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Investor PresentationJanuary 22, 2026NASDAQ: DAKTCONTROL SYSTEMS DYNAMIC MESSAGE SIGNS
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SAFE HARBOR STATEMENTForward-Looking Statements:In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the federal securities laws and is intended to receive theprotections of such laws.All statements, other than historical facts, included or incorporated in this release could be deemed forward-looking statements, particularly statements that reflect our expectations orbeliefs of Daktronics, Inc. (the “Company,” “Daktronics,” “we,” or “us”) concerning future events or our future financial performance. You are cautioned not to place undue reliance onforward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use of words such as “may,” “would,” “could,” “should,” “will,” “expect,”“estimate,” “anticipate,” “believe,” “intend,” “plan,” “forecast,” “project,” “predict,” “potential,” “continue,” or “intend,” the negative or other variants of such terms, or othercomparable terminology. The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from ourexpectations as a result of various factors, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts,orders, and capital investment projects, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation, theimposition of tariffs, trade wars, the availability and costs of raw materials, components, and shipping services, geopolitical and governmental actions, expansion into new geographicalmarkets, the Company’s recent leadership transition, transformation initiatives, future strategy, and other risks described in the Company’s Annual Report on Form 10-K for its 2025 fiscalyear (the “Form 10-K”) and in other reports filed with or furnished to the U.S. Securities and Exchange Commission (the "SEC") by the Company. You should carefully consider the trends,risks, and uncertainties described in this presentation, the Form 10-K, and other reports filed with or furnished to the SEC by the Company before making any investment decision withrespect to our securities. If any of these trends, risks, or uncertainties continues or occurs, our business, financial condition, or operating results could be materially and adversely affected,the trading prices of our securities could decline, and you could lose part or all of your investment.Forward-looking statements are made in the context of information available as of the date of this presentation and are based on our current expectations, forecasts, estimates, andassumptions. The Company undertakes no obligation to update or revise such statements to reflect circumstances or events occurring after this presentation except as may be requiredby applicable law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.Non-GAAP Measures:This presentation contains certain measures that are not defined terms under U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures should not beconsidered in isolation or as a substitute for, or superior to, measures of liquidity or performance prepared in accordance with GAAP and may not be comparable to calculations ofsimilarly titled measures by other companies. See the Appendix for a description of these financial measures and a reconciliation of all such non-GAAP financial measures to the mostdirectly comparable GAAP financial measures.
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Compelling TTM TKPIs(1)120+Countries featuringDaktronics products12K+Total customers(3)LargestGrowing American brand byrevenue for past 3-years(2)~$770 MillionSales(1)#1North American LED video displayprovider(2)3rdLargest CY 2022 Market Shareworldwide(2)1) 2nd Quarter FY 2026 Trailing 12 month.2) Futuresource Consulting Report “Global LED Display Market Report (2024)”.3) From Company data. COMPANY HIGHLIGHTSDaktronics provides best-in-class audio-video displays, message displays andscoreboards to inform, entertain, and persuade audiences
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INVESTMENT HIGHLIGHTSGlobal industry leader in best-in-class dynamic video communication displays andcontrol systemsLarge, growing domesticandinternational marketsOnly US manufacturer of scale witha global footprint andservicing by geographic marketTechnology leadership with high-quality products, high-touch service Strong balance sheet Executing 3-year transformation plan to enhance customer experience and drive long-term growth, profitability and returns
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INTERCONNECTED SYSTEMS TO INFORM AUDIENCES, ENTERTAIN AND ENGAGE FANS Live EventsVideo displays for largesports & live entertainment venuesCommercialBillboards & video displays foradvertising and self-promotionTransportationNavigation and information displays for ITS systems on mass transit, roads &highways InternationalVideo displays for large sports/entertainment venues, advertising, and transportationHigh School Park and RecreationVideo and scoring systemsfor education and localcommunity useControl CapabilitiesIntuitive software to create, manage, and schedule content for engagement with fans and audiences
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INDUSTRY LEADER ScoreboardsVideo DisplaysSoftware & ControllersDigital BillboardsVideo WallsDigital Street FurnitureITS Dynamic SignsSound SystemsFreeform ElementsPrice DisplaysIndoor LCD SignsElectronic Message Signs
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DIVERSIFIED REVENUE Live Events •Complex, audience, fan-driven sale•Large projects, timing lumpyCommercial •On-premise and out-of-home advertising reach•Distribute through Sign Co’s and AV IntegratorsTransportation•Brand reputation and prequalified, in all 50 states•Best in class, proven, reliable/predictable supplier – preferred choice for technical buyers and Roadway ContractorsInternational*•Orders flow through A/V integrators and partners•Mimic our US/Canada model for worldwide successHigh School Parks and Recreation•Emulating features of larger sports venues•Sports marketing solutions for funding source* Geographies outside of US, Canada – primarily solutions for large sports venues, commercial spectaculars, third-party advertising, and transportation solutions
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INCREASING GLOBAL MANUFACTURING AGILITYUSBrookings and Sioux Falls, SD – 1,067,000 square feetRedwood Falls, MN – 151,000 square feetInternationalEnnistymon, Ireland – 62,000 square feet Shanghai, China – 157,000 square feet New FacilityInternationalSaltillo, Mexico•Favorable trading relations with US and supply chain•Provides scalability and increases agility of global production capacity•Production planned to commence in May 2026 Current Footprint
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GLOBAL RELATIONSHIPS WITH REPEAT CUSTOMERS▪Demonstrated success cultivates long-term relationshipsfor replacement cycles and additional sales opportunities▪Grow profitablyin core and adjacent customer types and geographies through strategic offering expansion tailored to customer needs▪Demand prioritizationfor focus on growth and profitable market verticals▪Unified Sales and Project coordinator support and ongoing Service – real time quotes,booking, project delivery success paired with ongoing service support to keep systems operating and looking their best▪Diversified product specializationwith expertise collaboration across complex projectsensures satisfaction & delivery – High quality regardless of complexity
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Developing and Applying Future TechnologiesToday:•Narrow Pixel Pitch (NPP)•High Resolution Outdoor•Event Control - Live 3D rendering•Cloud based Control PlatformFuture potential markets:•Transportation - International•Street Level Advertising•AV integrator distribution Future potential technologies:•MicroLED – Narrow Pixel Pitch•Reflective – low power displays•Intelligent Power Management•SAAS Control Solutions
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•Operational efficiency reviews & implementation across all manufacturing sites -on track •Faster inventory turnover and improved efficiency–•Align operations with anticipated evolution in underlying technologies -on track •Leveraging purchasing power on input costs •Reduced product complexity and speed to market on track •Aggressively renegotiating key supply contracts •Value-based pricing changes – service parts and certain products –on track •Launch of SaaS product trials to target customers –•Prioritizing high-growth international geographies and segments –on track •Digital Transformation projects to deliver efficient processes, modernized technologies, and data insights, all driving measurable value to our customers including:•Enhancing our subscription software to support expected SaaS growth –on track •Overhauling our quoting platform to make it easier to do business with –on track •Launched a modernized service system in May 2025 –•Launching AI Guided Troubleshooting Tools within Technical Services -Driving down costsDriving profitable growthTransformation: Momentum from Launched Initiatives, Next 6 Months Focus – FQ2 UPDATE
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FQ2 2026 BUSINESS REVIEW•Solid quarter results, exemplary execution, delivering revenue and profit expansion−Notable installs include Miami Freedom Park (MLS), Baltimore Orioles (MLB), Aramco Stadium (Saudi Arabia), Zayed Sports City (Abu Dhabi), Philly Airport, San Antonio Spurs (NBA), University of Buffalo Football, Cincinnati Convention Center (Digital Signage System)•Third consecutive quarter of top-line growth•Continued profitability improvement through value-based pricing with guardrails and operational efficiencies−Second quarter of driving operating income over $20 million −Staying responsive and flexible in dynamic environment•Product backlog of $321 million – up 36% - creates multi-quarter revenue runway−Orders +12% year-over-year
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FQ2 FY2026 FINANCIAL HIGHLIGHTS($ in millions, except per share data) (1) Orders and backlog are operating measures not defined by accounting principles generally accepted in the United States of America ("GAAP"), and our methodology for determining orders and backlog may vary from the methodology used by other companies in determining their orders and backlog amounts. For more information related to backlog, see Part I, Item 1. Business of our Annual Report on Form 10-K for the fiscal year ended April 26, 2025. This release does not include a reconciliation of orders or backlog, as it would be impractical to do so without unreasonable effort.Note: Percentages are calculated based on actual amounts. Due to rounding, totals may not equal the sum of the items in the chart above.(2) Adjusted net income. We disclose adjusted net income as a non-GAAP financial measurement in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting this non-GAAP financial measurements provides investors with a consistent way to analyze our performance. There was no adjustment to net income in the first quarter of fiscal 2026. Adjusted net income for the first quarter of fiscal 2025 was $16.6 million. Adjusted net income for the fourth quarter of fiscal 2025 was $8.8 million. FQ2 2026FQ1 2026FQ2 2025$199.1$238.5$177.6Orders$229.3$219.0$208.3Net sales27.0%29.7%26.8%Gross margin $21.6$23.3$15.8Operating income 9.4%10.6%7.6%Operating margin$17.5$16.5$13.9Adjusted net income 11.9%6.6%YTD Return on Average Equity
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FQ2: BALANCE SHEET STRENGTHNet cash balance at QE = $138.3 million vs $115.5 million at prior YEShare repurchase = $12.2 million YTD @ $16.38 VWAPAs of 9 December 2025, Share Repurchase Program capacity increased to $25.7 million, which includes an additional $20 million authorized by the BoardReplaced asset-based bank credit facility with more flexible, lower cost cash flow facility
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FY26-28 TRANSFORMATION OBJECTIVES F2025F2026F2027F2028Revenue Growth > Addressable Market: 7-10% CAGR•Value-based selling with guardrails•Revenue mix diversification•Enhanced service •New productsTop quartile ROIC = 17-20%Operating Margins + Growth + Capital AllocationTiming: Margin benefits accruing to achieve sustainable financial returnsHigher Operating Margin:10-12%•Structural cost reduction across supply chain•High value investment in product developmentBest Practices•Planning, risk management, capital allocation•Executive Compensation•Digital transformation
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Backlog growth - Capturing demand and driving revenue tailwindExpanding opportunity pipeline of market opportunities supporting growth objectivesEfficient revenue conversion and successful inventory, supply chain, manufacturing and cost managementAdding manufacturing capacity in Mexico and Ireland – adds flexibility and complements 80% product fulfilment currently completed in USFocused on differentiated, industry-leading product introductions and supporting growth through high-return product R&DTransformation objectives execution and benefits demonstrated in results – On track with roadmap and 3-year growth, profitability and return targets BUSINESS SUMMARY AND OUTLOOK Staying responsive and flexible in dynamic environment
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QUESTIONS? WEC Energy Group