[Management View]
The company reported quarterly sales of $16.94 million, with $4.4 million from C2B fabric sales. Management announced a major manufacturing expansion with an estimated capital budget of $35 million, driven by long-term demand expectations in defense and commercial aerospace markets. Cash and cash equivalents stood at $68.8 million at quarter-end, with anticipated outlays for expansion, stock buybacks, and an advance to ArianeGroup.

[Outlook]
Management expects EBITDA of $2.5 million to $3 million for Q1 FY2026 and $1.2 million in forecasted C2B sales. They anticipate tempered margins in Q1 FY2026. The company is engaged in discussions with two Asian conglomerates about a potential joint venture for aerospace pre-preg production.

[Financial Performance]
- Revenue: $16.94 million, with $4.4 million from C2B fabric sales.
- Gross Margin: 29.3%, positively influenced by strong production performance.
- Adjusted EBITDA: Within the forecast range of $3.3 million to $3.9 million.
- Inventory Position: Finished goods inventory rebounded by $1 million compared to Q3.
- C2B Fabric Demand: $7.5 million in C2B fabric sales for the year.
- Production Outpaced Sales: Production exceeded sales by $1.4 million, adding an estimated $350,000 to bottom-line results.

[Q&A Highlights]

Question 1: With regard to tariffs, how might they play out in terms of airlines and Airbus?
Answer: It is difficult to predict, but the economic global need suggests that these issues will be sorted out eventually. The company has been proactive in updating order confirmations and quotes to mitigate tariff impacts.

Question 2: Have supply chain issues for engine components mostly resolved themselves?
Answer: Supply chain issues, particularly with engine companies, remain a challenge. Airbus is building airplanes without engines, but there is optimism that these issues will be resolved in the second half of the year.

Question 3: What are the biggest obstacles to the juggernaut occurring?
Answer: The juggernaut is expected to happen, but the timing is uncertain. Supply chain issues and production delays are the main obstacles.

Question 4: Is the company confident in its major expansion plans despite the juggernaut's uncertain timing?
Answer: Yes, the company is planning for the long term and believes it is necessary to invest in capacity now to be ready for future demand.

[Sentiment Analysis]
The tone of the management was optimistic and forward-looking, emphasizing long-term planning and strategic investments. Analysts' questions reflected concerns about tariffs, supply chain issues, and the timing of the juggernaut, but there was a general sense of optimism about the company's future.

[Quarterly Comparison]
| Metric | Q4 2025 | Q3 2025 |
|-------------------------|-----------------|-----------------|
| Revenue | $16.94 million | $15.5-$16.3 million (estimate) |
| Gross Margin | 29.3% | Not specified |
| Adjusted EBITDA | $3.3-$3.9 million (estimate) | $3.3-$3.9 million (estimate) |
| Finished Goods Inventory| +$1 million | Not specified |
| C2B Fabric Sales | $4.4 million | Not specified |

[Risks and Concerns]
- Tariff impacts and international trade conflicts.
- Supply chain issues, particularly with engine components.
- Timing and execution of the juggernaut.
- Challenges in recruiting additional employees for the new manufacturing expansion.

[Final Takeaway]
Park Aerospace is making significant strategic investments to expand its manufacturing capacity, driven by long-term demand expectations in the defense and commercial aerospace markets. Despite current challenges such as tariffs and supply chain issues, the company remains optimistic about its future growth and is planning for the long term. The management's proactive approach and commitment to strategic investments position the company well to capitalize on future opportunities.