Orion Energy Systems (NasdaqCM:OESX) Q3 2026 Earnings call February 05, 2026 10:00 AM ET Company ParticipantsPer Brodin - CFOSally Washlow - CEOConference Call ParticipantsEric Stine - Technology and Industrials AnalystGowshihan Sriharan - Research AnalystMatthew Dunn - Investment AnalystOperatorGood morning, everyone, and welcome to Orion Energy Systems' Fiscal 2026 Third-Quarter Conference Call. At this time, all participants are in a listen-only mode. In this call, Sally Washlow, Orion's CEO, and Per Bro ...

Financial Data and Key Metrics Changes - Orion reported fiscal Q3 2026 revenue of $21.1 million, an increase from $19.6 million in Q3 2025, marking a growth of approximately 7.6% [11] - The company achieved a net income of $160,000 or $0.04 per share in Q3 2026, compared to a net loss of $1.5 million or $0.46 per share in Q3 2025 [14] - Adjusted EBITDA improved to positive $761,000 in Q3 2026 from $32,000 in Q3 2025, representing a significant turnaround [14] Business Line Data and Key Metrics Changes - LED lighting segment revenue decreased to $12.1 million in Q3 2026 from $13.2 million in Q3 2025, attributed to decreased project activity and ESCO channel sales [11] - Maintenance segment revenue increased by 13% to $4.4 million in Q3 2026 from $3.9 million in Q3 2025, benefiting from new customer contracts [12] - EV charging solutions revenue rose to $4.7 million in Q3 2026 from $2.4 million in Q3 2025, reflecting the completion of a significant project [12] Market Data and Key Metrics Changes - The company expects continued profitable growth in FY 2027 with revenue projected between $95 million and $97 million, indicating a positive outlook for the upcoming fiscal year [16] - The U.S. EV charging market is anticipated to grow by 8% in 2026, with expectations of private-led expansion and improved CPO economics [10] Company Strategy and Development Direction - Orion's strategy includes expanding its product and service offerings, as evidenced by a recent three-year renewal of a maintenance contract and a growing backlog [7] - The company is focusing on integrated offerings within LED lighting and EV charging, including localized battery storage solutions to enhance efficiency [7] - Orion aims to leverage its proprietary supply chain to maximize efficiencies and minimize risks associated with market fluctuations [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting or exceeding revenue milestones, with expectations of $84 million to $86 million in revenue for FY 2026 [4] - The company anticipates continued market demand driven by building, reshoring, and refurbishing industrial facilities, as well as opportunities in EV fast charging [9] - Management highlighted the importance of execution quality and asset efficiency in capturing market opportunities [10] Other Important Information - Total operating expenses decreased to $6.1 million in Q3 2026 from $7 million in Q3 2025, reflecting ongoing cost control measures [14] - Orion raised net proceeds of approximately $6.4 million through the issuance of 500,000 shares of common stock, providing growth capital [15] Q&A Session Summary Question: Can you provide insights on the $14 million-$15 million external lighting project and its revenue contribution? - Management indicated that the project started in late January and expects the majority of revenue to be recognized in the first half of FY 2027, with initial revenue in Q4 2026 [20] Question: What is the potential for expansion tied to the external lighting project? - Management believes there is potential for expansion within the customer relationship, although it may not materialize in the first half of the year [22] Question: What is the outlook for operating expenses moving forward? - Management stated that operating expenses would likely remain at current levels or slightly increase, with expectations for Q4 to start with a 6 [23] Question: Are smaller and midsize enterprises adopting a preventative maintenance model? - Management noted that while no other customer matches the scale of the large retailer, there are month-over-month increases in other customers and ongoing efforts to pursue new contracts [32] Question: How is the company managing execution risk with large contracts? - Management acknowledged ongoing execution risk but indicated that they have accounted for potential issues in their outlook [33] Question: What is driving success in the distribution segment? - Management highlighted the expansion of customer relationships and product development based on customer requests as key drivers of success in the distribution segment [36]

Orion Energy Systems (NasdaqCM:OESX) Q3 2026 Earnings call February 05, 2026 10:00 AM ET Speaker3Good morning, everyone, and welcome to Orion Energy Systems' fiscal 2026 third-quarter conference call. At this time, all participants are in a listen-only mode. In this call, Sally Washlow, Orion's CEO, and Per Brodin, its CFO, will review the company's third-quarter results and its fiscal 2026 and fiscal 2027 outlooks. We will then open the call to investor questions. Today's call is being recorded. A replay w ...