Slide 1: Fiscal Third Quarter 2025 Results Call
DYNAMIC MESSAGE SIGNS Fiscal Third Quarter 2025 Results Call March 5, 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: Fiscal Third Quarter 2025 Highlights
FISCAL THIRD QUARTER 2025 HIGHLIGHTS Drove sequential order growth in the third quarter • Commercial orders continue to increase strongly • Secured order for a major NFL stadium in Live Events unit • International orders rebounded • FQ3 Orders -2.7% YoY, +5.2% QoQ, +1.2% YTD Mitigated seasonal dynam
Slide 4: Market Vertical – FQ3 Review
MARKET VERTICAL – FQ3 REVIEW Live Events International • Won major project with SE NFL team • Orders 142% YoY / +34% QoQ • Soft MLB near-term demand • Strength in order wins from OOH • Orders -18% YoY / +11% QoQ customers • Akron Rubberducks minor league • Bids converting to purchases at higher base
Slide 5: FQ3 FY2025 Financial Highlights
FQ3 FY2025 FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Orders (1) Net Sales Gross Margin Operating Margin(2) Q3 F25 Q2 F25 Q3 F24 Q3 F25 Q2 F25 Q3 F24 Q3 F25 Q2 F25 Q3 F24 Q3 F25 Q2 F25 Q3 F24 FQ3 2025 $208 operating $187 $192 26.8% expenses include $178 $170 24.6% $4.8 million in $1
Slide 6: YTD FY2025 Financial Highlights
YTD FY2025 FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Orders (1) Net Sales Gross Margin Operating Margin(2) FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 YTD 2025 operating $584 $602 expenses include $9.0 $541 27.7% million in costs $534 26.1% associated with 11.2%
Slide 7: Business Transformation Update
Business Transformation Update Driving Profitable Growth • Prioritizing most profitable sales channels on a global basis • Strategic pricing and value selling activities enhancements • Priority development new products for displays and control systems • Process for allocating operating capital after
Slide 8: Transformation Update - Momentum from Launched Initiatives, Next 6 months focus
Transformation Update - Momentum from Launched Initiatives, Next 6 months focus Driving profitable growth • Value-based pricing changes – service parts and certain products • Launch of SaaS product trials to target customers • Prioritizing high-growth international geographies and segments Driving d
Slide 9: Digital Transformation Update
Digital Transformation Update Significant progress along our digital roadmap • Supporting aggressive growth, data-driving planning, and operational efficiencies • Lower maintenance IT system spend and upgrade key tools • Enterprise performant management tool platform releases • Redesign front-end qu
Slide 10: Summary
Summary • Performance continues to serve as evidence that we are on sustainable trajectory of growth and increasing profitably • Transformation commitment toward revenue growth faster than addressable market, 10-12% operating margin and 17-20% returns on capital by FY 2028 • Global industry leader i
Slide 11: Appendix
APPENDIX University of Connecticut, East Hartford, CT
Slide 12: Net Sales and Orders by Business Unit
NET SALES AND ORDERS BY BUSINESS UNIT ($ in thousands) (1) Orders and backlog are not measures 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
Slide 13: 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 14: Reconciliation of Adjusted Operating Income
RECONCILIATION OF ADJUSTED OPERATING INCOME (1) ($ in thousands, unaudited) (1) In evaluating its business, Daktronics considers and uses adjusted operating income as a key measure of its operating performance. The term adjusted operating income is not defined under GAAP and is not a measure of oper
Slide 15: 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, unique, or not core to our operating business. We believe prese
Slide 16: Reconciliation of Long-Term Debt
RECONCILIATION OF LONG-TERM DEBT ($ in thousands, unaudited)
Slide 17: Fiscal Third Quarter 2025 Results Call
DYNAMIC MESSAGE SIGNS Fiscal Third Quarter 2025 Results Call March 5, 2025 NASDAQ: DAKT CONTROL SYSTEMS