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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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Neutral 66 (OpenAI - Gpt-5.6Sol)
Rating:66Neutral
Price Target:
$4.00
▼(-2.20% Downside)
Action:Reiterated
Date:09/12/26
The score is driven primarily by strong profitability and a significantly improved balance sheet, supported by a positive earnings call featuring rapid growth and record backlog. These strengths are tempered by weak/volatile cash flow in the latest TTM data and bearish technical momentum, while valuation appears reasonable on P/E but lacks dividend support.
Positive Factors
Strong growth and profitability
Rapid growth combined with higher operating and net income indicates strong demand and operating leverage across the business. If supported by aerospace programs and gaming activity, this earnings improvement can strengthen reinvestment capacity and reinforce the company’s competitive position over the next several quarters.
Negative Factors
Weak and volatile cash conversion
The latest zero operating and free cash flow readings weaken confidence that reported earnings are converting consistently into cash. Volatility may constrain internally funded investment and make liquidity management more dependent on working-capital timing, project execution, or other period-specific movements.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth and profitability
Rapid growth combined with higher operating and net income indicates strong demand and operating leverage across the business. If supported by aerospace programs and gaming activity, this earnings improvement can strengthen reinvestment capacity and reinforce the company’s competitive position over the next several quarters.
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: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
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
Profitability and balance sheet strength are clear positives (Income Statement 86 with materially higher margins; Balance Sheet 88 with sharply reduced debt and ~28% ROE). The main drag is cash flow quality (Cash Flow 45), with 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
Negative
Last Price4.09
Price Trends
50DMA
4.45
Negative
100DMA
4.28
Negative
200DMA
3.73
Positive
Market Momentum
MACD
-0.16
Positive
RSI
34.82
Neutral
STOCH
21.47
Neutral
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 below the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.45, and above the 200-day MA of 3.73, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 21.47 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$254.79M11.4829.86%16.67%82.60%
64
Neutral
$251.85M83.142.43%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
$2.51B-92.34-3.72%1.36%8.57%-162.23%
50
Neutral
$749.25M-3.39-221.18%1.65%
45
Neutral
$99.39M3.42-171.87%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BUKS
Butler National
4.25
2.59
156.02%
DCO
Ducommun
172.73
79.70
85.67%
POWW
AMMO
2.12
0.60
39.47%
EVTL
Vertical Aerospace
0.55
-4.76
-89.57%
EVEX
Eve Holding
2.10
-1.80
-46.15%

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.Date of analysis: Sep 12, 2026