Orion Energy Systems (OESX) Tops Q1 EPS by 2c, provides outlook

Orion Energy Systems (NASDAQ: OESX) reported Q1 EPS of ($0.04), $0.02 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $19.6 million versus the consensus estimate of $21.22 million.

Outlook
Orion’s FY’26 outlook anticipates revenue growth of five percent to approximately $84M which, based on the Company’s gross profit percentage and operating cost improvements, should position Orion to approach or achieve positive adjusted EBITDA for the full fiscal year. Orion believes there could be potential for upside to this outlook should business, economic, global trade, and government policy uncertainties stabilize.

Below are updates and additions to contracts, projects and initiatives expected to contribute to FY’26 and future periods’ results:

A Multi-year LED lighting retrofit contract for a building products distributor’s 400+ locations has begun with orders in-house approaching $2M to be completed over FY’26. The project is expected to generate revenue of $12M-$18M over several years.

New construction and LED retrofit lighting projects in multiple U.S. Government Agency facilities have expanded from $5M to $7M in total revenue to be completed in FY’26.

Up to $7M in electrical infrastructure and LED lighting projects for three long-time, top-tier automotive customers are expected in FY’26. The projects are part of the customers’ ongoing updating of their LED lighting, electrical infrastructure, and managed services for manufacturing and distribution facilities in North America.

A major retail customer increased the number of new store construction projects over the next 5 years. Orion now expects new store construction for these new stores’ revenue potential to range from $30M-$32M over the 5-year period.

The 400-site LED retrofit project with a national bank has commenced with revenue potential of $2-$3M over the next 3 to 4 years.

Orion’s EV charging backlog was approximately $8M at the close of Q1’26. With current uncertainty around the near-term scope, pace, and funding availability for EV charging projects, Orion’s revenue outlook anticipates flat to slightly lower EV charging station-related revenue in FY’26.

For earnings history and earnings-related data on Orion Energy Systems (OESX) click here.

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