Daktronics : Investor Presentation May 2026

About this update from Daktronics, Inc.

INVESTOR PRESENTATION May 28, 2026 $803M Q4FY25 -Q3FY26 Net sales 40,000+ Video installations worldwide Daktronics at a glance DAKTRONICS drives visual storytelling and experiences that inform, entertain, and connect communities worldwide KEY METRICS 5.6% Q4FY25 -Q3FY26 Op. Margin 2,500+ Employees International Transportation 10% 9% Commercial 23% Aftermarket Services & software 11% High school 22% Park and Recreation Q4FY25 -Q3FY26 Net Sales Q4FY25 -Q3FY26 Net Sales 37% Live events 89% Product & installation Commercial Live Events High School Park & Rec Transportation International 2 Full lifecycle provider Project delivery replace Aftermarket services Product & software engineering Manufacturing Solution design Installation & commissioning Software control & configuration Service & support Repair & Repeat customer lifecycle 3 Global footprint 6 Manufacturing sites Ennistymon, Ireland UK Germany Brookings, SD 1 Canada France Belgium 100+ Countries with video installations Sioux Falls, SD Redwood Falls, MN Saltillo, Mexico 2 Spain Saudi Arabia United Arab Emirates Japan Shanghai, China Macao Singapore Headquarters Manufacturing plants Sales/operations Headquarters & plant Scheduled to go live in FY 2027 Country with video installation Australia 4 3-year plan strategic pillars 1. Growth 2. Operational excellence 1A Organic growth in core 2A Advanced factory automation 1B New market vertical expansion 2B Lean deployment 1C Software & services innovation and commercialization 1D International growth 2C Manufacturing network optimization 2D Integrated strategic sourcing 5 Accelerated organic growth CY2024-CY2030 US/CAN LED display products and services addressable market [USD bn, nominal] '24-'30 CAGR: +7.4% 4.4 4.1 3.8 7.0% 3.5 3.3 2.9 3.0 9.0% 8.0% 6.9% 2024 LE+S 2025 2026 2027 2028 2029 2030 HSPR & Commercial Transportation New Verticals ➨ ➨ ➨ ➨ CAGR Trends Volume impact Value impact 1. Digital conversion wave 2. Bigger is better 3. Higher screen resolution trend ➨ 4. LED display cost reduction ➨ ➨ ➨ ➨ ➨ Positive impact Neutral impact 6 Secular trends Professional sports College sports Youth sports 154 pro teams High complexity 1,316 athletic Bigger scale programs high schools Video & fixed digit 30,000+ Miami Heat Auburn University Watertown, SD 7 New market verticals CY2025 US/CAN LED display products and services market, existing vs. new verticals [%] Highlights » ~20% of addressable verticals anchored in indoor high-resolution video solutions » Historically, Daktronics has opportunistically served these vertical markets » Going forward, it will be a target focus New verticals ~20% CY 2025 ~80% Existing verticals 8 Software & services innovation & commercialization Relative profitability of products, services, and software Software & service attachment Professional services Technical services Original equipment Increasing margins Relative value 9 Operational excellence Advanced factory automation Unlock industry-leading commercial performance through automation 10 Lean deployment Drive continuous improvement and operational efficiency Manufacturing network optimization Economies of scale and localization of core manufacturing capabilities Integrated strategic sourcing Maximize value with end-to-end management of direct and indirect procurement Operating segments: High school park and recreation Market definition: High school park and recreation 32,000 K-12 public and private schools 128,000 sport venues at community colleges, technical schools, municipal and community facilities Parks and recreation Predominantly direct to end customer field sales teams deeply Trends Youth sports surge Digital conversion wave LED display cost reduction Volume impact Value impact ➨ ➨ ➨ ➨ ➨ ➨ embedded in education market and fabric of communities HSPR total addressable market DAKT Market Share: 48% 1) Improved LED technology ➨ ➨ Driving Organic Growth I ncreasing spend in high schools 0.4 0.4 0.4 CAGR: +8.1% 0.4 0.5 0.6 0.5 Sales team driving with value selling paid services services Feature development to drive adoption of 2024 2025 2026 2027 2028 2029 2030 HSPR USD bn, nominal 11 1) Uses CY2024 TAM against FY2025 revenue Value pricing for professional and break fix Operating segments: Transportation Market definition: Intelligent Transportation Systems (ITS) Departments of transportation, toll authorities, local traffic authorities 80% through resellers / 20% direct (DOT's) Aviation Airports, advertising concessions, airlines, retail, F&B 50% Direct / 50% Integrator & reseller Public transit Public and private transit operators - bus, rail 50% through resellers / 50% direct - owner install or construction bids Transportation total addressable market DAKT market share: 22% 1) Trends Smart city growth ➨ ➨ Infrastructure investment ➨ ➨ Integrator/ consultant influence ➨ ➨ Improved LED technology ➨ ➨ Volume impact Driving Organic Growth Value impact 0.4 0.4 CAGR: +9.0% 0.4 0.5 0.6 0.5 0.6 CAGR '25-'30 8.1% 9.0% 9.6% Next generation products Product market alignment to address geographic white spots 2024 2025 2026 2027 2028 2029 2030 Parking Public transport Airports ITS 12 1) Uses CY2024 TAM against FY2025 revenue 8.5% USD bn, nominal Strategic channel-based sales strategy Operating segments: Commercial Market Definition: On Premise Convenience stores, Auto dealers, Banks, Car washes, Churches, QSRs, Healthcare Digital Out-of-Home Large & independent billboard operators serving roadside and indoor Trends Digital conversion wave ➨ Volume impact ➨ Value impact transit applications Spectaculars Major city centers: Times Square, Las Vegas, Los Angeles etc… Sportsbooks and gaming, digital OOH media companies Retail, corporate, hospitality, iconic experiential displays, cruise ships, shopping malls LED display cost reduction ➨ ➨ ➨ Improved LED technology ➨ Commercial total addressable market DAKT market share: 21% 1) Driving Organic Growth 0.8 0.8 CAGR: +7.1% 0.8 0.9 1.0 1.1 1.1 CAGR '24-'30 6.9% 7.2% 6.7% 7.5% Increased focus on AV integrator channel Feature development to drive adoption of paid services Value pricing for professional and break fix services Optimize OOH operator investment over the life of the asset Enable value pricing and higher replacement rates 2024 2025 2026 2027 2028 2029 2030 Unadressed TAM OOH On-Prem Spectaculars 13 1) Uses CY2024 SAM against FY2025 revenue USD bn, nominal Operating Segments: Live Events Market definition: Live Events 154 professional sports teams Trends Revenue sharing ➨ Volume impact ➨ Value impact 1,316 college athletic programs 400 minor league facilities Convention centers, amusement/theme parks Experienced and aggressive sales team serving Live events total addressable market DAKT market share: 57% 1) CAGR: +6.7% CAGR Improved LED technology ➨ ➨ ➨ ➨ Digital conversion wave ➨ ➨ Fan experience investments Driving Organic Growth 0.7 0.8 0.8 0.9 0.9 1.1 1.0 '24-'30 7.0% 7.0% 7.0% Increasing display sizes and spend at all levels Camino 8 upgrades 2024 2025 2026 2027 2028 2029 2030 6.2% USD bn, nominal Increased service parts and labor pricing Unaddressed TAM Other Live Events Pro Sports Collegiate Sports 14 1) Uses CY2024 SAM against FY2025 revenue Operating Segments: International Market definition: Global footprint outside of US/CA focused on: Large Sports Venues Advertising Transportation Key differentiators: Lean into Daktronics heritage and reputational power Direct when appropriate; channel when reach is required Leverage global manufacturing footprint Domestic experience and expertise translate on an international level Transportation total addressable market Room to Grow with <10% 1) Market Share 2.3 Unaddresed TAM Other players Daktronics market share SAM 1.0 ~0.1 ~1.1 (<10%) 1) Total 15 1) Uses CY2024 SAM against FY2025 revenue Positioning and Trends Driving Demand NBA/NFL global expansion NBA announced 16 team league in Europe NFL will now host 9 games in 8 venues across 7 countries Commercial Global events trigger broader investment across advertising, retail and public transportation Tourism Government investment in tourism driving high profile projects Driving Organic Growth Focus capital and resources on high growth regions and high profit market segments Establish new partnerships in key territories Focus on customer-centric products Maintain high product performance predictability Leverage US driven expansions across additional countries Capitalize on large global event driven growth opportunities Services and Software Embedding with Customers to drive profitable growth: Professional sports teams and schools (K-12 & higher ed) Business Owners & operators System integrators Differentiated capabilities offer one-stop solution Software and subscriptions integrated for ease of use Depth and scale of services Technology + creativity Aftermarket 5-10- year product life Technical / Professional / Software repeat customer life cycle -ensures high performance of customer investment Relative profitability of products, services, and software Driving Organic Growth Original equipment Technical services Software & service attachment Professional services Increasing margins Increase paid software subscribers Drive professional services with Camino 8 Technical services pricing uplift Relative value 16 Value creation roadmap Strategic theme Revenue growth CAGR 1A Accelerate organic growth in core 1B Expand to new vertical markets 1C 1D Software & services innovation and commercialization International growth 2 Operational excellence Total +HSD% Growth in line with underlying markets +LSD Margin improvement +LSD +LSD +LSD +LSD +LSD +LSD +LSD +MSD --- +HSD-LDD 17 Capital deployment priorities 1 Continued organic investments Cash and cash equivalents [USD m] 134 132 128 137 97 3 Return excess capital to shareholders 82 150 144 2 Inorganic growth Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 18 Inorganic growth levers Industrial logic Product portfolio expansion Geographic expansion Vertical market expansion Financially accretive Operational synergies Clear criteria for identifying targets to shape the portfolio Target company criteria Industry screening criteria 19 Attention : This is an excerpt of the original content. 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