Butler National (BUKS) AI Stock Analysis

• Market Cap: $247.97M
• Dividend Yield: N/A
• Average Volume (3M): 55.66K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.64
• Revenue Growth: 4.08%
• EPS Growth: 34.29%
• Country: US
• Employees: 343
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.10
• Shares Outstanding: 64,074,940
• 10 Day Avg. Volume: 124,207
• 30 Day Avg. Volume: 55,657
• PEG Ratio: 1.45
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 3.42
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 9.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $4.50 ▲(89.08% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

BUKS scores well primarily on improved financial strength (stronger profitability and sharply reduced leverage) and an attractive low P/E valuation. Technicals also support the score with an upward trend, though elevated RSI suggests some near-term overextension risk. Earnings call factors are supportive due to strong Aerospace momentum and backlog, partially offset by Gaming weakness and shutdown-related project impacts.

Positive Factors

Improved profitability & margins

A durable step-up in operating and net margins reflects stronger earnings power and operational discipline. Higher margins expand free-cash-flow potential, enable reinvestment in manufacturing and R&D, and provide a buffer versus cyclical revenue swings, supporting multi-month resilience.

De-risked balance sheet

Material deleveraging meaningfully reduces financial risk and interest burden, improving capital flexibility. With equity growth and low leverage, the company can more sustainably fund capex, strategic investments, and buybacks without pressuring liquidity over the coming quarters.

Strong aerospace backlog & growth

A sizable $46.3M backlog and 20% aerospace revenue growth point to durable demand and revenue visibility. This supports steady utilization of engineering and fabrication capacity, underpins predictable near-term revenue, and cushions the business against short-term market swings.

Negative Factors

Gross margin compression

A notable decline in gross margin signals mix shifts or cost pressure at the product level. Even with improved operating margins from cost cuts, persistent lower gross margins could cap sustainable profitability and limit the upside from higher revenue over multiple quarters.

Cash-flow volatility

Free-cash-flow fell and has shown historical volatility, with FCF ~71% of net income and operating cash covering ~two-thirds of EBITDA. Inconsistent cash conversion raises execution risk for ongoing capex, equipment upgrades, and buybacks across the coming 2–6 months.

Segment exposure & external shocks

Concentration in aerospace and professional services exposes results to sector-specific cycles and external events. Gaming weakness and government shutdown impacts on FAA-related work show susceptibility to local economic and political disruptions that can meaningfully affect near-term revenue.

Butler National Business Overview & Revenue Model

Company Description

Butler National Corporation (BUKS) is a diversified company that operates primarily in the aerospace and gaming sectors. The company is engaged in the manufacturing of aircraft parts and provides maintenance, repair, and overhaul services for various aircraft. Additionally, Butler National operates in the gaming industry, providing electronic gaming machines and related services to casinos and other gaming establishments. The company aims to leverage its expertise in both sectors to drive growth and enhance shareholder value.

How the Company Makes Money

Butler National generates revenue mainly through two operating areas: (1) Aerospace products and services and (2) Professional services/staffing. 1) Aerospace products and services: The company earns money by providing avionics-related products and engineering/manufacturing services for aircraft systems and upgrades. Revenue is recognized through the sale of avionics equipment and components and through contracted work such as engineering, integration, modification, and maintenance/support services. Earnings in this segment are driven by contract volume, program mix (product vs. services), pricing and margins on manufactured components, and the utilization of engineering/manufacturing capacity. 2) Professional services/staffing: The company earns money by supplying personnel and technical services to customers, including government-related and commercial engagements. Revenue is typically generated on a contract basis (often time-and-materials or similar structures) where Butler National bills customers for labor (and sometimes allowable expenses) and retains a margin between bill rates charged to customers and the wages/benefits paid to employees/contractors. Profitability depends on headcount and billable utilization, contract terms, labor costs, and the ability to recruit and retain qualified personnel. Significant partnerships or customer-specific concentration details: null

Butler National Financial Statement Overview

Summary

Strong fundamentals overall: profitability improved meaningfully into TTM (EBIT margin ~20%, net margin ~21%) and the balance sheet de-risked sharply with much lower leverage (debt down to ~9M TTM; debt-to-equity ~0.12). Offsetting factors are weaker gross margin in TTM (~35% vs ~43–45% prior) and uneven cash-flow consistency, including a recent free-cash-flow decline and prior-year volatility.

Income Statement

Profitability has strengthened meaningfully versus earlier years, with TTM (Trailing-Twelve-Months) showing strong operating performance (EBIT margin ~20% and net margin ~21%) alongside mid-single-digit revenue growth. The multi-year trend shows a clear step-up in earnings power from 2021–2023 levels to 2024–TTM. Offsetting this, gross margin is lower in TTM (~35%) than the prior annual periods (~43–45%), suggesting either mix or cost pressure even as bottom-line execution improved.

Balance Sheet

Leverage has improved dramatically: total debt fell from ~39–52M in recent annual periods to ~9M in TTM (Trailing-Twelve-Months), and debt-to-equity dropped to ~0.12 from ~0.60–1.38 historically. Equity has also grown (to ~76M TTM), supporting a stronger capital position. Return on equity is solid-to-strong (TTM ~28%), though investors should note ROE benefited in some earlier years from higher leverage, and the sharp debt change merits monitoring for sustainability and consistency.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months) with operating cash flow of ~23M and free cash flow of ~16M, but free cash flow declined (~-17% growth) versus the prior annual period. Cash conversion is decent but not perfect: free cash flow is ~71% of net income in TTM, and operating cash flow covers about two-thirds of EBITDA, implying working-capital or cash timing noise. Historical volatility is a key watch-out, including a year with negative free cash flow (2024 annual).

Breakdown	TTM	Apr 2025	Apr 2024	Jul 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	91.89M	83.97M	78.38M	75.18M	73.47M	61.48M
Gross Profit	46.85M	38.05M	33.90M	33.88M	29.85M	17.86M
EBITDA	34.77M	25.64M	25.27M	14.55M	21.41M	11.76M
Net Income	19.71M	12.55M	12.51M	4.52M	10.37M	2.46M
Balance Sheet
Total Assets	140.98M	123.30M	113.97M	113.91M	100.81M	101.92M
Cash, Cash Equivalents and Short-Term Investments	36.49M	25.23M	17.79M	22.00M	12.49M	22.02M
Total Debt	34.81M	39.18M	41.51M	46.88M	51.58M	48.65M
Total Liabilities	64.64M	58.18M	59.53M	67.13M	59.98M	60.54M
Stockholders Equity	76.34M	65.11M	54.44M	46.78M	40.83M	35.36M
Cash Flow
Free Cash Flow	16.47M	10.14M	-1.20M	14.43M	1.45M	6.47M
Operating Cash Flow	23.34M	18.40M	7.54M	20.94M	11.03M	13.46M
Investing Cash Flow	-5.28M	-5.42M	-1.13M	-5.94M	-9.50M	-6.99M
Financing Cash Flow	-12.27M	-5.55M	-10.62M	-5.49M	-11.06M	-1.24M

Butler National Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BUKS, the sentiment is Positive. The current price of 2.38 is below the 20-day moving average (MA) of 3.51, below the 50-day MA of 3.22, and above the 200-day MA of 2.32, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 80.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BUKS.

Butler National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUKS	81 Outperform	$247.97M	7.19	28.47%	―	4.08%	34.29%
ISSC	78 Outperform	$509.53M	20.64	31.11%	―	78.60%	121.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCO	59 Neutral	$1.81B	-41.88	-5.01%	―	3.16%	-213.56%
POWW	57 Neutral	$225.19M	22.47	―	―	-11.01%	-279.70%
EVEX	46 Neutral	$835.93M	-5.44	-225.72%	―	―	-33.69%
EVTL	45 Neutral	$353.71M	―	1730.37%	―	―	―