Insiders Note: Daktronics released their fiscal year 2026 2nd Quarter results this week. Here are highlights from the Company.
Fiscal Q2 2026 financial highlights include:
- Operating income increased to $21.6 million, compared to $15.8 million for the second quarter of fiscal 2025; the year-ago quarter included $3.3 million of consulting expenses associated with business transformation
- Operating margin as a percentage of net sales rose to 9.4%, compared to 7.6% for the second quarter of fiscal 2025
- Sales of $229.3 million, compared to $208.3 million for the second quarter of fiscal 2025, reflecting the third consecutive quarter of sequential revenue growth
- New orders for product and service rose to $199.1 million for the quarter, compared to $177.6 million from the second quarter of fiscal 2025
- Product backlog increased to $320.6 million for the quarter, up from $236.0 million for the second quarter of fiscal 2025
Brad Wiemann, Daktronicsʹ Interim President and Chief Executive Officer, commented, “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.”
Commercial: The increase in net sales in the second quarter of fiscal 2026 compared to the same period one year ago was primarily driven by fulfilling orders in our OnPremise digital signage and Out-of-Home digital billboards niche, partially offset by a decrease in Spectacular LED video display projects. Gross profit as a percentage of sales increased due to a shift in mix to products with higher margins and higher sales volume over a relatively fixed cost structure. Selling expense remained relatively flat. The decrease in order bookings was primarily driven by delayed commitments from Spectaculars customers due to a competitive market.
On December 3, 2025, Daktronics announced that it appointed Ramesh Jayaraman as President and Chief Executive Officer, effective February 1, 2026. Brad Wiemann will continue to serve as Interim President and CEO through the Company’s third fiscal quarter, which ends January 31, 2026.
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