Executive Summary
- Butler National Corporation posted a solid QQ1 2026, with revenue of $20.125 million and EBITDA of $4.667 million, yielding an EBITDA margin of 23.19% and an operating margin of 23.19%. Net income totaled $3.685 million, or 18.31% net margin, reflecting meaningful profitability leverage against the top line.
- The company generated robust cash flow, with cash flow from operations of $14.699 million and free cash flow of $13.261 million. Capex was modest at $1.438 million, and the period-end cash balance stood at $33.444 million. Net debt remained negative by about $24.1 million, underscoring substantial liquidity headroom relative to current liabilities and a modest debt load.
- Management did not issue formal forward guidance in the quarter. The business combines Aerospace Products and Professional Services, including non-core Boot Hill Casino operations; the balance sheet supports strategic optionality (deleveraging, dividends, share buybacks, or selective acquisitions) should market conditions warrant. The QQ1 2026 results imply a constructive runway for profitability and cash generation, contingent on defense/aerospace demand and continued disciplined cost management.