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Butler National
(OTC:BUKS)
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Rating:73Outperform
Price Target:
$4.50
▲(10.02% Upside)
Action:Upgraded
Date:09/12/26
The score is driven primarily by strong profitability and a materially de-risked balance sheet, reinforced by a positive earnings call highlighting rapid growth and a record aerospace backlog. Offsetting factors are cash flow volatility and only neutral-to-soft technical momentum, while valuation looks reasonable based on a moderate P/E.
Positive Factors
Aerospace growth and backlog
Rapid Aerospace Products growth, a record backlog, and a healthy pipeline indicate strong customer demand and multi-period revenue visibility. The combination of repeat modifications, new certifications, and larger aircraft projects can support sustained expansion beyond a single quarter.
Negative Factors
Volatile cash conversion
Cash generation has not tracked earnings consistently, with operating cash flow covering about 61% of net income and free cash flow falling sharply after FY2026. This volatility may constrain internally funded investment and makes reported profitability less dependable as a measure of cash earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Aerospace growth and backlog
Rapid Aerospace Products growth, a record backlog, and a healthy pipeline indicate strong customer demand and multi-period revenue visibility. The combination of repeat modifications, new certifications, and larger aircraft projects can support sustained expansion beyond a single quarter.
Read all positive factors
Butler National (BUKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$319.34M
Dividend YieldN/A
Average Volume (3M)93.57K
Price to Earnings (P/E)11.1
Beta (1Y)0.49
Revenue Growth28.91%
EPS Growth76.06%
CountryUS
Employees374
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.36
Shares Outstanding80,054,340
10 Day Avg. Volume117,712
30 Day Avg. Volume93,568
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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:Sep 11, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall, supported by substantial revenue and earnings growth, exceptional Aerospace Products performance, a record backlog, a healthy opportunity pipeline, a strong balance sheet, and continued investment in growth initiatives. The main negatives were the decline in mobile sports wagering revenue, less favorable DraftKings economics, variability in aerospace timing and margins, and the ongoing CEO search. These challenges were explicitly acknowledged but did not outweigh the company's reported operating momentum.Positive Updates
Strong Companywide Revenue and Profit Growth
Q1 fiscal 2027 revenue increased 53% to $30.8 million from $20.1 million, led by a 92% increase in Aerospace Products revenue. Operating income increased 59% to $7.4 million from $4.7 million, net income increased 43% to $5.3 million from $3.7 million, and earnings per share rose to $0.08 from $0.06.
Negative Updates
Mobile Sports Wagering Revenue Declined
Mobile sports wagering revenue decreased slightly to $1.1 million from $1.3 million in the prior-year quarter, reflecting a decrease in the hold percentage during the quarter.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Companywide Revenue and Profit Growth
Q1 fiscal 2027 revenue increased 53% to $30.8 million from $20.1 million, led by a 92% increase in Aerospace Products revenue. Operating income increased 59% to $7.4 million from $4.7 million, net income increased 43% to $5.3 million from $3.7 million, and earnings per share rose to $0.08 from $0.06.
Read all positive updates
Company Guidance
Management said there is “meaningful runway for growth” in Avcon and Tempe, supported by a “healthy pipeline” and Aerospace Products backlog of a record $51.1 million at July 31, '26, but cautioned that either business will not necessarily grow at “the same rate every quarter or every year,” that margins can vary from quarter-to-quarter, and that investors should not assume any individual quarter represents a permanent margin level; Aerospace Products operating margin was “approximately 25%.” Management said backlog provides future business visibility but is “not necessarily a precise predictor of revenue in any particular quarter,” while capital requirements will vary and the company does not start with a predetermined capital expenditures number; the Kansas Lottery extended Boot Hill’s sports wagering management contract for 3 years through 2030, and Boot Hill and DraftKings amended and extended their agreement for 10 years with a “lower revenue participation percentage” than under the original agreement.Butler National Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Jul 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 108.62M | 97.97M | 83.97M | 78.38M | 75.18M | 73.47M |
| Gross Profit | 54.09M | 45.34M | 38.05M | 33.90M | 33.88M | 29.85M |
| EBITDA | 40.41M | 35.52M | 25.64M | 25.27M | 14.55M | 21.41M |
| Net Income | 23.51M | 21.93M | 12.55M | 12.51M | 4.52M | 10.37M |
Balance Sheet | ||||||
| Total Assets | 139.52M | 141.84M | 123.30M | 113.97M | 113.91M | 100.81M |
| Cash, Cash Equivalents and Short-Term Investments | 35.27M | 35.12M | 25.23M | 17.79M | 22.00M | 12.49M |
| Total Debt | 31.97M | 33.45M | 39.18M | 41.51M | 46.88M | 51.58M |
| Total Liabilities | 53.22M | 59.86M | 58.18M | 59.53M | 67.13M | 59.98M |
| Stockholders Equity | 86.30M | 81.98M | 65.11M | 54.44M | 46.78M | 40.83M |
Cash Flow | ||||||
| Free Cash Flow | 8.73M | 19.24M | 10.14M | -1.20M | 14.43M | 1.45M |
| Operating Cash Flow | 15.72M | 25.78M | 18.40M | 7.54M | 20.94M | 11.03M |
| Investing Cash Flow | -4.82M | -4.37M | -5.42M | -1.13M | -5.94M | -9.50M |
| Financing Cash Flow | -9.08M | -11.51M | -5.55M | -10.62M | -5.49M | -11.06M |
Butler National Technical Analysis
Negative
4.09
Price Trends
4.33
Negative
4.28
Negative
3.85
Positive
Market Momentum
-0.06
Negative
45.41
Neutral
17.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BUKS, the sentiment is Negative. The current price of 4.09 is above the 20-day moving average (MA) of 4.04, below the 50-day MA of 4.33, and above the 200-day MA of 3.85, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 17.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $319.34M | 11.12 | 29.87% | ― | 28.91% | 76.06% | |
64 Neutral | $265.78M | 88.24 | 2.43% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.58B | -94.77 | -3.72% | 1.36% | 8.57% | -162.23% | |
46 Neutral | $106.72M | 3.76 | -171.87% | ― | ― | ― | |
46 Neutral | $676.06M | -3.11 | -221.18% | ― | ― | 1.65% |
* Industrials Sector Average
BUKS
Butler National
4.03
1.81
81.31%
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EVTL
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0.60
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EVEX
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1.93
-1.95
-50.26%
Butler National Corporate Events
Business Operations and Strategy
Butler National Extends DraftKings Sports Wagering Partnership
Positive
Aug 20, 2026
On August 17, 2026, Butler National’s subsidiaries BHCMC and Butler National Service Corporation renewed their Lottery Sports Wagering Management Contract with the Kansas Lottery, extending Boot Hill Casino’s sports wagering management...
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...
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.