Good afternoon. My name is Vaughan, and I will be your conference operator for today. I would like to welcome everyone to the Park Aerospace Corp. Second Quarter Fiscal Year 2026 Earnings Release Conference Call and Investor Presentation. At this time, I will turn today's call over to Mr. Brian Shore, Chairman and Chief Executive Officer. Mr. Shore, you may begin your conference.

Thank you, operator. This is Brian. Welcome, everyone, to the Park Aerospace Fiscal '26 Second Quarter Investor Conference Call. Joining me, as usual, is Mark Esquivel, our President and COO. We announced earnings right after the close, and in the earnings release, you'll find instructions on how to access the presentation we'll be discussing. It would be beneficial for you to have the presentation in front of you as we go through it. We’ve welcomed quite a few new investors this past quarter, and in consideration of them, we’ll review some legacy items more thoroughly than we typically do. Veteran investors, I ask for your patience. Additionally, I want to mention that I had some unplanned oral surgery on Tuesday and I'm not feeling my best, so I appreciate your understanding. If necessary, Mark will step in. We will take questions at the end of the presentation, and we encourage you to ask them. Your questions are valuable as they provide insight into what you're interested in and thinking about. Let's get started with the presentation. Slide 2 contains our forward-looking disclaimer, which we won’t go through, but feel free to ask any questions about it. Slide 3 is the table of contents. On Slide 1, you’ll find our Q2 investor presentation. We will not discuss Appendix 1, which contains supplementary financial information, but let us know if you have questions about it. It has become customary to feature the James Webb Space Telescope in our contents. The telescope has discovered cosmic dust that challenges existing beliefs about the universe and its origins, reminding us that our understanding may not always be correct. Moving to Slide 4, let's review our quarterly results. In the second quarter, we reported sales of $16.381 million, with a gross profit of $5.116 million and a gross margin of 31.2%. We're pleased to see gross margins above 30%. Our adjusted EBITDA was $3.401 million, resulting in an adjusted EBITDA margin of 20.8%. During our Q1 call, we estimated sales for Q2 to be between $15 million and $16 million, and we slightly exceeded that. Our EBITDA estimate was between $3 million and $3.4 million, and we landed at the higher end of that range. I want to clarify for our new investors that this is not guidance; we simply offer our best estimate, which may not always be correct. Let's proceed to Slide 5, where we will address Q2 considerations, particularly our partnership with ArianeGroup, a significant aerospace company in France, a joint venture between Airbus and Safran. We’ve been working with them for 20 years and they appointed us exclusive distributor of their RAYCARB C2B fabric in January '22. In Q2, we sold $1.65 million of this fabric. We supply it to our defense industry customers with a small markup. These customers are stockpiling the C2B, so while we sell it, we keep it at our facility until the OEMs request prepreg production. The margin on the fabric is lower, and in Q2, we also sold $415,000 worth of ablative materials manufactured with C2B fabric, which has much better margins. However, the higher volume of fabric sales compared to the materials will negatively affect our overall margins. Typically, you would expect a sales ratio of 40% materials to 60% fabric, but currently, we see a different balance due to OEM stockpiling. Now, let’s move to Slide 6, where we’ll discuss the requalification of C2B fabric by one of Park’s key customers, an important topic over the last few quarters. Mark, could you provide some insight on that?

Yes, we actually do have an update this time. In previous calls, we mentioned we were waiting for approval. We have received approval, though it’s not complete. We currently have approval for about 90% of the specifications. There’s a requirement within the specifications that includes a lower and upper range, and we are now closer to the commercial specification, allowing us to resume production at over 90% of our capacity. Right now, the team is testing the remaining 10%, which is expected to take another 9 to 12 months. We will keep you informed about when we receive that final approval. But in terms of the program, we are back in action and operating at normal typical rates, similar to those before the recall issue arose. We actually anticipate some positive developments in the upcoming quarters, and Brian will share more details about that. Overall, the message is that we are essentially back to normal operations.

Thank you, Mark. Let's discuss production compared to sales. This has been a concern in previous quarters due to its effects on profitability. In Q2, our sales value of production, which we refer to as SVP, aligns well with our sales, which is positive. This indicates no significant effect on our bottom line. When sales surpass production significantly, it negatively impacts profitability, but that was not the case in Q2. Additionally, we should mention the ongoing substantial expenses we've been highlighting in recent presentations, which are not likely to diminish soon. We operated our new manufacturing facility in Q2 among other costs, which are considerable. Therefore, a gross margin of over 31% is actually quite respectable, given the two main factors that are constraining it: costs associated with the new facility and an overproduction of C2B fabric compared to C2B material sales. We've seen a surprising increase in total missed shipments amounting to $510,000. Unlike previous quarters where international shipment issues were the cause, this time the delays stem from customer certification and testing, which is a different situation. Such delays occasionally occur and are beyond our control. They affect the timeline for certification, engineering, and testing. Moving on to tariffs and related costs, the net impact in Q2 was minimal after accounting for the pass-through of tariff expenses. The future ramifications will be discussed later with Mark's input. On Slide 8, we have our usual top five clients: GKN, Kratos, MRAS, TexTech, and Nordam. While TexTech is relatively new for us, the others are consistent partners. Nordam is involved in the Global 7500, MRAS handles the A321XLR, Kratos remains Kratos, and GKN is tied to the 787 Dreamliner connected to the GEnx-1B engine. Slide 9 shows our estimated revenues by aerospace market segments in pie charts. Fiscal year 2021, marked by the pandemic, displayed minimal commercial aircraft activity, which has since stabilized. It will be interesting to observe how the segments evolve, with commercial aviation expected to grow alongside military programs, while the business segment may reduce its share. Moving to Slide 10 regarding niche military aerospace programs, we highlight areas such as radomes, missile systems, and unmanned aircraft, all of which are our focus markets. We’ve shifted our terminology from rocket nozzles to missile systems as we provide more than just those components. We've also adopted the term unmanned aircraft instead of drones for appropriateness. We won't delve deeply into these programs beyond acknowledging that any images presented signify our involvement, not just their appeal. Now onto Slide 11, which covers GE Aerospace Jet Engine Programs. This is a regular presentation, but for new investors, here's a brief overview: we have a firm LTA requirements contract for 2019 to 2029 with MRAS, a subsidiary of ST Engineering Aerospace, for composite materials across several GE engine programs. Our involvement with these GE Aviation programs predates 2019, stemming from earlier LTAs before GE Aerospace took over. Approximately five years ago, GE divested MRAS to ST Engineering, a prominent aerospace firm in Singapore. Additionally, in 2019, GE requested that we address redundancy concerns by constructing another factory, which we have accomplished. I won't elaborate on all individual programs now, except to mention that the first five relate directly to the A320neo family of aircraft. Do you have any questions about the specific programs, let us know. Let's move on to Slide 12. The first item on Slide 12 continues from the previous slide, but this is a different component. This is part of our GE Aerospace LTA, not the MRAS LTA. The Fan Case is for the GE9X engine used in the 777X airplane and is produced with our AFP material and other composite materials through automated fiber placement, which is a robotic method for producing composite structures. This is planned to be included in the Life of Program MRAS agreement. Next, we had a 6.5% weighted average price increase in our MRAS LTA effective January 1, which was already accounted for in the LTA long ago. Additionally, the Park MRAS LTA was amended to incorporate three proprietary film adhesive formulation products, which are currently undergoing qualification. There's a Life of Program agreement requested by MRAS and STE, and we are still in negotiations. A meeting is being planned for next month to discuss this further. As I've mentioned before, we're fine with either outcome. STE and MRAS want the stability of a long-term supply, but we're okay regardless of whether we finalize this agreement or not. The negotiations have been ongoing, and we expect to have further discussions in November. Moving to Slide 13, let's discuss updates on some of the GE Aerospace Jet Engine Programs, including the A320neo family. This is an excellent program that Park is qualifying as the sole source. Airbus has a substantial backlog of over 7,000 of these airplanes. Looking at the A320neo family aircraft deliveries, while they average 44 this year, it's important not to be misled as they typically ramp up production significantly in the last quarter. For example, in September, Airbus increased their delivery to 59 A320neo family aircraft. Let's keep going. Continuing on slide 14, the engine supply bottleneck is a significant issue caused by supply chain restrictions, which is hindering Airbus from reaching their target of 75 aircraft per month. CFM has the LEAP-1A engine, which is reportedly improving, and that focus by GE and CFM is positive since it's a major limitation to Airbus’ ramp-up capability. Airbus could be closer to those delivery rates based on existing orders. As mentioned, Airbus aims to deliver 75 A320neo family aircraft monthly but is currently at 50 to 55, indicating they have a considerable journey ahead. There are two approved engines for the A320neo, with us being involved in the CFM LEAP-1A engine while we don't supply any content for the Pratt & Whitney GTF engine. This addresses the second bullet item. We supply to the A320 family using the LEAP-1A engine. According to the second quarter 2025 edition of Aero Engine News, the CFM LEAP-1A holds a market share of 64.7% compared to Pratt for firm engine orders of the A320neo family. This market share translates into 1,165 LEAP engines per year if Airbus reaches a delivery rate of 75 A320neo aircraft per month, translating into substantial revenue for Park. As of June 30, 2025, there were over 8,000 firm LEAP-1A engine orders, which we are sole source qualified for. For a closer look at our revenue per unit, refer to slide 29 and calculate the numbers for yourself. These are the confirmed orders we currently have, making it significant for Park. The Airbus A321XLR is a recent variant of the A320 family and is expected to impact air travel due to its payload and range, allowing it to compete with wide-body aircraft at a lower cost. Major airlines like Qantas, American Airlines, and Iberia Airlines are adopting this model, calling it a game changer. What stands out is that they report almost no aircraft on ground after nearly a year, which is quite rare since new designs typically encounter initial bugs that keep them grounded. Normally, there's a period where an aircraft is not profitable for airlines, but the reports of minimal AOGs for this plane are impressive. Boeing has not responded to this aircraft. Let's go on to Slide 16. Airbus is set to open new final assembly lines for the A320 family in the U.S. and China this month, which, combined with existing lines in Germany and France, will support their goal of delivering 75 A320neo aircraft per month by 2027. This is significant as it shows Airbus is investing heavily this year. The two new assembly lines are important developments. Additionally, on October 7, which coincidentally is the day of my oral surgery, the A320 aircraft family became the most delivered commercial jet in history, surpassing the 737 family. This includes all variants of the 737, not just the MAX. In other news, the Chinese-made Comac 919 aircraft, which is designed to compete with the 737 and A320, is aiming for 30 deliveries in 2025, although unverified reports suggest they may not meet this target, which does not surprise me. Malaysian Airlines and AirAsia are in advanced talks to purchase these aircraft. This is noteworthy because it involves a non-Chinese airline, indicating Comac's willingness to penetrate markets outside China, even though the aircraft must be certified by the FAA and the European Aviation Authority. Moving on to Slide 17, Comac aims for a reduction rate of 200 airplanes by 2029 and claims to have over 100,000 orders for their aircraft. The Comac 919 has only one engine option, the LEAP engine. Regarding the Boeing 777X, the test program has seen over 1,500 test flights and nearly 4,100 flight hours, which is a positive sign. This picture was taken a few years ago during cold weather testing in Fairbanks. Moving to Slide 18, Boeing reportedly has 565 open orders for the 777X. While Boeing initially targeted certification for late 2025 and entry into service in 2026, the CEO recently remarked that the certification process is behind schedule due to increased scrutiny from the FAA, suggesting some tension between the two. A key requirement for certification is obtaining the type inspection authorization from the FAA. While Boeing can conduct flights as part of the certification program, those do not count toward the final certification until the TIA is received. Boeing has not set new timelines for certification and entry into service, but speculation indicates they might be pushed into next year or 2026. Let's talk about the overall sales history and forecast estimates for the GE Aerospace jet engine program. In Q2, we recorded $7.5 million, which is slightly above our Q1 forecast of $6.7 million to $7.2 million. For Q3, we estimate sales between $7.5 million and $8 million, and for the entire year, we're looking at $27.5 million to $29 million. Previously, we had estimated $28 million to $32 million for the year based on our customer's forecast, but we now believe, based on our backlog for Q3 and Q4, that our forecast should be $27.5 million to $29 million. Q3 bookings are already secured, and Q4 is partially booked with expectations for additional bookings based on our experience. Moving on to financial performance, our Q3 financial forecast estimates sales at $16.5 million to $17.5 million, with adjusted EBITDA of $3.7 million to $4.1 million. In previous quarters, we've shown our history of growth, with annual revenue increases until recent stagnation largely due to the pandemic's impact on commercial aerospace. While we’re not providing a detailed forecast for fiscal '26, we estimate it will exceed $70 million. We're observing a positive shift in industry attitudes toward ramping up production and working collaboratively with suppliers, indicating significant changes in the market. Regarding our partnership with Ariane, we entered a business partner agreement in January '22, appointing us as the exclusive North American distributor. Earlier this year, we agreed to advance approximately EUR 4.6 million for future purchases of C2B fabric, which will help Ariane invest in new manufacturing equipment. This fund will be released in three installments; the first one has been paid. This agreement aims to boost C2B fabric manufacturing capacity in response to rising demand, especially for programs like the Patriot missile. ArianeGroup has proposed a study on increasing C2B fabric manufacturing capacity in the U.S., splitting costs of about EUR 700,000, which will reflect on our Q3 as a special item. In product updates, our lightning strike protection material has been certified for use on the Passport 20 engine, expecting annual revenue of about $500,000. This material is already approved for the A320 and 919, and we are in the process of obtaining approval for the Passport 20 engine and the 10A engine for the Comac 909, with revenues anticipated to start soon. Slide 24, still updates. This is just something we covered already. We entered into an LTA with GE Aerospace and for calendar years '25 to '30. Park and then another update, Park's discussion with 2 Asian industrial conglomerates relating to Asian manufacturing joint ventures continue. We've been talking about this for a while. John Jamieson is in Asia now working on this project along with one of our other guys. So we'll see what happens. It seems interesting, but we'll see what happens. Okay, Mark, your turn. Tariff international trade issues, what's the expected impact of tariffs going forward, do you think?

I don't think much. I know this quarter alone, we had about $1,700, which we don't like to take on any additional cost, but that was mostly non-material items. So going forward, again, as I mentioned before, we got ahead of this pretty early. We put controls in place to manage it. We're passing that cost along to our customers, whether it's through contracts or stuff like our POs or stuff like that or order confirmation. So I don't expect to see much. I mean it's obviously a dynamic situation. I don't think all the tariffs are completely locked in. It's been a little quiet in the news lately. But where we're at today and what we've seen so far, it's very minimal impact to our business.

Okay. Thanks, Mark. So let's keep going here. Current MRAS supplier scorecard scores, what happened? We don't have all hundreds here. Why not all 100s? Does MRAS still love us? I think they do. I think I mentioned to you in prior quarters that we're told that most suppliers would be happy to get 80s. And MRAS finds a little bit numerous that we ask, well, what happened and what do we need to do to fix this issue, let's call it a technical issue in terms of how we recorded something. So we take it seriously. We're a 100 company. We're not a 99.87 company, so that company rather. So we take it seriously. And like I said, MRAS, I think finds it a little amusing that we spend so much time talking about why we didn't get 100 on one of these 3 scores. Let's go on to Slide 25. So making customers love us, this is still in our general updates is central to what we call Park's Egg Strategy. How do we make our customers love us with our calling cards of flexibility, urgency, and responsiveness by asking how high before our customers say jump? And we're not kidding about this. We will go to customers and say, what else can we do? What else can we do? What else can we do before they even ask us? Making customers love us is a boiler room thing, not a boardroom thing. And the board is on board with the strategy. We've certainly reviewed it with the board. But the strategy happens on the factory floor, not in the boardroom. That's where the rubber hits the road. It's up to all our people to make the strategy work. It's a boiler room thing. So first for this strategy to work, all of our people need to be bought into it and feel passionate about it. Making customers love us is the secret to our success. It's a hidden plain sight secret. Sometimes the most brilliant ideas are the most obvious ones with the benefit of hindsight and well, why did I think of that? I don't know. Why didn't you think of it? So the secret is kind of hidden plain sight, but it's a secret to our success. In the last two quarters, we did not buy any shares, and we haven't made any purchases in the current third quarter either. It's likely that we won't be buying many shares in the near future, but that remains to be seen. Moving onto our balance sheet, we don't have any long-term debt and reported $61.6 million in cash and marketable securities at the end of Q2, after making a $4.9 million tax payment. In Q1, we had $65.6 million in cash, so the difference explains our current cash position. We've maintained 40 consecutive years of cash dividends, paying over $606 million or $29.60 per share since fiscal 2005. The image of Park Founders reminds us that we started with just $40,000 in savings and have now paid out over $600 million in dividends over the last two decades. Regarding GE Aerospace jet engine programs, we previously discussed this information, and the outlook remains unchanged. Production ramp-up for the 919 is slower than expected, and the 777X certification is facing challenges, but we are confident in the overall progress. It's vital for us to be prepared as we anticipate significant demand in this area. The slides related to missile systems show there is unprecedented demand due to stockpile depletion from ongoing conflicts. The Pentagon is urging defense manufacturers to significantly increase missile production to address this urgent need, especially in light of potential tensions with China. The programs of interest include the PAC-3, LRASM, SM-6, and particularly the Patriot missile system, all of which Park is participating in. We reviewed an update on the PAC-3 Patriot missile system. This topic has received a lot of public attention, and while there are other significant programs we're involved in, we cannot disclose specifics about those. The largest deployment of PAC-3 Patriot missile systems happened in response to Iran's ballistic missile strikes on our air base in Qatar. In anticipation of these events, we moved Patriot systems to Qatar from South Korea and Japan, aware of what was expected. This constant movement of systems isn't sustainable. The Department of War wants to greatly increase the stockpiles of Patriot missiles in Asia to protect bases and allies in the Pacific region. However, the current situation is problematic. We removed missile systems from South Korea and Japan to address issues with Iran, which has depleted their stock when the Department of War is looking to boost Patriot stocks in Asia. It's quite clear where the issue lies. Publicly, the supply of Patriot missile systems to Israel and Ukraine has been severely reduced, and other nations have awaited deliveries for years. On September 3, 2025, Lockheed's Missile and Fire Control Division received a historic $9.8 billion contract from the U.S. Army for 1,970 Patriot missiles. According to the Wall Street Journal, the Department of War is urging suppliers to ramp up production to about 2,000 Patriot missiles annually, nearly four times the current rate. We did mention increasing production on a prior slide, reinforcing our commitment to the quadruple output target. Moving on to Slide 33, the plan is to integrate Patriot missile systems into the Golden Dome framework. Reports indicate that the U.S. intends to do more than just replenish depleted systems. Additionally, Park supports the Patriot missile system with specialty ablative materials made in Ariane’s C2B fabric, and we are sole-source qualified for these materials within this program. The projected 2,000 missiles per year represent significant revenue for Park, and since we're sole-source qualified, this could be quite beneficial. Returning to Slide 33, Park has recently been instructed to significantly increase our output of specialty ablative materials. While we can't disclose the specifics, it's a considerable increase. We intend to fully support this request with additional manufacturing capacity from our major facility expansion, which we’ll cover in detail later. It's also worth mentioning that Park has entered into a new agreement with Ariane to enhance C2B fabric manufacturing capacity. Looking at Slide 34, the vital question remains: Is this additional capacity sufficient given the demand for the Patriot missile? My answer is no; it may not be enough. As previously mentioned, Park is collaborating with ArianeGroup on a study to significantly boost C2B fabric production, likely within the U.S. This partnership is crucial. Once this study concludes, which I believe is just a starting point for our collaboration, we will continue to see significant developments. We briefly covered the Arrow 3 and 4 missile systems previously, so I won’t dwell on those. Lastly, in terms of Park's involvement, we were second source qualified for the Arrow 3 and unexpectedly received orders. For Arrow 4, we are sole-source qualified, and production is expected to begin soon. Let's move on to Slide 35, which is likely the most crucial slide in this section of the presentation. The missile programs mentioned above represent only a fraction of the significant missile initiatives that Park is either currently supporting or planning to support. There are too many programs to detail here, and many, if not most, are too sensitive to disclose for national security or other reasons. However, it’s important to note that some of these programs could generate substantial revenue for Park over extended periods. While we wish we could discuss these programs with you, we are unable to do so. Next, let's proceed to Slide 36 for a major expansion update. I understand we're short on time, but there's a lot to discuss, especially for our new investors, so we can't rush through it. We're planning a significant expansion of our manufacturing facilities, which could take place in Newton or another location. This expansion will encompass several manufacturing lines, including Solution Treating, Hot Melt film, Hot Melt tape, and Hypersonic materials manufacturing. The current estimated budget for the new manufacturing equipment is between $40 million and $45 million, which has increased from our previous estimate of $30 million to $35 million. The reason for the increase is due to the need for an additional line, adding an extra $5 million because the requirements are continually rising. Continuing on Slide 37, we are moving forward with this major expansion of Park's manufacturing capabilities. The demand from our key partners like GE Aerospace and our involvement in defense and missile programs necessitate this expansion. Additionally, our long-term business forecast has improved since our last discussion on July 15. It's vital for Park to have the manufacturing capacity to embody our core principles of flexibility, responsiveness, and urgency. We do not operate like a mill, where fulfilling requests might take a year. Our business thrives on urgency, responsiveness, and flexibility. Thus, it would be unwise for Park to disregard these principles that have contributed to our success. It's essential for us to have the manufacturing capacity needed to maintain our identity and effectiveness. Lastly, I want to emphasize that the necessity for this major expansion is unquestionable. Let's proceed to the next slide. We are continuing our expansion efforts. While we're not providing a long-term business forecast right now, it's clear that the opportunities for Park are substantial. The time to act is now; we cannot delay or we risk missing these exceptional opportunities that we've worked hard over the years to create. Recently, during a Board meeting, Mark discussed certain missile programs and referred to them as once-in-a-lifetime opportunities. This caught the Board's attention, as they recognized that Mark tends to be cautious and rarely exaggerates. If he says it's significant, it must be important. Our goal is to finalize our expansion plan by the end of the year and begin implementing it. Changing topics, let's discuss Park's objectives, as it's crucial to understand how we gauge our success. We aim to become qualified and sole source qualified on selected special aerospace programs. These are the key projects we want to engage in, and achieving qualification on them signifies our success. Once we are qualified, our focus shifts to supporting these programs with urgency, flexibility, and responsiveness. Beyond that, it is up to the original equipment manufacturers to decide how swiftly their projects progress. We do not control that aspect, nor is it our primary concern. Our goal has been met once we're part of these programs. There has been some misunderstanding regarding our operations, particularly accusations of shifting blame, which is not accurate. Once we achieve sole source qualification, we have met our objectives. Reflecting on our progress, I believe we have been remarkably successful. We've engaged in exciting aerospace programs that align with our strategy, many of which we cannot disclose. Some you may already know, like the A320 and the Patriot program, among others. We entered the aerospace industry with no recognition and faced significant obstacles. Our competitors did not welcome us, despite their polite demeanor. We achieved remarkable success by securing coveted programs in an industry where many are complacent. We believe this success is a result of our hard work rather than luck. It has been a challenging journey filled with sacrifices, but it was a path we chose. Fortunately, Park had the courage to adhere to our principles and our straightforward 'Egg Strategy' despite skepticism and pressure. If we hadn't held our ground, we wouldn't be in our current position, nor would we have the extraordinary opportunities we see today. At Park, we have effectively positioned our company to capitalize on these unique opportunities during these unprecedented times. Now, we are ready to take any questions.

I see we have a question coming from Nick Ripostella from NR Management.

Once again, great presentation and a solid quarter. I have a couple of straightforward questions. I've been considering Park and all the exciting developments. How do you assess the need for additional sales personnel? Do you believe your current team is sufficient? With so much happening, I'm just curious if you're adequately covered in that area. Secondly, I know you mentioned that you are not ready to provide a long-term forecast at this moment. Do you think you might be able to share a longer-term perspective on the company's potential in 3 to 5 years sometime next year? There are numerous promising initiatives underway, and you truly are a growth company. Lastly, while I understand this isn't your main focus, do you think firms are taking notice of you for potential research coverage? There is a lot of research available from niche firms, and your story is impressive. I was just wondering if there have been any developments in that area?

Thank you, Nick, for your questions. Let's address them one by one. Regarding additional salespeople, Mark, feel free to add your thoughts. Over the past 20 years, we've gained valuable insights, and our perspective on salespeople is somewhat cautious. We prefer to have more technical and engineering personnel to drive business growth. You're right, Nick, our current workload is substantial, but we are always open to new opportunities, which are emerging rapidly. However, these opportunities aren't a result of salespeople; they arise because we operate in a niche industry, especially on the defense side, where we maintain strong relationships with many OEMs and military contacts. Information spreads quickly in our sector. It's essential for us to have engineering expertise to back these activities, rather than relying on salespeople to secure the business. I'm not convinced that typical OEMs are particularly swayed by a smooth-talking salesman or someone just bringing treats. They are more focused on what we can offer and how we can assist them, which usually leads to engineering or supply chain discussions about our ability to deliver products. I'm somewhat skeptical about the idea of hiring more salespeople at this moment. Mark, if you have anything to add, please jump in. I will address the other two questions afterward.

Yes, Brian, I think you're correct. I mean we work really close with the technical and engineering folks and it kind of goes back to our strategy too, they have priorities and they need to get projects done. And we work directly with them and help them develop new programs, new products, and that really helps us get business more so than the traditional, like you said Brian, going to the supply chain people, bringing doughnuts. It’s a little different in our industry. It’s more technical, more engineering-driven. And if you're satisfying those groups, that's how the business usually comes our way.

Yes, I believe we often receive inquiries rather than actively seeking them out. It's a closely-knit industry, and clients know how to reach us. I understand your interest in our long-term forecast. In Q3, we plan to share some information, although I am somewhat hesitant because I anticipate the figure may surprise our investors.

I'm a little reluctant because I think the number is going to be shocking to our investors.

Yes. Okay. Well, let’s see what we can do to give you more perspective, quantitative perspective when we announce Q3, okay? Would that be right? And we’ll work on that. I’m not saying we’ll give you a hard like 3- or 4-year forecast, but there's something that you could sink your teeth into a little bit more. And the research, we’re here. I mean, we're nowhere to find us. We’d be happy to be covered. Like you said, Nick, not really our principal focus, but we’d be happy to be covered. And if anybody is interested, I’m happy to talk to them. I think we are seeing a lot more visibility in the last few months or so. So we’ll see what happens. I don’t believe there’s anything imminent where somebody is about to pick us up right now, but we’re very open to being covered. So hopefully, those…

When the revenue doubles from here, then they'll come around. That's the way it happens a lot.

Maybe. Yes, maybe you're right. Any other questions you have, Nick? Or is that covered it?

No, thank you so much. It’s great to see that all the hard work has paid off after the last quarter, and it’s encouraging to see that effort recognized in the stock's value. This must make all the employees feel good, as well as the investors. So, thank you.

It's a good thing. Thank you very much for your input, Nick. Operator, do we have any other questions?

Currently, there are no further questions at this time. I actually see one just popping in by Chris Showers, private investor.

Brian, just, I guess, 2 questions. You mentioned the C2B material being a 60%-40% lower to higher margin mix. When the Patriot missile gets ramped up, will that be constant? Or can you get a higher mix there with the higher revenue converted material?

I'll answer that. What's happening is they're stockpiling a lot. That's why the ratio isn't balanced right now. Ultimately, there will be a specific amount of C2B fabric needed to produce the C2B material, and everything has to balance out eventually. Currently, the OEMs are stockpiling because they're anxious. They want to secure as much as they can because they foresee future demand. They won't stop stockpiling anytime soon. However, the goal is not to have that material just sitting in our factory; it's intended for producing the materials needed for the rocket nozzle structures of the Patriot missile system.

Okay. And is there timing on that, where you think that might pick up this calendar year?

Yes, as Mark mentioned, we faced a recall issue that hindered our production of C2B materials. That recall is now nearly complete, so we expect improvements in the coming quarters, possibly even this quarter. In the aerospace sector, demand is strong, but the supply chain isn't able to respond quickly. While we can ramp up production, there are many steps in the supply chain that need to align. For instance, we could support 75 A320 aircraft per month if necessary, and I'm confident Airbus would like to reach that level. However, the supply chain is the limiting factor. Do you have another question, Chris?

No.

Good. Okay. Operator, anything else right now?

There are no further questions at this time. I would like to turn the floor back over to Mr. Shore for any closing comments.

Okay. Well, Brian again here. Thank you very much for listening in. Sorry, the call went so long. If you have any other questions, you want to call us any time, we're happy to talk to you. Have a great day. Thank you. Bye.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines, and have a wonderful day.