Prepared remarks
Good afternoon. My name is Matt, and I will be your conference operator today. I would like to welcome everyone to the Park Aerospace Corp. Second Quarter Fiscal Year 2025 Earnings Release Conference Call and Investor Presentation. All lines have been muted to avoid background noise. After the speakers' remarks, there will be a question-and-answer session. I will now turn the conference over to Mr. Brian Shore, Chairman and Chief Executive Officer. Thank you. You may begin.
Thank you, operator. Hello. This is Brian. Welcome to our fiscal ‘25 second quarter investor conference call. Nice to have you on-board. With us today are Matt Farabaugh, our CFO; and also Mark Esquivel, President and COO. Well, we announced our earnings through news release right after the market close. If you don't have that, you want to get access to that because in the earnings release, there's also instructions as to how you can access the presentation that we're about to go through. The presentation is also on our website. You want to have that up in order for the discussion to be more meaningful. After we're done, as the operator told you already, we will go through the presentation. We'll be happy to answer questions. So why don't we go and get started? Why don’t we go to Slide 2, our forward-looking disclaimer info. Let’s know if you have any questions about the forward-looking disclaimer language.
Slide 3, our table of contents. Beginning in Slide 1, we have our investor presentation. Then we also have supplementary financial information attached as appendix one at the end of the presentation. We don't intend to discuss that at this time, but if you have any questions about the supplementary financial information, let us know. Here we have a picture, the clearest picture of Mercury Ever Taken. What a beautiful picture in my opinion. Thank you, James Webb Space Telescope, obviously taken by James Webb Space Telescope. And as many of you know, our proprietary Sigma Struts are incorporated into the structure of the James Webb Space Telescope. So that telescope has a special place in our hearts. Let's go on to Slide 4, the quarterly results. When we focus just on the right-hand column of Q2, $16,709,000 in sales, $4,757,000 in gross profit, $3,204,000 of EBITDA. Quickly, what did we say about our Q2 during our Q1 investor call?
We said the sales estimate was $15.9 million to $16.4 million, so we came in just a little tail above that. Adjusted EBITDA estimate, we gave you $3 million to $3.3 million, so we came in right within that range. Let's keep moving here, Slide 5, please. Continuing with quarterly results, for some considerations for Q2. There was approximately $2.2 million of ArianeGroup RAYCARB, C2B NG product sales during Q2 under Park's business partnership with ArianeGroup. We talked about this often. This is the fabric that we purchased from ArianeGroup for ablative programs and missile programs, and we then sell it to the OEM customers, turning around pretty quickly within a couple of weeks. Quite low margins; it's really a markup, but we always say, well, don't worry. These one when we actually produce the product and make the ablative materials, that's where the margins are quite good. But by comparison, there was only $750,000 of ablative material sales during Q2.
So you see the little bit of an imbalance there, much more emphasis on the low margin part of the equation, less emphasis on the higher margin. Eventually, it all comes through, of course. There were significant ongoing expenses in Q2 related to bringing Park's new production facility fully online, you know all about this, including expenses for depreciation. Let's just talk there with the asterisk, $1,260,000 per year of depreciation expense related to the new production facility. And this obviously does not affect EBITDA by definition. What it does affect is gross profit and gross margin, which had approximately 2% impact on the gross margin just from the depreciation. And if you look at the gross margin in Q2, what was it, I think, 28.5%, was that the number? Let me quickly make sure I'm telling you the right story, at 28.5%. We always say we don't like it under 30. Just the depreciation alone would bring it above 30.
But it's not just depreciation; results of this other stuff. There’s other stuff is also included in the EBITDA or affects EBITDA: facilities maintenance, utilities, insurance, other overhead expenses and expenses related to additional Park people, all related to the new facility. Additional expenses. I thought this was an accident or a problem. These are planned expenses. I just want you to understand that required to bring the new facility fully online in order to meet the needs of the coming Juggernaut, which I’ll describe later on in the presentation. So it's all part of the plan, but nevertheless, these items are going to hold down our P&L and our margins until that facility has ramped up. And right now it’s very underutilized, but we’re doing it intentionally because we need to get going with that facility, so we can meet the needs of the Juggernaut and not get behind the power curve.
Slide 6, total missed shipments in Q2, $600,000, that's not a great number. Caused by international shipment issues, supply chain, customers on-hold, other miscellaneous issues. Yes. So, the aerospace industry is not really a happy place right now, a little more difficult, a little more challenging for us. We got wars as well that are a factor, especially when you talk about international shipments. There was no impact though on Q2, the sales and our earnings from the storm damage except for the $46,000 of expenses reported as a special item in our Q2 earnings release. So other than the $46,000, no impact from the storm damage on Q2 earnings or sales. All production lines were fully operational and functional throughout fiscal Q2, and that's quite remarkable because remember, the storm happened in the last two weeks of Q1. So for the – all lines to be fully operational throughout Q2 was quite a remarkable achievement by our people, I must say.
Let's go on to Slide 7. Top five, we do this every quarter. Top five customers alphabetically. Aerojet Rocketdyne, these are the kind of usual suspects. You’re probably wondering, hearing these names. They're involved in the PAC-3 missile system. Aerospheres, they’re a rep for IAI, Israeli Aerospace Industries, which is a very important customer of ours, and they produced the G280 for Gulfstream. GKN - that relates to the Boeing 787. That actually is not an airplane. It’s the GEnx-1B engine used on airplanes. Kratos, as you know, we talk about every quarter the top five, I think. And we just select one of their aircraft this time; it's a BQM-177A. Quite an interesting airplane, is when you look it up on the Internet. Middle River Aerostructure Jet, they're the kind of usual suspect. And MRAS we chose the Bombardier Global 8000 represent them. Let's go on to Slide 8. Estimated revenues by Aerospace Market segment, the pie charts.
What's interesting to me is to look at '22, '23, '24, and '25 year-to-date, the pie chart, really very, very similar. But the big difference is '21 and that was it depends on the tier 1, particularly our commercial aerospace was very much, I don't know how you say it, in jeopardy; almost looks like it might not make it. Let's go on to Slide 9. This is the slide that Alaina does for us. Alaina is the Head of Customer Service every quarter. She comes up with really interesting cool programs to put in this slide. The pie chart, this is for the first six months, radomes, rocket nozzles, drones, those we consider to be niche markets in military. But for us, even aircraft structures is niche. Well, our current program quickly, David Clark, not a huge customer, but we love that customer. They make the helmets for the Air Force and we supply materials. We also do kitting for them, which is nice.
And then we got the Mk30 Canisters for Raytheon ESS system, that's ablatives. The MK125 Warhead for the SM-2, SM-6, those are just hypersonic missiles, I think. And that's actually not ablatives. In this case, it's one part of the structure. We can't say anything more about it. The MK41 Vertical Launch System is actually parts that we produce with our materials. It seems like Alaina was fully focused on the missiles this quarter, so she must have been in quite a lot of dreams of missiles, I guess. So let's go on to – but nice selections. Thank you, Alaina. Let's move to Slide 10, which highlights GE Aerospace Jet Engine Programs, a slide we present every quarter. It's important to note that some of our newer investors tune in each time, and we want to ensure we are providing them with the information they need. This is why we include this slide regularly. Our firm pricing long-term agreement is a requirements contract from 2019 to 2029 with MRAS, a subsidiary of ST Engineering Aerospace, a major aerospace company based in Singapore.
We established a duplicate factory for GE within MRAS that is currently in production. So, what is happening here? We have sole source quality for composite materials used in engine nacelles and thrust reversers across all GE engine programs. The reason for this is that when we originally entered into the long-term agreement, MRAS was a subsidiary of GE Aerospace, which included many GE Aerospace programs at that time. Even after GE sold MRAS to ST Engineering, we have continued our work on these programs. I won’t go into details about the programs now, but feel free to reach out if you have any questions. Slide 11, continuing with GE Aerospace. The MRAS/Park LTA provides for an approximate 6.5% weighted average price increase effective January 1, '25 for the products covered by the LTA. I’ve been asked about this a lot, lot, lot, and I said, well, I don't want to say, but now we're presenting it kind of in the investor presentation where it's appropriate.
Park Composite Materials - don’t forget, we don’t cover that one. We cover that every time. Let's go to the last one, Fan Case Containment Wrap for GE9X engines for the Boeing 777X aircraft. That's produced with Park’s AFP and other composite materials. Park recently received a purchase order for approximately $6.5 million for material for this program. So this program is ramping. Our customer received a large order for case wrapped units. We're clearly not going to talk to numbers, but this slowed down to us in terms of purchase orders when there's more coming. I suspect a lot more. The program is now transitioning beyond its initial development phase and is starting to ramp up significantly. The materials for this program are anticipated to be part of the Life of Program agreement. Although they are not included in the Long-Term Agreement, we expect to add the GE9X program to this agreement, which I will explain shortly.
The MRAS/Park Long-Term Agreement has been updated to include three forms of Film Adhesive for both composite and metal bonding. This is remarkable because these formulations have been developed through a collaboration between MRAS and GE, resulting in substantial time and effort invested. Once development is complete, we will move directly into the qualification phase, which is a crucial step in the MRAS qualification process for these two unique film adhesive products. The reason we are not qualifying the metal bond at this time is that the initial program MRAS plans to certify does not involve metal bonding. Regarding the Life of Program agreement requested by MRAS and the STE agreement, negotiations are currently ongoing. Mark led a small team from Park to meet with MRAS a couple of weeks ago, and we made substantial progress in our discussions. It’s important to note that this request was made for valid reasons.
Let's go on to 13, Slide 13. Continuing with the additional, well, different update in GE Aerospace programs now. The A320neo Aircraft Family includes all these variants. I won’t read them off. Airbus has a huge and underlying use backlog of A320neo aircraft, a firm order of 7,253; that’s so many airplanes, an unbelievable number of airplanes. Airbus has been maintaining the intent to achieve a rate of 75 A320neo family aircraft deliveries per month in '26. Let's go on to Slide 14. So this is just a little history here about the deliveries over the prior years of A320neo aircraft. You can see that kind of peak to '19 and that's what happened in the pandemic, the numbers fell off. In '23 they got back to the pre-pandemic rate of 571 compared to 561 and year-to-date through September, about 396; not about 396 deliveries compared to last year, year-to-date 391; don’t annualize that, because aircraft industries have a lot of deliveries happened in the last quarter.
But it's basically saying we're kind of tracking last year, which is a little disappointing. We were hoping that we would be able to show a little bit of improvement from last year. Last year, it was 48 airplanes per month, as you can see. Let's go on to Slide 15. Then on June '24, '24 Airbus announced it is pushing out its goal of achieving the 75 aircraft family monthly delivery rate from '26 to '27. Not surprisingly, Airbus highlighted global supply chain issues, especially engine availability issues as a key reason for the pushout. What’s funny about this? Do you remember, what is it a year or two ago, we're all clear with engines? It's not just Airbus said or the engine company said it, the engine is no longer an issue. Everything is great. Now we’re back into issues with engines. I don't know what to make of that, but now engines are front and center in terms of what the main supply chain issues roll out.
Supposedly maybe castings and forging for the engines, but it's engines; that's the problem. Clearly, based upon the huge backlog, Airbus would already be at the 75-per-month rate. Why is that? Let’s say they’re at 50 now, which maybe we do not, but let's say they're at 50 now; that’s 600 per year. How many years is that with 7,000 orders? Well, the problem is there. Airbus wants to sell more airplanes. So you order an airplane, your delivery is what, 13 years down the road; that's not conducive for selling airplanes. So one of the reasons Airbus wants to push it up to 75, that puts it 900 per year that’s still not you enter an airplane, and you get it next year, but it brings the lead time down a lot, which will allow Airbus to sell more airplanes, which is what they want to do. So anyway, will Airbus achieve its goal of 75 deliveries per month? We certainly believe they will. Will they achieve it in '27?
Now we believe they will; we're not sure it really matters very much whether that goal is achieved on '27 or maybe '28. Can you think for Park is that we need to be ready? And the key thing is they will get to that rate; all these orders will be filled. They'll take more orders, and we just need to be ready, and we’re not sure what the timing of the ramp will be. I don't think anybody's sure; we just need to be ready, number one. Number two, those sales will be there, and they're incredible sales for Park. Approved engines for the A320 aircraft. There are still approved engines for A320neo, the CFM LEAP-1A. That's the engine program we're on. Then there's Pratt & Whitney PW1100G GTF engine; not in that program, just on the CFM program. We spoke lots and lots about the durability issues, especially for the Pratt engine; we'll cover that here. So, let's see, according to the September '24 edition of Aero Engine news, CFM LEAP-1A's market share of firm engine orders is 64.4%.
That's a nice market share. I don't remember, but I think last quarter it was maybe 62%. It's been around that 62%, 63%, 64% range and moved up last quarter, but that may not be sustainable; I don't know, but at least it's well over 60%. At the delivery rate of 75 A320neo aircraft per month with a 64.4% LEAP-1A market share translates into 1,159 engines per year. What's that worth to Park? Well, I’ll just go to Slide 34, it gives you an idea of what it’s worth to Park each year? Currently, there are about 8,238 LEAP firm, firm LEAP-1A engine orders. That's a lot, a lot of engines. One of those firm orders worth to Park? Well, I mean, go to Slide 34, it tells you what we get per engine. I think it's about $0.25 billion. And that assumes that we're going to continue to Slide after 29, which – whether we have a life firm or not, and we're quite confident we will. And it does not assume, don't take into account there will be price increases during that time frame.
But you think about it conceptually $0.25 billion; does it really matter to us, whether it's '27, '28, '29; just a lot of revenues for Park. And those engines are going to be sold. Those engines are going to be produced and sold. Those are our engines; that's our program. So I think people selling the stock at $13, I'm not sure what they're thinking. Let's go on to Slide 17. Airbus is set to open an additional production line for the A321XLR in July; the A321XLR, which is powered by the LEAP-1A engine, received its EASA type certification in July, which is great news. EASA is the European counterpart to the FAA. The first delivery of the A321XLR is scheduled for later this month to Iberia, and according to Airbus, there are 500 orders for this program, which is crucial for Park. Now, moving on to Slide 18, let’s discuss the Comac 919. This is the single-aisle aircraft Comac developed to compete with the 737 and A320, and it is equipped with a different variant of the LEAP engines known as LEAP-1C.
Comac aims to achieve a production rate of 150 919 aircraft per year by 2028, which seems feasible as they are heavily investing in their production lines and now have three final assembly lines. I’ve heard they have over 1,500 orders for the 919 aircraft; it is currently in operation with Air China, China Eastern, and China Southern, which are all Chinese airlines. Comac is clearly looking to expand the reach of these aircraft beyond China. So far, they have delivered nine aircraft and logged over 10,000 flight hours. This is an essential program for Park, and while we will see how things develop, both we and our customers believe it holds significant potential for growth. Let's go to Slide 19, focusing on the 777X aircraft equipped with GE9X engines. On August 19, Boeing grounded their 777X test flight fleet after discovering an engine attachment issue, and the fleet remains grounded as they continue to assess the situation.
These engines have achieved an impressive 134,400 pounds of thrust, making their tests critical. They are certified for 110,000 pounds. For comparison, the LEAP-1A engine for the A320 is around 32,000 pounds. These are substantial engines with significant power. On October 11, 2024, Boeing announced that it is delaying its first delivery target to 2026 from 2025 due to development challenges, pauses in flight testing, and a work stoppage. According to data, Boeing has received 481 orders for these aircraft. Although there has been a setback, it's essential to note that this is a new design aircraft, and encountering issues like the engine attachment problem is expected. The fact that this issue was identified during the development and certification phase is crucial, as opposed to discovering it after the aircraft is airborne at 38,000 feet with 400 people onboard. This is a significant program for Park, and we extend our best wishes to Boeing.
They are facing challenges now, but we hope they find a way to progress and improve the situation. Let's go on to Slide 20. We can quickly cover this. Pretty much everything here is provided for context; in the bottom right, fiscal '25 Q2 shows $7.1 million in sales. This refers to the GE aerospace jet engine programs sales history and forecast estimates. $7.1 million in Q2 is slightly above our estimate, but it falls within the range. Our forecast for Q3 is between $6.25 million to $7 million. For the year, we are maintaining our forecast of $23 million to $26 million that we provided last quarter. Let's move on to discuss Park's financial performance history and forecast estimates. Most of this data serves to provide context. For fiscal '25 Q2, we previously reported $16.7 million in sales and $3.2 million in EBITDA. Our forecast for Q3 is projected to be between $13.5 million and $14.25 million in sales, with an EBITDA of $3 million to $3.3 million.
It’s important to note that these figures are subject to supply chain risks and limitations, which we will evaluate further in the next slide. Now, regarding the next slide, it remains unchanged from what we presented last quarter. The details are historical with the exception of the forecast estimates. We will not be altering our estimates for the year, which are quite broad: $60 million to $65 million in sales and $13 million to $15 million in EBITDA, consistent with what we shared last quarter. I want to emphasize the significant impact of supply chain limitations on the aerospace industry today. Currently, this sector is facing challenges. For context, the major European air show alternates between Paris and Farnborough each year, with last year’s event in Paris filled with excitement and optimism about numerous orders. However, Farnborough this year presented a starkly different atmosphere, characterized by a sense of gloom as discussions persistently focused on supply chain issues.
This remains the key problem impacting our industry. One comment that seemed a bit sarcastic was about the significance of ordering airplanes if they can't be produced. It reflected a recent sentiment. It's interesting to consider how often over the past few years we've been told that supply chain issues were nearly resolved and that everything would be fine, only to find ourselves in a difficult situation again. I don't know why that is; it might be a psychological issue. My guess is that the problems were never truly resolved; it was more of a hopeful perspective. When one person shares this view, others tend to agree. Clearly, supply chain issues persist and continue to affect the industry. So, as we review the forecasts stated in the 10-K, it's important to remember that these supply chain challenges pose a significant risk to the projections. We are increasing costs for Juggernaut, which is impacting both our revenue and net income.
Moving on to Slide 23, we are providing several updates in this presentation, which may be taking more time than anticipated. Regarding the Solution Treater Project, we plan to acquire and install an additional solution treater. This process will take around three years to design the equipment, install it, conduct internal trials, and qualify it for production with customers. We are concerned about our capacity as we analyze our current programs and opportunities. It is crucial that we act quickly because of this three-year timeline; delaying could have significant consequences. The budget for the project is approximately $7.5 million, and we are moving forward with it. This will be placed in a new factory. Remember, we told you that there was a big area set aside for the new line. Well, this is where that line is going to go. Another item, these items are all related; they're just updates.
Major OEM suppliers asked Park to partner and quote with them the purchase of an additional manufacturing line to support critical defense programs. This equipment is essential to these programs, so it's needed. This OEM is quite a larger bit because they want to be partners; 50-50, say $5 million each, and we're now negotiating the agreement but we plan to do this. It has to be done. This additional line is essential for these military programs. So we're talking a little bit about money as well because we want to get to that later on in terms of our cash. Slide 24. We recently qualified an important high-profile missile defense program, which could be larger for us than the PAC-3 missile program. We expect initial revenues for Park next year, with the program anticipated to ramp up quickly from there. We will likely need to invest about $1 million in capital to support this program. This is a significant achievement for Park.
I cannot provide more details about the program, but it's certainly of interest. Additionally, Park has entered into a licensing agreement with a major OEM to license technology for hypersonic missile programs, and we understand that Park is the only licensee of this technology. We are currently conducting manufacturing trials, which represent a major potential opportunity for Park, requiring a capital investment of around $3 million. I want to emphasize that these are not guaranteed outcomes, and this is not the standard we use for sharing information. I think you would want to know about important opportunities for Park. But if you just want to wait for these things to be locked, that's different, but I don't think that's really what I want to hear. So my point is that this may happen, may not happen. A shareholder complained about, well, we talked about some other programs a couple of years, didn't it go, didn’t happen.
Well, yeah, we talked about it because it’s important, and it seems serious. That wasn't a guarantee it's going to happen. So just keep that in mind, okay? Slide 25. New LTA with GE aerospace are separate items in progress for calendar years '25 to '30, under which GE is awarding two additional products to Park, and incremental revenue from that is $3 million. This is not part of the Juggernaut, by the way; this is separate incremental revenue. This is not the MRAS LTA; this is the GE aerospace LTA, a separate LTA. Potential JV with a major adhesives company related to adhesives for the aerospace industry; those discussions and negotiations are in progress. We've got numerous in-person meetings. I believe there's one next week actually in our facility. And a significant capital investment may be necessary to support the JV, we'll see. Another potential JV with a major Asian industrial conglomerate related to the manufacture, marketing, and sale of certain of Park's commercial composite materials products in Asia.
So these discussions and negotiations are in progress with this issuer. We have a team over in Asia right now, and we've had a number of meetings already. This could involve significant capital contribution part. This OEM is quite aggressive. We're trying to slow it down a little bit; they definitely want to do this. So I think it's maybe a good possibility that actually happens. Slide 26, totally different topic, but still an update. MRAS Supplier Scorecard; maybe I try not to cover too many things in this one presentation, sorry. MRAS Supplier Scorecard. Park's scores, you can see these scores. The first item was actually a mistake; it really should have been 100. What do these scores mean? What is their significance? We're told that MRAS has over 700 suppliers. These typical MRAS supplier scores. No, I don't think so. We're told that most suppliers would be happy to get 80s. I've been told that numerous times and why don’t they get 80s?
Are these scores achieved by other suppliers ever? I don't think so. So a similar theme is Park MRAS best supplier over 700; that's what I'm told. How does that happen? It's a boardroom thing or a boil room thing? This is such a special situation for Park. And I'm not sure whether it's fully appreciated how special it is; an achievement accomplishment this is. And how special it is for Park to have this kind of relationship with a company like this. See, it's our strategy for customers to love us. In order to implement that strategy, it depends on Park having very dedicated employees, that's how we achieve these scores, that’s how we become their best supplier. So, yeah, I mean, example, I'm sorry to take the time, but just a little example. John Moon, we were told he has a house, but we would never know that because he never leaves the plant. If something has to be shipped, it doesn't matter what time; he's not going anywhere until that truck has left the dock and that kind of dedication.
And if you want your customers to love you, you need to have people like that. The rest of the strategy is nice, but in order to implement it, you need to have people that are dedicated. Let's move on to Slide 27. This is a new topic where we've received recent questions from investors. We thought it would be interesting to share some of these inquiries regarding our film adhesive product line, which we call Aeroadhere. What advantages does Aeroadhere offer compared to competing products? The aerospace industry tends to prioritize equivalency over superiority. In essence, being better isn't necessarily advantageous. When we developed the film adhesive, we collaborated on a joint development project with GE and MRAS, fine-tuning our product to meet their specific requirements. Generally, we aim for equivalency because if our product exceeds expectations, it can create complications for customers trying to integrate it into their operations.
So why would a customer choose Park if our product is similar? It's because when customers buy from Park, they're not just purchasing a product; they're gaining our flexibility, responsiveness, and urgency. To illustrate this, when a customer asks, "How high?" we don't wait; we respond with "How high?" before they even say jump! I'm serious about that approach; we proactively meet their needs. Do we expect Aeroadhere's margins to be higher or lower than Park's average margin? Higher, and we are confident about that. Looking a few years ahead, what revenue range are we aiming for with Aeroadhere? Well, we're not certain. Our strategy isn't focused on revenue; it’s about expanding the product line we provide to customers that manufacture aerospace composite structures. That's why we value adhesives so highly, as our products are essential for creating composite structures in aerospace. Of course, customers also need to procure composite materials to construct these structures, but adhesives play a key role in their production.
For reference, the A320 program is the initial program that MRAS plans to certify our film adhesives for, which is projected to generate $3 million annually once the program scales up to 75 airplanes per month. And that’s just the beginning. We have numerous additional opportunities in the pipeline, not only with MRAS but also with other companies. Slide 28, more questions. What about that a major new manufacturing project initiative we discussed in our Q2, sorry, Q4 investor presentation last year? What’s the status? It’s morphed into a larger project. Why wasn't it discussed during our Q1 investor presentation? Well, the customer which initiated the project now wants the project to be an aerospace composite structures manufacturing technology joint venture, a potentially larger - a quite bit larger project. This is a JV like with NewCo or two companies own it, I guess. What about our strategy?
What is it? Somebody actually asked do we have a strategy? Yes, we have a strategy. We call it the egg strategy. We certainly not going to take the time to go into it now, but let us know if you want to discuss our strategy. It will probably take 5 minutes in an upcoming presentation. It's a straightforward strategy. It's not like an elegant strategy; it's very straightforward. So, nothing, we tell you is going to surprise you; we can go over it, if you'd like. Our buyback authorization announced on May 23, 2022, allows for the purchase of 1.5 million shares. We have bought a total of 551,729 shares at an average price of $12.94, costing us $7.1 million. This signifies a substantial investment on our part. Notably, since our buyback activity began after the Q1 blackout ended on July 26, 2024, we acquired 331,180 shares of common stock at an average price of $12.88, totaling $4.251 million.
We are indeed investing significantly in this. Why are we doing this? Simply put, we believe the stock price is unreasonably low. While we typically prefer to allocate our cash toward growth opportunities, we felt compelled to act in this instance. As for future purchases, we'll have to evaluate the situation; it’s possible. Now, let's continue with the discussion about our buyback program. Slide 30. Incredible cash dividend history: 39 consecutive years of dividends. We've paid $596 million or $29.10 per share since fiscal '25. So a little bit of a thing here that we're developing a concept anyway. So we have a regular dividend payable on November 5. It's not right; that should be paid on November 5, 2024. So, sorry, that's a typo, I just noticed that. And we'll have paid $598.6 million at that point. Then it looks like there's another typo. The next regular dividend is planned to be declared by Park's Board about January 9, that's obviously '25.
Sorry about this, and paid about February 4, '25. And that's within the fiscal year. Somebody is not going to get paid this week for these mistakes. Unfortunately, I think that's somebody's me, because I'm the one who made the mistakes; so sorry about that. But the concept is during this fiscal year, if you look at the highlighted language, we'll have paid by the end of this fiscal year, rather, $601.1 million in dividends since '25 and also $29.35 per share since '25. From 2005 to 2025, there are 21 years. If you divide $601.1 million by 21, that comes to about $28.6 million per year. If you divide $29.35 by 21, that's approximately $1.40 per share in annual dividends since fiscal 2025. Moving to our balance sheet, we have no long-term debt and $72 million in cash. We still need to pay one more transition tax installment of $5.1 million due in June 2025. Regarding our cash, we know there are cash expenditures totaling $5.1 million for that tax payment.
We also spent $2.4 million on a share buyback in the third quarter of fiscal 2025, which is already accounted for. The Solution Treater project is estimated to cost $7.5 million, and we're discussing a contribution of about $5 million for the OEM partnership. Overall, this adds up to approximately $20 million, leading to a total of $52 million remaining after accounting for that from our $72 million cash balance. When we think about $52 million, well, that doesn't include a lot of other things that we've already discussed. A lot of items, which we won't iterate here are these items listed and we've already discussed in this presentation for the most part. Some of these things will happen, some won't. We also likely have additional expenditures in the new plant; when you actually start in production, no matter how much time you spend with the trials and qualification; when we start in production, you realize other things that might be needed.
So there might be some additional investment that's required in the plant equipment investments. So what do we think about our cash? We think that we don’t have limited cash, and we think we need to be careful how we spend it. Let's go on to Slide 33, the Juggernaut; we’ve covered this in the last three quarters so we'll try to rush through it. Financial outlook for GE Aerospace jet engine programs and for Park, the Juggernaut. So what's the timing? We're not sure, but it's coming; it can't be stopped; you better be ready. Going to Slide 34, the only change here is the GE9X program, which we have updated based on specific inputs from our customer. We have received indications of higher rates, but that is linked to the specific information we have gathered. As mentioned, we will not provide additional details since it is not our responsibility; it's up to Boeing and GE to disclose their annual production plans.
Now, let's move on to Slide 35, which presents Park Aerospace Corp's high-level financial outlook. We begin with a baseline year of fiscal '24. The estimated incremental sales from GE programs is calculated by taking the number from the previous slide and subtracting the '24 sales, which was $21 million, resulting in incremental sales of $37.6 million. For non-GE programs, the incremental sales are projected at $15 million. This time, we combined everything into one total instead of separating the programs we are sole-source qualified on from those we anticipate entering. As noted in the footnote, we believe this $15 million estimate is conservative considering the various opportunities we are pursuing. In total, we project $108.6 million, with an EBITDA contribution from the incremental sales of $19.7 million. That's based upon a contribution rate, I believe, of 37.5%. The additional $4 million we discussed that before relates to our base year, which is quite inefficient because we're operating well below efficiency of the new plant.
And for many reasons we discussed in the past, which we won't go over here. Slide 36, just a footnote to the slide we just read, so we won't go through those. And that concludes the presentation. Thanks for listening. Operator, we're happy to take questions at this time.
Questions and answers
Thank you very much. We will now begin the question-and-answer session. The first question comes from Nick Ripostella from NR Management. Please proceed.
Good afternoon, Brian. First, I just want to say on share repurchase, I'm very appreciative of how judicious you are in repurchase. I come across so many smaller companies that they overpay for their stock, sometimes double where it's currently trading and then put that in their press release that return cash to shareholders, which actually they destroyed value. So you've been very wise, and I'm appreciative of that. So a couple of quarters ago, I think you were talking a little bit about automation potentially in a new facility. So I've been reading a lot and watching a lot about the use of robots and other automation in factory settings. So can you just give me your perspective, do you feel at any adding point you'd be disadvantaged by not having automation in the facilities, or just I'd like to understand your perspective on that. And kudos to the workforce there. It just goes to show you that some places have a great culture and don't need a union. You've built a great organization in that regard. Thank you.
Thank you for your comments, Nick. I appreciate it. Regarding automation, if you visited our facility, you would see that our lines operate continuously with only about four staff members. It’s not like a traditional assembly line where many processes could be automated to cut costs and enhance efficiency. This doesn't mean we're uninterested in automation, but I believe the potential for a Park-type operation might not yield as much return compared to other types of operations. We also discussed automation in relation to a manufacturing project that has now evolved into a potential technology joint venture. This particular project is where automation will play a significant role. It's still in the early stages, as it has transformed into a larger, different kind of project, but I believe it will involve substantial automation.
Okay. Thank you. Can I ask one more?
Sure.
I know this is a tough question, but in what areas would you feel disappointed regarding Airbus's ramp-up of deliveries next calendar year? Where would you feel let down if it didn’t meet whatever the target is, whether that’s 52, 54, or 50?
I'm not sure I understand your question. Are you referring to our annual sales or something else?
No, the outlined deliveries.
Per month, you mean? Okay. Yeah. Well, we're disappointed already. So maybe that's a hard question to answer. The supply chain has clearly become more of a known issue. Probably zero along. My guess is that this year maybe we'll get to 50; last year 48. I've seen all kind of different forecasts. I mean, obviously, we'd like to be at 75, so maybe that's not a proper answer. It would be nice if next year they're at 55. I don't know if that helps, but if they're not, we're already disappointed. So we're probably disappointed with any number that's under 75. But the key thing is for us to hang in there and be ready for the ramp because, as far as we're concerned, there's no question they'll get to 75; just with all the orders they have, it just doesn't make any sense they wouldn't get to 75. So the key thing for us is to make sure we're ready for that, and that's really important. That means we need to ramp up the new facility. That's why we're doing that now, but we're also kind of suffering through the additional cost burden of ramping up a facility that is still operating at a very low rate.
Okay. Thank you. Yes. And as you've said before, this is a long-term proposition. And I really loved your comment about the stock price being stupid, and certainly, it got pretty stupid at one point. So I appreciate it. Thank you so much, Brian.
Thank you, Nick. Very nice to hear from you.
With no further questions, I’d like to turn the floor back to Mr. Shore for any closing comments.
Okay. Well, thank you, operator. I just want to say I'm sorry that it took so long. I think what we did was we tried to cover too much during this presentation. I think everything we covered was meaningful, and information that many of you probably want to know about, but nevertheless, maybe we put more than we can chew. So I apologize for that. In any event, thank you very much for listening. We hope you have a very good day. We'll talk to you soon. Good-bye.
This concludes the teleconference. You may disconnect your lines at this time. Thank you again for your participation.