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Butler National (BUKS)
:BUKS
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Butler National
(OTC:BUKS)
Select Model
Select Model
Rating:79Outperform
Price Target:
$3.50
▲(47.06% Upside)
Butler National's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical analysis indicates strong momentum, though caution is advised due to overbought signals. Valuation is reasonable, supporting the overall positive outlook.
Positive Factors
Aerospace Segment Growth
The strong growth in the aerospace segment underscores Butler National's competitive advantage and market demand, supporting long-term revenue expansion.
Operational Efficiency
Improved operational efficiency through cost management enhances profitability and positions the company for sustained financial health.
Strong Backlog
A strong backlog indicates future revenue stability and growth potential, ensuring continued business momentum in the aerospace sector.
Negative Factors
Gaming Segment Challenges
Declining revenue in the gaming segment due to external economic factors may hinder overall growth and profitability, requiring strategic adjustments.
Impact of Government Shutdown
Government shutdowns can disrupt operations and delay projects, affecting revenue timelines and operational efficiency in regulated sectors.
Decreased Casino Gaming Revenue
Economic downturns in key markets can reduce gaming revenue, impacting cash flow and necessitating diversification or strategic pivots.
Butler National (BUKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$194.77M
Dividend YieldN/A
Average Volume (3M)48.76K
Price to Earnings (P/E)12.3
Beta (1Y)0.68
Revenue Growth4.08%
EPS Growth34.29%
CountryUS
Employees343
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.09
Shares Outstanding64,279,000
10 Day Avg. Volume97,738
30 Day Avg. Volume48,762
Financial Highlights & Ratios
PEG Ratio1.45
Price to Book (P/B)1.55
Price to Sales (P/S)1.20
P/FCF Ratio9.96
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
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 DescriptionButler 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 MoneyButler National generates revenue through multiple key streams. In the aerospace segment, the company earns money by manufacturing aircraft components and providing maintenance, repair, and overhaul (MRO) services, catering to both private and commercial aviation sectors. The gaming division contributes to revenue through the sale and lease of electronic gaming machines, as well as by offering gaming software and related services to casinos. Strategic partnerships with aircraft manufacturers and gaming operators enhance Butler National's market presence and revenue opportunities. The combination of these diverse revenue sources allows the company to maintain a balanced income stream and capitalize on growth opportunities in both industries.
Butler National Earnings Call Summary
Earnings Call Date:Dec 11, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 13, 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.Q2-2026 Updates
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.
Aerospace Segment Revenue Surge
Aerospace segment revenue increased by 20%, primarily due to a $1.2 million increase in aircraft modifications and a $1.1 million increase in special mission electronics.
Strong Backlog and Demand
The company has a robust backlog of $46.3 million, reflecting strong continuing demand for its products.
Operational Efficiency Improvements
Operating margin improved to 38% in the current quarter from 21% in the prior fiscal Q2 due to decreased costs and expenses.
Successful Cost Management
The company has focused on higher-margin businesses, shut down non-core operations, and reduced personnel costs to improve efficiency.
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.
Impact of Government Shutdown
The government shutdown affected some business operations, particularly impacting FAA-related projects like the fire extinguisher project and the Avcon King Air expanded door.
Decreased Casino Gaming Revenue
Casino gaming revenue was negatively impacted by economic factors, including low cattle prices and a distressed agricultural economy.
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
Butler National exhibits a strong financial position with consistent revenue growth and improving profitability. The balance sheet reflects reduced leverage and robust equity growth, while cash flow statements indicate enhanced cash generation capabilities. The company presents a balanced financial structure, with potential for continued growth in the aerospace and defense industry.Income Statement
The income statement reflects strong revenue growth with a consistent increase from $61.48M in 2021 to $83.97M in 2025. The gross profit margin is solid, and net profit margin has shown improvement, indicating robust cost management. EBITDA margin is healthy, contributing to overall profitability. The company demonstrates a positive EBIT margin trend, highlighting efficient operations.85
Very Positive
Balance Sheet
The balance sheet exhibits a stable equity base with stockholders' equity increasing from $35.36M in 2021 to $65.11M in 2025. The debt-to-equity ratio has improved over the years, showing reduced leverage and increased financial stability. The equity ratio indicates a healthy proportion of equity financing, suggesting a strong financial foundation and reduced risk.78
Positive
Cash Flow
Cash flow analysis reveals a significant improvement in free cash flow, transitioning from negative in 2024 to a positive $10.15M in 2025, demonstrating enhanced cash generation capabilities. Operating cash flow has increased, supporting the company's ability to cover its net income with operating activities. The free cash flow to net income ratio is favorable, indicating strong cash flow management.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 83.97M | 78.38M | 75.18M | 73.47M | 61.48M |
| Gross Profit | 38.05M | 33.90M | 33.88M | 29.85M | 17.86M |
| EBITDA | 25.64M | 25.27M | 14.55M | 21.41M | 11.76M |
| Net Income | 12.55M | 12.51M | 4.52M | 10.37M | 2.46M |
Balance Sheet | |||||
| Total Assets | 123.30M | 113.97M | 113.91M | 100.81M | 101.92M |
| Cash, Cash Equivalents and Short-Term Investments | 25.23M | 17.79M | 22.00M | 12.49M | 22.02M |
| Total Debt | 39.18M | 41.51M | 46.88M | 51.58M | 48.65M |
| Total Liabilities | 58.18M | 59.53M | 67.13M | 59.98M | 60.54M |
| Stockholders Equity | 65.11M | 54.44M | 46.78M | 40.83M | 35.36M |
Cash Flow | |||||
| Free Cash Flow | 10.14M | -1.20M | 14.43M | 1.45M | 6.47M |
| Operating Cash Flow | 18.40M | 7.54M | 20.94M | 11.03M | 13.46M |
| Investing Cash Flow | -5.42M | -1.13M | -5.94M | -9.50M | -6.99M |
| Financing Cash Flow | -5.55M | -10.62M | -5.49M | -11.06M | -1.24M |
Butler National Technical Analysis
Positive
2.38
Price Trends
2.45
Positive
2.10
Positive
1.82
Positive
Market Momentum
0.15
Negative
79.67
Negative
89.35
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 2.53, below the 50-day MA of 2.45, and above the 200-day MA of 1.82, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 79.67 is Negative, neither overbought nor oversold. The STOCH value of 89.35 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $194.77M | 12.30 | 25.35% | ― | 4.08% | 34.29% | |
71 Outperform | $193.83M | 21.67 | 23.40% | ― | 72.82% | 80.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $1.37B | -39.33 | -5.27% | ― | 3.16% | -213.56% | |
49 Neutral | $233.05M | -3.72 | ― | ― | -11.01% | -279.70% | |
43 Neutral | $1.60B | -7.39 | -115.63% | ― | ― | -33.69% | |
25 Underperform | $501.51M | -0.58 | ― | ― | ― | ― |
* Industrials Sector Average
BUKS
Butler National
3.05
1.20
64.86%
DCO
Ducommun
91.90
30.68
50.11%
ISSC
Innovative Solutions And Support
14.37
6.87
91.60%
POWW
AMMO
1.95
0.97
98.98%
EVTL
Vertical Aerospace
5.27
-2.43
-31.56%
EVEX
Eve Holding
4.83
0.21
4.55%
Butler National Corporate Events
Butler National Reports Strong Q1 2026 Results
Sep 19, 2025
Butler National Corporation operates in the aerospace and professional services sectors, specializing in aircraft modification, maintenance, repair, and gaming management services.
Business Operations and StrategyStock Buyback
Butler National Launches New Stock Repurchase Program
Positive
Aug 13, 2025
On August 13, 2025, Butler National Corporation announced recent share repurchase activity and the initiation of a new stock repurchase program. This strategic move may impact the company’s financial structure and shareholder value, potentially enhancing its market position and benefiting stakeholders.
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.