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Oct 26, 2024
Daktronics Q2 2025 Earnings Report
Daktronics' financial performance showed sales growth and strong cash flow generation.
Key Takeaways
Daktronics reported a 4.5% increase in sales to $208.3 million for the second quarter of fiscal 2025. The company generated record cash flow from operations of $43.3 million and reported an operating income of $15.8 million. The product order backlog was $236.0 million at the end of the quarter.
Sales increased by 4.5% to $208.3 million compared to the second quarter of fiscal 2024.
Gross profit margin was 26.8%, slightly lower than the 27.2% reported in the same quarter last year.
Operating income was $15.8 million, compared to $19.4 million for the second quarter of fiscal 2024.
Record cash flows from operations reached $43.3 million for the quarter.
Daktronics
Daktronics
Daktronics Revenue by Segment
Revenue by Segment
Commercial Revenue
CapyFin.comLive Events Revenue
CapyFin.comHigh School, Park & Rec Revenue
CapyFin.comTransportation Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Daktronics anticipates order volume to increase for the full fiscal year 2025 and expects normal seasonal sales levels for the remainder of the fiscal year. The company will continue to invest in digital and strategic transformation initiatives.
Positive Outlook
- Order growth of 3.3 percent year-over-year.
- Anticipates order volume to increase for the full fiscal year.
- Management continues to refine and execute its digital and strategic transformation initiatives.
- Will continue to make disciplined investments through the rest of the fiscal year to strengthen Daktronics' business foundation.
- Focus on future profitability and sustainable returns.
Challenges Ahead
- Variability in orders between periods is natural in these large project business areas and the time of year for sports projects.
- Order volume for the quarter declined primarily due to an order decrease in the Live Events, Transportation and International business units.
- Gross profit as a percentage of net sales decreased slightly.
- Increased operating expenses reflect investments in staffing resources to support information technology and digital transformation programs as well as sales team expansion to support opportunities for future growth.
- Effective income tax rate for the second quarter of fiscal 2025 produced an effective tax rate of 15.0 percent primarily due to the reduction of the convertible note fair value adjustment to expense that is not deductible for tax purposes in proportion to the period's increase in pre-tax income.
Revenue & Expenses
Visualization of income flow from segment revenue to net income