MANITOWOC, Wis., Aug. 21, 2025 (GLOBE NEWSWIRE) -- Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, electric vehicle (EV) charging stations and maintenance services solutions, today lauded last week’s federal guidance directing $5 billion in public funds to EV charging locations that best provide dependable charging infrastructure. The company observed that the government directive effectively prescribes quality standards already in place for public an ...

Core Viewpoint - Orion Energy Systems, Inc. reported a slight decline in total revenue for Q1'26 but maintained a positive outlook for FY 2026, projecting a revenue growth of approximately 5% to $84 million, which could lead to positive adjusted EBITDA for the fiscal year [1][11]. Financial Performance - Q1'26 total revenue was $19.6 million, down 2% from $19.9 million in Q1'25, with LED lighting revenue increasing by 1% to $12.9 million, EV charging revenue decreasing by 30% to $2.7 million, and maintenance revenue rising by 21% to $4.0 million [2][7][23]. - Gross profit for Q1'26 was $5.9 million, a 37% increase from $4.3 million in Q1'25, resulting in a gross profit margin of 30.1%, up from 21.6% in the prior year [2][14]. - The net loss improved to $1.2 million in Q1'26 from $3.8 million in Q1'25, with net loss per share improving from $(0.12) to $(0.04) [2][16]. - Adjusted EBITDA for Q1'26 was $0.2 million, compared to a loss of $(1.8 million) in Q1'25, marking the third consecutive quarter of positive adjusted EBITDA [2][6][16]. Segment Performance - LED lighting revenue showed resilience with a slight increase, while the EV charging segment faced challenges due to a tough comparison with the previous year and a slowdown in project activity [5][7]. - Maintenance services revenue increased significantly, reflecting new customer contracts and expanded relationships with existing customers [23]. Strategic Initiatives - The company is focusing on enhancing its LED lighting distribution business with new products and improved go-to-market strategies, aiming for a return to growth [8]. - Orion has secured contracts worth up to $7 million for electrical infrastructure and LED lighting projects from automotive customers, indicating strong customer relationships and confidence in future business [9]. Outlook - Orion anticipates a revenue growth of 5% for FY 2026, which should position the company to achieve positive adjusted EBITDA, with potential upside if economic and policy uncertainties stabilize [11][12]. - The company is optimistic about its project pipeline, including a multi-year LED lighting retrofit contract expected to generate $12 million to $18 million over several years [13].

Core Points - Orion Energy Systems, Inc. announced the authorization of equity awards for Michael Ontrop, the new Senior Vice President of Channel Sales, including 100,000 shares of restricted stock and a non-qualified stock option for 125,000 shares of Common Stock [1][2] - The equity awards were approved by Orion's Board of Directors as a material inducement for Mr. Ontrop to accept the employment offer, and the shares will not be drawn from the 2016 Omnibus Incentive Plan [2] - The restricted stock award will vest one-third on each of the first three anniversaries of the grant date, contingent on Mr. Ontrop's continued employment [3] - The stock option will vest based on the Company's share price reaching specified levels ($3.00, $4.00, and $5.00) over a three-year period, with the effective grant date set for July 18, 2025 [4] Company Overview - Orion Energy Systems specializes in energy efficiency and clean tech solutions, including LED lighting, EV charging solutions, and maintenance services [5] - The company focuses on turnkey design-through-installation solutions for large national customers and projects through ESCO and distribution partners, aiming to help customers achieve business and environmental goals [5] - Orion is committed to operating responsibly and emphasizes sustainability and governance in its operations [6]

Core Viewpoint - Orion Energy Systems, Inc. reported a decline in revenue for FY'25 but anticipates a modest growth of 5% in FY'26, projecting approximately $84 million in revenue, driven by improvements in operating costs and gross profit margins [1][3][10]. Financial Performance - Q4'25 total revenue was $20.9 million, down 21% from $26.4 million in Q4'24, with LED lighting revenue decreasing by 33% to $10.9 million [2][12]. - FY'25 total revenue was $79.7 million, a 12% decrease from $90.6 million in FY'24, primarily due to lower LED lighting and maintenance revenue, partially offset by a 37% increase in EV charging revenue [2][3]. - Gross profit for Q4'25 was $5.7 million, with a gross profit margin of 27.5%, an increase of 170 basis points from Q4'24 [2][12]. - The company reported a net loss of $2.9 million in Q4'25, compared to a net income of $1.6 million in Q4'24, and a FY'25 net loss of $11.8 million, consistent with the previous fiscal year [2][15]. Segment Performance - LED lighting revenue for Q4'25 was $10.9 million, down from $16.3 million in Q4'24, and FY'25 LED lighting revenue totaled $47.7 million, down from $61.1 million in FY'24 [2][12]. - EV charging revenue increased to $5.8 million in Q4'25, up 18% from $4.9 million in Q4'24, with FY'25 revenue reaching $16.8 million, a 37% increase from $12.3 million in FY'24 [2][12]. - Maintenance services revenue was $4.1 million in Q4'25, down from $5.2 million in Q4'24, with FY'25 maintenance revenue totaling $15.2 million, down from $17.1 million in FY'24 [2][12]. Strategic Initiatives - The company has implemented business process improvements to reduce operating expenses and enhance profit margins, lowering the annual adjusted EBITDA breakeven point to $78 million - $85 million from $105 million - $115 million [3][4]. - Orion plans to further reduce overhead by $1.5 million in FY'26 through targeted expense reductions and cost-saving initiatives [3][6]. - The company has restructured into two Commercial Business Units (CBUs) to better align with customer needs and enhance revenue visibility [8][9]. Outlook - Orion's initial FY'26 outlook anticipates revenue growth of approximately $84 million, with expectations of approaching or achieving positive adjusted EBITDA for the full fiscal year [1][10]. - The company has secured strong bookings in late Q4'25, with new LED lighting engagements having a five-year revenue potential of $100 million to $200 million [3][5].

Core Viewpoint - Orion Energy Systems, Inc. has appointed Sally A. Washlow as the new CEO, replacing Michael H. Jenkins, to enhance focus on revenue growth and profitability [1][3]. Leadership Changes - Sally A. Washlow, previously a board member, has been appointed as CEO, bringing over 25 years of experience in business growth and operational excellence [1][3][5]. - Scott Green has been promoted to Chief Operating Officer, responsible for sales and project management functions, with nearly 30 years of experience in the lighting industry [2][4]. Financial Outlook - Orion expects its revenue for the fiscal year ending March 31, 2025, to be near the midpoint of its guidance range of $77 million to $83 million [2]. Strategic Focus - The Board believes new leadership is essential for executing revenue growth and cost containment initiatives, aiming to return the company to consistent profitability [3]. - Ms. Washlow expressed confidence in Orion's future, highlighting strong positions in LED lighting, EV charging stations, and electrical maintenance businesses [4]. Company Background - Orion Energy Systems specializes in energy-efficient solutions, including LED lighting and EV charging stations, and aims to help customers achieve business and environmental goals [7].