Butler National Corporation reported its second‑quarter 2026 financial results, showing revenue of $23.25 million—up 9% from $21.36 million in the same period a year earlier. The increase was driven largely by a 20% rise in the Aerospace Products segment, which generated $14.0 million in revenue compared with $11.7 million a year ago, reflecting strong demand for aircraft modification and maintenance services.
Operating income climbed 46% to $7.08 million from $4.85 million, while net income rose 67% to $5.99 million from $3.60 million. The margin expansion was largely attributable to cost efficiencies in the aerospace division, where the company shifted from outsourcing to in‑house fabrication, reducing labor and material costs while maintaining pricing power.
The Professional Services segment, which includes sports wagering, reported a 5% decline in total revenue to $9.2 million, largely because overall gaming revenue fell. However, sports wagering revenue grew to $122,000, indicating a shift toward higher‑margin wagering activities.
Management highlighted the company’s strategic focus on high‑margin aerospace operations, noting that the transition to in‑house fabrication and the recent FAA STC approvals for non‑halon portable fire extinguishers on Learjet aircraft are expected to drive future growth. The company also invested $1.7 million in new product development and completed a share‑repurchase program that bought back 687,852 shares during the quarter.
Backlog figures were corrected to $46.3 million, up from $38.1 million a year earlier, underscoring robust order flow and a healthy pipeline for the remainder of fiscal 2026. The company’s earnings per share of $0.09, up from $0.05 a year ago, reflects the combined effect of revenue growth, margin expansion, and share‑repurchase activity.
Overall, the results demonstrate that Butler National’s pivot toward aerospace is paying off, with strong revenue growth, improved profitability, and a growing backlog that positions the company for continued expansion in a high‑margin segment while maintaining a stable gaming cash‑flow base.
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