Question · Q2 2026
Anya Soderstrom from Sidoti & Company LLC asked how Daktronics anticipates the third quarter softening, given the strong backlog growth. She also inquired about the new Mexico plant's impact on U.S. capacity utilization, whether production would shift, and the revenue capacity this new footprint could facilitate before further expansion is needed.
Answer
Brad Wiemann, Interim President and CEO, explained that the anticipated third-quarter softening is primarily due to fewer available workdays because of holidays, despite the strong backlog. He clarified that the Mexico plant is a small, complementary footprint designed to support overall growth objectives (7-10% CAGR) and does not involve moving production from U.S. factories, which will continue to account for approximately 80% of global manufacturing. He reiterated that it's a small expansion, part of growth plans, and not intended to significantly alter the existing production distribution.
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