Butler National Corporation (OTCQX: BUKS), a prominent player in the global market for aircraft modification, maintenance, repair and overhaul, as well as gaming management sectors, has released its financial results for the second quarter of fiscal year 2025, for the period ending October 31, 2024.
The company continues to demonstrate resilience and growth in a competitive market, with notable increases in both revenue and operating income. For the second quarter Butler National reported an operating income of $4.9 million, marking a 35% increase from $3.6 million in the same period last year. This growth reflects the company’s strategic focus on enhancing operational efficiencies and expanding its service offerings. Earnings per share (EPS) for this quarter were $0.05, slightly down from $0.07 in Q2 FY 2024, which had benefited from a one-time gain of $3.7 million from the sale of an aircraft.
Total revenue for the quarter reached $21.4 million, up 9% compared to $19.6 million in Q2 FY 2024. This increase was driven primarily by a 19% rise in revenue from Aerospace Products, which totaled $11.7 million. Conversely, Professional Services saw a slight decline of 1%, generating $9.7 million in revenue.
The Aerospace Products segment reported robust growth, with revenues climbing due to increased activity in aircraft modification and special mission electronics. The segment’s operating income surged to $2.5 million, up from $1.5 million year-over-year, despite a 10% increase in costs associated with engineering and materials.
In the Professional Services segment, revenue dipped slightly due to decreased traditional gaming revenues; however, sports wagering activities contributed positively with revenues of $1.4 million during the quarter. The segment’s operating income improved to $2.4 million, compared to $2.1 million in the prior year, showcasing effective cost management strategies.
Butler National is committed to innovation within its Aerospace Products division, investing approximately $573,000 in developing new FAA Supplemental Type Certificate (STC) approvals during the quarter. This investment is crucial for maintaining competitiveness in the rapidly evolving aerospace sector, particularly as demand for advanced sensor technologies increases.
The company’s Tempe, Arizona operations have been pivotal in driving these results, with ongoing projects such as the completion of significant aircraft modifications that enhance operational capabilities.
As of October 31, 2024, Butler National’s backlog stood at an impressive $38.1 million, indicating strong future revenue potential across both business segments. The backlog includes firm and pending contracts that may extend beyond the current fiscal year.
Management remains optimistic about future growth opportunities, particularly through its partnership with DraftKings for online sports wagering services in Kansas, which continues to bolster the Professional Services segment.
Butler National Corporation’s second-quarter results reflect a solid performance amidst market challenges, characterized by strategic investments and operational improvements across its business segments. With a robust backlog and ongoing innovation efforts, Butler National is positioned for continued growth as it navigates the complexities of the aerospace and gaming industries.
