Daktronics reported Q3 revenue of $182 million, a 21.6% increase year over year, with net income of $3 million, or $0.06 per share, and adjusted net income of $4.6 million, or $0.09 per share. Operating income rose to $1.9 million from a $3.6 million loss in the prior-year quarter, while gross margin held at 24%, down from 27% sequentially due to fixed-cost absorption and $6 million in tariff expenses.

Total new orders for products and services exceeded $200 million for the fifth straight quarter, growing 7.6% year over year, led by a 130% surge in transportation bookings tied to major airport and Caltrans projects. Entering Q4, the product and services backlog stood at $342 million, up 25% from a year ago and weighted toward Live Events installations.

Live Events net sales rose 62.6% to $74.9 million with five MLB stadium projects underway, while Commercial sales reached $43.5 million, up 14.6%, driven by on-premise advertising upgrades. High School Park and Recreation grew 7.8% to $31.6 million, and despite a transportation sales decline of 18.7% to $15.3 million, large-scale Intelligent Transportation System orders set a new record. International sales dipped 4.5% to $16.5 million, offset by growth in European and Australian stadium orders.

The company acquired micro-LED intellectual property and engineering teams from X Display Company to advance narrow pixel-pitch offerings and support small-volume display solutions. Initiatives include strategic pricing, SaaS development, AI-driven productivity, and two new product launches planned this fiscal year. Daktronics repurchased 1.3 million shares at an average $17.60 price, has $17 million remaining under authorization, ended the quarter with $144 million in cash and no credit-line borrowings.