BUTLER NATIONAL Swings to Loss Amid Revenue Decline, Customer Concentration
Ticker: BUKS · Form: 10-K · Filed: Jul 3, 2025 · CIK: 15847
Sentiment: bearish
Topics: Aerospace, Professional Services, Customer Concentration, Net Loss, Revenue Decline, Small Cap, Kansas Lottery
Related Tickers: BUKS
TL;DR
**BUKS is a risky bet, with a net loss and heavy reliance on a few aerospace customers making it vulnerable.**
AI Summary
BUTLER NATIONAL CORP (BUKS) reported a net loss of $1.5 million for the fiscal year ended April 30, 2025, a significant decline from the net income of $1.2 million in the prior year. Revenue also decreased, with Aerospace Products revenue falling from $10.5 million in 2024 to $9.8 million in 2025, and Professional Services revenue dropping from $1.8 million to $1.5 million over the same period. The company faces substantial customer concentration risk, as the top five aerospace customers accounted for 70% of net sales, and the single largest customer represented 30% of net sales during the fiscal year. This concentration also extends to accounts receivable, with one customer comprising 40% of total receivables. Strategic outlook includes managing its Kansas Expanded Lottery Act Management Contract Privilege Fee, which is a key asset valued at $1.5 million as of April 30, 2025, and continuing operations in its aerospace and professional services segments despite declining revenues. The company's financial position shows common stock at $1.2 million and retained earnings at $10.5 million as of April 30, 2025.
Why It Matters
BUTLER NATIONAL CORP's swing to a net loss of $1.5 million and declining revenues signal potential operational challenges and increased risk for investors. The high customer concentration, with 70% of aerospace sales from just five customers, exposes the company to significant vulnerability if any of these key relationships falter, impacting future revenue stability. This could lead to job insecurity for employees in its aerospace and professional services divisions and potentially affect the broader market's perception of niche aerospace suppliers. Competitively, this concentration could make BUKS less agile and more susceptible to pricing pressures from larger, more diversified industry players.
Risk Assessment
Risk Level: high — The risk level is high due to significant customer concentration, with the top five aerospace customers accounting for 70% of net sales and one customer representing 30% of net sales for the fiscal year ended April 30, 2025. Additionally, one customer comprises 40% of accounts receivable, posing a substantial credit risk. The company also reported a net loss of $1.5 million for the fiscal year, a sharp decline from the prior year's net income.
Analyst Insight
Investors should exercise extreme caution and thoroughly evaluate the customer concentration risk before considering an investment in BUKS. Diversification of revenue streams is critical for the company, and investors should look for concrete plans to mitigate this risk in future filings.
Financial Highlights
- debt To Equity
- N/A
- revenue
- $11.3M
- operating Margin
- N/A
- total Assets
- N/A
- total Debt
- N/A
- net Income
- -$1.5M
- eps
- N/A
- gross Margin
- N/A
- cash Position
- N/A
- revenue Growth
- -8.5%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Aerospace Products | $9.8M | -6.7% |
| Professional Services | $1.5M | -16.7% |
Key Numbers
- $1.5M — Net Loss (Swung from $1.2M net income in FY2024 to a loss in FY2025.)
- $9.8M — Aerospace Products Revenue (Decreased from $10.5M in FY2024.)
- 70% — Customer Concentration (Top 5) (Percentage of net sales from the five largest aerospace customers.)
- 30% — Customer Concentration (Top 1) (Percentage of net sales from the single largest customer.)
- 40% — Accounts Receivable Concentration (Percentage of total receivables from one customer.)
- $1.5M — Kansas Lottery Act Management Contract Privilege Fee (Key asset value as of April 30, 2025.)
- $10.5M — Retained Earnings (As of April 30, 2025, indicating accumulated profits.)
Key Players & Entities
- BUTLER NATIONAL CORP (company) — filer of 10-K
- Kansas Expanded Lottery Act Management Contract Privilege Fee (regulator) — key asset for the company
- $1.5 million (dollar_amount) — net loss for fiscal year 2025
- $1.2 million (dollar_amount) — net income for fiscal year 2024
- $9.8 million (dollar_amount) — Aerospace Products revenue for fiscal year 2025
- $10.5 million (dollar_amount) — Aerospace Products revenue for fiscal year 2024
- 70% (dollar_amount) — percentage of net sales from top five aerospace customers
- 30% (dollar_amount) — percentage of net sales from single largest customer
- 40% (dollar_amount) — percentage of accounts receivable from one customer
- April 30, 2025 (date) — end of fiscal year
FAQ
What were BUTLER NATIONAL CORP's key financial results for the fiscal year 2025?
BUTLER NATIONAL CORP reported a net loss of $1.5 million for the fiscal year ended April 30, 2025, a significant decrease from the $1.2 million net income in the prior year. Aerospace Products revenue was $9.8 million, down from $10.5 million in 2024.
How significant is customer concentration for BUTLER NATIONAL CORP?
Customer concentration is highly significant for BUTLER NATIONAL CORP. The top five aerospace customers accounted for 70% of net sales, and the single largest customer represented 30% of net sales for the fiscal year ended April 30, 2025. One customer also comprised 40% of total accounts receivable.
What are the primary business segments of BUTLER NATIONAL CORP?
BUTLER NATIONAL CORP operates primarily in two segments: Aerospace Products and Professional Services. Aerospace Products generated $9.8 million in revenue, while Professional Services contributed $1.5 million for the fiscal year ended April 30, 2025.
Did BUTLER NATIONAL CORP's revenue change from the previous fiscal year?
Yes, BUTLER NATIONAL CORP's revenue decreased. Aerospace Products revenue fell from $10.5 million in fiscal year 2024 to $9.8 million in fiscal year 2025, and Professional Services revenue dropped from $1.8 million to $1.5 million over the same period.
What is the value of BUTLER NATIONAL CORP's Kansas Expanded Lottery Act Management Contract Privilege Fee?
As of April 30, 2025, the Kansas Expanded Lottery Act Management Contract Privilege Fee, a key asset for BUTLER NATIONAL CORP, was valued at $1.5 million.
What is the impact of customer concentration on BUTLER NATIONAL CORP's risk profile?
The high customer concentration significantly elevates BUTLER NATIONAL CORP's risk profile. A loss or reduction in business from any of the top five aerospace customers, which account for 70% of sales, could severely impact the company's financial performance and stability.
What is the current status of BUTLER NATIONAL CORP's retained earnings?
As of April 30, 2025, BUTLER NATIONAL CORP reported retained earnings of $10.5 million. This figure reflects the accumulated profits of the company over time, despite the net loss in the most recent fiscal year.
What is the fiscal year end date for BUTLER NATIONAL CORP?
The fiscal year end date for BUTLER NATIONAL CORP is April 30. The latest 10-K filing covers the period ending April 30, 2025.
How does the net loss affect BUTLER NATIONAL CORP's investor outlook?
The net loss of $1.5 million for fiscal year 2025, coupled with declining revenues and significant customer concentration, presents a challenging outlook for investors. It suggests potential operational inefficiencies or market pressures that could hinder future profitability and stock performance.
What is BUTLER NATIONAL CORP's ticker symbol and where is its business located?
BUTLER NATIONAL CORP's ticker symbol is BUKS. Its business address is One Aero Plaza, New Century, KS 66031, and its business phone number is 913-780-9595.
Risk Factors
- Customer Concentration Risk [high — financial]: The company faces significant customer concentration, with the top five aerospace customers accounting for 70% of net sales. The single largest customer alone represents 30% of net sales and 40% of total accounts receivable. This high concentration exposes BUKS to substantial revenue and cash flow volatility if any of these key customers reduce their business or terminate their relationships.
- Declining Segment Revenues [medium — operational]: Both the Aerospace Products segment (down 6.7% to $9.8M) and the Professional Services segment (down 16.7% to $1.5M) experienced revenue declines in FY2025. This trend indicates potential challenges in market demand, competitive pressures, or execution within these core business areas.
- Shift to Net Loss [high — financial]: BUTLER NATIONAL CORP swung from a net income of $1.2M in FY2024 to a net loss of $1.5M in FY2025. This significant deterioration in profitability requires careful management of expenses and a strategic review of revenue-generating activities to return to profitability.
- Kansas Lottery Act Management Contract [medium — regulatory]: The company's key asset, the Kansas Expanded Lottery Act Management Contract Privilege Fee, is valued at $1.5M as of April 30, 2025. While this represents a stable asset, its value is tied to regulatory frameworks and contract terms, which could be subject to change or renewal challenges.
Industry Context
Butler National Corp operates in the aerospace products and professional services sectors, which are subject to cyclical demand, technological advancements, and government spending. The amusement and recreation sector, indicated by its SIC code, suggests diversification into areas like lottery management, which can be influenced by state regulations and consumer entertainment spending.
Regulatory Implications
The company's involvement in lottery management through the Kansas Expanded Lottery Act Management Contract Privilege Fee subjects it to state-specific regulations and oversight. Changes in gaming laws or contract terms could impact this revenue stream and the associated asset value.
What Investors Should Do
- Monitor customer concentration closely.
- Analyze the drivers of revenue decline.
- Evaluate the path to profitability.
Key Dates
- 2025-04-30: Fiscal Year End — Reporting period for the 10-K, showing a net loss of $1.5M and declining revenues.
- 2024-04-30: Prior Fiscal Year End — Reported net income of $1.2M and higher revenues in both segments, providing a key comparison point.
Glossary
- us-gaap:SalesRevenueNet
- The total revenue generated from the sale of goods and services, net of returns, allowances, and discounts. (Indicates the top-line performance of the company's core business segments.)
- us-gaap:AccountsReceivableMember
- Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for. (Highlights the company's short-term liquidity and the concentration risk associated with its customer base.)
- buks:KansasExpandedLotteryActManagementContractPrivilegeFeeMember
- A specific intangible asset related to the company's management contract for the Kansas Expanded Lottery Act. (Represents a significant asset for the company, valued at $1.5M, and is tied to regulatory operations.)
- us-gaap:RetainedEarningsMember
- The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (Shows the company's historical profitability; a large positive balance indicates past success, while a negative balance (deficit) indicates accumulated losses.)
Year-Over-Year Comparison
BUTLER NATIONAL CORP experienced a significant downturn in fiscal year 2025 compared to 2024. Revenue declined in both key segments, with Aerospace Products falling from $10.5M to $9.8M and Professional Services from $1.8M to $1.5M, resulting in an overall revenue decrease. Most critically, the company swung from a net income of $1.2M in FY2024 to a net loss of $1.5M in FY2025, indicating a substantial deterioration in financial performance. Customer concentration risks remain a prominent concern, with no apparent mitigation evident from the filing.
Filing Details
This Form 10-K (Form 10-K) was filed with the SEC on July 3, 2025 regarding BUTLER NATIONAL CORP (BUKS).