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Mark Esquivel

Yeah, hello everybody, the status here is the specification has not been updated. What that means is it's still in the works, where the testing is not in Park's hands, it's in our customer's hands just so that's clear, but we are being told they should be completed completed this month at the end of May.
I I say that with a little bit of caution because these things have slid in the past, so I just want to throw that out there, but we're looking to get an update at the end of the month.
I can tell you there is some good news. All the testing that has been completed, which is the majority of it, is compliant with the specification. And so we we're hoping that, the very few tests that need to be done by the end of the month will fall on that same population. So essentially we're anxiously awaiting just like everybody else to get the results and we're really hoping that they meet the target at the end of the month, but like I said, it's really out of our hands. It's in our customers' hands, but we continue to communicate, we continue to check on the status, and we'll do that again as we get to, as it gets towards the end of the month, which is in 2 weeks, and hopefully next time we talk, next time we have a call we'll we'll have an update for you all.

Brian Shore

Okay, thanks. Yeah, so we're being transparent. We're just all we can do is tell you what we're told by our customer. I think in our last call we said March, but that's what we're being told obviously that didn't happen, so we'll see what happens here, and then the next item. This is a repeat item for last three quarters just reminding you that we're we're ramping up this new factory even though we don't need to for capacity reasons we're ramping up to get the factory ready for the juggernaut as we call it, and that's costing that's burdening our P&L. Total missed shipments, during the quarter 175,000. Mostly surprise surprise international shipment issues. Well, that's actually improved. That's not great, but I think we had a couple quarters. It was over a million bucks, so I guess that's moving in the right direction, at least in that quarter. Slide 8, impact of tariffs and tariff related costs and, on the Q4 there were no, future impacts we'll get back to that later on the presentation, when we, talk about some updates.
Okay, let's go on to slide 9, top five customers this is kind of a tradition for us and alphabet of water. Donna is the one who does the slide, yeah, you probably get some of the people in the audience could probably cover this better than I could. Aerojet rocketine, that's the Patriot missile, the middle river, I guess we're using, the A321 XL LR commercial aircraft, cratos obviously the fire jet.
Nothing for tech tech to confidential, nor Dam, the Bombardi Global 7,500. The, aerial target aircraft, it's unmanned. They try to get men and women to fly the target aircraft but didn't get any volunteers. Okay, that's my attempt at humor.
Let's go on to slide 10. I won't, I promise I won't do any more of that. So, slide 10, we just, this is our, estimated revenues by aerospace market segment, and, you could see that, we talked about this often and 21 was a little different views to the pandemic, but the 22, 23, 24, and 25, the pie chart looks, pretty similar.
Let's go on a slide 11. This is a lane of sub projectarlos niche military aerospace programs. And as we always comment, radons, rockets and drones are niche markets for us, but for us, even aerospace structures are niches because that's kind of, that's our focus. And this doesn't mean small. It means something special where we have something special to bring to the table, which means normally that the margins would be nice and attractive for us. We don't need to cover each one of these things, and we're going to be a little bit, less open about what our participation is in these programs, except I'll comment on the how on the Sky Night, that's a, UAE program. So that's been in the news recently, UAE, so I thought you'd be interested in that. And then we see two references to the Sentinel, GBSD, that's, the.
That's ground base for defense. And this is a replacement of the Minuteman program from the 60s. We have on the top right the warhead reentry vehicle for the warhead and then the missile itself, missile system itself. And these are installed in silos around the country, hundreds of them is what's intended. And I think you know what these warheads carry, so you can look it up if you want. But, it's not a very happy kind of thing to talk about.
So let's go on. Having said that, if you bring the audience down a little bit. Let's go on to slide 12. It's called mad mutually assured deterrent or something like that, right? Remember that from the 60s. Anybody remember that? Slide 12?
To aerospace this slide we share with you every quarter just kind of for background, for pricing LTA, from 19 to 29 with Middle River Air Structure systems, which is a sub ST engineer aerospace we explain this every time we're done the factory that's a reduction that you look at these programs, we're not going to go through them, but the what the common theme is they're all related GE aerospace programs so. What's the connection here? I think you know that when we got these programs, Middle River Aerostructure systems MRS was a sub of of GE aerospace.
Now it's a sub of ST Engineering, which is a Singapore company. Let's go on a slide, top13 of the the slide also sole source or primary structure component, for the passport 20 engine. That's through the G Aerospace LTA, not the MS LTA fan case containment wrap for the G9X for 77 X aircraft that's produced was produced with our AFP materials and other composite materials, and this, is intended to be included in Li MRASLFA program agreement, not the LTA. This actually occurred after the LTA was entered into, let's see, park, MRES LTA. We cover this provided a 6.5% weighted average price increase January 1.
And also it was amended to include three uhar film adhesive formulation products recently like a program requested by MRS and STE, so we're still working on that. I think the last time we spoke, I told you actually balls in our court we're getting pricing to the extent we could long term pricing from our suppliers so we could provide pricing to. Life of program pricing to MRS and STE we've done that, so the ball's kind of back in their court. This is something we're happy either way. We're happy to stay with the LTA, the current LTA, or go to LiA program. This is something requested by, MRS and STE, but we're happy to do the LiFA program as well. Either way, we're happy. 145 14.
Okay, if we're talking about some of the programs age of 20 Neil family, that's the big dog. As we say, Airbus has a huge backlog for the A320DU aircraft 7,256. That's a lot of airplanes. I'm telling you, and then we have a little bit of history of their 8 or 20, deliveries all year over year you can see that it's, gone back up to about 50 per month and 24, a little over 600, but what's holding it back is the supply chain issues that you know that we talk about almost every time, the bottom.
Right on the targeting delivery rate of 75 A320 Airbuses, family aircraft per month to 27. Why are they not there now? Well, it's because it's a white chain issues. They have over 7,000 orders. They'd be happy to be at 75 per month or 900 per year now, but they haven't been able to get there yet. They're targeting 202,027. They haven't been able to get there the supply chains, the limitation.
Slide 15, with the approved engines for 20.about this, we got the rat engine, the CFM 1A engine. We're on the CFM1A, not the Pratt. According to the aero engineers, first quarter aero engineers, the leap18 market share, a firm engine orders, these are thousands and thousands of orders, ladies and gentlemen, 65.2%. Now, that's a nice, market share. And when we get to the jaggernaut slide at the end, we use a 60% market share because for being conservative, but it keeps it went up a little bit. It seem like maybe it'll move back down.
I don't know, I'll move some quarter to quarter, month to month. But at that delivery, at the delivery rate of 75 airplanes per month, 65.2%. Leap 1A market share translates into 1,174 engines per year, leap 1A engines per year. If you look at the the juggernaut, we're only assuming 1,080, so it's a lot more than the juggernaut.
As of March 31, 25, this is again o. New stuff. There were 8,196 firm firm leap 1A engine orders. That's as of a couple of months ago. Now, of course, Airbus and CFM, they want to sell more airplanes and more more engines. This is just what's on order, firm order now. Now, so these engines will be delivered, I think. What's that worth to park? It's worth about a quarter billion dollars to park, and that's not it. I mean, they're, like I said, I'm sure Airbus wants to sell more airplanes and Airbus and see if I want to sell more engines. Let's go on the slide 16.
This is a variant of the A321, sorry, A321 Ne family A321 XLR. It's off of the races, so this airplane has been delivered. It's an operation. They're operating it on new routes which have never been used by single aisle. This is a single aisle airplane, I guess I should have said that. And the key thing here is that It has a range and payload capability of a wide body. So this airplane's been used on what was previously a wide body route like maybe a 787 route, but much less expensive to operate. So this is why CNN, I'm not normally spend a lot of time with CNN, but this time I like them. A 328 XR.
You air map of the world, and what that means is that the single aisles are operating on routes that used to be the exclusive, purview of of wide-body airplanes, which are much more expensive to operate. That's a big deal. Boeing has no response and unplanned.
So that's an important program for parts, light 17. Let's switch over to China, the Chinese Comac, the Chinese aircraft company C919, that's a single aisle that they developed to compete against the A320 and 737. And they're just ramping up now. They're targeting 30 deliveries in 25. They're not going to get to 900, but we'll see how far they go. They plan to increase the production capacity of 50 airplanes this year, plan to achieve production rate of 150 aircraft by 28, reported to have over 1,000 orders for these airplanes. Come back aiming for EASA certification 25.
That's significant because, see, Oh yeah, that's like the European FAA, European Aviation Certification Agency, because there was this belief and theory that these Chinese airplanes were going to be China only airplanes that we just operate in the Chinese market. That's clearly not what Comac is thinking, so the fact that they're saying they're going to get EASA certification is a big deal, not certification outside of China. Trade conflicts, people ask about trade conflicts. Well, Can comack produce at 919 without US suppliers?
The answer is absolutely not. And if US suppliers were cut off on the program, in my opinion, I'm not the only one that has its opinion, though, that program would die forever immediately. It's such an important prestige program for the Chinese. They're not going to let that happen. It's a good thing, that there's a trade where there's, what do you call it, a mutual interest. Dependency where we need each other, so the Chinese will not do that happen so they're going to need to continue to source, these key components from a US supplier. That's my opinion anyway. Flight 18, staying with the Chinese com back 9,909, that's the, regional jet. It's a little smaller jet, and look what they're doing. They have it delivered to Lao Airlines and Viet Jet, Laos and Vietnam.
So they're not Chinese. So what's going on there? In other words, again, that everybody was saying, oh, these are Chinese only airplanes. I don't think Comac believes they are.
The 77X with G9X engine test flight certification program reportedly progressing well.
777X test program. Amassed more than 1,300 flights. That's a lot, on 300 flight hours. They're targeting 26 for Boeing is for certification for delivery. Let's knock on wood on that. Let's hope that happens. They reportedly have, 521 open orders. That's of about last week, but did you hear that, Boeing, they hired this new high powered sales guy. And that guy, he just got an order for 30 airplanes from Qatar yesterday I think Qatar, I pronounced both ways. Did you hear about that? The new high powered sales guy. So they have to add that 30 to the 521, slide 19.
The airspace program sale history. So, you're familiar with these numbers at fiscal '20 before the pandemic we popped out at $29 million. We're kind of clawing or trying to all way back '25, $24.7 million, not quite there yet. The Q1 forecast 5.2 to 5.6. That's not, that's a little, that's kind of a little bit anemic. I wouldn't read too much into it, quarter to quarter. There's a lot of issues latent inventory management and things like that to move the numbers up and down that aren't really indicative of longer term trends. The, forecast for '26, we're going to stay with this $28 million to $32 million. That's what we gave you, last quarter, you could see we're starting out slow into 1. That, forecast is based upon, the, information provided by our customer and actually a customer provided us 3 scenarios low, middle high, that's a low scenario. I don't know, maybe we'll have to adjust it down, later on if we continue with this like Q2 looks, similar to Q1. We'll have to see just like I said, we're getting off to a little bit of a slow start, but we're staying with this forecast for now. Okay, slide 20 now we're talking about, parts of financial performance history forecast estimates, the history so won't all the time on that. We already talked about the quarter, we already talked about the fiscal year. So why don't we just go right to the forecast or our forecast for Q1. $15 million to $16 million sales, $2.5 million to $3 million of EBITDA. That's a forecast for Q1 for Park.
We already talked about how you know the historical sales, how much C2B content was in historical sales for the last year and last quarter. But if you look at the last footnote on the slide, we're also talking about $1.2 million to be fabric sales expected in '21. So of course that affects our bottom line, holds our bottom line back a little bit.
Let's go on to slide 21. Historical. So now we're looking at historical results, but with a fiscal year emphasis, and we already pretty much covered most of this, $62 million. Oh, I know this is a good slide to look at to get perspective about our using our new factory because if you look at 25 our sales were $62 million, but about $7.5 million were C2B that's not produced so that means.
Equivalent to about $55 million and go back to fiscal '20 $60 million but the new factory didn't exist at that time. So all that $60 million was produced and sold with their existing factory. You see what's going on here? We used a new factory. We're bringing the factory online because we ramping it up for the juggernaut, but it's holding our P&L down. There's a lot of extra costs involved with bringing a new factory online. This is a good illustration of that, I think. Let's see what else we got here. Important thing is supply chain.
Yeah, again, look at the top line, sales $31 million, $40 million, $51 million, 60 million really moving in the right direction. Then look what happened. We get all caught up with the pandemic and we're just trying to call our way back now, ramping up costs for the juggernaut. We talked about that and then we talked also about how much of our, fiscal '25 sales were C2B fabric.
Let's go on to the next one slide 22, some general updates. A new agreement with Aryan so we talked about our existing agreement. And the first check item we we already covered that, so we don't have to cover that again. Next check item then we entered into a new agreement just recently and on this agreement, PA will advance, is advancing Ariane EUR4.587 million. Why are we doing that? Those funds will be used by Ariane to help finance the purchase and installation of new manufacturing equipment for Ariane's production of C2B fabric.
That amount is to be paid to Ariane in re-installments, the first of which was paid in Q1. That's equivalent to about EUR1.5 million. So again, when we get to our Q1 balance sheet, you'd be looking for that EUR1.5 million expenditure.
To be, that we reflect in our cash. The purpose of the new agreement, this new agreement is to provide the additional C2B fabric manufacturing capacity necessary to support the rapidly increasing demand for C2B in Europe and North America.
Slide 23. More general updates, this is a kind of a nice one, maybe not a huge deal, but a lightning strike protection material, was, certified on the pass 420 engine for the global 7,500 business jet. It's worth about $500,000 per year. That'll kick in later this year. We're very pleased about that because it was taken for so long. I never would say this to anybody, but in my own mind, my little private moments, I was probably just giving up on, whether it's ever going to happen at all.
So that was very surprisingly good news, when someone called me and said, this got certified I said what? That must be a mistake. It wasn't, parts of blade of composite materials sole source qualify. We talked about this before. That's the next generation Iron Dome, and then Park entered into an agreement with a major and license technologies for hypersonic missile programs. We understand we're the only licensee face to manufacturing trial testing of license technology continues. We mentioned the same thing last quarter.
So I appreciate it Mark if you can give us an update on how the trials are going.

Mark Esquivel

Sorry about that. I was on mute. I didn't want to have any background noise. So the trials on this are going really well. Again, we license the product, so the formulation work was done ahead. So what the phase two is we're, building laminates, we're making material, and we have a partner for that as well, because this will, require investment once we get to the point that we've industrialized the project or the product.
So we are building panels now we're making material. I think we're getting to the place where we're going to start testing the materials because it takes a little bit of time to figure out these processes. You know this is an ox au product. It's not a standard epoxy which you know is the majority of our business, so it's taking a little bit of time to figure out how to process these materials. It's a lot different than what we're used to, so, I feel like we're making really good progress with it.
And you know the next steps, maybe in a few months, maybe about 6 months we'll have a better update that, where we're at, once we kind of button up the processes and get some of the test data and, potentially, have a product where we could, release a data sheet meaning that you know we can go to the public with it, in the meantime we are talking to a few customers, a few OEMs, a select a few partners just kind of figure out what their needs are with this product and you know that helps us develop our test matrix and helps us decide, what kind of panels we need to build.
So but again we're being very selective who we're talking to because we don't want to, go out to the market when we're still trying to work out the details of the product, the fine tuning of it. So, like I said, maybe about 6 months we'll have, a better update and give you guys a. A sense of where we're at with this project, so, but it's, we're definitely making progress with it.

Brian Shore

Okay, thanks Mark. When we go on to slide 24, we covered this last quarter expecting about $5 million per year from the new LTA with the Aerospace, which is different than the MRAS LTA.
So we're in discussion with two Asian large Asian industrial conglomerates related to Asian manufacturing to venture is be a joint venture to do what we do in in Asia, produce pre-red for aerospace. They approached us, both these companies were in, active discussions with them. We're not intending to contribute any cash, so it would just be our IP. We'll see how it goes. Maybe it'll happen, maybe not, but I thought at least we mentioned it to you. Current MS supply scorecard rather 100, that's what we need we need that 100. That's very unusual. I think we discussed that before, but that's kind of our.
Our mindset, that's our philosophy is we don't, we're not looking for 99s. We're not looking for 99.9s, we're looking for hundreds. That's all that if it's less than 100%, we're unhappy and we'll be talking to the customer about, okay, what happened, how do we fix it? I'm not kidding, 99.9%, we're going to talk to the customer. I've been told, a lot of most suppliers be happy with 80s. Terrorists, back to you, Mark. All the hard ones get a little of more terrorists, international trade conflicts, expected impact on Mars, sorry, on parks we said in Q4 there was no impact, but let's talk about what we think going forward about tariffs.

Mark Esquivel

Okay, tariffs, I guess just like everybody else, we're all learning and trying to sort this out. We feel like we did a pretty good job getting ahead of it when we saw it coming, I think it was like early March we started updating our order confirmations or quotes, putting a note on there telling customers that, any tariffs come our way, we're going to pass them along to them. And to date we've been pretty fortunate. We haven't seen too many letters come from suppliers. We've had a few.
But there has been no impact, to our business. Essentially I think there's been one, maybe two, we had to pass along to a customer. The rest we were able to mitigate the tariffs with inventory on hand. Obviously when you carry inventory you don't have to pay a tariff because, you have it there so we're able to, get those orders processed and shipped out without buying new material. And then so the next step was, well, now we have to update our cost if we have. Tariffs, which is again it's only a few materials right now so our our quotes are reflected of that moving forward so the customers will be paying, the new price, when they place orders so.
Essentially, we're just like everybody else, we're trying to figure this out, but, again, we, I think we've done a good job getting ahead of it and there has been no impact to the business, but again, there's more to come, this thing's still pretty dynamic we're not sure how it's all going to shake out, so, we'll probably have to give you, maybe another update on the next call as well to see if that has changed, but. Again, we feel like, we're in pretty good shape with this, and you know we continue to talk to our suppliers and we don't see anything else coming our way, but I can't say that, with a 100% confidence, but we feel pretty good, about where we're at today with this so I think that's the update.

Brian Shore

Okay, thank you. Let's move on slide 25. So we covered this last quarter. We said we have a new emphasis on defense markets and programs. Why is that? Well, there aren't any new commercial aircraft that we're even aware of the 777X we're on that the 929 will never get on that. I'm not going to go into that now, but that won't happen. But we see significant opportunities in the military defense markets, especially related to missile programs. What's our focus of blades and hypersonics?
How is that emphasis working out for PARC? Well, actually remarkably well, and we'll get back to that a little later on in the presentation, slide 26. Recent questions from investor. We love questions, often we think, well, three or four other people probably thinking or maybe 30 or 40 other people the same question. They just don't, want to ask it. Will the C2B fabric manufacturer manufacturing equipment funded part by parts advanced to a group be located? Ariane's facility or parts facility that'll be at Ariane's facility who will own and operate the new equipment. Ariane will.
Next question. the Park MS LTA provided for a 6.5% weighted average price increase. Does the LTA provide for any further price increases through 29? No, except for price increases related increases in certain. And cost certain raw materials product users produce products for us. What about a life of program agreement? Well, with the life of program agreement a little bit different because there are different price adjustments to the life program agreement if we enter into it, maybe we'll, maybe won't.
Like I said, we're happy either way. We're happy with life program. We're happy with the current LTA. You mentioned that Park is a true blue American company that the parks knowledge, only one of Park's competitors is an American company. Who's that? We believe Hexel is an American public company. We're not aware of other of other Hexel is a much larger comp company, but still a competitor. We're not aware of other competitors that are owned, are US owned.
Let's go on to slide 27 share buyback, so history we spent, let me just kind of go through this quickly so we don't get too bogged down, but this, May 23. 2022 authorization we spent $9.296 million on it. We spent some real dollars on this thing now and then in Q1 is not reflected in our Q4 report in Q1. We spent another we spent $2.165 million just in Q1 alone. We'll see that again in our Q1 report when we talk about our Q1 cash.
So and then just so you know that $2.165 million including the total [$296]. Okay, so we continue to buy back, stock. Well, let's revisit that parks incredible cash dividend history, yeah, and we'll cover this every quarter, I think 40 consecutive years over $600 million since in the last 20 years, $29.47 per share. It's quite incredible for a little company like Parker, the founders started their company in 54 with I think $40,000 that they had left over from war duty. So that's a company that has paid over $600 million in cash dividends in the last 20 years.
Let's go on to slide 29. Okay, here's a big one. That's yeah, I would say it's a real big one. New manufacturing expansion of parts manufacturing, major new expansion rather of parts manufacturing facilities. Park is planning a major expansion of our manufacturing facilities.
Planned expansion will include a plant, and it could be at our Newton, Kansas campus or elsewhere. We have a road warriors out there now looking at other locations, Kansas versus remote. It'll be a very difficult decision to make because the economics of Kansas would be better, but there are other maybe non-quantifiable factors which would make remote better. So we're going to have to figure that out, working on it now. We'll be. Challenge to recruit additional employees. Oh yeah, it'll be a challenge.
That's one of the reasons we're looking at a remote as well, because we think, well, maybe if we have two locations, it might be easier to staff up to the extent we need the plan expansion will include the following new manufacturing lines, solutions creating, hotmail film, Hotmail tape, hypersonic materials manufacturing line and support equipment. Mark was just talking about that. Let's go on to slide 30. A preliminary estimate capital for the estimated capital budget for the new manufacturing plant equipment, $35 million plus or minus $5 million. So we're talking about some very big numbers here for PARC, very big numbers. Why are we doing this?
Our long term, business forecast requires it. That's why significant new business opportunities for both hot melt and solution composite materials, defense and missile programs are drivers. Remember a few slides ago where you're asking how's that working out for us? Well, it's working out for us pretty well. So our focus is paying off big time.
Why are we doing it again and have the flexibility to to be in a position to take advantage of new opportunities as they arise, but we're not in a position to take advantage of the opportunities when they arise, where we're not going to, we won't get the opportunities. How to flexily provide 100 to 100 and 100 support and services to for the GE programs very important for us. We don't want 99.9%. We need 100.
And we're feeling a little tight actually even on the GE program so that's one of the drivers of this decision to do this major expansion as well. We're thinking of planning for the long term we're thinking of planning for our future. When you think about capacity, you gotta think 5 years out, takes 3 years to build a plant and you got to do trials, get qualifications 5 years at least 5 years probably better to use 10 years. So we think that far out. We think, yeah, we need to do something here.
It's very important. It's a great opportunity, but we don't want to miss it. Go on to slide where you want interesting stuff. Others may do things differently. They may wait until the opportunities is sure enough and risking risk missing out on them as a result, as park a park, we're not like the others. So yeah we're in control of our destiny. We have our own cash to do this with. We can do things for our future. I was talking to a a a a a business guy in our industry, Mark, knows him well, and, he was really upset because he was saying that.
His company is not investing in the future and they've lost a lot of major opportunities because when these opportunities arose, it was too late. They not made the investment, they lost them.
So we're not that kind of company. We are control of our destiny, we have our own cash, and we're taking advantage of it, and nobody can stop us from doing it, doing the right thing for our company and our future. Not sharing a long term business forecast we're not going to give you the sales number at this time. We'll get back to that and we have a lot of internal work done on this, so it's not we don't have, we're just not sharing it, a lot of different scenarios, but suffice to say for now we're putting our money where our mouth is by making this major investment in our future. What about the ROI? Very significant.
We're using our own cash, ROI very significant cash flow, very significant, I think back and I'm sorry that calls going on a little bit long here but actually a lot to cover. Over the last 567 years we received from bankers, M&A opportunities, and it was aerospace like it was so superficial. Oh, aerospace, that means it's right for park, of course not, just means it's aerospace doesn't mean it's right for park, but we saw businesses where they were sold for $120 million, $130 million, $140 million. The sales were $20 million.
So it's really good we didn't go there, because now we can, we're talking about some real ROIs here. I don't know what the ROIs would have been for some investments like that. These are some real ROIs very significant. This major new investment changer I think about a cash, maybe we'll get to that in a couple slides of buybacks, JVs where he said those JVs we told the JP partners, well, we're not contributing cash, we'll contribute our IP but not our cash. What about the high level conceptual financial outlook including our recent quarterly investor presentation? What happens to that? We'll take a look at that.
So let's go on a slide 32. So you see, when you look at this slide. This is the reason we felt we need to talk to you about this now, because there are two slides in our prior presentation. This is one of them. You see where it says major new expansion project $35 million in the prior presentations that was $7.5 million for a trier. So we felt, well, that certainly we shouldn't, we couldn't present that slide to you again. That would be so wrong. The other option was to delete the slide, but we thought if we did that would alarm investors and cause angst that we don't want to do that either.
So here's this new slide, and this is one of the. Reasons we felt because of things we covered our prior presentations we really needed to tell you about this now, this major event now. Look at our cash we had $68.8 million at the end of the quarter, so the $5.1 million you know about that, that's a payment to make the IRS in June, buy back in their first quarter $2.2 million, advance payments to Ariane $5 million, about $1.5 million are right in the first quarter and then we have $35 million for this, major expansion, give or take $5 million.
That's a lot. It's $47 million and we got $68 million just doing some simple high level math here. That says after we spend all this money, about $21.5 million left. So that's good. We have no debt, but it's not like we have $200 million left anymore. And the other thing I want to mention is that cash flow. So we will build it be building back that number, especially after this expansion is done and we start to utilize it properly, the cash flow will be quite significant, as will the ROI. So we'll start to build back the number.
Let's go on a slide, 33. All right, so this is something that we cover a recorder. We're not going to go into great details. We call this financial outlook for G Aerospace Jet enter programs, the juggernaut. What's the timing for the juggernaut? We don't know. Not sure, but it can't be stopped. We better be ready. We know it's coming.
Let's go on the slide 34. This slide is almost the same as the prior slides, relating to the numbers for the juggernaut. We just added something for consistency. Miscellaneous GE programs, $2.750 million, so we did was we wanted to make this slide consistent with the prior slide which had the GE sales history because G sales history includes all GE program sales. This juggernaut slide did not include.
Some of the G Aerospace LTA sales, so we're now including in this last item miscellaneous GE programs. These are under the GE aerospace LTA, not the MS LTA. It's a little confusing, but we just wanted to make it apples to apples, so the numbers kind of reconcile with the historical sales. We can go on to the next slide and just look at footnote 9 because footnote 9. Describes this new item multiple part composite materials products supplied to G90 Gen X and G9X engine programs under the park park LTA with GE Aerospace again, not MAS Aerospace.
Let's go on to the next slide here, and this one, slide 36 is something we presented in the last two quarters. This is again a reason why we felt we needed to talk to you about this major expansion. Because we have big question marks here now, we have non GE programs incremental sales, question marks. If you look at the footnote, that number was $15 million in the prior quarterly investor presentations. That number is blown out the window. Blown out the window we're not going to talk about the number is, but that number is gone.
So we couldn't provide the same, slide to you would just be wrong to provide a slide which talks about $150 million in communal sales, I give you the number now. They want you to know that something is very different here and obviously the total would be very different as well, right there, but it's a simple math, let's round G programs up to $60 million. The non-G programs, it's been maybe around $30 million, give or take that $90 million and $15 million incremental is $105 million. Well, that number doesn't work anymore.
And we're not giving you a new number, but we're telling you that it doesn't work anymore and that ties into why we're communicating to you. About the this major expansion initiative and actually that's the end of the presentation. We're not going to go through the appendix.
So thank you everybody for listening operator, Mark and I'd be happy to take questions now if there are any.

Question and Answer Session

Operator

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)
Nick [Ripostella], NR Management.
Nick, you may proceed with your questions. Your line may be muted, if you could please just unmute your line so that we can hear your questions.

Nick Ripostella

Hi, good afternoon, can you hear me?

Brian Shore

We can hear you.

Nick Ripostella

Oh great. Congratulations on a decent quarter and it's pretty exciting what you're suggesting that with this new expansion so I just have a couple of general questions. With regard to tariffs, I know it's hard but in the big picture just your best guess at how it might play out, in terms of the.
Airlines, and Airbus, for example, so if you can comment on how you think it, I know it's hard to answer, but, there's just so much different opinions on how you know it might work out, and there's a lot of, tough talk going around, but, you're best guessing secondly.

Brian Shore

You go ahead, sorry, did you repeat your question?

Nick Ripostella

That's the first question. The second question is, if you could just, there's been a lot of talk and a lot of cell side research on supply chains still and engine components. Do you think that those issues have mostly resolved themselves at this point? I mean, GD has been pretty positive and but so just your further thoughts on that.
And and then, do you think, what would be your biggest worry in terms of delaying the juggernaut at this point. I know that's also a difficult question, but, as Airbus.when they reported recently, I think we had an email back for they're not backing down so there is optimism there. So anyway, those are my questions thank you so much.

Brian Shore

Thanks Nick. Okay. We'll try it together in reverse order. You were, I think the last question is what is the biggest obstacles jaggonnaut occurring. So I don't know. I mean, I think it's more really a question of when and, that's my opinion. I don't see the juggernaut not happening. I don't see the scenario under which it doesn't happen, but you could argue and obviously people do about when it'll happen. Airbus says if we're talking about day for 20, they have their input, other people want to be skeptical.
And you know what, personally I'll say I kind of got tired of listening to it because it's just so much noise and noise and noise like who cares we just have for our our perspective we just have to be ready because we believe it will happen and every expert has an opinion. I get these, email services, with all these aviation experts and I don't know who pays them because I mean I don't know what their pain is worth, but my pain too much.
On the supply chain stuff, yeah, you probably heard that Airbus is building gliders again. I think it's 17 gliders. I'm not sure. I think that's the number that they produce this year. Gliders mean that they're producing airplanes and no engines and thanks to, who rather, that they know the engines for the A320. Now what I'm told is they're a little bit of, bright news is that in the first half more engines have been, going to. The just supporting existing airplanes with spares and that kind of thing and that that's not supposed to happen in this that that's supposed to go away in the second half so that that way the engines that are being produced will go to new airplanes, not the spares that's what I'm told.
Anyway, but it's like it's not really wonderful news to hear that Airbus has has built 17 gliders 8 through 20 gliders, because they just can't get the engines. So, it's still the supply chains with the engine company so obviously an issue, and I just hope they figure out a way to, get their act together, and not just for Airbus, but for obviously for Coack and Boeing as well.
So, I don't know if that's a good answer, but, that's the best answer I can provide. I'll have to see. I think they'll have to get their act together at some point, but I don't know when, maybe that's a similar answer to the answer to the first question supply chain you're asking now not our specific, supply chain issues, sorry, your tariff issues talking about how tariffs, I think that's that's the question will affect the industry generally. And again, like you kind of, intimated and replied, everybody has an opinion, you turned up the news on.
Not fighting about how terrorists will affect the world over the next, whatever years and I don't, or or maybe months, weeks, I don't have a, I mean, I have nothing that I could add to all that. These are so much, so many opinions out there, as the GE Aviation programs that we're on except for the. 777X relate to airplanes that are made by foreign companies Canadian, European and Chinese.
So there are some tariff questions that could and should be asked about how the tariffs will affect the sales of airplanes, but, and the supply of the equipment into those those airplanes, but I don't know my. It's, I guess whatever my $0.02 opinion is, I would say that my, I feel like these things will be sorted out at some point because there's the the the the economic global economic need is such that it will be necessary to sort these problems out one way or another. But I could be wrong, just my opinion, or you want to add anything about tariffs.

Mark Esquivel

No, I mean everybody we talked to, I know he's asking, the airlines and the aircraft companies, but I think we're all looking for answers. I think, there's really, no, yeah, I don't think anybody wants to stick their neck down and say this is what's going to happen. So I think we're all just kind of sitting back and just waiting for this all to, kind of bet itself out, and hopefully, it's sooner rather than later. That's all I really got on that.

Brian Shore

Okay, so you see, Nick, our combined, input is, not so much more brilliant that here. News program these days, but okay.

Nick Ripostella

Okay, can you still hear me?

Brian Shore

Yes.

Nick Ripostella

Yeah, one other thing, so I mean you use the word type with regard to a little tight with regard to your current manufacturing footprint and so is it safe for me to think that you have a high level of confidence of of what you're doing, in terms of a major expansion even before.
The juggernaut has really come to play, we're not at, might be a year and a half, might be two years before they get to 75 months, but it's certainly not inhibiting park in any way. You, you're going to go forward with your investments because you see the opportunity right now. Is that safe to say?

Brian Shore

Yeah, it's exactly right. We're okay now. We're not we're having trouble keeping up now, but we have to plan for the future. And when you're talking about acting capacity, especially in aerospace for our kind of business, you gotta think 5 years. So you gotta think, well, how much capacity manufacturing capacity we need in 2031, 2026, 2027, 2028. Doesn't matter because we need to be ready for 2031 and if we don't get ready for 2031 now we will be in trouble and we'll miss out on things and we could end up being too tight and disappointing customers and that's just not our way of doing business you know.
So right but all while you're thinking forward as a shareholder, it's reasonable to assume you'll have higher sales, in the next couple of years.

Nick Ripostella

In any case, absent some kind of, I don't know, calamity we can't think of, the company will be growing.
While planning for 4 or 5 years, is that reasonable to assume?

Brian Shore

So the question I think the answer is yes, but the question is this you take you know the capacity we think we need in 2030, 331. Okay, so we're building to that number. Is there a straight line between where we are now?
To that point, or is it kind of a a squiggly line, and we don't know. But next when you look at it doesn't really matter because we have to think 5 years out capacity wise and if we feel we don't have enough and we feel we definitely do not have enough, we need to deal with it so that we get to that point we'll be where we want to be not only to be able to handle the programs we know about, but what about new programs, new opportunities that come our way? Like I said, our friend is so upset with this company because they didn't invest for the future. So when programs came. Came around, they were, they lost them, we don't want to be in that position. We want to be in a position where the new opportunities, whatever they may be, we can take advantage of them if we want to, if we feel the right part.

Nick Ripostella

All right, well, My suggestion is, those folks in Washington that care about American manufacturing, they ought to be, talking to the guys at Park, because you're thinking of the future with American jobs and it's a beautiful thing.

Brian Shore

Well thank you very much for saying that you know I doubt anybody from will be calling me anytime soon but but nonetheless, but you're exactly what they're you're exactly what they're trying to make a point of.

Nick Ripostella

That's true. I agree. Okay, well thank you so much for answering the questions and have a good evening.

Brian Shore

Thank you very much, Nick. We appreciate your question really helpful.

Nick Ripostella

All right.

Operator

Thank you. At this time, there are no further questions in the queue. I would like to hand the call over to Mr. Shore for closing remarks. Thank you, sir.

Brian Shore

Thank you very much, operator. Thank you, everybody, for listening. Thank you for hanging in there to the extent you're still on or actually a little over an hour. Have a good day. You have any follow up questions, feel free to give us a call. Thank you. Goodbye.

Operator

Thank you, ladies and gentlemen, that does conclude today's conference. Thank you very much for joining us. You may now disconnect.