Daktronics Reports 7.5% Decline in Net Sales for Fiscal Year Ending April 2025

Daktronics, Inc. reported a decline in financial performance for the fiscal year ending April 26, 2025, with net sales of $756.5 million, a decrease of 7.5% from $818.1 million in the previous fiscal year. The company's gross profit also fell to $195.5 million, down 12.1% from $222.4 million, resulting in a gross profit margin of 25.8%. Operating income dropped significantly by 62% to $33.1 million, compared to $87.1 million in fiscal 2024. The company recorded a net loss of $10.1 million, translating to a diluted loss per share of $0.21, a stark contrast to the net income of $34.6 million and earnings per share of $0.74 reported in the prior year.

The decrease in revenue was primarily attributed to lower volumes across all business units, particularly in the Live Events segment, which faced challenges related to order timing and a reduced buildable backlog. Despite the overall decline in sales, Daktronics experienced a 5.6% increase in orders, totaling $781.3 million, driven by the continued adoption of digital display technology and growth in the High School Parks and Recreation segment. The company's product order backlog increased to $341.6 million from $316.9 million in the previous year, reflecting a positive trend in order bookings.

Strategically, Daktronics has initiated a Business Transformation Office (BTO) to enhance its operational efficiency and customer outcomes. This initiative is part of a broader digital transformation strategy aimed at penetrating current and adjacent market verticals and achieving above-market growth. The company has also made significant investments in product development, focusing on advancing features aligned with customer needs, particularly in emerging areas such as micro-LED technology. As of April 26, 2025, Daktronics employed approximately 2,702 people globally, reflecting a commitment to maintaining a skilled workforce to support its growth initiatives.

Looking ahead, Daktronics anticipates that the expansion of digital display systems will continue to drive long-term growth, despite the uncertainties posed by geopolitical factors and changing market conditions. The company is actively monitoring the evolving trade environment, particularly regarding tariffs, which have impacted its cost structure. Management remains optimistic about the potential for recovery in sales and profitability, contingent on the timing and size of future orders and market conditions. The company plans to invest approximately $22 million in capital expenditures for fiscal 2026 to support its growth and operational strategies.