Daktronics (DAKT) Q4 2026 earnings summary

Executive summary

• Achieved record annual net sales of $838.7 million (up 10.9% YoY) and record orders of $860.8 million (up 10.2% YoY), with strong growth across all business segments.

• Operating margin improved to 7.3% (+290bps YoY), and adjusted EPS rose 24.8% to $1.05.

• Entered fiscal 2027 with a $356 million backlog, up 4% from the prior year, and a robust pipeline across all major end markets.

• Advanced business transformation initiatives, including new service and software platforms and Mexico manufacturing facility expansion.

• Strategic focus on organic growth, operational excellence, and disciplined capital deployment to drive sustainable growth and returns.

Financial highlights

• Q4 net sales reached $208.6 million (+20.9% YoY), with gross profit margin at 28.0% (+300bps YoY).

• FY2026 operating income was $61 million (vs $33.1 million prior year), and net income after tax was $45.4 million (vs -$10.1 million prior year).

• Adjusted EPS for FY2026 was $1.05 (+$0.21 YoY); Q4 adjusted EPS was $0.27, up 50% year-over-year.

• Gross profit increased 17% for the year; full-year gross margin was 27.3% (up from 25.8%).

• Returned $25.5 million to shareholders via share repurchases, representing 56% of net income.

Outlook and guidance

• Fiscal 2028 targets reaffirmed: 7%-10% revenue CAGR, 10%-12% operating margin, and 17%-20% ROIC.

• Fiscal 2027 expected to be a pivotal execution year, with continued focus on backlog conversion, operational improvements, and margin expansion.

• Revenue timing in 2027 will reflect normal project-based business seasonality and a 13-week Q1 versus 14 weeks in prior year.

• Strategic focus on organic growth, new market verticals, software/services innovation, and international expansion.