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Butler National Corporation (BUKS)
OTHER OTC:BUKS
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Butler National
(OTC:BUKS)
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Rating:79Outperform
Price Target:
$4.00
▲(68.07% Upside)
Action:ReiteratedDate:12/19/25
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
Strong aerospace backlog
A $46.3M backlog signals durable demand for Butler National's aerospace offerings, supporting multi-quarter revenue visibility. Backlog cushions near-term revenue against cyclical headwinds and underpins planned investments in fabrication and CNC capacity, enabling scalable growth.
High and improving margins
Consistently strong gross and operating margins indicate persistent pricing power and efficient cost structure. Elevated EBIT/EBITDA margins reflect durable operational leverage, improving earnings resilience across cycles and supporting reinvestment or shareholder returns over the medium term.
Healthier leverage & strong ROE
Improved leverage and a 22% ROE demonstrate effective capital allocation and financial flexibility. A balanced capital structure with moderate debt enhances ability to fund capex, M&A or buybacks without overburdening cash flow, supporting mid-term strategic initiatives and stability.
Negative Factors
Gaming revenue decline
A persistent revenue decline in the gaming segment exposes Butler to regional economic sensitivity and concentration risk. If local industry pressures persist, gaming cash flows and diversification benefits will be impaired, pressuring consolidated revenue stability and requiring strategic responses.
Declining free cash flow
An 8.5% decline in free cash flow reduces internal funding for capex, backlog execution, and shareholder returns. Continued FCF erosion could force higher leverage or slower reinvestment, weakening the firm's ability to sustain growth initiatives and strategic equipment upgrades over time.
Exposure to government project disruptions
Operational reliance on FAA and government-tied work creates execution risk from political or budget disruptions. Repeated interruptions can delay aerospace projects, reduce near-term revenue realization and complicate capacity planning, making earnings and backlog conversion less predictable.
Butler National (BUKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$271.99M
Dividend YieldN/A
Average Volume (3M)55.66K
Price to Earnings (P/E)13.7
Beta (1Y)0.71
Revenue Growth4.08%
EPS Growth34.29%
CountryUS
Employees343
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.09
Shares Outstanding79,996,810
10 Day Avg. Volume124,207
30 Day Avg. Volume55,657
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 Cap1.02
Enterprise Value/Revenue3.24
Enterprise Value/Gross Profit6.77
Enterprise Value/Ebitda10.00
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 shows strong revenue growth and profitability with improved leverage and returns on equity. However, the decline in free cash flow growth needs monitoring.Income Statement
Butler National has demonstrated strong revenue growth with a TTM increase of 2.24% and consistent improvement in gross profit margins, reaching 46.53%. The net profit margin has also improved to 16.60%, indicating enhanced profitability. The EBIT and EBITDA margins are robust at 22.52% and 28.49%, respectively, showcasing effective cost management and operational efficiency.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.58, reflecting a healthier leverage position compared to previous periods. Return on equity is strong at 22.23%, indicating effective use of shareholder funds. However, the equity ratio stands at 54.76%, suggesting a balanced but slightly leveraged capital structure.78
Positive
Cash Flow
Operating cash flow is strong, with a coverage ratio of 0.92, indicating good cash generation relative to net income. However, free cash flow has declined by 8.53%, which could be a concern if the trend continues. The free cash flow to net income ratio is healthy at 71.76%, suggesting efficient cash conversion.72
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Jul 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 86.16M | 83.97M | 78.38M | 75.18M | 73.47M | 61.48M |
| Gross Profit | 41.20M | 38.05M | 33.90M | 33.88M | 29.85M | 17.86M |
| EBITDA | 27.87M | 25.64M | 25.27M | 14.55M | 21.41M | 11.76M |
| Net Income | 16.39M | 12.55M | 12.51M | 4.52M | 10.37M | 2.46M |
Balance Sheet | ||||||
| Total Assets | 128.18M | 123.30M | 113.97M | 113.91M | 100.81M | 101.92M |
| Cash, Cash Equivalents and Short-Term Investments | 29.64M | 25.23M | 17.79M | 22.00M | 12.49M | 22.02M |
| Total Debt | 36.39M | 39.18M | 41.51M | 46.88M | 51.58M | 48.65M |
| Total Liabilities | 57.97M | 58.18M | 59.53M | 67.13M | 59.98M | 60.54M |
| Stockholders Equity | 70.21M | 65.11M | 54.44M | 46.78M | 40.83M | 35.36M |
Cash Flow | ||||||
| Free Cash Flow | 19.79M | 10.14M | -1.20M | 14.43M | 1.45M | 6.47M |
| Operating Cash Flow | 26.73M | 18.40M | 7.54M | 20.94M | 11.03M | 13.46M |
| Investing Cash Flow | -3.86M | -5.42M | -1.13M | -5.94M | -9.50M | -6.99M |
| Financing Cash Flow | -9.40M | -5.55M | -10.62M | -5.49M | -11.06M | -1.24M |
Butler National Technical Analysis
Positive
2.38
Price Trends
3.07
Positive
2.75
Positive
2.19
Positive
Market Momentum
0.11
Negative
65.67
Neutral
78.92
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 3.17, below the 50-day MA of 3.07, and above the 200-day MA of 2.19, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 78.92 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $271.99M | 13.72 | 25.35% | ― | 4.08% | 34.29% | |
78 Outperform | $490.33M | 26.13 | 32.53% | ― | 78.60% | 121.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $1.95B | -56.59 | -5.05% | ― | 3.16% | -213.56% | |
57 Neutral | $241.61M | -3.93 | ― | ― | -11.01% | -279.70% | |
49 Neutral | $1.09B | -4.79 | -115.63% | ― | ― | -33.69% | |
45 Neutral | $422.68M | -0.47 | ― | ― | ― | ― |
* Industrials Sector Average
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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.