New Century, Kansas – September 16, 2026 -- Butler National Corporation (OTCQX: BUKS) reported first-quarter fiscal 2027 revenue of $30.8 million, up 53% from the prior-year period, driven by a surge in aircraft modification work and a record aerospace backlog.
Net income climbs 43% to $5.3 million as operating margin expands to 24%
Operating income rose 59% to $7.4 million, while net income increased 43% to $5.3 million for the quarter ended July 31, 2026. Earnings per share rose to $0.08 from $0.06 a year earlier, reflecting margin expansion from 23% to 24%.
Aerospace Products revenue nearly doubles to $21.7 million on complex modification programs
The Aerospace Products segment generated $21.7 million in revenue, up 92% from $11.3 million, as Avcon Aircraft Modifications and Butler National-Tempe delivered higher volumes on larger, more complex special mission aircraft projects. The segment's operating income increased 91%, holding operating margin near 25% despite the scale-up.
Avcon completed and delivered two Challenger 605/650 modification projects incorporating a newly approved supplemental type certificate for an under-fuselage radome/pod and sensor-mounting rails. The company also finished a CASA CN-235 special mission systems integration project featuring a custom Avcon-designed workstation, extending its capabilities beyond structural modification.
Kit sales, including Cessna Caravan camera port modification kits and Avcon rails and Special Mission Pod kits for the King Air, also contributed to revenue and margin gains. Special Mission Electronics revenue at Butler National-Tempe rose $0.7 million on higher production volumes, additional orders and manufacturing efficiencies, including deliveries of M134 minigun gun control units.
Aerospace backlog reaches record $51.1 million as of July 31, 2026
Backlog in the Aerospace Products segment hit an all-time high of $51.1 million, reflecting contracted business that may extend beyond the current fiscal year.
Professional Services revenue rises 3% to $9.0 million despite lower sports wagering
Traditional casino gaming revenue at Boot Hill Casino & Resort in Dodge City, Kansas increased $0.4 million on higher patron spending. Sports wagering revenue through the DraftKings platform declined to $1.1 million from $1.3 million, while non-gaming revenue edged up to $1.1 million from $1.0 million. The company is pursuing initiatives to boost visitation, including development of the adjacent Glo Hotel by a local hospitality provider.
Company repurchases 246,996 shares as stockholders' equity grows 5%
Stockholders' equity increased 5% during the quarter while long-term liabilities declined 3%. Butler National repurchased 246,996 shares of common stock under its ongoing capital allocation program.
Interim CEO Adam Sefchick said the results reflect execution of strategic initiatives implemented over recent years, including investments in product development, manufacturing capacity and operational efficiency. Executive Chairman Jeffrey Yowell said the board remains confident in Sefchick and the leadership team while it searches for a permanent chief executive.