Daktronics(US:DAKT)2025-12-10 12:40Financial Performance - Operating profit for Q2 2026 was $22 million, a 36.7% increase year-over-year, with an operating margin of 9.4%[1] - Sales reached $229.3 million, up 10.0% from Q2 2025, marking the third consecutive quarter of revenue growth[5] - New orders for products and services increased to $199.1 million, a 12.1% rise compared to Q2 2025[11] - Net income for Q2 2026 was $17.5 million, down from $21.4 million in Q2 2025, with earnings per diluted share at $0.35 compared to $0.22 a year ago[19] - Gross profit for the six months ended November 1, 2025, was $126.897 million, up 9.8% from $115.561 million for the same period in 2024[35] - Operating income for the three months ended November 1, 2025, increased to $21.563 million, representing a 37.0% rise from $15.770 million in the same quarter of 2024[35] - Net income for the six months ended November 1, 2025, was $33.951 million, compared to $16.460 million for the same period in 2024, reflecting a significant increase of 106.5%[35] - Net income for the three months ended November 1, 2025, was $17,481,000, a decrease from $21,406,000 in the same period in 2024[50] - Adjusted net income for the six months ended November 1, 2025, was $33,951,000, compared to $30,532,000 for the same period in 2024[50] Profitability and Margins - Gross profit margin improved to 27.0% from 26.8% in the previous year, driven by order growth and operational efficiencies[14] - Operating expenses slightly increased to $40.3 million, primarily due to higher tariffs and investments in technology[15] - Daktronics aims for 7-10% CAGR in revenue growth, 10-12% operating margin, and 17-20% ROIC over the next three years[8] Orders and Backlog - Product backlog grew to $320.6 million, up 36% from $236.0 million in Q2 2025[5] - Orders for Live Events increased by 26.5% to $89,228,000 for the three months ended November 1, 2025, compared to $70,524,000 in the prior year[43] - The company reported a decrease in Commercial orders by 5.1%, totaling $42,281,000 for the three months ended November 1, 2025[43] - The company experienced a decline in Transportation sales by 0.9%, with revenues of $21,274,000 for the three months ended November 1, 2025[43] Cash and Assets - Cash, restricted cash, and marketable securities totaled $149.6 million, with a working capital ratio of 2.2 to 1[20] - Total current assets as of November 1, 2025, were $430.230 million, an increase from $381.451 million as of April 26, 2025[37] - Cash and cash equivalents increased to $149.604 million as of November 1, 2025, compared to $127.507 million at the end of the previous fiscal year[37] - The company’s total assets increased to $548.394 million as of November 1, 2025, compared to $502.892 million as of April 26, 2025[39] Liabilities and Debt - Total liabilities as of November 1, 2025, were $250.943 million, up from $230.961 million as of April 26, 2025[39] - Long-term debt net as of November 1, 2025, was $9,799,000, a decrease from $10,487,000 as of April 26, 2025[52] Future Plans - The company plans to open a new facility in Mexico by the end of fiscal 2026 to enhance manufacturing capabilities[8]