DAKT Q1 2027 Earnings Presentation

Page 1

1stQUARTER 2027 EARNINGSSEPTEMBER 2, 2026

Page 2

Safe harbor statementForward-Looking Statements: This presentation contains certain statements that by be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and thePrivate Securities Litigation Reform Act of 1995, as amended.All statements, other than historical facts, included or incorporated in this presentation could be deemed forward-looking statements, particularly statements thatreflect our expectations or beliefs of Daktronics, Inc. (the “Company,” “Daktronics,” “we,” or “us”) concerning future events or our future financial performance. You arecautioned not to place undue reliance on forward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use ofwords such as “may,” “would,” “could,” “should,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “plan,” “forecast,” “project,” “outlook,” “focus,” “goal,” “target,”“transform,” “expand,” “grow,” “execute,” “predict,” “ remain,” “add,” “track,” “potential,” “continue,” or “intend,” the negative or other variants of such terms, orother comparable terminology. The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results todiffer materially from our expectations 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, theimpact of adverse weather conditions, increased regulation, the imposition of tariffs or other trade restrictions, the availability and costs of raw materials, components,and shipping services, geopolitical and governmental actions, expansion into new geographical markets, the Company’s recent leadership transition, transformationinitiatives, future strategy, and other risks, trends, and uncertainties described more fully in the Company’s Annual Report on Form 10-K for its 2026 fiscal year (the “Form10-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, other reports filed with or furnished to the SEC by the Company, and other press releases andstockholders reports of the Company before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties continues oroccurs, our business, financial condition, or operating results could be materially and adversely affected, the trading prices of our securities could decline, and youcould 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, and assumptions. The Company disclaims any obligation to update or revise any forward-looking statements to reflect actual results or circumstances orevents occurring after this release affecting the forward-looking statements except as may be required by applicable law. All forward-looking statements attributable tous 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 measuresshould not be considered in isolation or as a substitute for, or superior to, measures of liquidity or performance prepared in accordance with GAAP and may not becomparable to calculations of similarly titled measures by other companies. See the Appendix for a description of these financial measures and a reconciliation of allsuch non-GAAP financial measures to the most directly comparable GAAP financial measures.1

Page 3

[USD m, %]Q1 FY2027 recapNet sales$234.6Operating income $24.9Net income$19.4Earnings per share (“EPS”) $0.40+7.1%+7.2%+18.0%+21.2%Order bookings$191.8-19.6% HighlightsPipeline continues to be robust; Bookings and Backlog movement primarily driven by few substantial orders negotiated in Q1 expected to land in Q2Sales growth at 7.1% (14-week FY26Q1 vs 13-week FY27Q1) driven by strong performance in Transportation, Live Events, and InternationalOperating margins continue to track to planEPS performance at 21.2% above prior year and highest in past 12 quartersAugmenting strong management team with key leadership adds in marketing and procurementMexico manufacturing plant successfully completed its first major production run of Narrow Pixel Pitch product; expect to ship in late Q2Camino 8 continues to garner customer interest with strong pipeline build 2 Q1’27YoY

Page 4

Large project wins in ITS helping togrow the backlogAdditional NPP Orders received fromLos Angelas International Airport,Spokane International AirportLarge Transit wins with SacramentoRegional Transit, Sunrail (Florida), and aproject in Houston Market verticals: Q1 reviewWon a large order with EstadioMetropolitano in Columbia for anoutdoor halo displayWon a large order with a long time OOHcustomer in Serbia for an additional 50display rolloutPipeline remains strong in Q2, especiallyin stadiumsCompleting installations for the start offootball and basketball season for keyprojects at U. of Illinois, Ohio State, PennState, and North CarolinaNew Camino 8 systems being installedacross variety of customersLive eventsBooked a large bulk billboard orderand an airport advertising refresh orderfrom a National OOH companyBegan shipping on a large Fuel Digitreplacement program order receivedin the prior yearCommercialTransportationInternationalSeveral large projects booked in thequarter, including Read Oak ISD (TX),Northside ISD (TX), Los Angelos HarborCollege, Harrisburg High School (SD)Held annual Video Summit for HighSchool users of Daktronics controlsystemsHigh school park & recreation Massillon City SchoolsMassillon, OH iMedia247 “The Metropolitan”Dubai, UAE La Crosse Sign Group - Kwik TripBonduel, Wisconsin Wake Forest Allegacy StadiumWinston-Salem, NCGlobal servicesControl upgrade orders grew, driven byCamino 8 adoption across the installedcustomer baseSuccessful launch of the LiveWrx fanexperience platform in late July expandsour recurring revenue opportunities andstrengthens our SaaS portfolio ahead ofthe fall demand season Union StationLos Angeles, CA3

Page 5

Recap of our strategic focusGrowthOrganic growth in coreNew market vertical expansionSoftware & services innovation and commercializationInternational growthStrategic Plan Operational excellenceIntegrated strategic sourcingManufacturing network optimizationAdvanced factory automationLean deploymentCapital deploymentContinued high-return organic investmentsDisciplined inorganic growth expansionReturn excess capital to shareholders while preserving strategic flexibility 4

Page 6

Salient strategic execution statusCore market drivers and pipeline continues to be robustActive recruitment in progress as we build new vertical expansionLA Angels now using Camino advanced visualizations in-stadium and starting this fall, Camino will be installed at 10+ venues for NHL, MLS, and NCAA football, volleyball, and basketballGlobal procurement leader hired combining direct & indirect teams; focused project to analyze spend cube; optimization actions start in H2Manufacturing network optimization: Mexico ramp upAutomation planning underway with focus on US transportation and China; hiring under way for a dedicated leader for LeanCapex spend targeted on plant network improvements and automation deploymentsStrategic Transactions Committee established at the board level with bi-weekly review; Corp Dev leader search in progress$40M stock buy-back authorization from the board; $4.4M purchased in Q15 Growth Key executive team compensation further aligned to long term share holder valueAdditions to key leadership include: procurement, marketing, IT and International (Q2 planned) with other key roles in active recruitmentBench strength and talent strategy 2-day alignment session with leadership team took placeOperational excellenceCapital deploymentTalent …SegmentsSegment ASegment BSegment C...CategoriesVendorsCategory CCategory AVendor AVendor B...Category B

Page 7

[USD m (except per share data), %, basis points]Financial highlightsQ1 FY2027Net salesGross profit marginSelling expense $19.0G&A expense$15.6Operating income$24.9Operating margin 10.6%Nonoperating income (expense)$0.730.5%$234.6Net income after tax $19.4Diluted Earnings Per Share (EPS) as reported$0.40 YoY Change+12.8%+8.8%+7.2%0 bpsvs ($1.0)+80 bps+7.1%+18.0%+21.2%6Product development expense $12.1 +13.5%

Page 8

Orders(1)[USD m]Solid revenue growthQ1’26 Q2’26 Q3’26 Q4’26Q1’27238.5199.1201.1222.0191.8Net sales [USD m]Net salesStrong year-over-year and sequential growthMarginTariff refunds, partially offset by higher input costsOrdersStrong pipeline, few substantial orders expected to book in Q2, backlog remains over $300 millionQ1’26 Q2’26 Q3’26 Q4’26Q1’27219.0229.3181.9208.6234.6HighlightsGross profit [USD m, %] 29.7%Q1’2627.0%Q2’2624.0%Q3’2628.0%Q4’2630.5%Q1’2765.161.843.658.571.6Gross profit Gross profit margin7 Substantial orders negotiated in Q1 expected to land in Q2 (1) See reconciliation in the appendix to this presentation.

Page 9

360.3320.6342.3356.258.066.7123.845.3Q1’26 Q2’26 Q3’26 Q4’2617.4Q1’27311.3Total Daktronics Commercial Live events High school park & recreation Transportation International Backlog[USD m]Continued revenue tailwinds 35.126.554.316.41.4Est. remainder after Q2’27133.78

Page 10

Expense trendsProduct development [USD m, %]G&A [USD m, %]Selling expense [USD m, %]4.9%4.6%5.8%5.7%5.2%Q1’26 Q2’26 Q3’26 Q4’26Q1’2710.710.410.511.812.1Product development % of sales6.5%6.0%8.7%7.7%6.6%Q1’26 Q2’26 Q3’26 Q4’26Q1’2714.313.815.816.015.67.7%7.0%8.4%8.0%8.1%Q1’26 Q2’26 Q3’26 Q4’26Q1’2716.816.115.316.619.0Selling expense % of salesG&A % of sales9SellingCommission expense associated with a large International projectProduct DevelopmentInvestments in MicroLED product developmentG&AConsulting costs supporting strategic initiativesHighlights

Page 11

Earnings summaryEBITDA(1) [USD m]Operating margin [%]Earnings per share [USD]0.330.350.060.170.40Q1’26 Q2’26 Q3’26 Q4’26Q1’27 Operating income [USD m]Q1’26 Q2’26 Q3’26 Q4’26Q1’2723.321.61.914.124.910.6%9.4%1.1%6.8%10.6%Q1’26 Q2’26 Q3’26 Q4’26Q1’271012.8%11.5%9.0%12.6%Q1’26 Q2’263.9%Q3’26 Q4’26Q1’2728.126.37.118.729.6EBITDA % of sales(1) See reconciliation in the appendix to this presentation.

Page 12

Balance sheet and capital management101%104%129%122%115%Q1’26 Q2’26 Q3’26 Q4’26Q1’27222238234254270Working capital [USD m, %] Q1’26 Q2’26 Q3’26 Q4’26Q1’2710.71.610.62.64.4Cash flow[USD m]Share repurchases [USD m]Cash and cash equivalents [USD m]Q1’26 Q2’26 Q3’26 Q4’26Q1’27137150144132155Q1’26 Q2’26 Q3’26 Q4’26Q1’2726221714128-5-103128Operating cash flow Free cash flow(1)Working capital % of salesQ1 FY 2027 VWAP = $19.56 / share 11(1) See reconciliation in the appendix to this presentation.

Page 13

Strong momentum continuesDaktronics is the market leader in large-format LED displays and will continue to lead with customer-centric solutionsGrowth is underpinned by participation in large, attractive end markets benefiting from long-term secular demand driversConcrete plans in place to achieve organic growth and profitability goalsOptimization of the Daktronics operating model to reduce costs to serve our customers without compromising qualityDisciplined use of capital to achieve organic and inorganic goals IndustryleadershipAttractiveend marketsGrowthinitiativesOperationalexcellenceCapitaldeployment 12

Page 14

Disciplined growth, expanding margins, improving returnsTracking to targetRevenue growth | 7-10% CAGRValue-based pricingRevenue mix diversificationNew products/software solutionsOperating margin|10-12%Structural cost reduction across supply chainHigh value investment in hardware and software developmentROIC | 17-20%FY2025FY2028FY2025FY202813

Page 15

APPENDIX14

Page 16

[USD k] (unaudited)Net sales and orders(1)by business unit (1) Orders and backlog metrics are not measures defined by 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 May 2, 2026.15

Page 17

[USD k] (unaudited)Non-GAAP reconciliation of free cash flow(1) (1) In evaluating its business, Daktronics considers and uses free cash flow as a key measure of its operating performance. The term free cash flow is not defined under accounting principles generally accepted in the United States of America ("GAAP") and is not a measure of operating income, cash flows from operating activities or other GAAP figures and should not be considered alternatives to those computations. Free cash flow is intended to provide information that may be useful for investors when assessing period to period results.16

Page 18

[USD k] (unaudited)Non-GAAP reconciliation: EBITDA(1) (1) EBITDA is a financial metric not recognized under GAAP and is calculated as net income before interest (income) expense, income taxes, depreciation and amortization, and other nonoperating income and expense. Management believes EBITDA provides useful supplemental information for evaluating operating performance and comparing results between periods.17

Page 19

[USD k] (unaudited)Reconciliation of long-term debt 18

Slides