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Butler National
(OTC:BUKS)
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Rating:71Outperform
Price Target:
$5.00
▲(110.08% Upside)
Action:Reiterated
Date:07/13/26
BUKS earns a solid score primarily due to strong profitability and a significantly strengthened balance sheet (major debt reduction and strong ROE). The main constraint is cash flow quality, as TTM operating cash flow and free cash flow are reported at $0, creating a gap between earnings strength and cash generation. Technicals are supportive with price above key moving averages and positive momentum indicators, while valuation is reasonable at ~14.6x earnings but lacks dividend support.
Positive Factors
High and expanding margins
Sustained, materially expanded margins indicate durable operational strength and pricing power across business lines. High gross and operating margins support free cash generation potential, provide a buffer against cost inflation, and underpin persistent profitability even if revenue growth moderates.
Negative Factors
Weak cash conversion and volatile cash flow
A disconnect between strong reported earnings and zero reported TTM operating/free cash flow raises concern about earnings quality. Volatile cash conversion—likely from working-capital timing or investment swings—limits ability to self-fund growth, dividends, or repurchases and increases reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
High and expanding margins
Sustained, materially expanded margins indicate durable operational strength and pricing power across business lines. High gross and operating margins support free cash generation potential, provide a buffer against cost inflation, and underpin persistent profitability even if revenue growth moderates.
Read all positive factors
Butler National (BUKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$278.11M
Dividend YieldN/A
Average Volume (3M)55.66K
Price to Earnings (P/E)14.6
Beta (1Y)0.67
Revenue Growth16.67%
EPS Growth82.60%
CountryUS
Employees343
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.33
Shares Outstanding63,932,907
10 Day Avg. Volume124,207
30 Day Avg. Volume55,657
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)3.21
Price to Sales (P/S)2.69
P/FCF Ratio13.67
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue3.49
Enterprise Value/Gross Profit6.82
Enterprise Value/Ebitda9.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Butler National Business Overview & Revenue Model
Company Description
Butler National Corporation is a diversified company operating internationally, specializing in a broad spectrum of aerospace activities. Its extensive involvement includes the design, engineering, manufacturing, distribution, installation, repair...
How the Company Makes Money
Butler National makes money through two primary operating areas: (1) Aerospace and (2) Gaming. In aerospace, revenue is generated by providing aviation products and services such as aircraft modification, upgrades, and related support work perform...
Butler National Earnings Call Summary
Earnings Call Date:Dec 11, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in operating and net income, driven by strong performance in the Aerospace segment and improved operational efficiency. However, the Gaming segment faced challenges due to economic factors, leading to a decline in revenue. Overall, the positive aspects of growth and efficiency improvements outweigh the challenges faced in the Gaming segment.Positive Updates
Record Operating and Net Income Growth
The company reported a 46% increase in operating income and a 67% increase in net income, driven by a 9% increase in revenue.
Negative Updates
Gaming Segment Revenue Decline
Professional Services Gaming segment revenue decreased by 5%, impacted by economic challenges in the local market due to the cattle and agricultural industries.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Operating and Net Income Growth
The company reported a 46% increase in operating income and a 67% increase in net income, driven by a 9% increase in revenue.
Read all positive updates
Company Guidance
During the Butler National Corporation conference call on December 12, 2025, significant financial metrics and strategic guidance were discussed. The company reported a 9% increase in total revenue for the quarter, reaching $23.3 million compared to $21.3 million in the same quarter the previous year. The Aerospace segment saw a substantial 20% revenue increase to $14 million, driven by a $1.2 million rise in aircraft modifications and a $1.1 million increase in special mission electronics. The company's net income rose to $6 million, up from $3.6 million, and included a $1.5 million gain from the sale of a casino administrative building. Earnings per share for the quarter were $0.09, contributing to a $0.15 EPS for the first half of the fiscal year. The operating margin significantly improved to 38% from 21% in the prior fiscal Q2. The company emphasized its strategic focus on aerospace product expansion, with a robust backlog of $46.3 million and ongoing investments in fabrication facilities and new CNC equipment. The gaming segment showed a 5% revenue decrease due to economic challenges, but sports wagering positively contributed. The call also highlighted capital allocation priorities, including reinvestment in operations and stock repurchases. The management shared its commitment to maintaining a strong financial foundation and pursuing growth opportunities responsibly, while also addressing questions about potential uplisting to NASDAQ and strategic priorities for long-term shareholder value creation.Butler National Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Jul 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 97.97M | 83.97M | 78.38M | 75.18M | 73.47M |
| Gross Profit | 0.00 | 38.05M | 33.90M | 33.88M | 29.85M |
| EBITDA | 28.45M | 25.64M | 25.27M | 14.55M | 21.41M |
| Net Income | 21.93M | 12.55M | 12.51M | 4.52M | 10.37M |
Balance Sheet | |||||
| Total Assets | 141.84M | 123.30M | 113.97M | 113.91M | 100.81M |
| Cash, Cash Equivalents and Short-Term Investments | 35.12M | 25.23M | 17.79M | 22.00M | 12.49M |
| Total Debt | 8.84M | 39.18M | 41.51M | 46.88M | 51.58M |
| Total Liabilities | 28.45M | 58.18M | 59.53M | 67.13M | 59.98M |
| Stockholders Equity | 81.98M | 65.11M | 54.44M | 46.78M | 40.83M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 10.14M | -1.20M | 14.43M | 1.45M |
| Operating Cash Flow | 0.00 | 18.40M | 7.54M | 20.94M | 11.03M |
| Investing Cash Flow | 0.00 | -5.42M | -1.13M | -5.94M | -9.50M |
| Financing Cash Flow | 0.00 | -5.55M | -10.62M | -5.49M | -11.06M |
Butler National Technical Analysis
Positive
2.38
Price Trends
4.14
Positive
3.91
Positive
3.26
Positive
Market Momentum
0.05
Negative
60.93
Neutral
74.91
Neutral
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 4.24, below the 50-day MA of 4.14, and below the 200-day MA of 3.26, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 74.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BUKS.
Butler National Risk Analysis
Butler National disclosed 31 risk factors in its most recent earnings report. Butler National reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Butler National Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $278.11M | 14.63 | 28.47% | ― | 16.67% | 82.60% | |
66 Neutral | $337.28M | 19.64 | 26.00% | ― | 39.21% | 56.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $2.49B | ― | -4.86% | ― | 6.48% | -191.94% | |
58 Neutral | $288.09M | -43.97 | -35.04% | ― | ― | ― | |
47 Neutral | $842.90M | -3.32 | -258.98% | ― | ― | -33.98% | |
43 Neutral | $211.36M | -0.40 | 251.21% | ― | ― | ― |
* Industrials Sector Average
BUKS
Butler National
4.47
2.85
175.93%
DCO
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163.50
75.04
84.83%
ISSC
Innovative Solutions And Support
18.35
3.70
25.26%
POWW
AMMO
2.38
1.22
105.17%
EVTL
Vertical Aerospace
1.59
-3.41
-68.20%
EVEX
Eve Holding
2.28
-4.64
-67.05%
Butler National Corporate Events
Executive/Board Changes
Butler National Announces CEO Retirement and Interim Leadership
Neutral
Jun 15, 2026
Butler National Corporation announced on June 15, 2026, that Chief Executive Officer Christopher J. Reedy had retired from his role, effective that day, citing health considerations, while remaining on the board and serving as a special advisor un...
Executive/Board Changes
Butler National Raises Executive Chairman Jeffrey Yowell’s Compensation
Neutral
Jun 10, 2026
On June 4, 2026, Butler National Corporation’s Compensation Committee approved a $90,000 cash increase in the annual compensation of Executive Chairman Jeffrey D. Yowell, effective June 1, 2026. Following the change, Yowell’s total ann...
Business Operations and Strategy
Butler National CEO Undergoes New Cancer Treatment Plan
Negative
Jun 1, 2026
On June 1, 2026, Butler National Corporation disclosed that Chief Executive Officer Christopher J. Reedy informed employees he is undergoing a new course of medical treatment following consultations at the Mayo Clinic, related to his ongoing cance...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.