Key Highlights

  • Daktronics reported fiscal 2027 first-quarter net sales of $234.6 million, up 7.1 per cent, with Diluted Earnings per Share of $0.40, up 21.2 per cent.
  • Orders fell 19.6 per cent to $191.8 million, and Backlog was $311.3 million, down 13.6 per cent.
  • The company repurchased $4.4 million of shares and said it is tracking toward fiscal 2028 targets of 7 to 10 per cent annual Revenue growth.

First-quarter results

Daktronics, Inc. (NASDAQ:DAKT), which makes electronic display systems, reported fiscal 2027 first-quarter results on 2 September 2026, for the quarter ended 1 August. Net sales were $234.6 million, up 7.1 per cent from $219.0 million. The quarter had 13 weeks, against 14 weeks in the prior-year quarter.

Gross Margin was 30.5 per cent, up from 29.7 per cent. Operating Income was $24.9 million, a 10.6 per cent margin, compared with $23.3 million, also 10.6 per cent. Net Income was $19.4 million, up 17.9 per cent, and diluted earnings per share were $0.40, up 21.2 per cent from $0.33.

Operating income grew 7.2 per cent while net income grew 17.9 per cent, so items below the operating line contributed to the faster earnings growth. The release does not break those items down, and share repurchases may also have helped earnings per share. Sales rose despite one fewer week in the quarter, although the company did not quantify the effect.

Orders and backlog

Orders fell 19.6 per cent to $191.8 million from $238.5 million, and the product backlog was $311.3 million, down 13.6 per cent from $360.3 million. The company said the lower orders reflected a few large transactions expected to be booked in the second quarter of fiscal 2027, and that backlog has exceeded $300 million at six consecutive quarter-ends.

That explanation is management's. Whether the expected orders materialise will only be visible in the next report. Backlog was about 1.3 times the quarter's net sales, which gives some visibility, though not all backlog converts at the same pace.

Segment picture

Segment results diverged. Live Events sales rose 8.3 per cent to $86.4 million, but its orders fell 48.8 per cent to $47.2 million. International sales rose 66.1 per cent to $28.4 million and Transportation sales rose 29.0 per cent to $21.4 million. Commercial sales fell 5.3 per cent to $43.7 million, while High School Park and Recreation sales fell 7.8 per cent to $54.7 million.

On orders, Commercial rose 5.3 per cent to $46.6 million, High School Park and Recreation fell 11.0 per cent to $56.3 million, Transportation rose 3.6 per cent to $22.7 million and International rose 12.4 per cent to $19.0 million. Live Events therefore accounts for most of the overall order decline. Large projects differ in size and timing across segments, so quarterly order swings can be sharp.

Cash, Buybacks and targets

Cash and equivalents were $154.6 million, up from $136.9 million, and total Debt was $10.5 million. Operating Cash Flow was $31.4 million, up 20.4 per cent, and free cash flow was $27.5 million, up 25.0 per cent. EBITDA was $29.6 million, up 5.5 per cent. Cash exceeded debt by about $144 million.

The company repurchased $4.4 million of shares, or 225,500 shares at a volume-weighted average price of $19.56, under a $40 million authorisation. It said it is "tracking well toward" its fiscal 2028 targets of 7 to 10 per cent revenue growth a year, a 10 to 12 per cent Operating Margin and a 17 to 20 per cent return on invested capital. It gave no specific fiscal 2027 guidance.

What to watch

Items to follow include second-quarter orders and backlog, Live Events order recovery, International momentum and progress towards the fiscal 2028 targets. The next results are estimated for around 9 December 2026.