Butler National Posts $6.7M Net Income in Q3 FY2026, Doubling Prior-Year Profit

Butler National Corp, a Kansas-based diversified manufacturing and services company, reported net income of $6.7 million for the three months ending January 31, 2026, up 98% from $3.4 million in the same quarter a year earlier. For the nine months ending January 31, 2026, net income reached $16.4 million, compared to $9.2 million in the prior-year period. Read more earnings reports.

Operating income for the third quarter came in at $9.2 million, more than doubling from $4.0 million in the year-ago quarter. For the nine-month period, operating income totaled $21.0 million, up from $12.4 million in the prior year.

The company reported cost of goods sold of $8.6 million for the quarter, compared to $8.3 million a year earlier. For the nine months, cost of goods sold was $22.6 million, down from $23.3 million in the prior-year period.

General and administrative expenses rose to $4.4 million in the third quarter from $3.9 million a year ago. For the nine-month period, G&A expenses increased to $12.4 million from $12.0 million. Research and development expenses for the nine months totaled $1.0 million, down from $1.6 million in the prior year.

Interest expense declined to $478,000 for the quarter from $557,000 a year earlier. For the nine months, interest expense decreased to $1.5 million from $1.7 million. Income tax expense for the quarter was $2.3 million, compared to $1.3 million in the year-ago period.

Cash from operations for the nine months totaled $24.5 million, up from $19.6 million in the prior year. Cash from investing activities was an outflow of $3.2 million, compared to $3.3 million in the prior-year period. Cash from financing activities showed an outflow of $10.1 million, compared to $3.4 million a year earlier.

The company's balance sheet showed total assets of $141.0 million as of January 31, 2026, up from $123.3 million at fiscal year-end April 30, 2025. Cash and cash equivalents stood at $36.5 million, compared to $25.2 million at fiscal year-end. Accounts receivable more than doubled to $12.2 million from $5.9 million.

Total liabilities increased to $64.6 million from $58.2 million at fiscal year-end. Long-term debt decreased to $25.6 million from $29.9 million, while accounts payable more than doubled to $17.9 million from $8.6 million. Total stockholders' equity rose to $76.3 million from $65.1 million at fiscal year-end.

The company reported basic and diluted earnings per share of $0.10 for the quarter and $0.25 for the nine months. Shares outstanding as of January 31, 2026, totaled 64.1 million, down from 67.2 million at fiscal year-end April 30, 2025.