Butler National (BUKS) AI Stock Analysis

• Market Cap: $107.66M
• Dividend Yield: N/A
• Average Volume (3M): 270.13K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.72
• Revenue Growth: 4.00%
• EPS Growth: 2.46%
• Country: US
• Employees: 343
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.06
• Shares Outstanding: 64,854,740
• 10 Day Avg. Volume: 654,209
• 30 Day Avg. Volume: 270,135
• PEG Ratio: 1.45
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 3.87
• Enterprise Value/Ebitda: 5.17
• 1Y Price Target: $2.00
• Price Target Upside: 19.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $2.00 ▲(19.76% Upside)

Butler National's strong financial performance, characterized by consistent revenue growth and improving profitability, is the most significant factor contributing to the stock's score. The technical analysis presents mixed signals, with a neutral RSI and slightly negative MACD, indicating potential short-term weakness. The valuation suggests the stock is undervalued, providing potential upside. The absence of earnings call insights and corporate events did not impact the score.

Butler National Business Overview & Revenue Model

Company Description

Butler National Corporation, together with its subsidiaries, engages in the designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems worldwide. The company operates in two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications, which include business-size aircraft from passenger to freighter configuration, radar systems, addition of aerial photography capabilities, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, Cessna, and Dassault Falcon aircraft along with other specialized modifications. This segment also manufactures, sells, and services electronics upgrades for classic weapon control systems that are used on military aircraft and vehicles; and sells, installs, and repairs avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. The Professional Services segment engages in the management of Boot Hill Casino and Resort, a gaming facility, as well as related dining and entertainment facilities in Dodge City, Kansas. This segment also provides architectural services, such as commercial and industrial building design, and engineering services. The company also acquires, refurbishes, and sells airplanes, primarily Learjets. It serves the aviation industry, including owners and operators of single-engine, commercial, regional, business, and military aircraft. Butler National Corporation was incorporated in 1960 and is headquartered in Olathe, Kansas.

How the Company Makes Money

Butler National generates revenue through multiple channels. In the aviation sector, the company earns money by providing aircraft modification services, which include enhancing aircraft performance and compliance with regulatory standards. The gaming division contributes significantly through the operation of casinos, where revenue is generated from gaming activities, including slot machines and table games. Additionally, Butler National's telecommunications segment creates revenue through the sale and maintenance of communication systems. Strategic partnerships with other aviation and gaming entities further bolster its earnings, allowing for expanded market reach and enhanced service offerings.

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.

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.

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	84.26M	83.97M	78.38M	75.18M	73.47M	61.48M
Gross Profit	29.59M	38.05M	33.90M	33.88M	29.85M	17.86M
EBITDA	22.14M	25.64M	25.27M	14.55M	21.41M	11.76M
Net Income	13.99M	12.55M	12.51M	4.52M	10.37M	2.46M
Balance Sheet
Total Assets	130.28M	123.30M	113.97M	113.91M	100.81M	101.92M
Cash, Cash Equivalents and Short-Term Investments	33.44M	25.23M	17.79M	22.00M	12.49M	22.02M
Total Debt	9.36M	39.18M	41.51M	46.88M	51.58M	48.65M
Total Liabilities	32.40M	58.18M	59.53M	67.13M	59.98M	60.54M
Stockholders Equity	65.24M	65.11M	54.44M	46.78M	40.83M	35.36M
Cash Flow
Free Cash Flow	21.64M	10.14M	-1.20M	14.43M	1.45M	6.47M
Operating Cash Flow	30.15M	18.40M	7.54M	20.94M	11.03M	13.46M
Investing Cash Flow	-5.67M	-5.42M	-1.13M	-5.94M	-9.50M	-6.99M
Financing Cash Flow	-8.87M	-5.55M	-10.62M	-5.49M	-11.06M	-1.24M

Butler National Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.67 is above the 20-day moving average (MA) of 1.62, above the 50-day MA of 1.62, and above the 200-day MA of 1.62, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BUKS.

Butler National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISSC	75 Outperform	192.15M	17.34	20.60%	―	72.82%	80.22%
BUKS	74 Outperform	$107.66M	8.03	23.02%	―	4.00%	2.46%
CODA	72 Outperform	93.37M	27.20	0.00%	―	29.34%	13.81%
VTSI	59 Neutral	60.28M	156.46	0.82%	―	-17.36%	-94.28%
CVU	49 Neutral	33.10M	-34.64	-3.90%	―	-14.35%	-105.66%
SPCE	44 Neutral	187.17M	-0.36	-114.94%	―	-84.19%	55.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Butler National Corporate Events

Butler National Launches New Stock Repurchase Program

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.

Julie M. Bowen Appointed Chair of Audit Committee

On July 11, 2025, David B. Hayden retired from the Board of Directors of Butler National Corporation, and Julie M. Bowen was appointed as Chair of the Audit Committee on July 17, 2025. The Board reduced its number of director positions to five to eliminate vacancies. The Compensation Committee adjusted Christopher J. Reedy’s compensation package, decreasing his annual base salary while increasing his cash bonus target for fiscal year 2026. Additionally, Mr. Reedy received a restricted stock award and entered into new severance and change in control agreements, ensuring compensation and benefits in specific termination scenarios.