Orion(US:OESX) Newsfilter·2025-02-11 12:27Core Viewpoint - Orion Energy Systems, Inc. reported a decline in revenue for Q3'25, with total revenue of $19.6 million, down 25% from $26.0 million in Q3'24, and updated its FY 2025 revenue outlook to a range of $77 million to $83 million due to project delays and market softness [1][5][11]. Financial Performance - Q3'25 LED lighting revenue was $13.2 million, a decrease of 29% from $18.5 million in Q3'24 [1][15]. - EV charging revenue for Q3'25 was $2.4 million, down 13% from $2.8 million in Q3'24, but year-to-date revenue increased by 48% to approximately $11.0 million compared to $7.4 million in YTD'24 [1][20]. - Maintenance revenue in Q3'25 was $3.9 million, down 15% from $4.6 million in Q3'24, but improved sequentially from $3.8 million in Q2'25 [1][20]. - Gross profit for Q3'25 was $5.8 million, with a gross margin of 29.4%, up from 24.5% in Q3'24, reflecting improved profitability in maintenance and LED lighting [1][15][17]. Cost Management and Operational Efficiency - The company has reduced its annual revenue breakeven point by 25% to a range of $78 million to $85 million, down from approximately $105 million to $115 million over the past two years [5][6]. - Orion achieved a positive adjusted EBITDA in Q3'25 and improved its cash position to $7.5 million, up from $5.4 million in Q2'25 [6][21]. - Operating expenses decreased by $1.4 million to $7.0 million in Q3'25, attributed to reductions in fixed costs and compensation-related expenses [16]. Business Development and Future Outlook - The company added seven new customers/projects with an estimated revenue potential of $100 million to $200 million over the next five years [4][5]. - Orion expects to complete $14 million to $24 million in FY2026 from these new business opportunities, enhancing visibility for future growth [5][14]. - The company plans to reorganize its business into two Commercial Business Units (CBUs) to better align sales, marketing, and product development activities [9][10]. Revenue Outlook - Orion's FY'25 revenue outlook has been adjusted to $77 million to $83 million, with Q4'25 revenue expected to be between $19 million and $25 million [11][12]. - Recent contracts expected to contribute to future revenue include a $13 million LED lighting project for a major U.S. university and a $5 million to $10 million contract with a nationwide Energy Service Company [12][13].