Daktronics (DAKT) Q4 2025 Earnings Call June 25, 2025 11:00 AM ET Company Participants Carla Gatzke - VP - Human Resources & Corporate SecretaryAndrew Siegel - ChairmanBrad Wiemann - EVP, Interim President & CEOHoward Atkins - Acting CFO, Treasurer & Chief Transformation Officer Conference Call Participants Aaron Spychalla - Senior Research AnalystAnja Soderstrom - Senior Equity Research AnalystMac Furst - Research Analyst Operator Good day, and thank you for standing by. Welcome to the Daktronics Fourth Qu ...

Financial Data and Key Metrics Changes - The company reported a strong finish to a transformational year, with a 29% increase in backlog from Q3 and a 17% year-over-year increase [15][39] - Adjusted operating income for 2025 was $50 million, down from a record $87 million in 2024, with an adjusted operating income margin of 6.6% compared to 10.6% in 2024 [36][39] - Operating cash flow more than doubled year-over-year, with a 54.5% growth for the year, totaling $97.7 million [32][41] Business Line Data and Key Metrics Changes - In the Live Events segment, orders decreased 12% year-over-year, but the company expects continued growth due to new projects and repeat customers [20][18] - The Commercial business saw a 31% increase in orders for the year and a 44% increase in Q4 compared to the previous year, driven by strong demand in out-of-home advertising [21][22] - Transportation orders decreased 10% year-over-year but increased 14% from Q4, supported by notable wins in intelligent transportation systems [23][24] Market Data and Key Metrics Changes - International orders grew 32% year-over-year and more than doubled from Q4 of the previous year, with significant contributions from advertising orders in various countries [25][26] - The High School Park and Recreation business experienced record orders, growing 19% for the year and 33% for Q4, driven by strong adoption of video solutions [27][28] Company Strategy and Development Direction - The company is focused on achieving higher operating margins of 10% to 12% and a return on invested capital (ROIC) target of 17% to 20% by fiscal year 2028 [47] - The transformation plan includes value-based pricing, revenue mix diversification, and new product introductions to drive growth [48] - The company is committed to maintaining a strong balance sheet and investing in high-growth, high-margin business products [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth in FY 2026, supported by a strong backlog and order flow [55][39] - The company is adapting to the tariff environment and remains flexible in its pricing and supply chain strategies [49][50] - Management emphasized the importance of executing the transformation plan and achieving long-term financial objectives [51][52] Other Important Information - The company incurred $16.5 million in non-recurring expenses related to transformation initiatives, with $7.5 million in Q4 [34][35] - A new $10 million share repurchase program was approved by the board, following a previous program [76] Q&A Session Summary Question: Revenue growth outlook for FY 2026 - Management indicated that all markets are expected to show growth, aligning with the 7% to 10% compound annual growth rate target through FY 2028 [55][56] Question: Margin outlook and tariff impacts - Management discussed implementing value-based pricing and driving operational efficiencies to improve margins, despite tariff uncertainties [57][58] Question: Update on commercial segment and AV network expansion - Management highlighted optimism in the commercial business, particularly in out-of-home advertising, and plans to aggressively grow the AV integrator space [60][61] Question: Working capital and capital allocation - Management stated that the primary use of capital will be for growth initiatives, product development, and digital transformation, with share repurchase also being considered [64][66] Question: Strength of international orders and future expectations - Management noted significant growth in international orders and a strong pipeline, which is expected to contribute to revenue growth in FY 2026 [72][73] Question: Future consulting fees related to transformation initiatives - Management confirmed that no additional consulting fees are expected for the completed transformation initiatives, but some new initiatives may arise [74][75]

Company Performance - Daktronics reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, but down from $0.27 per share a year ago [1] - The company posted revenues of $172.55 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 14.19%, compared to $215.88 million in the same quarter last year [2] - Over the last four quarters, Daktronics has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2][3] Stock Outlook - Daktronics shares have declined approximately 9.9% since the beginning of the year, while the S&P 500 has gained 3.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $220.69 million, and for the current fiscal year, it is $1.02 on revenues of $814.44 million [7] - The estimate revisions trend for Daktronics was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Electronics - Miscellaneous Products industry, to which Daktronics belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, which may impact the stock's performance [8]

Exhibit 99.1 Daktronics, Inc. Announces Fiscal Year and Fourth Quarter 2025 Results FY2025 Operating Profit of $33 million; Adjusted Operating Profit of $50 million • Q4 sales of $172.6 million and full year 2025 sales of $756.5 million compared to $215.9 million and record sales of $818.1 million at the end of Q4 and full year 2024, respectively. On a sequential basis from the seasonally slower Q3, Q4 sales rose 15.4% • Q4 gross profit as a percentage of sales of 25.0% compared to 25.7% in the year-earlier ...

FY2025 Operating Profit of $33 million; Adjusted Operating Profit of $50 million FQ4 Operating Loss of $2 million; Adjusted Operating Income of $6 million FQ4 Orders +29% Sequentially and +17% YoY; Year-end Product Backlog of $342 million up 8% FY2025 Operating Cash Flow +55% to $98 million; Year-end Cash Balance of $128 million Business and Digital Transformation on Track; Reconfirming Three Year Forward Objectives of 7-10% Sales Growth, 10-12% operating margin, 17-20% ROIC BROOKINGS, S.D., June 25, 2025 ...

BROOKINGS, S.D., June 10, 2025 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ-DAKT), announced today it will release its fourth quarter and fiscal 2025 financial results on Wednesday, June 25, 2025 before the market opens. The Company will host a conference call and webcast for all interested parties at 10:00 AM CT that day. Brad Wiemann, Interim Chief Executive Officer, and Howard Atkins, Acting Chief Financial Officer, will host the conference call, which will contain forward-looking statements and other ma ...

Core Insights - Daktronics, Inc. announced participation in the Craig-Hallum Capital Group's 22nd Annual Institutional Investor Conference on May 28, 2025, with Interim CEO Brad Wiemann and Acting CFO Howard Atkins representing the company [1] Company Overview - Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems [2] - The company operates in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, along with one International business unit [2] - Daktronics specializes in the control of display systems that integrate multiple complex displays to show real-time information, graphics, animation, and video [2]

NEW YORK, April 21, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Daktronics, Inc. (“Daktronics” or the “Company”) (NASDAQ: DAKT). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Daktronics and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On March ...

Core Insights - Daktronics has been selected as the official large display partner for the Tennessee Titans, set to manufacture and install 37 displays totaling over 77,000 square feet at the new Nissan Stadium, which will rank among the top three in the league for total LED square footage [1][2][3] Display Details - The installation includes a unique Ring of Fire display that encircles the upper bowl of the stadium, measuring 13 feet high by 2,275 feet wide, totaling 29,575 square feet, making it the longest display in the league with a 10-millimeter pixel spacing [2][3][4] - The main video displays will be located in the east, northwest, and southwest end zones, with the east end zone display measuring 41 feet high by 343 feet wide, totaling 14,063 square feet, while the other two displays will each measure 41 feet high by 136 feet wide [5][6] - Additional displays include 23 ribbon and vomitory displays totaling over 17,000 square feet, four concourse displays totaling 1,125 square feet, and a south exterior display measuring 3,750 square feet, all featuring various pixel spacings for enhanced viewing [8][9][10] Company Background - Daktronics, founded in 1968, specializes in large-format LED video displays and has become a global leader in audiovisual systems, serving various applications in sports, business, and transportation [13]

77,000+ square feet of LED displays will bring new venue to life in 2027 Conceptual Image BROOKINGS, S.D., April 21, 2025 (GLOBE NEWSWIRE) -- Daktronics (NASDAQ-DAKT) of Brookings, South Dakota, has been selected as the official large display partner of the Tennessee Titans and will manufacture and install 37 displays totaling more than 77,000 square feet at the team’s newly constructed Nissan Stadium set to open in 2027. This puts the stadium in the top three for total square footage of LED in the league. ...