Daktronics, Inc. Q3 FY2026 earnings call

Brad Wieman introduced the call. Revenue growth of 21.6% despite shorter work period and adverse weather. Manufacturing team converted order book. Large-scale installations including MLB stadiums and University of Illinois football system. Sales and marketing secured large orders in live event segment. Transportation segment had record quarter. Acquired X Display Companies for micro-LED and micro-integrated circuit capabilities. Product releases like next-gen indoor video solution and digital audio facade. Software as a service initiative and AI application for efficiency.

Revenue grew 21.6% year over year to $182 million in Q3 FY2026. Gross profit margin was 24%, flat to prior year but impacted by tariff expenses. Live events business had solid wins including 6 for 6 MLB projects. Transportation segment had record quarter with 130% order growth. Backlog grew to $342 million, 25% higher than last year. Live events fulfillment contributed to revenue mix, with lower margins. Manufacturing team efficient in order conversion.

Expect strong finish to FY2026 with high backlog and good pipeline. Investor Day on April 9 to present growth plans. Mexico facility expected to be operational in Q1 FY2027.

Uncertainty regarding Supreme Court decision on reciprocal tariffs and refunds. Geopolitical and supply chain uncertainties. Risk from key account delay in commercial segment being temporary but monitored.

Q: On win rates and pipeline in live events and overall business.

A: Pipeline robust, 6 for 6 MLB wins, high school and transportation markets strong.

Q: Update on commercial market reseller and integrator channel.

A: Reseller channel developed, AV integrator channel growing.

Q: Margin impact and Mexico facility.

A: Margin impacted by revenue mix and tariff, Mexico facility on track.

Q: Customer sentiment and M&A.

A: Customer sentiment positive, M&A opportunities monitored with strategic considerations.