Sep 2, 2026 earnings call — Mexico plant ramp and Camino 8 rollouts
Daktronics reported EPS of $0.40 and net sales growth of 7.1% in Q1.
Revenue $0.2B (est $0.2B) · EPS $0.40 (est $0.35)
Key quotes
"Starting this fall, Camino 8 will be installed in more than 10 venues across the NHL."
"1, our recently opened Mexico manufacturing plant is ramping up. And successfully completed its first major production run of our narrow pixel pitch product. And we expect to ship This in late Q2."
"As a result, primarily of cash generation in excess of CapEx, our end of period cash balance reached $155 million after share repurchases with only $10 million in debt."
Analyst Q&A 3
Live events timing and margins
Q (Aaron Spychalla · Craig Hallum Capital Group): He asked if live events orders will close in the second quarter and whether win rates or competitive dynamics have changed. He also asked about Camino 8 goals, margin impact, and how tariffs affected Q1 margins.
A: Management said live events are timing-oriented and some negotiations moved from Q1 into the latter part of the second quarter. They said the pipeline continues to be robust and customers are starting to use Camino 8 in operations with 2D/3D graphics and show control. They also said the tariff refund on a cash basis in the first quarter was about $3 million and cost increases largely offset that amount.
"So live events, we had you know, as you know, it is large timing oriented business, and really, it is a timing of the negotiations that are in progress that we expect to be slightly delayed." — Ramesh Jayaraman (CEO)
Mexico facility and margin outlook
Q (Tom Hayes · ROTH Capital Partners): He asked for progress on the new facility, what markets it will serve when fully running, and how it will help costs. He also asked whether tariff refunds and price increases mean margins will hold flat or rise, and what is driving transportation order activity.
A: Management said they are optimizing the global manufacturing footprint and will leverage Mexico first to support live events and global timelines alongside US and China facilities. They said they expect several more quarters of tariff refunds on a cash basis, have started selective price increases in the second quarter, and are running a major procurement effort to manage input cost inflation. For transportation, they said ITS demand, more airport orders (including inside airports and expansion work like LAX Phase 2, Phase 3) and mass transit upgrades in places like Florida and Houston are driving orders; product durability and new narrow-pixel products help expand share.
"I think messaging where talking about here is we do expect on a cash basis several more quarters worth of tariff refund" — Howard Ian Atkins (CFO)
Price lag and long-term margins
Q (Anja Soderstrom · Sidoti): She asked whether the price increases in the second quarter create a lag in offsetting higher input costs and whether that lag will continue. She also asked what gives the company confidence it can achieve its longer-term margin targets.
A: Howard said price increases began in the second quarter and their effects will show progressively this quarter, though other items also affect margin. Ramesh said confidence comes from both growth and operational excellence: organic growth and software services, international expansion, procurement and data cube insights, and manufacturing network optimization. He added that automation and those improvements should deliver good returns on invested capital and lean operations.
"2, with the manufacturing network optimization, we will see opportunities as we try to automate That clearly gives us really good returns on investments invested capital that we can see and the lean." — Ramesh Jayaraman (CEO)