Daktronics announces cost reduction and manufacturing optimization actions
DAKT•Daktronics plans to exit its Ireland manufacturing facility by mid-fiscal 2028 and expects over $18 million in annualized pretax savings at full run rate during fiscal 2028. It expects $15.8 million in non-recurring pretax restructuring charges.
1. Facility and business changes
Daktronics plans to close its Ireland manufacturing facility by mid-fiscal 2028 and realign manufacturing capabilities across its U.S., Mexico and China operations. The company also plans to exit highly customized portions of its international transportation business, representing 1.5% of revenue, and close its Hong Kong and Macau offices.
2. Costs and expected savings
Daktronics expects $15.8 million in non-recurring pretax restructuring charges, including $7 million in the second quarter of fiscal 2027. The Ireland action is expected to generate $7.7 million in annualized pretax savings, while the Hong Kong and Macau office closures are expected to save $0.3 million annually. The actions are expected to generate more than $18 million in annualized incremental pretax savings at full run rate during fiscal 2028.
