BUTLER NATIONAL CORP

Butler National Corporation

Business model

• Two operating segments for financial reporting:
  • Aerospace Products: design, engineering, manufacture, sale, integration, installation, repair, modification, overhaul, servicing, and distribution of aerostructures, avionics, accessories, subassemblies and systems.
  • Professional Services: management services in gaming, including ownership and operation of Boot Hill Casino and Resort in Dodge City, Kansas, and related dining/entertainment operations.
• The company also provides management services in the gaming industry and participates in sports wagering via partnerships.

Aerospace Products segment

• Core products and services:
  • Aerial surveillance products; navigation/flight display installations; aerodynamic enhancement products; crew work stations; range-extending and power/drive systems; avionics; ISR systems; modified doors and hulls; sensor/pod/radome systems; external stores provisions; fuel protection devices; specialized cabling/harnesses; and other aircraft modifications.
• Certifications and approvals:
  • FAA Supplemental Type Certificates (STCs) and Parts Manufacturer Approvals (PMAs).
  • FAA-approved repair stations for maintenance, repair and overhaul.
• Customer concentration:
  • Fiscal 2026: five customers accounted for 39.1% of revenue; two customers (each >10% of consolidated revenue) accounted for 29.9%.
  • Fiscal 2025: five customers accounted for 25.4% of revenue; one customer accounted for 14.8%.
  • Accounts receivable concentration: as of April 30, 2026 and 2025, one customer represented 22.7% and 32.4%, respectively, of total accounts receivable.
• Backlog:
  • Aerospace Products backlog as of April 30, 2026: $47,059 thousand; as of April 30, 2025: $33,611 thousand.
  • Company total backlog: $47,059 thousand (2026); $33,611 thousand (2025).
  • Backlog represents signed contracts that may extend beyond the next fiscal year.
• Materials and suppliers:
  • Raw materials include sheet/plate aluminum.
  • The company relies on suppliers for aluminum components and for complex sensors needed for customer integration contracts.
• Locations and facilities:
  • Tempe, Arizona: multiple facilities, including Tempe operations associated with Avcon.
  • New Century, Kansas: corporate office and Avcon operations at One Aero Plaza.
  • Newton, Kansas: Avcon Industries, Inc. — 47,000 sq ft leased facility with hangar/office; 12,000 sq ft hangar/office owned; 33,600 sq ft manufacturing/office space added in April 2025 (land leased from City of Newton/Harvey County).
  • Excelsior Springs, Missouri: KC Machine — 18,358 sq ft owned facility.
• Intellectual property:
  • The company does not currently hold patents, franchises or concessions.
• Regulatory environment:
  • Operations are heavily regulated by the FAA; FAA licensing for DERs and modifications is required.
  • Export controls and foreign regulations can affect international sales.

Professional Services segment — Boot Hill Casino and related activities

• Boot Hill Casino and Resort (Dodge City, Kansas):
  • Approximately 500 slot machines, 15 table games, a restaurant and a sportsbook.
  • Managed under a Kansas Lottery Gaming Facility Management Contract (with BNSC and BHCMC).
• Sports wagering and platform:
  • Provider contract with DraftKings for interactive/mobile sports wagering.
  • DraftKings online/mobile platform and a DraftKings-branded sportsbook opened on February 28, 2023.
  • Sports wagering management contract and the management contract for traditional gaming with the Kansas Lottery both expire in 2027; negotiations are anticipated to renew or extend these agreements.
• Revenue sharing and regulation:
  • Boot Hill pays a total revenue share of 29% of gross legacy gaming revenue; sports wagering revenue share is 10% of revenue to the State.
  • Kansas gaming authorities regulate operations and require licenses and suitability determinations for management personnel and key individuals.
• Physical footprint and recent changes:
  • BHCMC, LLC is located at 4000 W. Comanche, Dodge City, in a 60,000 sq ft owned Boot Hill facility.
  • An administration center previously at 2601 N. 14th Avenue (29,000 sq ft owned) was sold in September 2025 and replaced by a new facility adjacent to the casino.
• Staffing (gaming operations):
  • April 30, 2026: 184 full-time; 45 part-time.
  • April 30, 2025: 192 full-time; 44 part-time.
  • June 26, 2026: 183 full-time; 44 part-time.
• Market factors:
  • Local and regional economic conditions (agriculture, meat processing, oil and gas sectors) and regional competition affect gaming operations.

Corporate leadership and governance

• Executive transition:
  • Christopher J. Reedy resigned as Chief Executive Officer on June 15, 2026; he will remain as Special Advisor to the Board through July 1, 2027.
  • Adam Sefchick was appointed Interim Chief Executive Officer and President on June 15, 2026; he also serves as Chief Financial Officer (appointed May 2025).
  • Mr. Reedy has extensive regulatory and FAA experience and will serve as an advisor. There is no employment contract in place for Mr. Sefchick as CEO.
• Governance:
  • The Board oversees strategic and operational risks.
  • Cybersecurity oversight is held by the full Board, with operational risk management supported by committees as appropriate.

Employees and scale

• Company (excluding gaming subsidiaries):
  • April 30, 2026: 158 full-time, 6 part-time.
  • April 30, 2025: 144 full-time, 3 part-time.
  • June 26, 2026: 167 full-time, 8 part-time.
• Boot Hill Casino staffing (repeat for convenience):
  • April 30, 2026: 184 full-time, 45 part-time.
  • April 30, 2025: 192 full-time, 44 part-time.
  • June 26, 2026: 183 full-time, 44 part-time.

Other information and disclosures

• Public filings and website:
  • Company information is available at www.butlernational.com and via SEC filings on sec.gov.
• Risk factors and disclosures:
  • Aerospace Products faces customer concentration and government contracting risks, including reliance on FAA approvals and exposure to FAR audits and potential contract terminations.
  • Professional Services operations are subject to gaming regulation and the renewal or extension of state contracts.

Summary

Butler National operates two primary businesses: a technically complex Aerospace Products and modification business with FAA certifications and a backlog of $47,059 thousand as of April 30, 2026, and a regulated gaming operation that manages Boot Hill Casino and offers online sports wagering through a DraftKings partnership. The company is undergoing an executive transition with interim management in place, and its operations are subject to aviation and gaming regulatory frameworks.