Daktronics Reports 4.5% Sales Increase

By Bobby Samwell • Wednesday, December 04 10:21 • Permanent Link

Daktronics, Inc. has announced its fiscal second-quarter results for 2025, highlighting a 4.5 percent increase in sales to $208.3 million compared to the same period in fiscal 2024. The company reported gross profit as a percentage of net sales at 26.8 percent, a slight decrease from 27.2 percent in the second quarter of fiscal 2024.

Operating income for the quarter was $15.8 million, down from $19.4 million for the same period in fiscal 2024. However, when adjusted for consultant-related expenses associated with business transformation initiatives, operating income was $19.1 million.

Daktronics, Inc. generated record cash flows from operations, with $43.3 million in the fiscal second quarter and $62.8 million for the first six months of fiscal 2025. The product order backlog stood at $236.0 million at the end of the quarter, down from $267.2 million at the end of the first quarter of fiscal 2025 and $306.9 million at the end of the second quarter of fiscal 2024.

Product and service orders for the quarter totaled $177.6 million, representing a decrease of 3.3 percent from the second quarter of 2024, but year-to-date orders increased by 3.3 percent to $353.8 million. Net income for the quarter was reported at $21.4 million, with adjusted net income at $13.9 million, excluding non-operating non-cash debt fair value adjustment and operating adjustment for consultant-related expenses associated with business transformation initiatives.

The company is focused on business transformation initiatives, aiming to grow revenue faster than its addressable market, expand operating margins, and generate returns on capital in the mid-to-high-teens consistently above the company’s cost of capital.

Reece Kurtenbach, Chairman, President, and CEO of Daktronics, Inc., highlighted the completion of innovative installations at the L.A. Clippers' Intuit Dome and the Miami Heat's Kaseya Center, alongside other digital technology updates at various sporting facilities and commercial locations.

The market has reacted to these announcements by moving the company's shares 13.5% to a price of $18.53. For the full picture, make sure to review Daktronics's 8-K report.

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