Butler National Q4 2026 Earnings Report

Butler National EPS Results

• Actual EPS: $0.09
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Butler National Revenue Results

• Actual Revenue: $27.68 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Butler National Announcement Details

• Quarter: Q4 2026
• Date: 7/7/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, July 8, 2026
• Conference Call Time: 11:00AM ET

Butler National (OTCMKTS:BUKS) Corporation is a diversified company headquartered in Olathe, Kansas, with operations in aerospace and gaming. Its aerospace business provides aircraft modification, maintenance, repair, and overhaul services, along with specialized avionics and electronic systems for military and civilian aircraft.

The company also develops and supplies aircraft components and related products, and operates as an FAA-certified repair station. Its aerospace services support aircraft owners, operators, and government and commercial customers, with work performed primarily in the United States.

Through its gaming operations, Butler National owns and operates Boot Hill Casino & Resort in Dodge City, Kansas. The property includes casino gaming, dining, entertainment, and hospitality services. Butler National has historically been led by Clark D. Stewart, who has served as the company's chairman and chief executive officer.

Butler National Q4 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Butler National reported record fiscal 2026 results, with revenue up 17% to $98 million, operating income up 69% to $28.5 million, net income up 75% to $21.9 million, and EPS rising to $0.34.
• Positive Sentiment: The aerospace products segment was the main growth driver, with revenue up 33% to $60.6 million, led by aircraft modifications and special mission electronics demand.
• Neutral Sentiment: Management said fiscal 2026 was not a one-time peak and pointed to backlog, customer demand, product pipeline, and new capabilities like mission systems integration as support for continued growth.
• Neutral Sentiment: The company said a CEO search is underway after the leadership transition, but the board is prioritizing finding the right long-term leader rather than moving quickly; it framed the change as a transition, not a strategy shift.
• Positive Sentiment: Butler National ended the year with a record backlog of $47.1 million, increased stockholders’ equity by 26%, reduced long-term liabilities by 16%, and repurchased 3.326 million shares during the year.

Presentation

[Operator]

Good morning, ladies and gentlemen. Today is Wednesday, July 8th, and welcome to the Butler National Corporation conference call. At this time, all participants are in listen-only mode. After the presentation, we will conduct a question and answer session. Operator assistance is available at any time during this conference by pressing zero pound. Your call leaders for today's call are Jeffrey D. Yowell, Executive Chairman, Adam Sefchick, Interim CEO and CFO, and David Drewitz, Investor Relations. I'd now like to turn the call over to Mr. David Drewitz. Please begin, sir.

[David Drewitz, Investor Relations Officer at Butler National Corporation]

Thank you, operator, welcome to everyone. Before we begin, please note that certain statements made in this call may be considered forward-looking statements under the Private Securities Litigation Reform Act. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties are described in our filings with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. With that statement read, I will now turn the call over to Jeff Yowell, Executive Chairman of Butler National Corporation. Jeff, the floor is yours.

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

Thank you, David, thank you to everyone joining the call. We appreciate your interest in Butler National and your participation in our quarterly earnings calls. These calls are an important part of our commitment to transparency and to keeping shareholders informed about Butler National's performance and direction. Today, you'll hear from myself and our Chief Financial Officer and Interim CEO, Adam Sefchick, who will review the company's financial and operational highlights for fiscal 2026. Adam and I will also address several of the questions submitted in advance. With that, I'll turn it over to Adam.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Thank you, Jeff, and thank you, shareholders, for your interest in Butler National Corporation. It's been a very exciting year to be part of Butler National, I'm proud to share some details around our results with you. This past fiscal year again reflects record performance for Butler National. While our fourth quarter includes the normal year-end accounting adjustments and incentive compensation accruals associated with closing the fiscal year, the business continued to perform exceptionally well, resulting in another year of record operating and financial performance. In fiscal 2026, we saw significant increases in operating income and net income of 69% and 75% respectively, on a 17% increase in revenue, which demonstrates the continued effort of the Butler team as we drive results through increased production efficiencies, greater fabrication capabilities, larger plane modifications, and system integration projects, and higher sales volumes.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

The overall increase in revenue and operating margins is driven by gains in our aerospace products segment. These results reflect a 33% increase in revenue from aerospace products compared to the previous year. Aerospace products includes aircraft modifications, avionics, and special mission electronics. For example, our special mission electronics team, which manufactures gun control units and cabling at our Tempe, Arizona facility, had an incredible 51% revenue growth over the prior year, and they continue to experience strong demand for our legacy electronic control systems, as well as deliveries of the M134 Minigun gun control units. The professional services segment has experienced a slight decline in overall revenue of 2%, driven by the local economic factors that continue to play a significant role with the legacy gaming results. However, sports wagering continues to contribute positively to the financial results.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Here is a more detailed look at our annual financial performance. Total revenue for the year was $98 million, compared to $84 million in fiscal 2025, up 17%. Aerospace product segment revenue was $60.6 million, compared to $45.7 million in fiscal 2025, a 33% increase. Professional services gaming segment revenue was $37.4 million, compared to $38.3 million in fiscal 2025. Net income for the year was $21.9 million, up 75% from $12.5 million in fiscal 2025. Operating income for the year was $28.5 million, a 69% increase from fiscal 2025's $16.8 million in operating income. Earnings per share for the year was $0.34, up from $0.19 in the prior year.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

From the aerospace products segment, the increase in revenue is primarily due to a $7.6 million in aircraft modifications and a $6.5 million increase in special mission electronics. From a percentage perspective, both costs and expenses decreased compared to the prior fiscal year. This resulted in an operating margin of 33% in fiscal 2026, compared to 17% in fiscal 2025, with operating income as a percentage of revenue. With respect to management services and gaming, as noted earlier, economic challenges in the local market due to the cattle and agricultural industries continue to impact discretionary spending. Traditional casino gaming revenue decreased to $26.7 million in fiscal 2026, a 5% decrease compared to fiscal 2025. However, mobile sports wagering revenue increased to $6.5 million compared to $5.8 million in fiscal 2025, reflecting continued growth in that market.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Costs for gaming were down 2%, while expenses were up 2%. Other highlights include stockholders' equity increased 26% during fiscal 2026, while long-term liabilities declined 16%. We repurchased 3,326,000 shares of our outstanding common stock during fiscal 2026 as part of our ongoing capital allocation strategy. Our backlog is a record high at $47.1 million. That concludes the financial overview. I'll now turn it back over to Jeff to begin the Q&A.

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

Thank you, Adam. I wanted to thank our investors and other interested parties for the thoughtful questions that were submitted in advance. We've grouped several questions covering similar topics so that we can provide more complete responses. Adam will read each question, and either Adam or I will respond.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Thanks, Jeff. Our first pre-submitted question relates to the recent leadership transition. Can you provide an update on the process to identify Butler National's next chief executive officer? Jeff?

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

Succession planning has been an ongoing responsibility of the board. We are grateful for Chris Reedy's leadership and appreciate his continued assistance during the transition as his health permits. The board has initiated a formal search process and is evaluating a number of highly qualified candidates. Our objective is to identify the right long-term leader, not simply move quickly. The board takes this responsibility very seriously. We have engaged a recruiter and have received a number of recommendations. The vetting process will not be trivial. In the interim, Adam and our executive leadership team provide continuity, shareholders should view this as a leadership transition, not a change in strategy. The board has also been careful to ensure the search process does not distract management from executing the business.

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

As I've mentioned many times in the past, it is our objective to facilitate evolution without disrupting our growth, I am committed to this direction.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Thanks, Jeff. Our next question. Butler National reported record revenue, operating income, and earnings during fiscal 2026. Is this performance sustainable or are these Avcon and Tempe peaks? I'll take this. We do not believe fiscal 2026 was driven by a one-time event. Avcon continues to benefit from demand for aircraft modifications and engineering services for special mission aircraft and special missions integrations. Special missions electronics in Tempe delivered an exceptional year. We continue to see healthy demand, opportunities for new products, and operational improvements. Results will naturally vary by year, but we remain confident in the long-term trajectory of both businesses based on backlog, customer demand, and product pipeline. Let me point out a few specific examples. At Avcon, we achieved several significant milestones, including the successful completion and certification of our Special Missions Challenger 605/650 platform.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

We also recently completed a modification on the largest aircraft in Avcon's history, the CN-235. It was predominantly a systems integration, an expanded focus of Avcon given our previous focus on structural modifications. Mission systems integrations expand the scope of work we can perform while creating opportunities for high-value projects. Like much of the aerospace industry, attracting experienced engineers and technicians continues to be an important priority. Depending on the specific program, engineering resources, production scheduling, customer timing, FAA certification activities can all influence when backlog converts into revenue. That is why we have continued investing in engineering and technical talent while also expanding scalable offerings such as kit sales. We expect an increasing portion of aerospace products revenue to come from kits and engineered solutions as alternatives to support the demand for our aircraft modifications.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Kits are a great example of working with others, even globally, to install our products and allow us to leverage our engineering, manufacturing, and certification expertise while expanding our geographic reach through qualified installation partners. We believe this allows portions of our aerospace products business to grow without requiring proportional increases in hangar capacity or engineering headcount. We also note that we did have a one-time sale of our Learjet equipped with an Avcon STC'd Garmin Avionics suite and special mission mods, including the delta fins and hard points. We will continue to look for value proposition aircraft acquisitions to modify and remarket for a profit. For example, our King Air Model 350, on which we are working on a project, will be for sale in the near future. Our next question submitted. Several shareholders submitted questions regarding a potential NASDAQ uplisting.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

What milestones remain before the company formally pursues an uplisting? Jeff?

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

An uplisting remains an important long-term objective. The CEO search is appropriately the board's highest immediate priority. At the same time, our long-term objective of pursuing a NASDAQ uplisting has not changed. Our immediate priority is continuing the momentum we've built by executing our strategy, successfully completing the CEO transition, and maintaining strong operating performance. Beyond that, we continue to focus on strengthening the underlying business through improved profitability, balance sheet strength, and consistent execution. While there are objective listing standards for NASDAQ to be met, the board's evaluation extends beyond simply satisfying minimum requirements. We also consider trading liquidity, shareholder composition, governance readiness, market conditions, and whether an uplisting would maximize long-term values for our shareholders. There are still several governance and structural initiatives the board intends to complete before we believe the timing is appropriate. Do we expect that to occur in the very near future? No.

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

However, we remain committed to pursuing an uplifting when we believe it will create the greatest long-term value for shareholders.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Thanks, Jeff. Our next question, What are management's top priorities for fiscal 2027? I'll take this. Our priorities are to execute a smooth CEO transition, continue growing aerospace products and mission systems integration, convert backlog into revenue while investing in engineering and manufacturing capabilities, and maintain disciplined capital allocation and operational excellence. We have started to lay a positive foundation for fiscal year 2027. One of the areas we've already begun investing in is talent. During the past several months, we've added engineering and technical professionals who strengthen our ability to execute on future opportunities. Those investments support both Avcon's continued evolution into higher-value mission system integration work and Tempe's continued product development efforts. We are focused on investing in the areas where we have proven competitive advantages, aircraft modification and certification, mission system integration at Avcon, and electrical control systems at Butler National Tempe.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Another important priority for fiscal 2027 is disciplined investment in product development. Every engineering program, certification effort, and new STC represent an investment in future growth. We evaluate these opportunities based upon their strategic importance, expected market demand, long-term return potential, and alignment with our core capabilities. At the same time, we remain committed to disciplined capital allocation, balancing those investments while maintaining a strong balance sheet and returning capital to shareholders through our share repurchase program when appropriate. Our next question, Where do you see the greatest long-term growth opportunity within the aerospace product segment? Jeff?

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

I actually see three highly complementary growth opportunities, kit sales, mission systems integration, and our traditional airplane modifications. We already discussed kit sales and how they allow us to leverage our engineering and certification expertise while expanding our reach through qualified installation partners. Mission systems integration represents one of our most significant long-term growth opportunities. Customers increasingly want complete mission-ready aircraft, not just modifications. Avcon's expertise in engineering, certification, and integration positions us well to deliver comprehensive mission solutions and pursue larger, more strategic opportunities. Together, mission systems integration, kit sales, and airplane modifications allow us to increase both the value we provide to customers and the scalability of our aerospace products business.

[Adam Sefchick, Interim CEO and CFO at Butler National Corporation]

Great, Jeff. Moving on to our final question, Given leadership's transition and record 2026 results, why are you optimistic about Butler National's future? Jeff?

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

Butler National enters fiscal 2027 from a position of strength. We have record financial performance, a strong balance sheet, growing aerospace capabilities, an expanding backlog, talented employees, and a clear strategy. Our portfolio of businesses continues to generate strong cash flow, providing the financial flexibility to invest in aerospace products while maintaining a disciplined approach to capital allocation. Perhaps even more importantly, we believe the opportunities in front of Butler National today are greater than they have been at any point in our recent history. We remain committed to executing our strategy with discipline and creating long-term value for all of our shareholders. In closing, as we look ahead, Butler National remains committed to investing in innovation within aerospace systems, improving operational efficiency across all segments, and building long-term value for our shareholders.

[Jeffrey D. Yowell, Executive Chairman at Butler National Corporation]

We're pleased you joined the call today and look forward to maintaining open communication with our shareholders as we continue to execute our strategy. Thank you for your interest in Butler National. That concludes our call. A recording of this call will be available on the Butler National Investor Relations website following the call for 30 days. Everyone, have a good day.

[Operator]

Thank you, everyone. This concludes today's Butler National Corporation conference call. Thank you for attending.

Participants

Executives

• David Drewitz, Investor Relations Officer
• Jeffrey D. Yowell, Executive Chairman
• Adam Sefchick, Interim CEO and CFO