know, it's a question that isn't so easy to answer. It depends on how do you define manufacturing capacity. Park being park manufacturing capacity, that means run the business the way we want to run it so we have that maximum flexibility, responsiveness, and urgency. If we run a factory like a mill and just plant it six days a week, 24 hours a day, we could do that, but then our flexibility is almost nil.

Management: But park being park manufacturing capacity, maybe about $220 million. Park being park manufacturing capacity, but pushing it to some extent. Still being park, but pushing it to some extent. About $260 million. These are preliminary estimate numbers. We've been asked by a number of investors, please give us some help here. Please give us some perspective on the manufacturing capacity. The maximum sustainable manufacturing capacity, this is what we don't want, would be about $315 or $20 million. That's not what we want. So when you ask And we haven't asked what the manufacturing capacity is. We have to say, well, it depends what you mean by that.

Management: Let's go on to slide 37. And I just want to say these are numbers we're working on. We're doing a massive amount of work, you know, marking the guys on the expansion plan. So a lot of work has been done, but we're not quite finished with everything. And even after we're finished, things can move. You know, mix can change and things like that, which will affect capacity and sales.

Management: Slide 37. Parts long-term sales outlook for composite materials including film adhesive materials and lightning strike protection materials and so we got to say again what does this mean it's our numbers approximately 200 million 200 million okay but how is this outlook computed it's really important to understand what this means because it's not a forecast it's an outlook and this is how this outlook was computed With line items that are known items, these are known sales and known programs and known customers. There's no other category. There's all line items of known opportunities, known customers, known programs. That's how it's computed. That's what that outlook includes.

Management: What does it not include? So do you think that in the next three or four years, will there be no other opportunities like six months from now or a year from now or tomorrow? We'll get a call from an OEM about a program they want us to work on. My guess is it'll probably be tomorrow because we're getting so many opportunities. They're not including any of that, which we don't know what comes. So it's important you understand it's not a forecast. It's just an outlook, what methodology that we use.

Management: What are the high and low risks of the outlook? So I think we feel pretty confident about the line items in the forecast, but it's possible that that will, you know, either we're on those programs or we'll get in those programs. Those programs will be ours. But it's possible those programs won't pan out to the level that we're being told by our customers. You know, maybe they won't be as strong. Maybe it will take longer to ramp up. I don't know. It's possible. So there's risks on the low side.

Management: What about the high side? The high side is all those things we just talked about, things we don't know yet, that are definitely going to come. There's no way – we haven't provided another category in our forecast or outlook, rather, the way we computed it. Just things we know about.

Management: What's the target year for the outlook? Well, that's another controversial question internally. I think we're saying fiscal year 31, and I'll tell you I would say the end of fiscal year 31. Fiscal year 31 sounds like a long time from now, but it starts four years from now. That means for us to be able to be at that level, everything has to be ramped up. The plant would have to be fully built, the new plant, and qualified. All the programs have to be qualified. We'd have hired all the people, all the staffing, and we're fully ramped up. To me, to do that in four years, that's a little aggressive. That's why I think what we should think about to be a little more conservative is the end of fiscal 31, which is more like five years from now.

Management: It doesn't mean we want to be sales, but to be ramped up that level, probably I would think to be more conservative, we might want to think five years from now rather than four years from now. Thoughts about our ROI for parks investment in the new plant, $50 million. We're not going to go through what the bottom line impact is now, but, you know, you think about it. This year, what is $72 million of sales? We're talking about $200 million of sales, $50 million investment. You could probably do the math a little bit on your own. We've got some real smart investors. We're not going to go through that number now, but we think that the ROI would be extremely attractive that we wouldn't, we doubt any investor would ever have a problem with it.

Management: Let's go on to slide 38. Parks newly announced public offering. Just touching this quickly. Today, sorry it's going on so long. Today we filed a form S3 registration statement and prospective supplement with SEC for a $50 million at-the-market public offering of Park's common stock. What's the purpose of this offering and financing? Well, first of all, to replenish a portion of the $50 million that we plan to invest in our new composite plant, composite materials plant, that's part of it.

Management: But very importantly, to ensure that Park has the necessary funds to be in a position to take advantage of and exploit key opportunities currently being presented to PARCC and new key opportunities as they arise in the future. The availability of funds necessary to exploit key opportunities has been a key strategic advantage to PARCC. So, you know, you're probably thinking, well, can you give me an example? Yeah, I can give you an example. We talked about GE Aerospace, you know, how many hundreds of millions of dollars of business was represented. Well, remember what happened. GE said to us, it was GE at the time, not STE, yeah, we'll give you the LTA through 2029, but, Clark, we're concerned because your sole source qualified these programs. We want you to build a redundant factory. And then if you commit to doing that, we'll give it the LTA.

Management: And we said, sure, we'll do that. We didn't say sure, but we got to go see if we can get the money or go to banks. It would have been terrible. Because GE, if they're smart, would think, well, I don't know if we're going to get the money. Let's go talk to somebody else. That never happened. Because we said right there on the spot, yep, we'll do it. And we had the money to do it. It was about $20 million at a time. I think we believe if we had to do that plan now, it would probably be twice as much based on inflation.

Management: We are quite sure it is in Park's and our investors' very best interest for Park to be able to continue to exploit such opportunities as they arise in the future. Just a little interesting information. I don't know, footnote. You know where our last public offering was? It was, well, Martina found a tombstone in our office. It was March 6, 1996, 30 years ago. It was a $100 million convertible note offering that was converted to old equity, almost old equity. I think 96 of it was converted to equity. Underwriters were Needham, Robin Stevens, and Lehman, who we have until the last two.

Management: Anyway, just a little interesting history. Sorry to go on for so long, everybody, but operator, we have to take any questions

at this time to the extent there are any.

Operator: Thank you. We will now be conducting a question and answer session.

Operator: If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up their handset before pressing the star keys.

Operator: And again, if you have any questions, you may press star, then the number one on your telephone keypad to join the queue and ask a question.

Operator: And it looks like we have no questions

at this time.

Therefore, I'll turn the floor back over to Mr. Brian Shore for closing remarks.

Management: Thank you, Operator. Thank you, everybody, for listening. We apologize that the presentation went on so long. There's a lot to cover. Please feel free to give us a call if you have any follow-up questions. Some of the items I think we kind of skimmed over a little bit quickly, so feel free to give us a call. We'd be happy to help you out with any follow-up questions. Have a good day, and once again, Happy New Year. All the best to you and your family in 2026. Goodbye.

Operator: Thank you, and this concludes today's conference, and you may disconnect your lines

at this time.

Thank you for your participation.