BUTLER NATIONAL Soars on Aerospace Growth, 67% Net Income Jump

Ticker: BUKS · Form: 10-Q · Filed: Dec 11, 2025 · CIK: 15847

Sentiment: bullish

Topics: Aerospace, Gaming, Revenue Growth, Net Income Increase, Share Repurchase, Financial Performance, Small-Cap

TL;DR

**BUKS is flying high with aerospace demand and smart asset plays, making it a strong buy for growth-oriented investors.**

AI Summary

BUTLER NATIONAL CORP (BUKS) reported a significant increase in net income for the three months ended October 31, 2025, reaching $5.994 million, up 66.7% from $3.596 million in the same period last year. Total revenues grew by 8.8% to $23.251 million from $21.360 million, driven primarily by a 19.9% increase in Aerospace Products revenue to $14.039 million. Professional Services revenue saw a slight decrease of 4.5% to $9.212 million. Operating income surged by 45.8% to $7.077 million, compared to $4.854 million in the prior year. The company also realized substantial other income, including a $1.477 million gain on the sale of a building and a $403,000 gain on the sale of airplanes. Basic earnings per common share increased to $0.09 from $0.05. Cash reserves improved, with cash at the end of the period rising to $29.636 million from $16.159 million year-over-year. The company continued its share repurchase program, buying back 15,699,700 shares at a cost of $14.265 million as of October 31, 2025.

Why It Matters

This strong performance, particularly in Aerospace Products, signals robust demand in a key sector for BUKS, potentially attracting investors seeking growth in specialized aviation. The significant increase in net income and operating income, coupled with strategic asset sales, demonstrates effective management and capital allocation. For employees, this could mean job security and potential expansion opportunities within the aerospace division. Customers benefit from continued innovation and service in aircraft modifications and special mission electronics. Competitively, BUKS's ability to grow aerospace revenue while reducing overall costs positions it favorably against peers in the specialized aviation and gaming management sectors.

Risk Assessment

Risk Level: medium — While net income and revenue are up, Professional Services revenue decreased by 4.5% for the three months ended October 31, 2025, and 4.6% for the six months ended October 31, 2025, indicating a potential weakness in one of its core segments. Additionally, the company's significant share repurchase activity, totaling $4.807 million in the last six months, while reducing shares outstanding, also represents a substantial cash outflow that could impact liquidity if not managed carefully.

Analyst Insight

Investors should consider BUKS for its strong aerospace segment growth and improved profitability. Monitor the Professional Services segment for stabilization and evaluate the long-term impact of share repurchases on shareholder value and financial flexibility. This filing suggests a positive outlook, but diversification within its revenue streams is key.

Financial Highlights

debt To Equity
0.83
revenue
$23.251M
operating Margin
30.4%
total Assets
$128.181M
total Debt
$53.984M
net Income
$5.994M
eps
$0.09
gross Margin
50.2%
cash Position
$29.636M
revenue Growth
+8.8%

Revenue Breakdown

SegmentRevenueGrowth
Aerospace Products$14.039M+19.9%
Professional Services$9.212M-4.5%

Key Numbers

Key Players & Entities

FAQ

What were BUTLER NATIONAL CORP's total revenues for the three months ended October 31, 2025?

BUTLER NATIONAL CORP reported total revenues of $23.251 million for the three months ended October 31, 2025, an increase from $21.360 million in the same period of 2024.

How did BUTLER NATIONAL CORP's Aerospace Products revenue perform in the recent quarter?

Aerospace Products revenue for BUTLER NATIONAL CORP increased by 19.9% to $14.039 million for the three months ended October 31, 2025, up from $11.710 million in the prior year.

What was BUTLER NATIONAL CORP's net income for the three months ended October 31, 2025?

BUTLER NATIONAL CORP achieved a net income of $5.994 million for the three months ended October 31, 2025, a significant increase from $3.596 million reported in the same period of 2024.

Did BUTLER NATIONAL CORP engage in any share repurchases during the period?

Yes, BUTLER NATIONAL CORP repurchased common stock totaling $4.807 million for the six months ended October 31, 2025, increasing treasury stock to 15,699,700 shares.

What contributed to BUTLER NATIONAL CORP's 'other income' for the quarter?

Other income for BUTLER NATIONAL CORP was significantly boosted by a $1.477 million gain on the sale of a building and a $403,000 gain on the sale of airplanes for the three months ended October 31, 2025.

How much cash did BUTLER NATIONAL CORP have at the end of October 31, 2025?

BUTLER NATIONAL CORP reported cash of $29.636 million as of October 31, 2025, an increase from $25.226 million at April 30, 2025.

What was the basic earnings per common share for BUTLER NATIONAL CORP?

Basic earnings per common share for BUTLER NATIONAL CORP was $0.09 for the three months ended October 31, 2025, up from $0.05 in the comparable prior-year period.

How did Professional Services revenue change for BUTLER NATIONAL CORP?

Professional Services revenue for BUTLER NATIONAL CORP decreased by 4.5% to $9.212 million for the three months ended October 31, 2025, compared to $9.650 million in the same period last year.

What is BUTLER NATIONAL CORP's risk level based on this 10-Q?

BUTLER NATIONAL CORP's risk level is assessed as medium. While overall financial performance is strong, the decline in Professional Services revenue and substantial cash outflow for share repurchases warrant monitoring.

What is the strategic outlook for BUTLER NATIONAL CORP based on this filing?

The strategic outlook for BUTLER NATIONAL CORP appears positive, driven by robust growth in its Aerospace Products segment and effective asset management, as evidenced by significant gains from asset sales. Continued focus on aerospace and careful management of its Professional Services segment will be key.

Risk Factors

Industry Context

Butler National Corp operates within the aerospace and defense sector, which is characterized by long product development cycles, significant R&D investment, and reliance on government contracts. The professional services segment likely caters to related industries, requiring specialized expertise. The industry is sensitive to global economic conditions, geopolitical stability, and technological advancements.

Regulatory Implications

The company's operations, particularly in the aerospace segment, are subject to stringent regulations from bodies like the FAA and potentially the DoD. Compliance with manufacturing standards, safety regulations, and government procurement rules is critical. Any changes in these regulations or increased compliance costs could impact profitability.

What Investors Should Do

  1. Monitor Aerospace Segment Growth
  2. Analyze Operating Margin Improvement
  3. Evaluate Cash Flow and Share Buybacks
  4. Assess Professional Services Performance

Key Dates

Glossary

Treasury stock
Shares of a company's own stock that it has repurchased from the open market. These shares are no longer outstanding and do not carry voting rights. (The company's treasury stock increased significantly, reflecting its active share repurchase program.)
Operating Income
A measure of a company's profit after deducting operating expenses from its revenue. It excludes interest and taxes. (Surged by 45.8%, indicating improved operational efficiency and profitability.)
Basic Earnings Per Common Share (EPS)
The net income for the period divided by the weighted-average number of outstanding common shares. (Increased to $0.09 from $0.05, showing improved profitability on a per-share basis.)
Contract Asset
Represents a company's right to consideration in exchange for goods or services that the company has transferred to a customer when that right is conditional on something other than the passage of time. (Decreased from $2.993M to $1.915M, potentially indicating a shift in revenue recognition or project completion.)
Contract Liability
Represents a company's obligation to transfer goods or services to a customer for which the company has received consideration from the customer. (Increased from $5.530M to $5.893M, suggesting an increase in unearned revenue or customer prepayments.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Butler National Corp has demonstrated robust growth, with total revenues increasing by 8.8% to $23.251 million. Net income saw a substantial surge of 66.7% to $5.994 million, significantly boosted by a gain on the sale of a building. Operating income also grew strongly by 45.8%, indicating improved operational performance. The company's cash position has strengthened considerably, and its share repurchase program continues to be active.

Filing Stats: 4,757 words · 19 min read · ~16 pages · Grade level 17.6 · Accepted 2025-12-11 09:26:41

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION PAGE NO. Item 1

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets – October 31, 2025 (unaudited) and April 30, 2025 3 Condensed Consolidated Statements of Operations - Three Months Ended October 31, 2025 and 2024 4 Condensed Consolidated Statements of Operations - Six Months Ended October 31, 2025 and 2024 5 Condensed Consolidated Statements of Stockholders' Equity - Six Months Ended October 31, 2025 and 2024 6 Condensed Consolidated Statements of Cash Flows - Six Months Ended October 31, 2025 and 2024 7 Notes to Condensed Consolidated Financial Statements 8 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 32 Item 4

Controls and Procedures

Controls and Procedures 32

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 33 Item 1A

Risk Factors

Risk Factors 33 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3 Defaults Upon Senior Securities 34 Item 4 Mine Safety Disclosures 34 Item 5 Other Information 34 Item 6 Exhibits 34

Signatures

Signatures 35 2 T a ble of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BUTLER NATIONAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS As of October 31, 2025 and April 30, 2025 (in thousands except per share data) October 31, 2025 April 30, 2025 (unaudited) ASSETS CURRENT ASSETS: Cash $ 29,636 $ 25,226 Accounts receivable, net 7,517 5,867 Inventory, net 11,465 10,924 Contract asset 1,915 2,993 Prepaid expenses and other current assets 2,615 1,771 Income tax receivable - 531 Total current assets 53,148 47,312 LEASE RIGHT-TO-USE ASSET, net 3,268 3,367 PROPERTY, PLANT AND EQUIPMENT, net 58,864 60,256 SUPPLEMENTAL TYPE CERTIFICATES (net of accumulated amortization of $ 12,772 at October 31, 2025 and $ 12,145 at April 30, 2025) 9,803 9,237 OTHER ASSETS: Other assets (net of accumulated amortization of $ 12,761 at October 31, 2025 and $ 12,461 at April 30, 2025) 1,022 1,050 Deferred tax asset, net 2,076 2,076 Total other assets 3,098 3,126 Total assets $ 128,181 $ 123,298 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 9,862 $ 8,623 Current maturities of long-term debt 5,401 5,287 Current maturities of lease liability 126 121 Contract liability 5,893 5,530 Gaming facility mandated payment 1,749 1,688 Compensation and compensated absences 2,082 2,663 Income taxes payable 1,557 - Other current liabilities 433 502 Total current liabilities 27,103 24,414 LONG-TERM LIABILITIES Long-term debt, net of current maturities 26,992 29,870 Lease liability, net of current maturities 3,873 3,900 Total long-term liabilities 30,865 33,770 Total liabilities 57,968 58,184 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, par value $ 5 : Authorized 50,000,000 shares, all classes; Designated Classes A and B 200,000 shares; no shares issued and outstanding - - Common stock, par value $ .01 : Authorized 100,000,000 shares, issued 79,978,702 shares, and outstanding 64,279,002 shares at October 31, 2025 and issued 79

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