BUKS

• Past quarter reflects record performance for Butler National with a 27% increase in revenue, surge in operating and net income of 129% and 98% respectively. - Aerospace product segment saw a 50% revenue increase from aircraft modifications, avionics, and special mission electronics; performing on significant contracts for large airplane modifications with favorable sales product mix. - Tempe Special Mission Electronics Team had a positive quarter with maintained production/delivery levels even during key customer holidays and working on new gun controls for M134 minigun. - Professional services segment essentially flat with local economic factors affecting legacy gaming but sports wagering contributing positively.

• Backlog is based on contracted sales with a solid pipeline of work including repeat customers and engineering programs; many special mission and electronics projects extend over multiple quarters/years. - Evaluate strategic opportunities on an ongoing basis for acquisitions to enhance technical capabilities, expand product offerings, or access customer channels within aerospace, but remain patient and selective. - Focus on building a business capable of generating durable earnings through varying market conditions and looking for niche market or regulatory-driven opportunities for financial position and complex modification work.

Total revenue for the quarter was $26.9 million. Aerospace segment revenue was $17.1 million (a 50% increase from the same quarter last year), contributing approximately 63.57% to total revenue. Professional services and gaming segment revenue was $9.9 million (essentially flat from the same quarter last year), contributing approximately 36.43% to total revenue. Net income for the quarter was $6.7 million, up from $3.4 million same quarter last year. Operating income was $9.2 million, up from $4 million same quarter last year. Backlog remains strong at $37 million. Aerospace product segment revenue increase was primarily due to a $3.1 million increase in aircraft modifications and a $2.3 million increase in special missions electronics. Costs and expenses decreased compared to the same quarter last year, resulting in an operating margin of 34% in Q3 fiscal year 26 compared to 19% in Q3 fiscal year 25 for operating income as a percentage of revenue.

• Customer concentration risk as historically portions of aerospace business involved large programs with significant customers, but efforts to broaden customer base geographically and across mission types. - Impact of predictive markets on sports wagering revenue received by Butler National subsidiary; predictive markets are influencing the Kansas legalized sports wagering landscape with potential to divert some betting activity but impact currently modest and considered overstated by some as they may expand the overall gambling market.

Q: How reliable is backlog or contracted work as an indicator of future revenue? Can you discuss the visibility you currently have into aerospace demand?

A: We disclose a formal quarterly backlog figure based upon contracted sales. As of January 31, 2026, there's a solid pipeline of contracted work, repeat customers, and engineering programs. Many special mission and electronics projects extend over multiple quarters/years. Once an STC is certified or FAA approved, it creates recurring installation opportunities.

Q: Given the specialized nature of your aerospace work, how should investors think about customer concentration risk?

A: Customer concentration is monitored closely. Historically aerospace business had large programs with significant customers, but we're broadening customer base geographically and across mission types, seeing growing interest from international operators, governmental agencies, etc., while valuing repeat customers.

Q: As Butler National strengthens its balance sheet, should investors expect acquisitions to play a role in future growth?

A: We evaluate strategic opportunities on an ongoing basis through the lens of shareholder value and disciplined capital allocation, looking to pursue opportunities that enhance technical capabilities, expand product offerings, or access customer channels within aerospace, but are patient and selective.

Q: Aerospace companies across the industry have cited engineering talent constraints. How is Butler National positioned from a workforce standpoint?

A: Invested in strengthening engineering team, hired program managers, recruit strategically, develop internal talent; culture and unique projects help differentiate in attracting skilled professionals; also working on technician recruitment by developing internal talent and retaining a recruiter.

Q: How should investors think about the strategic role of Boothill within Butler National's broader portfolio?

A: Boothill generates consistent cash flow, provides stability to support reinvestment in aerospace and contributes to overall financial strength; managed efficiently, with investment in guest experience to preserve ability to support long-term commitments.

Q: Many aerospace investors favor companies with repeatable product revenue rather than purely project-based work. How is AvCon evolving in that regard?

A: Long-term objective is to expand certified products and modification packages for repeatable installations across aircraft platforms; each successful STC becomes a long-lived asset generating revenue opportunities over years.

Q: Beyond potential uplisting, are there additional steps management is considering to broaden investor awareness?

A: Resuming quarterly earnings calls is one step, also evaluating expanded outreach and communication initiatives to ensure Butler National's strategy, performance, and opportunity are well understood.

Q: Butler financial performance over the past two quarters. How should shareholders think about the sustainability of these results? Are they market conditions or do they reflect underlying improvements in the business?

A: Recent strength reflects both healthy demand and structural improvements; elevated production at Tempe due to increased demand for gun control units, operational efficiencies, proprietary products, and new product line; AvCon benefits from focus on higher margin programs, sales of kits, improved execution discipline, and growing pipeline; Boothill provides stable cash flow; focus is on building durable earnings through varying market conditions.

Q: In a competitive aerospace environment, What do you believe differentiates Butler National?

A: Differentiation begins with focus and expertise in specialized areas of aircraft modification and systems integration with technical capability, certification experience, and execution; vertically integrated from parts fabrication to assembly to modification; diversified operating model combining aerospace growth with gaming segment stability and disciplined financial approach; long-term perspective in decisions and relationship-driven with customers and vendors.

Q: What is the impact of predictive markets on the sports wagering revenue received by Butler National subsidiary?

A: Predictive markets are influencing the Kansas legalized sports wagering landscape; financial impact currently modest; may divert some betting activity but considered overstated as they may expand the overall gambling market; Calshi and Polymarket are not direct competitors but complementary platforms catering to different user segments.