Slide 1: Fiscal Second Quarter 2026 Results Call
DYNAMIC MESSAGE SIGNS Fiscal Second Quarter 2026 Results Call December 10, 2025 NASDAQ: DAKT CONTROL SYSTEMS
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-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 the protections of such laws. All statements, other than historical facts
Slide 3: FQ2 2026 Business Review
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), Universi
Slide 4: Market Verticals – FQ2 Review
MARKET VERTICALS – FQ2 REVIEW Live Events International • Won six Major League Sports projects - • Strong orders in the Middle East and Europe three MLB and three MLS Stadium projects regions. Majority coming from Advertising, • Professional Sports demand remains strong Stadium and Transportation cu
Slide 5: Increasing Global Manufacturing Agility
INCREASING GLOBAL MANUFACTURING AGILITY Current Footprint US Brookings and Sioux Falls, SD – 1,067,000 square feet Redwood Falls, MN – 151,000 square feet International Ennistymon, Ireland – 62,000 square feet Shanghai, China – 157,000 square feet New Facility International Saltillo, Mexic
Slide 6: FY 2026 Q2 Key Product Developments
FY 2026 Q2 KEY PRODUCT DEVELOPMENTS New Product Offerings • Q2 Milestones − Indoor Narrow Pixel Pitch – added additional models to our US market chip-on-board (COB)product offering − Next Gen cost optimized Digital Billboard series - BLD-0400 Indoor Narrow Pixel Pitch – Sporting Kansas City – − All
Slide 7: Transformation: Momentum from Launched Initiatives, Next 6 Months Focus
Transformation: Momentum from Launched Initiatives, Next 6 Months Focus – FQ2 UPDATE Driving profitable growth • Value-based pricing changes – service parts and certain products – on track • Launch of SaaS product trials to target customers – • Prioritizing high-growth international geographies an
Slide 8: FQ2 FY2026 Financial Highlights
FQ2 FY2026 FINANCIAL HIGHLIGHTS ($ in millions, except per share data) FQ2 2025 FQ1 2026 FQ2 2026 Orders $177.6 $238.5 $199.1 Net sales $208.3 $219.0 $229.3 Gross margin 26.8% 29.7% 27.0% Operating income $15.8 $23.3 $21.6 Operating margin 7.6% 10.6% 9.4% Adjusted net income $13.9 $16.5 $17.5 YTD Re
Slide 9: Segment Revenue
SEGMENT REVENUE FQ2 FQ1 FQ2 FQ2 2026 2025 % of total 2026 % of total 2026 % of total Gross Profit Margin Live Events $77.2 37% $79.8 36% $81.5 36% 24% High School Parks and 48.1 23% 59.3 27% 46.0 20% 31% Recreation Commercial 43.4 21% 46.2 21% 50.7 22% 26% Transportation 21.5 10% 16.6 8% 21.3 9% 39%
Slide 10: Segment Product Backlog
SEGMENT PRODUCT BACKLOG Estimated remaining FQ2 2025 FQ1 2026 FQ2 2026 Backlog after Q3 Live Events $96.3 $164.2 $165.7 $96.6 High School Parks and Recreation 37.8 64.6 54.3 25.3 Commercial 42.0 51.6 40.2 9.4 Transportation 45.1 50.3 42.2 25.3 International 14.8 29.6 18.2 6.3 Total Backlog $236.0 $3
Slide 11: Inventory and Revenue
INVENTORY AND REVENUE 5 Quarters of Inventory vs Revenue 250 90% 229 78% 219 208 80% 200 63% 70% 173 62% 150 60% 150 49% 46% 50% Millions 40% 100 30% 50 20% 10% - 0% Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Revenue Inventory Sales Ratio
Slide 12: FQ2: Balance Sheet Strength
FQ2: BALANCE SHEET STRENGTH Net cash balance at QE = $138.3 million vs $115.5 million at prior YE Share repurchase = $12.2 million YTD @ $16.38 VWAP As of today, Share Repurchase Program capacity increased to $25.7 million, which includes an additional $20 million authorized by the Board Replaced as
Slide 13: Financial Summary and Outlook
FINANCIAL SUMMARY AND OUTLOOK Solid quarter of double-digit revenue growth Maintaining improved operating margins Strong backlog coming into Q3 with multi-quarter runway that smooths out revenue generation over time Balance sheet strength provides flexibility for capital optimization Q3 ty
Slide 14: FY26-28 Transformation Plan
FY26-28 TRANSFORMATION PLAN Revenue Growth > Addressable Market: 7-10% CAGR Top quartile ROIC = 17-20% • Value-based selling with guardrails • Revenue mix diversification Operating Margins + Higher Operating Margin: • Enhanced service 10-12% Growth + • New products Capital Allocation • Structural co
Slide 15: Business Summary and Outlook
BUSINESS SUMMARY AND OUTLOOK Backlog growth - Capturing demand and driving revenue tailwind Expanding opportunity pipeline of market opportunities supporting growth objectives Efficient revenue conversion and successful inventory, supply chain, manufacturing and cost management Adding manufa
Slide 16: Appendix
APPENDIX North Oldham High School Goshen, Kentucky
Slide 17: Net Sales and Orders by Business Unit
NET SALES AND ORDERS BY BUSINESS UNIT ($ in thousands) (1) Orders and backlog metrics are non-GAAP measures, 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 b
Slide 18: Reconciliation of Free Cash Flow
RECONCILIATION OF FREE CASH FLOW (1) ($ in thousands, unaudited) (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 A
Slide 19: Reconciliation of Adjusted Operating Income
RECONCILIATION OF ADJUSTED OPERATING INCOME (1) ($ in thousands, unaudited) (1) Adjusted operating 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 pr
Slide 20: Reconciliation of Adjusted Net Income
RECONCILIATION OF ADJUSTED NET INCOME (1) ($ in thousands, unaudited) (1) 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 thi
Slide 21: Reconciliation of Long-Term Debt
RECONCILIATION OF LONG-TERM DEBT ($ in thousands, unaudited)