Butler National Corporation Reports 12% Revenue Increase to $41.2 Million for Six Months Ended October 31, 2024

Butler National Corporation reported a 12% increase in revenue for the six months ended October 31, 2024, reaching $41.2 million compared to $36.8 million in the same period last year. The Professional Services segment generated $18.9 million, slightly up from $18.8 million, while the Aerospace Products segment saw a significant 24% increase, totaling $22.3 million, driven primarily by growth in aircraft modifications and special mission electronics. Net income for the period rose to $5.8 million, compared to $5.7 million in the prior year, with operating income more than doubling to $8.4 million from $4.7 million.

In the most recent quarter, Butler National's revenue increased by 9% to $21.4 million, up from $19.6 million a year earlier. The Aerospace Products segment contributed $11.7 million, a 19% increase, while Professional Services revenue decreased slightly to $9.7 million. The company attributed the growth in Aerospace Products to a $1.1 million rise in aircraft modifications and a $744,000 increase in special mission electronics. However, Professional Services experienced a decline in revenue, despite a boost from the sports wagering platform, which generated $1.4 million.

The company has made strategic moves, including the acquisition of KC Machine in September 2023 for $2.86 million, aimed at enhancing its Avcon parts fabrication capacity. Additionally, Butler National has been actively managing its stock repurchase program, increasing the authorization from $9 million to $11 million in October 2024, with a total of $1.4 million spent on repurchases during the six months ended October 31, 2024.

Operationally, Butler National's employee count rose to 140 full-time and 2 part-time employees, compared to 123 full-time and 2 part-time employees a year earlier. The company also reported a decrease in accounts payable and an increase in contract liabilities, indicating a shift in cash flow management. The cash position at the end of the reporting period was $16.2 million, down from $17.8 million, reflecting ongoing investments and operational expenditures.

Looking ahead, Butler National anticipates continued growth in both its Aerospace Products and Professional Services segments, supported by strategic investments and an expanding customer base. The company plans to maintain its focus on developing new products and enhancing its service offerings, particularly in the gaming and aerospace sectors, while managing costs effectively to sustain profitability.