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Butler National Corporation (BUKS)
OTHER OTC:BUKS
US Market
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Butler National (BUKS) AI Stock Analysis

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BUKS

Butler National

(OTC:BUKS)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
$5.50
▲(17.02% Upside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by strong profitability and a much improved balance sheet, partially offset by weak/uncertain cash flow conversion in the latest TTM data. Technicals are supportive with an uptrend and positive momentum, while valuation appears reasonable on P/E but lacks dividend support. Corporate events add moderate leadership risk despite continuity measures.
Positive Factors
Balance Sheet Strength
A substantially de-levered balance sheet and equity growth give Butler National durable financial flexibility. Low leverage reduces refinancing and interest risks, supports bidding on aerospace contracts, funding of gaming operations, and capacity to withstand cyclical volatility without needing immediate external capital.
Negative Factors
Cash Flow Volatility
Reported TTM OCF/FCF at zero despite strong earnings undermines confidence in earnings-to-cash conversion. Persistent working-capital or timing variability can constrain capital spending, debt service, buybacks or dividends, and makes sustaining investments or responding to shocks more difficult over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A substantially de-levered balance sheet and equity growth give Butler National durable financial flexibility. Low leverage reduces refinancing and interest risks, supports bidding on aerospace contracts, funding of gaming operations, and capacity to withstand cyclical volatility without needing immediate external capital.
Read all positive factors

Butler National (BUKS) vs. SPDR S&P 500 ETF (SPY)

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
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
Profitability and balance sheet trends are strong (Income Statement 86; Balance Sheet 88) with improved margins and sharply reduced debt, but cash flow reliability is a major offset (Cash Flow 45) due to volatile history and TTM operating/free cash flow reported at $0, reducing confidence in earnings-to-cash conversion.
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
45
Neutral
BreakdownApr 2026Apr 2025Apr 2024Jul 2023Apr 2022
Income Statement
Total Revenue97.97M83.97M78.38M75.18M73.47M
Gross Profit45.34M38.05M33.90M33.88M29.85M
EBITDA35.52M25.64M25.27M14.55M21.41M
Net Income21.93M12.55M12.51M4.52M10.37M
Balance Sheet
Total Assets141.84M123.30M113.97M113.91M100.81M
Cash, Cash Equivalents and Short-Term Investments35.12M25.23M17.79M22.00M12.49M
Total Debt33.45M39.18M41.51M46.88M51.58M
Total Liabilities59.86M58.18M59.53M67.13M59.98M
Stockholders Equity81.98M65.11M54.44M46.78M40.83M
Cash Flow
Free Cash Flow19.24M10.14M-1.20M14.43M1.45M
Operating Cash Flow25.78M18.40M7.54M20.94M11.03M
Investing Cash Flow-4.37M-5.42M-1.13M-5.94M-9.50M
Financing Cash Flow-11.51M-5.55M-10.62M-5.49M-11.06M

Butler National Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.70
Price Trends
50DMA
4.43
Positive
100DMA
4.18
Positive
200DMA
3.53
Positive
Market Momentum
MACD
0.08
Positive
RSI
50.70
Neutral
STOCH
48.38
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 4.7 is below the 20-day moving average (MA) of 4.77, above the 50-day MA of 4.43, and above the 200-day MA of 3.53, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 48.38 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$378.50M13.9029.86%16.67%82.60%
71
Outperform
$360.90M20.5726.00%39.21%56.31%
64
Neutral
$247.43M100.39-1.52%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
$2.98B-107.65-3.69%8.57%-162.23%
50
Neutral
$961.82M-4.58-221.18%-33.98%
39
Underperform
$173.17M-0.22251.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BUKS
Butler National
4.65
3.04
188.82%
DCO
Ducommun
194.85
105.71
118.59%
ISSC
Innovative Solutions And Support
19.75
1.24
6.70%
POWW
AMMO
2.56
1.40
120.69%
EVTL
Vertical Aerospace
0.90
-4.30
-82.69%
EVEX
Eve Holding
2.84
-3.16
-52.67%

Butler National Corporate Events

Business Operations and StrategyExecutive/Board Changes
Butler National Enhances Interim CEO Compensation and Protections
Positive
Jul 24, 2026
On July 22, 2026, Butler National’s board compensation committee increased CFO and interim CEO Adam B. Sefchick’s annual base salary for fiscal 2027 to $302,000 and raised his cash bonus targets, while granting him 20,222 restricted sh...
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.Date of analysis: Jul 25, 2026