Daktronics, Inc. (DAKT) Q1 2026 Earnings Call Transcript
Ending Cash Balance $136.9 million, with a 7% increase from the fourth quarter of fiscal 2025. This was supported by a 34% year-over-year increase in operating cash flow, driven by solid earnings and better utilization of spare inventory.
Backlog $360 million, with a year-over-year order growth of 35%. This growth was driven by strong demand in live events, High School Park and Recreation, and international markets.
Orders in Live Events 81% year-over-year increase and 10% sequential growth. This was due to winning 3 major league sports projects and multiple college and university orders.
Orders in High School Park and Recreation 36% year-over-year growth and 7% sequential growth. This was supported by record order bookings and strong adoption of professional services like curriculum development and sports marketing.
Orders in International Business 22% year-over-year growth but a 32% decline from the fourth quarter of fiscal 2025. Growth was driven by government and advertising markets.
Orders in Transportation Business 4% year-over-year decrease and 7% decline from the fourth quarter of fiscal 2025. This was attributed to large order variability.
Revenue Down 3% year-over-year. Last year's first quarter had a higher completion of multi-period revenue-producing projects, while this year saw an $18.7 million increase in order backlog.
Gross Margins Improved due to value-based pricing, strong fixed cost leveraging, and a favorable mix of revenue across businesses.
Net Income $16.5 million or $0.33 per fully diluted share, compared to a loss in the previous year due to a $21.6 million fair value adjustment on convertible notes.
Operating Income $23.3 million, compared to $22.7 million in the previous year. This year's figure includes a $6 million tariff expense, up from $1 million last year.
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Daktronics (DAKT) to Host Investor Meetings at Sidoti Conference on January 22, 2026
- Investor Meeting Schedule: Daktronics will present at Sidoti's Micro-Cap Virtual Investor Conference on January 22, 2026, hosting one-on-one meetings with investors to enhance engagement and transparency.
- Timing and Registration: The presentation is set to begin at 2:30 PM ET on January 22, with free registration available for both Sidoti clients and non-clients, likely attracting significant investor interest.
- Company Background: Daktronics is a leading global designer and manufacturer of dynamic video communication displays and control systems, holding a strong market position focused on large-screen video displays, electronic scoreboards, and LED systems for customers worldwide.
- Diverse Business Units: The company operates four domestic business units, including Live Events, Commercial, High School Park and Recreation, and Transportation, showcasing its broad applications and influence across multiple market sectors.
Daktronics Acquires XDC's IP and Equipment to Enhance MicroLED Capabilities
- Acquisition of Technology Assets: Daktronics has acquired intellectual property and equipment assets from X Display Company, which, while undisclosed in financial terms, will significantly enhance its display technology capabilities, particularly in MicroLED systems, supporting future product growth.
- Talent Integration: The transaction brings 15 engineers with deep expertise in mass-transfer and MicroLED development into Daktronics, further strengthening the company's engineering capabilities and enhancing its competitiveness in the dynamic video screen market.
- Market Outlook: Industry research firm Futuresource projects that the narrow pixel pitch (NPP) segment could reach approximately $12 billion by 2029, positioning Daktronics to better capture high-volume and smaller display opportunities, thereby increasing market share.
- Strategic Positioning: Interim CEO Brad Wiemann stated that the acquisition reinforces Daktronics' leadership in next-generation display technology, demonstrating a strong commitment to MicroLED technology aimed at enhancing product competitiveness through improved energy efficiency and longer lifespan.
