Daktronics Unveils $18M Annual Cost-Cut Plan, Exits Ireland Plant
DAKT is trading near its 52-week low of $16.77 (9.1% above the low) on light trading volume (0.2× avg).
Summary
Daktronics announced a sweeping restructuring to cut $18 million in annualized pre-tax costs by mid-fiscal 2028. The plan includes exiting its Ireland manufacturing facility, realigning production across U.S., China, and Mexico, exiting low-margin international transportation business, closing Hong Kong and Macau offices, and scaling back micro-LED development. Total non-recurring charges are estimated at $15.8 million, with $7.0 million hitting Q2 FY27. The company expects $5.0 million in savings in the second half of FY27 and $16.0 million in FY28. This follows the Q1 FY27 report showing 21% EPS growth but a 13.6% backlog decline, and the recent exit of activist Alta Fox. The restructuring directly supports the fiscal 2028 targets of 10-12% operating margin and 17-20% ROIC. Watch for the new international leader announcement from London in the coming weeks.
At the time of this announcement, DAKT was trading at $18.30 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $880.1M. The 52-week trading range was $16.77 to $28.27. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.