Butler National Corporation Reports Fiscal Year End 2025 Financial Results

— Record earnings reached $0.19 per share.
— Operating income soared to $16.8 million, marking a substantial 27% increase year-over-year.

OLATHE, Kan., July 3, 2025 /PRNewswire/ — Butler National Corporation (OTCQX: BUKS), a key player in the expanding global market for aircraft modification, maintenance, repair, and overhaul (MRO), as well as a recognized name in gaming management services, has unveiled its financial results for the fiscal year concluded on April 30, 2025.

Management Comments

Butler National Corporation President and CEO, Christopher J. Reedy, commented on the impressive results, stating, “Fiscal year 2025 represents a period of significant operational and financial advancement, highlighted by record revenue and operating income. Our revenue saw a 7% increase, operating income surged by 27%, and net income climbed to $12.6 million in fiscal 2025, up from $12.5 million in fiscal 2024. It’s important to note that fiscal year 2025’s net income included $1.6 million in gains from asset sales, a contrast to the $5.7 million recorded in fiscal year 2024. Earnings per share reached $0.19 for fiscal 2025, up from $0.18 in fiscal 2024, partly fueled by the Company’s strategic repurchase of 2.6% of its outstanding common stock. These positive outcomes were largely driven by strong performance in the Aerospace Products segment, complemented by sustained growth in sports wagering.”

Lead Independent Director Joseph P. Daly added: “The performance in fiscal year 2025 truly underscores the steady and strategic leadership at Butler National, guiding us through a transformative phase. The synergistic efforts between CEO Chris Reedy and Executive Chairman Jeff Yowell have not only delivered stability but also ignited forward momentum. Under their direction, we’ve reinforced our governance structures, successfully navigated key leadership transitions, and strategically positioned the Company to seize long-term growth opportunities and enhance shareholder value.”

These results reflect a robust 15% revenue increase in the Aerospace Products segment for fiscal 2025 compared to the prior year, a testament to the production efficiencies and increased deliveries from Avcon and Butler-Tempe (Special Mission Electronics). Despite a 2% increase in the state’s share of gaming revenue beginning December 2024, and prevailing economic challenges in the Dodge City region, Professional Services revenue held remarkably steady, coming in at $38.3 million in 2025 compared to $38.6 million in 2024. Growth in sports wagering effectively counteracted declines in traditional gaming revenue.

The Avcon Aircraft Modification business achieved a landmark year in fiscal 2025, delivering several significant development projects. A notable highlight was the completion of Avcon’s most intricate project to date: a ‘Next Gen’ environmental research King Air B300 airplane, which culminated five intensive years of design and engineering. The Avcon team also introduced a suite of new modifications that broaden our product portfolio, including lower fuselage pod configurations for both the King Air 350 and Cessna 208B Grand Caravan aircraft, as well as underwing pods or storage solutions for King Air and Learjet Model 60 aircraft. These advanced modifications, backed by substantial engineering prowess, resulted in the issuance of multiple Federal Aviation Administration (“FAA”) Supplemental Type Certificate (“STC”) approvals and amendments. These STC approvals lay the groundwork for future adaptations and sales, promising enhanced margins through our ability to replicate or slightly modify these offerings for similar aircraft models.

During the fiscal year ending April 30, 2025, the company strategically invested approximately $1.7 million in the development and production of new products. These investments have already yielded the aforementioned STCs, alongside new designs and tooling for gun control and cable systems. We firmly believe that this expenditure on design and development engineering, testing, and certification is crucial for expanding our Aerospace Products segment, stabilizing long-term revenue, and bolstering future profitability.

Mr. Reedy further elaborated: “Our Aircraft Modifications team continues to mature as our production capabilities expand at our New Century facility. We remain committed to driving new product development, spearheaded by the dedicated Newton team, who consistently strive to meet customer schedules. The tangible results of their efforts and efficiencies are clearly reflected in our financial performance. We are actively recruiting talent to scale our production capacity. Concurrently, our focus is on bringing our new Newton fabrication shop online and ensuring it is fully staffed. This initiative aims to bring much of our outsourced production in-house, thereby supporting current production levels and fulfilling customer requirements. The expansion of our internal fabrication capabilities is expected to significantly improve Aircraft Modification margins. The exceptional efforts and timely deliveries from the Special Mission Electronics (Tempe) team have also been remarkable. While fourth-quarter deliveries were outstanding, our growing backlog presents a substantial opportunity to further boost productivity and enhance profitability. The Tempe division’s backlog remains exceptionally strong. Furthermore, our contracted Draft Kings platform for online/interactive sports wagering for Kansans, operated on behalf of the Kansas Lottery, continues to be a significant revenue driver for our Professional Services segment. Our Boot Hill Casino team remains focused on increasing patron engagement while optimizing marketing spend and maintaining rigorous cost controls. I extend my sincere appreciation to all Butler National employees for their invaluable contributions in achieving these record fiscal year 2025 results,” concluded Reedy.

Executive Chairman Jeffrey Yowell commented: “Our performance this past year reflects a deliberate strategic pivot towards higher-margin product lines and a more streamlined operational approach. We have significantly expanded our fabrication capabilities with the inauguration of our new facility in Newton, Kansas, and have continued to foster growth at our KC Machine location. Simultaneously, we are optimizing our workforce by strategically balancing production between Newton and New Century to effectively address labor availability and evolving demand. These concerted efforts, coupled with disciplined execution, are laying a robust foundation for sustainable, scalable growth.”

Business Segment Highlights

Aerospace Products:

Revenue climbed by 15% to $45.7 million in fiscal 2025, from $39.7 million in fiscal 2024. This growth was primarily fueled by a $4.5 million increase in our aircraft modification business and an $0.8 million rise in special mission electronics. Key drivers behind this upward trend include the development of new STCs, successful customer field installations of our modification kits, and proactive marketing initiatives in both domestic and international arenas. Costs saw a 4% increase, reaching $29.9 million in fiscal 2025 from $28.7 million in fiscal 2024. Importantly, costs represented 65% of segment total revenue in fiscal 2025, down from 72% in fiscal 2024, demonstrating improved efficiencies in our engineering and fabrication labor and a positive impact on operating profit margins. Expenses rose by 25% to $8.1 million in fiscal 2025, compared to $6.5 million in fiscal 2024. This increase is largely attributable to higher depreciation from expanded fixed assets, increased insurance premiums, and elevated administrative and overhead labor costs for the period. This resulted in an operating margin of 16.8% in fiscal 2025, a significant jump from 11.4% in fiscal 2024 (representing operating income as a percentage of revenue), an increase of approximately 47%. While we are beginning to feel the impact of recently implemented tariff policies on parts and materials, we are proactively addressing these increased costs through strategic price adjustments on our products.

Professional Services:

Revenue from Professional Services experienced a marginal decrease of less than 1%, totaling $38.3 million in fiscal 2025, down from $38.6 million in fiscal 2024. Our authorization to offer the new mobile sports wagering platform on behalf of the Lottery during fiscal 2023 brought in $5.8 million in revenue during fiscal 2025, an increase from $4.6 million in fiscal 2024. The growth in mobile sports wagering revenue effectively offset a $1.5 million decline in traditional casino gaming revenue, which was primarily due to a decrease in patron visits. We attribute this decline largely to reduced discretionary spending influenced by local cattle processing business dynamics, heightened inflation, and drought conditions prevalent in our primary market area. Costs saw a 2% increase in fiscal 2025, reaching $16.0 million compared to $15.8 million in fiscal 2024. Conversely, expenses decreased by 8% in fiscal 2025 to $13.1 million, down from $14.2 million in fiscal 2024. This reduction in expenses is primarily a result of decreased marketing and advertising expenditures. The segment generated an operating income of $9.1 million in fiscal 2025, compared to $8.7 million in fiscal 2024, marking a 5% increase. This translates to an operating margin of 23.9% in fiscal 2025, an improvement from 22.6% in fiscal 2024, representing a growth of approximately 6%.

Backlog:
As of April 30, 2025, our backlog stood at approximately $33.6 million, compared to $30.3 million as of April 30, 2024. This backlog encompasses firm, pending, and contract orders, which may extend beyond the current fiscal year for completion. We cannot provide any assurances that all orders will be fulfilled or that certain orders will commence as planned.

Our Business:
Butler National Corporation operates across two key business segments: Aerospace Products and Professional Services. The Aerospace Products segment specializes in the design, manufacture, sale, and service of structural modifications, encompassing the design, integration, and installation of electronic equipment, systems, and technologies aimed at enhancing aircraft operations. This segment also includes the design, manufacture, and sale of defense-related articles. Furthermore, we manage Federal Aviation Administration (the “FAA”) Repair Stations. The focus within Aerospace Products is on delivering products and services tailored for Learjet, Textron Beechcraft, King Air, and Textron Cessna turboprop aircraft. Additionally, Butler National-Tempe is at the forefront of designing and manufacturing robust electronic controls and cabling solutions. The Professional Services segment centers on the management of a gaming facility, including its associated dining and entertainment operations, located in Dodge City, Kansas. The Boot Hill Casino and Resort features approximately 500 slot machines, 15 table games, and a DraftKings-branded sportsbook.

Forward-Looking Information:
Statements contained herein, and in other reports, proxy statements filed with the Securities and Exchange Commission, communications to stockholders, press releases, and oral statements made by Company representatives that are not historical in nature, or that express the Company’s or management’s intentions, hopes, beliefs, expectations, or predictions about the future, may be considered “forward-looking statements” under Section 21E of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements can often be identified by the use of forward-looking terminology such as “could,” “should,” “will,” “intended,” “continue,” “believe,” “may,” “expect,” “anticipate,” “goal,” “forecast,” “plan,” “guidance,” or “estimate,” or the negative of these terms, variations thereof, or similar expressions. Forward-looking statements are not guarantees of future performance or results; they involve inherent risks, uncertainties, and assumptions. It is crucial to recognize that actual performance and results, financial condition, or business operations could differ materially from those projected in these forward-looking statements. Factors that could contribute to or cause such differences include, but are not limited to, those discussed under Item 1A of the Company’s Annual Report on Form 10-K, incorporated herein by reference, under “Risk Factors” and elsewhere in this report or in other SEC filings. Other unforeseen factors not identified herein could also have a similar effect. The Company undertakes no obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition, or business over time, except as explicitly required by federal securities laws.

THE WORLDWIDE WEB:
For a comprehensive overview of our products and detailed information about Butler National Corporation and its subsidiaries, please visit www.butlernational.com.

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SOURCE Butler National Corporation