Core Insights - Butler National Corporation reported a strong financial performance for the first quarter of fiscal 2026, with operating income rising by 32% and earnings per share increasing from $0.03 to $0.06 [1][3] Financial Performance - Revenue for the first quarter of fiscal 2026 was $20.125 million, a 1.5% increase from $19.828 million in the same period of fiscal 2025 [2] - Operating income increased to $4.667 million from $3.536 million, marking a 32% rise [2] - Net income rose by 64% to $3.685 million compared to $2.246 million in the prior year [2][3] - Total assets increased to $130.283 million from $112.298 million [2] Business Segment Performance Aerospace Products - Revenue in the Aerospace Products segment increased by 7% to $11.3 million, driven by a $1.2 million increase in Special Missions Electronics and a $1.0 million increase in Aircraft Avionics [9] - Costs decreased by 12% to $6.6 million, resulting in an operating margin of 25% compared to 13% in the same quarter of the previous year [9] Professional Services - Revenue from Professional Services decreased by 5% to $8.8 million, with mobile sports wagering revenue increasing to $1.3 million [10] - Traditional casino gaming revenue saw a decline of $0.6 million compared to the same quarter last year [10] Management Commentary - The CEO highlighted the strong start to fiscal 2026, attributing revenue growth to efficiencies in production and increased deliveries in the Aerospace Products segment [3] - The company invested approximately $0.6 million in the development of new products, leading to additional FAA Supplemental Type Certificate approvals [5][6] Share Repurchase - The company repurchased 2.41 million shares during the first quarter, demonstrating a commitment to maximizing stockholder value [8]

Core Viewpoint - Butler National Corporation has initiated a new stock repurchase program of $5 million, closing its previous 2016 program, reflecting the company's commitment to enhancing shareholder value and confidence in long-term growth prospects [2][3]. Group 1: Stock Repurchase Details - The company has repurchased 2.41 million shares of its common stock since April 30, 2025, at an average price of $1.51 per share [1]. - The new stock repurchase program is authorized through April 2027 and allows for the repurchase of approximately 4.8% of the 64,854,736 outstanding shares at current market prices [2]. - As of July 31, 2025, the company has paid $2.9 million for the repurchased shares, with remaining payment obligations of $0.9 million due before December 31, 2025 [4]. Group 2: Management and Strategic Intent - The Board of Directors has prioritized stock repurchases, with management actively seeking opportunities to repurchase shares through private transactions [3]. - The new stock repurchase program is indicative of the Board's commitment to enhancing shareholder value and reflects confidence in the company's long-term growth prospects [3]. Group 3: Company Overview - Butler National Corporation operates in the Aerospace and Professional Services sectors, focusing on aircraft modification, maintenance, and gaming management services [6]. - The Aerospace Products segment includes design, manufacture, and service of structural modifications and electronic systems for various aircraft, while the Professional Services segment manages a gaming facility in Dodge City, Kansas [6].

Core Points - Butler National Corporation has adopted new Corporate Governance Guidelines to enhance the structure and practices of its Board of Directors [1][2] - The Guidelines include a mandatory retirement age for directors at 75 years old, alongside existing policies like stock ownership guidelines and annual performance reviews [2][3] - The company has made significant strides in corporate governance, including annual elections for all directors and separating the roles of Chairman and CEO [3][4] Company Overview - Butler National Corporation operates in the Aerospace and Professional Services sectors, focusing on aircraft modification, maintenance, and gaming management services [5] - The Aerospace Products segment involves design, manufacture, and service of aircraft modifications and electronic systems, while the Professional Services segment includes managing a gaming facility in Dodge City, Kansas [5]