Butler National Corporation Reports 53% Revenue Growth to $30.8 Million in Latest Quarter

Butler National Corporation reported significant financial growth in its latest quarterly results, with total revenues reaching $30.8 million for the three months ended July 31, 2026, a 53% increase from $20.1 million in the same period last year. The aerospace products segment was a major contributor, generating $21.7 million, up 92% from $11.3 million in the prior year. This surge was primarily driven by a record $16.3 million in aircraft modification revenue, reflecting increased activity in complex special-mission aircraft projects and higher sales of modification kits. The professional services segment also saw a modest increase, with revenues rising 3% to $9.0 million, supported by higher patron spending at the Boot Hill Casino.

Net income for the quarter increased to $5.3 million, a 43% rise from $3.7 million in the previous year, while operating income grew by 59% to $7.4 million. The company's operating margin improved slightly to 24%, compared to 23% in the same quarter last year. Total costs and expenses rose 51% to $23.4 million, primarily due to increased material and labor costs associated with the higher revenue in the aerospace segment. Notably, costs for aerospace products surged 106% to $13.6 million, reflecting the increased scale of operations.

In terms of operational metrics, Butler National's accounts receivable decreased significantly to $6.7 million from $14.0 million, while contract assets rose to $5.3 million, indicating a growing backlog of work. The company reported a total employee count of 171 full-time and 7 part-time employees, an increase from 149 full-time and 8 part-time employees a year earlier. The company continues to focus on expanding its workforce to support growth in its aerospace and gaming operations.

Strategically, Butler National has extended its Lottery Sports Wagering Management Contract with the Kansas Lottery for an additional three years, maintaining its management of sports wagering operations at Boot Hill Casino. This extension includes an amendment to its agreement with DraftKings, which will reduce the company's revenue-share percentage in line with current market conditions. The company anticipates capital expenditures of approximately $9.6 million for fiscal 2027, aimed at further developing its aircraft modification capabilities and enhancing its operational infrastructure.

Looking ahead, Butler National remains optimistic about its growth trajectory, bolstered by a backlog of $51.1 million in aerospace products and ongoing investments in its gaming operations. The company is committed to maintaining its financial health while exploring new opportunities for expansion and innovation in both its aerospace and professional services segments.