Daktronics, Inc. Announces 2026 Fiscal Second Quarter Results

Core Insights - Daktronics reported an operating profit of $22 million, reflecting a 36.7% year-over-year increase, with an operating margin of 9.4% [1] - The company experienced double-digit growth in orders and sales, with a product backlog of $321 million, up 36% from the previous quarter [1][4] - The company is on track with its business and digital transformation initiatives, aiming for 7-10% sales growth, 10-12% operating margin, and 17-20% return on invested capital (ROIC) over the next three years [1][6] Financial Performance - For fiscal Q2 2026, net sales reached $229.3 million, a 10% increase compared to $208.3 million in the same quarter of fiscal 2025 [4][10] - Operating income increased to $21.6 million from $15.8 million year-over-year, with operating margin rising from 7.6% to 9.4% [4][13] - New orders for products and services rose to $199.1 million, up 12.1% from $177.6 million in the same quarter of fiscal 2025 [4][9] Market Segments - The Live Events segment saw significant order growth, including large bookings related to six professional sports stadiums [2][9] - The Transportation segment experienced order growth in airport and Intelligent Transportation Systems projects [2][9] - International orders increased, particularly in the Middle East, United Kingdom, and Ireland [2][9] Operational Efficiency - The company is focusing on operational efficiencies and value-based pricing to improve profitability [2][4] - Daktronics is expanding its manufacturing footprint globally to mitigate cost pressures and support its growth pipeline [4][6] - The company plans to open a new facility in Mexico by the end of fiscal 2026 to complement its U.S. operations [6] Leadership Transition - Ramesh Jayaraman has been appointed as the new President and CEO, effective February 1, 2026, with Brad Wiemann continuing as Interim President and CEO until then [7][8]