Butler Natl Stock Price, News & Analysis
Company Description
Butler National Corporation (OTCQX: BUKS) operates in two primary business segments: Aerospace Products and Professional Services. According to the company’s public disclosures, Butler National is described as a leader in the growing global market for aircraft modification, maintenance, repair and overhaul (MRO) and as a recognized provider of gaming management services. The company is incorporated in Kansas and lists its principal location as New Century, Kansas.
Aerospace Products Segment
The Aerospace Products segment includes the design, manufacture, sale and service of structural modifications, as well as the design, integration and installation of electronic equipment, systems and technologies that enhance aircraft operations. Butler National also reports the design, manufacture and sale of defense related articles within this segment and states that it operates Federal Aviation Administration (FAA) Repair Stations.
Companies in the Aerospace Products segment concentrate on products and services for Learjet, Textron Beechcraft, King Air, and Textron Cessna turboprop aircraft. In additional disclosures, Butler National notes that its subsidiaries Avcon Industries, Inc. and Butler Avionics, Inc. focus on enhancements to Learjet, Beechcraft King Air, Cessna Caravan, Gulfstream and other turbine powered aircraft. Butler National-Tempe is described as designing and manufacturing robust electronic controls and cabling.
Avcon Industries and Butler Avionics
Avcon Industries, Inc. is a wholly owned subsidiary of Butler National Corporation and operates in the aerospace business. Avcon focuses on the modification of business and commercial aircraft, including both complex structural modifications and system integrations. It specializes in providing products and services to the business marketplace, the forestry and atmospheric research space, the Intelligence, Surveillance and Reconnaissance (ISR) sector, and the air ambulance segment. Avcon is recognized in company communications for providing solutions to regulatory-driven aircraft modifications.
Avcon and its affiliate Butler Avionics, Inc. have been highlighted for obtaining Federal Aviation Administration (FAA) Supplemental Type Certificate (STC) approvals for the installation of non-halon portable fire extinguisher replacements in Learjet aircraft. These approvals include an FAA STC for replacement of existing halon fire extinguishers across a range of Learjet models. Subsequent announcements report European Union Aviation Safety Agency (EASA) and United Kingdom Civil Aviation Authority (CAA) STC approvals for Avcon’s non-halon replacement portable fire extinguisher solution in Learjets, allowing installation of Halotron BrX-filled fire extinguishers as size-equivalent replacements.
Butler Avionics, Inc., founded in 1969 according to company news, offers avionics integration, installation and repair services. It works with Butler National and Avcon to provide custom and regulatory avionics solutions for business, air transport and general aviation aircraft and is identified as an FAA Repair Station.
Special Mission Electronics and Defense-Related Products
Within Aerospace Products, Butler National refers to its Special Mission Electronics operations, often associated with the Butler-Tempe business. The company reports that Butler-Tempe designs and manufactures robust electronic controls and cabling and that this activity contributes to the Aerospace Products segment. In its financial commentary, Butler National has referenced minigun products, including gun control housings, cable designs and tooling for minigun products, and has mentioned deliveries of M134 minigun gun control units (GCUs) to customers as part of its defense-related offerings.
Company disclosures also describe the development of new gun control and cable designs and tooling as part of its product development efforts. These activities are positioned by Butler National as supporting long-term revenue and profitability within the Aerospace Products segment through engineering, testing and certification of new products.
Aircraft Modification, STCs and Backlog
Butler National reports that its aircraft modification business has delivered significant development projects, including structural modifications such as lower fuselage pod configurations for King Air 350 and Cessna 208B Grand Caravan aircraft and underwing pods or storage devices for King Air and Learjet Model 60 aircraft. These modifications have resulted in the issuance of multiple FAA Supplemental Type Certificate (STC) approvals or amendments. The company notes that these STCs provide a baseline for further adaptation and sales, supporting improved margins through repeat or similar installations.
Butler National also discloses a backlog of firm, pending and contract orders in its Aerospace Products segment. The backlog is described as including orders that may not be completed within the next fiscal year, and the company cautions that there can be no assurance that all orders will be completed or that some may ever commence. Management commentary links increased backlog, particularly in the Special Mission Electronics division, to opportunities for enhanced productivity and operating results.
Professional Services Segment and Gaming Management
The Professional Services segment of Butler National includes the management of a gaming and related dining and entertainment facility in Dodge City, Kansas. The company identifies this facility as Boot Hill Casino and Resort, which it states features approximately 500 slot machines, 15 or 16 table games (as disclosed in different releases) and a DraftKings branded sportsbook. Butler National describes itself as a recognized provider of gaming management services through this segment.
Company communications explain that Professional Services revenue includes traditional casino gaming and mobile sports wagering conducted on behalf of the Kansas Lottery through a contracted DraftKings platform. Butler National has noted that mobile sports wagering revenue has grown and that this growth has helped offset declines in traditional gaming revenue in some periods. The company has also referenced the impact of economic conditions in the Dodge City region and changes in the state’s gaming revenue share percentage on the performance of this segment.
Corporate Structure, Governance and Capital Allocation
Butler National describes itself in multiple releases as a public stock company with more than 50 years of operating history. The company trades on the OTCQX market under the symbol BUKS. It is incorporated in Kansas and reports its principal offices in New Century, Kansas in its SEC filings.
In its public communications, Butler National has highlighted several corporate governance developments. The Board of Directors has adopted Corporate Governance Guidelines that codify policies such as director and officer stock ownership guidelines and annual performance reviews of the Board and Chief Executive Officer. The guidelines also establish a mandatory retirement age for directors following their 75th birthday. The company has noted changes including moving towards annual elections of all directors, removing a shareholder rights plan (poison pill), electing a Lead Independent Director, separating the roles of Chairman of the Board and Chief Executive Officer, and adopting a majority vote standard for uncontested director elections.
Butler National has also discussed its capital allocation approach. Public announcements describe the repurchase of millions of shares of its outstanding common stock under stock repurchase programs, including the closing of a prior program and authorization of a new stock repurchase program with a stated dollar limit and term. The company characterizes stock repurchases as a priority for its Board of Directors and as part of its strategy for shareholder value.
Organizational Structure and Business Units
In describing its organization, Butler National has announced a reorganization of sales teams and personnel reporting structures. The company eliminated a centralized sales team at the parent level and shifted senior sales functions into individual business units, such as Avcon, with those teams reporting directly to business unit leaders. Butler National states that this structure is intended to align responsibilities with operational goals, create clear accountability for performance and allow management to better monitor the profitability of each business segment.
Company releases also reference operational locations such as New Century, Kansas and Newton, Kansas for aircraft modification and fabrication activities, as well as a Tempe operation for Special Mission Electronics. Butler National has described investments in new fabrication facilities and machining equipment to support internal production of parts, with the goal of enhancing margins in its Aircraft Modification business.
Regulatory Environment and Certifications
Butler National’s aerospace operations are closely tied to regulatory approvals. The company repeatedly references FAA Repair Stations, FAA Supplemental Type Certificates (STCs), and, in the case of Avcon’s fire extinguisher solution, EASA and CAA STCs. These certifications relate to aircraft structural modifications, avionics installations and replacement of halon fire extinguishers with non-halon alternatives in Learjet aircraft.
The company notes that European Union regulations and the Montreal Protocol have driven requirements for the replacement of hand-held halon fire extinguishers in airplane cabins and crew compartments with suitable alternatives by a specified regulatory deadline. Avcon’s approvals for non-halon fire extinguisher installations are presented as responses to these regulatory requirements.
Stock, Filings and Investor Information
Butler National’s common stock is quoted on the OTCQX market under the ticker BUKS. The company files reports with the U.S. Securities and Exchange Commission (SEC), including Form 8-K current reports. Recent 8-K filings have disclosed quarterly financial results, annual meeting voting outcomes and investor presentations. These filings identify Butler National Corporation as a Kansas corporation and provide its Commission File Number and federal employer identification number.
Investors researching BUKS stock can review Butler National’s press releases for information on its Aerospace Products and Professional Services segments, governance policies, stock repurchase programs, and operational initiatives, as well as its SEC filings for formal financial and governance disclosures.
FAQs about Butler National Corporation (BUKS)
- What does Butler National Corporation do?
Butler National Corporation operates in two main segments: Aerospace Products and Professional Services. The Aerospace Products segment focuses on the design, manufacture, sale and service of aircraft structural modifications, avionics and defense-related articles, while the Professional Services segment manages a gaming, dining and entertainment facility in Dodge City, Kansas.
- What is included in Butler National’s Aerospace Products segment?
The Aerospace Products segment includes the design, manufacture, sale and service of structural modifications, the design, integration and installation of electronic equipment and systems that enhance aircraft operations, and the design, manufacture and sale of defense related articles. It also includes operations of FAA Repair Stations and activities of subsidiaries such as Avcon Industries, Butler Avionics and Butler National-Tempe.
- Which aircraft types do Butler National companies primarily serve?
According to company disclosures, Aerospace Products companies concentrate on products and services for Learjet, Textron Beechcraft, King Air and Textron Cessna turboprop aircraft. Butler National has also stated that Avcon and Butler Avionics concentrate on enhancements to Learjet, Beechcraft King Air, Cessna Caravan, Gulfstream and other turbine powered aircraft.
- What is Avcon Industries’ role within Butler National?
Avcon Industries, Inc. is a wholly owned subsidiary of Butler National that operates in the aerospace business. It focuses on the modification of business and commercial aircraft, including complex structural modifications and system integrations, and serves markets such as business aviation, forestry and atmospheric research, ISR and air ambulance operations.
- What services does Butler Avionics provide?
Butler Avionics, Inc. offers avionics integration, installation and repair services. It works with Butler National and Avcon to provide custom and regulatory avionics solutions for business, air transport and general aviation aircraft and is identified as an FAA Repair Station.
- What is the Professional Services segment of Butler National?
The Professional Services segment includes the management of a gaming and related dining and entertainment facility in Dodge City, Kansas, known as Boot Hill Casino and Resort. The facility features approximately 500 slot machines, table games and a DraftKings branded sportsbook.
- How is Butler National involved in sports wagering?
Butler National reports that Professional Services revenue includes mobile sports wagering conducted through a contracted DraftKings platform on behalf of the Kansas Lottery, as well as traditional casino gaming at Boot Hill Casino and Resort.
- On which market does Butler National’s stock trade and under what symbol?
Butler National Corporation’s common stock is quoted on the OTCQX market under the ticker symbol BUKS.
- Where is Butler National Corporation based?
SEC filings identify Butler National Corporation as a Kansas corporation with principal offices in New Century, Kansas.
- What governance practices has Butler National highlighted?
The company has adopted Corporate Governance Guidelines that include director and officer stock ownership guidelines, annual performance reviews of the Board and CEO, and a mandatory retirement age for directors following their 75th birthday. It has also reported steps such as moving towards annual elections of all directors, removing a shareholder rights plan, electing a Lead Independent Director, separating the roles of Chairman and CEO, and adopting a majority vote standard for uncontested director elections.