What guidance did Daktronics's management provide for the next earnings period?

What is the market's earnings forecast for Daktronics next quarter?

What were the key takeaways from Daktronics’s earnings call?

What factors drove the changes in Daktronics's revenue and profit?

What is the revenue and EPS growth rate for Daktronics year over year?

Did Daktronics beat or miss consensus estimates last quarter?

What were the key takeaways from Daktronics's earnings call?

What is Daktronics's gross profit margin?

- **Record Order Growth**: 35% YoY orders driven by live events (81% YoY), HS Park & Rec (36% YoY), and international (22% YoY).
- **Profitability Boost**: 34% YoY cash flow expansion, $16.5M net income, and improved gross margins via value-based pricing.
- **Innovation Momentum**: New narrow pixel pitch displays and SaaS trials support 7-10% CAGR target.
- **Key Risks**: Tariff uncertainty, project timing variability, and M&A opportunities.
- **Upcoming Events**: Sidoti and Craig-Hallum conferences in Q4 FY2025, with FY2026 guidance for 7-10% CAGR and 10-12% operating margin target.

**【CEO Summary Section】**
- **Strong Fiscal Start**: Ended Q1 FY2026 with $136.9M cash and $360M backlog, up 35% YoY in orders driven by live events, HS Park & Rec, and international growth.
- **Revenue Mix & Margins**: 35% YoY order growth, 34% YoY cash flow expansion, and gross margin improvement via value-based pricing and cost control.
- **Product Innovation**: Launched new narrow pixel pitch and facia ribbon displays, with plans for LED street furniture and next-gen indoor video systems.
- **Digital Transformation**: Progress on SaaS trials, modernized service software, and ERP upgrades, supporting 7-10% CAGR target by FY2028.

**【CFO Financial Commentary】**
- **Financial Performance**: Q1 net income of $16.5M ($0.33 EPS), up from loss in Q1 FY2025. Orders at $239M (35% YoY growth), with 14-week profit tailwind.
- **Revenue & Margins**: Sequential revenue growth due to higher-margin HS Park & Rec segment. Gross margin benefited from mix and $6M tariff mitigation.
- **Cash & Liquidity**: $137M cash balance, $10.7M share buybacks, and 49% inventory-to-sales ratio. IT/product R&D spend of $17.2M supports future growth.
- **Balance Sheet**: No debt, $10M remaining under buyback program, and open to M&A opportunities.

**【Q&A Highlights】**
- **Live Events Pipeline**: Won 3/3 major sports projects, with focus on in-bowl and out-of-bowl expansion via narrow pixel pitch and facia ribbon products.
- **Gross Margin Sustainability**: Mix of high-margin segments and cost control driving margins, with caution on long-term project timing.
- **M&A & Capital Allocation**: Open to strategic acquisitions, with buyback flexibility as cash position allows.
- **Tariff Risk**: $6M Q1 tariff expense highlights ongoing China trade uncertainty, but agile supply chain management in place.

Daktronics, Inc. (DAKT) Q1 2026 Earnings Call Transcript

- **Backlog Strength**: $342M FY25 backlog (+8% YoY) supports 7-10% FY26 revenue growth.
- **Margin Focus**: 6.6% operating margin in FY25 vs. 10.6% prior; FY26 initiatives target 10-12% margin via pricing, cost cuts.
- **Tariff Resilience**: 80% U.S. production, <50% import reliance, $2M Q4 FY26 tariff impact (pre-mitigation).
- **Digital Growth**: 32% YoY international orders, 44% QoQ Commercial segment expansion, and 20-30%+ AV integrator pipeline growth.

**【Management Opening Remarks】**
- Interim CEO Brad Wiemann highlighted a strong finish to FY25 with 17% YoY order growth and $342M backlog, up 8% YoY.
- CFO Howard Atkins reported adjusted operating income of $50M (6.6% margin) vs. $87M (10.6% margin) in FY24, driven by $16.5M in nonrecurring transformation costs.
- Tariff costs totaled $2M in Q4 FY26 (pre-mitigation), but 80% of production is U.S.-based with <50% input reliance on imports.

**【CEO Business Update】**
- **Live Events**: 15% QoQ sales growth, including major wins at Charles Schwab Field and University of Nebraska Stadium.
- **Commercial**: 44% QoQ order growth, driven by new billboard product launches and AV integrator channel expansion.
- **International**: 32% YoY order growth, led by Saudi Arabia and U.K. billboard projects.
- **Digital Transformation**: Launched SaaS trials, reduced inventory by 23%, and on track for FY28 targets of 7-10% CAGR and 10-12% operating margin.

**【CFO Financial Highlights】**
- FY25 revenue: $761M (down 3% YoY), operating cash flow: $97.7M (up 57% YoY), ending cash: $128M.
- FY25 share buybacks: $29M (neutralizing convertible note issuance), with $10M new buyback authorization.
- FY26 outlook: $342M backlog positions for 7-10% revenue growth, with margin expansion via value-based pricing and cost controls.

**【Q&A Key Takeaways】**
- **Tariff Mitigation**: Price adjustments, contract protections, and global diversification strategies in place.
- **AV Integrator Growth**: Early-stage pipeline suggests 20-30%+ CAGR in adjacent markets.
- **Margin Expansion**: 2026 initiatives include lean manufacturing, SaaS adoption, and reduced consulting costs (FY25: $7.1M).

Daktronics, Inc. (DAKT) Q4 2025 Earnings Conference Call Transcript

- **Leadership Transition**: New CEO search underway; interim leadership prioritizes execution of $18M annualized cost savings by 2028.
- **Financial Resilience**: 24.6% gross margin maintained despite 12% sales decline; $12M cash flow from ops in Q3.
- **Growth Drivers**: High School video board market <10% penetrated; Commercial/International orders up 5.2% QoQ.
- **Strategic Targets**: 7-9% CAGR, 10-12% operating margin, 17-20% ROIC by 2028.
- **Risk Mitigation**: Tariffs favor U.S. manufacturing; digital transformation to reduce costs and improve efficiency.


**【Management Transition Announcement】**
- Reece Kurtenbach steps down after 34 years as CEO; Brad Wiemann appointed Interim President/CEO. Howard Atkins assumes Acting CEO role for financial oversight.
- Board to engage executive search firm for permanent CEO to accelerate growth and profitability.

**【CEO Business Review】**
- Q3 orders down 2.7% YoY due to delayed Live Events, Transportation, and High School projects; offset by Commercial and International growth.
- Gross margin maintained at 24.6% despite 12% sales decline through cost management and product mix optimization.
- Business Transformation targets: 7-9% CAGR, 10-12% operating margin, 17-20% ROIC by FY28.

**【CFO Financial Highlights】**
- Q3 net sales $132.2M (-12.2% YoY); cash flow from ops $12M (vs $25M YoY) due to lower volumes.
- Operating loss 2.4% of sales; adjusted for one-time costs, margin 1%.
- Converted $25M convertible note, reducing interest expense by $5M; repurchased $9M in shares.

**【Digital & Business Transformation】**
- IT upgrades: EPM system go-live in May, service tools in Q2, ERP refresh planned.
- Cost-saving initiatives: $18M annualized savings by FY28 (inventory, procurement, manufacturing).
- Product R&D spend $40M FY25, focused on high ROI innovations.

**【Q&A Key Takeaways】**
- International orders improving in Europe, ME, Australia; conversion rate rising post-pandemic.
- High School video board adoption <10% of 10,000+ schools; new products driving 50%+ margin contribution.
- Tariffs favor Daktronics as U.S. manufacturer vs. China-based competitors.
- FY26 capex focus: growth enablers (digital tools, R&D) over share buybacks.


Daktronics (DAKT)-5 Mar 25-2025 Q3 Earnings call transcript

Daktronics (DAKT)-4 Dec 24-2025 Q2 Earnings call transcript

Daktronics (DAKT)-4 Sep 24-2025 Q1 Earnings call transcript

Daktronics (DAKT)-26 Jun 24-2024 Q4 Earnings call transcript

Daktronics (DAKT)-28 Feb 24-2024 Q3 Earnings call transcript

- **Record Fiscal Start**: FY 2024 Q2 sales of $199.4M (+6.4% YoY) and operating income of $19.4M reflect strong execution and margin expansion.
- **Gross Profit Surge**: 27.2% gross margin (vs. 16.9% YoY) driven by scale, pricing, and supply chain stability.
- **Cash Strength**: $25.1M cash flow and $73.5M liquidity support growth initiatives.
- **Future Growth Focus**: LED market expansion, automation investments, and international market recovery.

**【CFO Opening Remarks】**
- CFO Sheila Anderson emphasized forward-looking statements and cautioned about risks such as economic conditions, supply chain disruptions, and market fluctuations.
- The earnings release and 10-K filings are available for reference, and non-GAAP financial measures were highlighted.

**【CEO Remarks】**
- CEO Reece Kurtenbach reported a record start to FY 2024 with strong sales ($199.4M) and operating income, driven by strategic execution across all business areas.
- The company benefited from improved customer experience, profitability, and working capital management.
- Gross profit margin increased to 27.2% (vs. 16.9% YoY), attributed to higher sales volume, strategic pricing, and stable supply chains.

**【CFO Financial Commentary】**
- Operating expenses rose to $34.8M (17.4% of sales) due to employee benefit programs ($4.8M), but year-to-date efficiency improved to 15.2%.
- Operating income was $19.4M (9.7% of sales), up from $1.5M (0.8% YoY).
- A $10.7M noncash charge was recorded for convertible debt fair value adjustments, impacting net income.
- Cash generation was strong at $25.1M, with $73.5M in cash and marketable securities.
- Backlog stood at $307M, reflecting reduced lead times and supply chain stability.

**【CEO Future Outlook】**
- The LED market is expected to grow 20%-25% CAGR, with Daktronics focusing on high school, transportation, and international markets.
- Investments in narrow pixel pitch, micro-LED, and automation aim to drive long-term profitability.
- The company plans to spend $19M on capital assets and digital transformation projects.

**【Q&A Highlights】**
- **Gross Margin Fluctuations**: CEO explained that gross profit variability is due to fixed costs and seasonal sales, not inflationary pressures.
- **Cash Usage**: The company is evaluating debt repayment and other strategic uses of its $73.5M cash balance.

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