[Management View]
Management emphasized the successful execution of business and digital transformation initiatives, which have led to cost savings, reduced inventory, and increased cash generation. The company is positioned for growth with a strong order backlog and significant new orders in international and commercial segments.

[Outlook]
The company targets operating margin expansion to 10%-12% and a compound annual growth rate of 7%-10% by FY2028. Management plans to continue focusing on value-based pricing, operational efficiency, and new product introductions to drive future growth.

[Financial Performance]
FY2025 saw a 15% sequential sales growth in Q4, with a 54.5% increase in operating cash flow compared to FY2024. Adjusted operating income was $50 million, down from $87 million in FY2024, reflecting margin pressure. International orders grew 32% YoY, indicating strong global expansion.

[Q&A Highlights]
Question 1: Can you discuss revenue growth expectations for FY2026 given the backlog and FY2028 targets?
Answer: Management expects growth across all markets, with FY2026 being a year that contributes to the 7%-10% CAGR target. The current backlog and order trends align with these growth plans.

Question 2: How will tariffs impact margins, and what measures are in place to mitigate this?
Answer: The company has implemented value-based pricing adjustments and is driving operational efficiencies to maintain margins. New markets and services are expected to contribute positively to margins starting in FY2026.

Question 3: Can you update on the commercial segment's AV network expansion and digital shift?
Answer: The commercial segment is seeing strong order activity, particularly in the AV integrator space. There is significant opportunity for growth, and the company is in the early stages of an aggressive expansion plan.

Question 4: What is driving international order strength, and will it continue into Q1?
Answer: A strong pipeline and successful order closures in Q3 and Q4 have set up a positive revenue trajectory for FY2026. The revenue from these orders will be realized throughout the year.

Question 5: Will there be more one-time fees in FY2026?
Answer: The consulting engagements for business and digital transformation have concluded, and no further material consulting costs are expected for these initiatives.

[Sentiment Analysis]
Analysts expressed optimism about the company's growth prospects and transformation initiatives. Management maintained a confident tone, emphasizing strategic execution and market opportunities.

[Quarterly Comparison]
| Metric | FY2025 Q4 | FY2024 Q4 |
|-------------------------------|-----------|-----------|
| Adjusted Operating Income | $50M | $87M |
| Operating Cash Flow | $97.7M | N/A |
| International Orders Growth | 32% | N/A |
| Commercial Segment Orders | 44% | N/A |

[Risks and Concerns]
Tariff uncertainty remains a significant risk, with potential impacts on input costs and profitability. Management is employing price increases, supply chain flexibility, and contract protections to mitigate these risks.

[Final Takeaway]
Daktronics is navigating a transformational period with a focus on operational efficiency and global expansion. Despite challenges such as tariff uncertainties, the company is well-positioned for growth with a robust order backlog and strategic initiatives aimed at enhancing margins and revenue. The successful execution of transformation plans and a strong international presence are expected to drive future performance.