What Park Aerospace Corp. told the SEC could break it.

Park Aerospace's revenue is highly concentrated: in fiscal 2026 about 39.3% of total worldwide net sales were to affiliate and non-affiliate subtier suppliers of GE Aerospace (a leading aerospace-engine maker) and 11.7% to Aerojet Rocketdyne, while its ten largest customers accounted for ~71% of net sales (up from 66% and 64%); the loss of a major customer or customer group — especially the GE Aerospace supply chain — could have a material adverse effect on its business and results.

“the Company's ten largest customers accounted for approximately 71%, 66%, and 64%, respectively, of net sales.”

Park is subject to fluctuations in the cost of raw materials used to manufacture its products, including market fluctuations in commodity pricing on certain key materials, and increasing raw-material costs that it may be unable to fully pass through to customers (which would compress margins); demand is also tied to the cyclical aerospace industry (military and civil aircraft, space and rocket motors), so commodity-cost spikes combined with an aerospace downturn could materially affect results.

“Commodities Risk – The Company is subject to fluctuations in the cost of raw materials used to manufacture its materials and products. In particular, the Company is exposed to market fluctuations in commodity pricing as the Company utilizes certain materials that are key materials in certain of its”

Park's composite materials are used in FAA-certified aircraft and in defense rocket-motor materials for U.S. prime contractors, subjecting it to FAA qualification/certification requirements and to import/export controls (its materials are sold internationally), tariffs, duties and trade conflicts that could raise costs or reduce demand; it is also named, with certain subsidiaries, as a potentially responsible party under the federal Superfund Act and similar state laws at three sites, where joint-and-several cleanup liability could result in substantial additional costs.

“Other geopolitical risks include political and economic instability and disruptions, restrictions on the transfer of funds, trade conflicts and the imposition of duties, tariffs, and similar government charges, as well as import and export controls.”

Park depends on a limited number of qualified suppliers for the principal materials used to manufacture aerospace composite materials and structures; while it has qualified alternate sources for many raw materials, certain raw materials are produced by only one supplier, substitutes are not always readily available (and there have been past market shortages), and the FAA qualification/certification of aerospace composite materials imposes specific raw-material-supply requirements that restrict its flexibility to qualify alternative sources — so a single/sole-source supplier disruption could halt production of FAA-certified products.

“There are a limited number of qualified suppliers of the principal materials used by the Company in its manufacture of aerospace composite materials and composite structures and assemblies. The Company has qualified alternate sources of supply for many, but not all, of its raw materials, but certain raw materials are produced by only one supplier.”