Daktronics, Inc. (NASDAQ: DAKT) announced robust financial results for the first quarter of fiscal year 2026, surpassing earnings expectations with a reported earnings per share (EPS) of $0.33, significantly higher than the anticipated $0.24. The announcement was made during a conference call on September 10, 2025, where executives highlighted the company’s strong performance and strategic initiatives.
During the call, Brittany Jacobson, Corporate Administration Supervisor, opened with a reminder about the forward-looking statements, emphasizing the potential for variability in actual results due to market conditions. Following her remarks, Brad Wiemann, Interim President and CEO, provided insights into the company’s financial accomplishments. He noted a cash balance of $136.9 million and a backlog of $360 million, which positions Daktronics favorably for future revenue generation.
Key Financial Highlights and Business Growth
Wiemann detailed the strong demand across various sectors, particularly in live events, high school sports, and international markets. The company achieved remarkable growth, winning all three major projects it pursued in the quarter, which included two Major League Baseball projects and one NHL arena project. This contributed to an impressive year-over-year order growth of 35%.
The live events sector experienced an 81% increase in orders compared to the previous year, showcasing the company’s competitive edge in the marketplace. The success in securing high-profile contracts was complemented by a record order growth in the high school park and recreation business, demonstrating Daktronics’ commitment to expanding its influence at the community level.
As part of its operational strategy, the company has made significant strides in preserving gross margins through enhanced pricing strategies and cost controls. Wiemann emphasized that the execution of their digital transformation plan is on track, which is expected to drive further financial improvements.
Market Performance and Future Outlook
In terms of market verticals, Daktronics reported a mixed performance. The commercial business saw a 5% increase in orders year-over-year, although it faced a 10% decline compared to the previous quarter. The transportation sector, on the other hand, experienced a 4% year-over-year decrease in orders due to large order variability.
Despite these fluctuations, the international business segment performed well, with orders increasing by 22% compared to last year, particularly in government and advertising sectors. This growth reflects the ongoing strategic focus on expanding Daktronics’ presence outside of North America.
Looking ahead, Wiemann expressed optimism about the company’s ability to convert its growing backlog into revenue. He noted that while some projects may not generate revenue until later in the fiscal year or into fiscal year 2027, the strong order volume provides a solid foundation for future growth.
Howard Atkins, Acting Chief Financial Officer, provided further details on the financials, highlighting a net income of $16.5 million, a significant turnaround from the previous year’s loss. He attributed this success to strong orders and improved operational efficiencies. The company’s focus on value-based pricing and effective supply chain management has also contributed to enhanced profit margins.
As Daktronics continues to navigate industry challenges, including tariff uncertainties, the company is well-positioned to leverage its strong cash position and strategic initiatives to foster growth. Wiemann concluded the call by thanking the Daktronics team for their hard work and dedication, reinforcing the company’s commitment to its transformation plan and future objectives.
