Butler National Corporation Delivers Strong Start to Fiscal 2026 Boosted by Aerospace Growth

Butler National Corporation (OTCQX: BUKS) kicked off the first quarter of fiscal 2026 with marked financial improvement, driven largely by its Aerospace Products segment, which delivered a sizable boost in revenue and operating income. The company’s diverse operations in aircraft modification, maintenance, and gaming management helped lift overall profits amidst some operational challenges.

For the three months ending July 31, 2025, Butler National posted revenue of $20.1 million, up 1.5% from $19.8 million in the same quarter last year. What stands out is the company’s operating income, which surged by 32% to $4.7 million from $3.5 million in the prior period. This improvement translated into a net income rise of 64%, reaching $3.7 million compared to $2.2 million the previous year. Earnings per share doubled to $0.06 from $0.03, reflecting the gains despite a modest reduction in diluted shares outstanding due to active share repurchases. 

Christopher J. Reedy, Butler’s President and CEO, summarized the quarter as a solid start where operational focus and team effort enhanced financial results. The main revenue growth came from a 7% increase in the Aerospace Products segment, propelled by efficiencies in Butler-Tempe’s special mission electronics production and faster fabrication of critical components. The Aircraft Avionics business also showed notable gains in revenue and margin, benefiting from the earlier divestment of the autopilot repair unit, which reduced costs significantly. 

That said, the quarter was not without hiccups. A third-party airplane incident on June 16 damaged Butler’s Kansas hangar roof, temporarily disrupting some operations. However, the Avcon team quickly adapted by using adjacent facilities and putting in extra work to meet project deadlines. The damaged King Air B300 prototype aircraft, used for the ongoing door expansion project, is currently under repair. Despite this, installation work and refinements continue as planned, demonstrating the company’s resilience and operational flexibility. 

Investment in product development remains a priority, with about $600,000 spent on designing and producing new offerings in the quarter. This includes securing FAA Supplemental Type Certificate approvals for non-halon portable fire extinguishers required in all Learjets to meet European regulations. Development efforts also extend to advances in gun control housings, cable designs, and tooling for minigun products. The company views these investments as essential to stabilizing and growing its aerospace revenues over the longer term, alongside enhancing future profit potential. 

On the Professional Services side, Butler experienced a revenue decline of 5% to $8.8 million, driven by a 2% increase in gaming revenue share payments to the State of Kansas and local economic challenges affecting the Dodge City region. Mobile sports wagering revenue managed to grow to $1.3 million, up from $1.0 million last year, but declines in traditional casino gaming partially offset this. Costs in this segment were largely flat, with expenses slightly decreasing, resulting in relatively stable profit margins despite the revenue dip. 

The company also made significant moves to buy back shares, repurchasing 2.41 million in this quarter. This demonstrates Butler National’s commitment to returning value to shareholders and confidence in its strategic direction. The board has authorized an additional $5 million for future repurchase activities, signaling ongoing focus on shareholder returns. 

Butler National’s dual business segments reflect its broad activities. The Aerospace Products segment focuses on aircraft structural modifications, avionics integration, and defense-related products and services targeting popular aircraft models like Learjet, King Air, and Cessna turboprops. The Professional Services segment operates gaming and entertainment facilities, including the Boot Hill Casino and Resort in Dodge City, Kansas, which has a sizable footprint with about 500 slot machines, table games, and a DraftKings-branded sportsbook. 

Summing up the first quarter, Butler National showed that gradual revenue growth paired with cost controls and strategic divestments can drive solid profit momentum. While the hangar accident was an operational setback, the company’s quick response and ongoing product development initiatives provide a foundation for continued progress. At a time when aerospace markets remain competitive and gaming revenues face regional headwinds, Butler’s balanced portfolio and actions to enhance shareholder value stand out.