Thu, Jul 3, 7:04 PM (11 days ago)
**Summary of Butler National Corporation's 10-K for Fiscal Year Ended April 30, 2025** **Financial Performance:** - **Revenue:** $84.0 million, up 7% from $78.4 million in 2024. - **Net Income:** $12.6 million, slightly higher than $12.5 million in 2024. - **Earnings per Share (EPS):** $0.19, up from $0.18 in 2024. - **Operating Income:** $16.8 million, a 27% increase from $13.2 million in 2024. - **Operating Margin:** 20% in 2025, up from 17% in 2024. **Segment Overview:** - **Aerospace Products:** Revenue increased by 15% to $45.7 million, driven by targeted marketing efforts for new STCs and special mission products. - **Professional Services:** Revenue decreased by less than 1% to $38.3 million, with a decline in traditional casino gaming revenue offset by an increase in sportsbook revenue. **Future Outlook:** - **Aerospace Products:** Strong backlog, especially in special mission electronics, but faces competition for skilled technicians and fabrication labor. - **Professional Services:** Anticipates continued impact from decreased cattle processing and meat packing operations near Boot Hill Casino, likely affecting revenue from traditional table games. **Risk Factors:** - **Customer Concentration Risk:** Significant revenue from a few major customers. - **Dependence on Government Spending:** Reliance on U.S. government and friendly foreign countries for a significant portion of revenues. - **Industry-Specific Business Cycles:** Vulnerability to economic downturns and market fluctuations. - **Regulatory Hurdles:** Compliance with FAA and other regulatory bodies. - **Labor and Supply Chain Issues:** Challenges in hiring and retaining skilled labor and managing supply chain disruptions. - **Cybersecurity Threats:** Potential risks from cyber-attacks and data breaches. - **Market Competition:** Competition from larger competitors and market saturation in the gaming industry. **Financial Condition:** - **Cash Position:** Increased by $7.4 million during fiscal 2025. - **Capital Expenditures:** Anticipated to be approximately $12.5 million in fiscal 2026, focusing on STCs, equipment, and buildings/improvements. **Market Position Changes:** - **Stock Performance:** Shares are quoted on the OTCQX platform under the symbol “BUKS,” with a price range of $0.81 to $1.98 in 2025. - **Stock Repurchase Program:** Authorized through April 15, 2027, with $2.3 million remaining for future repurchases as of April 30, 2025. **Conclusion:** Butler National Corporation shows a positive financial performance with increased revenue and net income. The company faces various risks, including customer concentration, regulatory compliance, and labor issues. The future outlook is dependent on market conditions, regulatory changes, and the ability to manage operational challenges. The company's strategic initiatives and capital expenditures aim to drive growth and maintain a strong financial position.