Butler National (BUKS) investor relations material

Executive summary

• Revenue for Q3 FY2026 rose 27% year-over-year to $26.9 million, setting a new quarterly record, driven by strong Aerospace Products growth and sports wagering contributions.

• Operating income surged 129% to $9.2 million, and net income increased 98% to $6.7 million compared to Q3 FY2025.

• For the nine months ended January 31, 2026, revenue increased 13% year-over-year to $70.3 million, with net income up 78% to $16.4 million and operating income up 69% to $21.0 million.

• Aerospace segment revenue grew 50% in Q3 and 26% for the nine months, led by aircraft modifications and special mission electronics.

• Professional Services revenue remained stable overall but faced headwinds from regional economic factors and increased state revenue share.

Financial highlights

• Total revenue for Q3 FY2026 was $26.9 million, up from $21.2 million year-over-year; nine-month revenue reached $70.3 million, up from $62.4 million.

• Aerospace segment revenue reached $17.1 million in Q3, up from $11.4 million; nine-month Aerospace Products revenue was $42.4 million, up 26%.

• Net income for Q3 was $6.7 million, up from $3.4 million; nine-month net income was $16.4 million, up from $9.2 million.

• Operating income for Q3 was $9.2 million, up from $4 million; nine-month operating income was $21.0 million, up from $12.4 million.

• EPS for Q3 was $0.10, up from $0.05; nine-month EPS was $0.25, up from $0.14.

Outlook and guidance

• Backlog remains strong at $37 million, with a solid pipeline of contracted work and repeat customers.

• Management expects continued revenue growth, supported by investments in new FAA Supplemental Type Certificates, product development, and operational improvements.

• Capital expenditures of $2.7 million are anticipated for the remainder of fiscal 2026, with sufficient cash to meet requirements.

• Focus remains on building a balanced mix of development programs and repeatable product offerings for predictable growth.

• Management remains positive about business activity levels, despite a slight decrease in bookings due to contract timing.