Core Viewpoint - Butler National Corporation reported strong financial results for Q2 FY2026, with significant increases in revenue, operating income, and net income compared to the same period in the previous fiscal year [1][3]. Financial Performance - Revenue for Q2 FY2026 reached $23.251 million, a 9% increase from $21.360 million in Q2 FY2025 [2]. - Operating income rose to $7.077 million, reflecting a 46% increase from $4.854 million in the same quarter last year [2][5]. - Net income increased by 67% to $5.994 million, compared to $3.596 million in Q2 FY2025 [2][3]. - Earnings per share improved to $0.09 from $0.05 year-over-year [2][5]. Business Segment Highlights Aerospace Products - Revenue in the Aerospace Products segment increased by 20% to $14.0 million in Q2 FY2026, up from $11.7 million in Q2 FY2025 [10]. - The growth was driven by a $1.2 million increase in Aircraft Modifications and a $1.1 million increase in Special Missions Electronics [10]. - Operating margin improved to 38% in Q2 FY2026 from 21% in Q2 FY2025, with costs remaining flat at $7.5 million [10]. Professional Services - Revenue from Professional Services decreased by 5% to $9.2 million in Q2 FY2026 compared to $9.7 million in Q2 FY2025 [11]. - Mobile sports wagering revenue increased to $1.6 million from $1.4 million year-over-year, while traditional casino gaming revenue saw a slight decline [11]. Investments and Developments - The company invested approximately $1.7 million in new product development and production during the first quarter of fiscal 2026, leading to additional FAA Supplemental Type Certificate approvals [6]. - The company repurchased 687,852 shares of its common stock during Q2 FY2026 as part of its capital allocation strategy [9]. Backlog - As of October 31, 2025, the backlog totaled approximately $46.3 million, an increase from $38.1 million in the previous year [12].

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]