DAKTRONICS INC /SD/ 8-KCurrent Reports (8-K / ad hoc)

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Item 2.05 Costs Associated with Exit or Disposal Activities. On October 12, 2026, the Board of Directors (the “ Board ”) of Daktronics, Inc., a Delaware corporation (the “ Company ”), approved certain manufacturing network optimization initiatives (the “ Optimization Initiatives ”). The Optimization Initiatives are intended to improve factory utilization, increase manufacturing flexibility, and reduce structural costs across the Company’s global manufacturing network. As part of the Optimization Initiatives, the Company intends to exit the highly customized portions of the international transportation business, which serves rail, bus, and roadway customers outside of North America. As such, the Board gave approval for the Company to begin a phased-exit of operations at its Ennistymon, Ireland manufacturing facility (the “ Irish Facility ”) and for Daktronics Ireland Co. Limited, a wholly owned subsidiary of the Company, to enter into a plan of termination with the majority of its Irish employees (collectively the “ Irish Phase-Out ”). The Irish Phase-Out is expected to be substantially complete in the first half of fiscal 2028. On October 14, 2026 the Company issued a press release regarding the Optimization Initiatives. A copy of this release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The Irish Phase-Out, including the Company’s obligations under the plan of termination, is estimated to result in cumulative cash and non-cash charges of approximately $13.5 million, comprised of: $11.7 million related to severance, stay bonuses, and other termination benefits; $0.8 million related to the phased-exit of operations at the Irish Facility, legal costs, and equipment transfer costs; and $1.0 million of asset impairments associated with property, plant, and equipment at the Irish Facility. Approximately $12.3 million of the Irish Phase-Out costs are expected to be recorded during fiscal 2027, with the remaining charges in the first half of fiscal 2028. Reductions in workforce are subject to local regulatory requirements. Future cash payments related to these charges are anticipated to be $12.5 million, primarily related to the payment of severance and related benefits, contract terminations, equipment dismantlement and relocation and inventory transfers, and costs to exit operations at the Irish Facility. Th