| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 229.25 | 4.7% | 10.0% |
| Total Income | 229.25 | 4.7% | 10.0% |
| Expenditure | 207.69 | 6.1% | 7.9% |
| PBT | 21.86 | 1.6% | 13.2% |
| Net Profit | 17.48 | 6.1% | 18.4% |
| OPM | 9.41% | 1.22pp | 1.84pp |
| NPM | 7.63% | 0.10pp | 2.65pp |
| EPS | 0.36 | 5.9% | 21.7% |
Daktronics Reports Q2 FY2026 Operating Profit Up 36.7% YoY
04 May 2026 · 4 May, 6:56 am
Summary
Daktronics reported a solid second quarter of fiscal 2026, with double-digit growth in orders and sales. Operating profit increased to $21.6 million, up from $15.8 million in the prior year, and the operating margin improved to 9.4%. The company's product backlog grew to $320.6 million. Daktronics is reiterating its three-year forward objectives, including sales growth of 7-10% and an operating margin of 10-12%.
Key Highlights
- 1
Daktronics' operating profit increased to $21.6 million in the second quarter of fiscal 2026, compared to $15.8 million in the same period last year.
- 2
The company's operating margin rose to 9.4% in Q2 FY26, compared to 7.6% in Q2 FY25.
- 3
Sales reached $229.3 million for the second quarter of fiscal 2026, compared to $208.3 million for the second quarter of fiscal 2025.
- 4
New orders for product and service increased to $199.1 million for the quarter, compared to $177.6 million in the second quarter of fiscal 2025.
- 5
Product backlog increased to $320.6 million for the quarter, up from $236.0 million for the second quarter of fiscal 2025.
- 6
The company ended the quarter with a net cash balance of $138 million.
- 7
Daktronics is reiterating its three-year forward objectives of 7-10% sales growth, 10-12% operating margin, and 17-20% ROIC.
Management Comments
Brad Wiemann
We delivered another solid quarter of revenue and profit expansion, representing our third consecutive quarter of top-line growth and our second quarter of driving operating income over $20 million. Our teams provided exemplary performance in manufacturing, installation and service execution throughout the first half, and our results reflect continued profitability improvement through value-based pricing and operational efficiencies. Orders grew 12.1 percent from last year, with Live Events booking large orders related to three more Major League Baseball stadiums and three Major League Soccer stadiums in the second quarter. We plan to install five MLB stadium projects this coming spring. We are five-for-five on large-scale MLB projects in the first half of fiscal 2026. Additionally, we saw order growth in our Transportation segment, with an uptake of airport and Intelligent Transportation Systems projects domestically, and our International segment won additional orders in the Middle East stadium, United Kingdom advertising and Ireland transportation markets. Our product backlog position of $320.6 million provides us with a multi-quarter revenue runway, and our pipeline of potential new projects over the next year reflects sustained strong customer demand. Our three-year transformation initiatives are supporting greater efficiencies and higher profitability, and we continue to extend our leadership in product innovation and design and to advance the sophistication of the buying tools we offer customers to enhance our strong service levels and our value proposition. To facilitate our growing business and optimize our manufacturing network, we are opening a facility in Mexico that we expect to be in production by the end of fiscal 2026, to complement our U.S. manufacturing operations. We are highly energized and remain on track to achieve our three-year plan objectives of a 7-10% CAGR in revenue growth, 10-12% operating margin and 17-20% ROIC.
Howard Atkins
Q2 was a solid quarter with double-digit, year-over-year growth in new orders, revenue, and operating profit.
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