Daktronics Announces Structural Cost Cuts and Ireland Plant Closure

Daktronics, Inc. (NASDAQ:DAKT) announced a series of strategic cost-reduction and manufacturing optimization actions on October 14, 2026. The digital display manufacturer plans a phased exit from its Ireland manufacturing facility by mid-fiscal 2028, alongside a reorganization of production across facilities in the United States, Mexico, and China. Shares of Daktronics, Inc. fell 1.64% to $18.32 following the announcement.

The operational changes are designed to lower fixed overhead, increase factory utilization, and direct resources toward higher-return growth initiatives. Daktronics, Inc. expects these measures to yield over $18.0 million in annualized incremental pre-tax savings once fully implemented in mid-fiscal 2028. To achieve these savings, the company projects $15.8 million in non-recurring pre-tax restructuring charges over the next six quarters, with roughly $7.0 million recognized in the second quarter of fiscal 2027.

In addition to factory realignment, Daktronics, Inc. is exiting the highly customized segment of its international transportation business and closing offices in Hong Kong and Macau. The company is also scaling back micro-LED development efforts to reduce ongoing expenses while retaining its intellectual property. Management reaffirmed its long-term targets for fiscal 2028, which include annual revenue growth of 7% to 10% and operating margins between 10% and 12%.