OESX

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 10:00 a.m. ET Chief Executive Officer - Sally Washlow Chief Financial Officer - Per Brodin Operator: Good morning, everyone, and welcome to Orion Energy Systems Fiscal 2027 First Quarter Conference Call. [Operator Instructions] In this call, Sally Washlow, Orion's CEO; and Per Brodin, its CFO, will review the company's first quarter results as well as its fiscal 2027 outlook. Then we will open the call to investor questions. Today's call is being recorded. A replay will be posted in the Investor section of the company's website over at orionlighting.com. I will now turn the call over to Per Brodin, Orion's CFO. John Brodin: Thank you, Stephen. First, as a reminder, prepared remarks and answers to questions include statements that are forward-looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally include words such as "anticipate, "believe", "expect", "project" or similar words. Also, any statements describing future objectives or goals, company plans and outlook are also forward-looking. These forward-looking statements are subject to various risks that could cause actual results to differ materially from current expectations. Risks include, among other things, those that Orion has described in its press release issued this morning and in its SEC filings. Except as described therein, Orion disclaims any obligation to update or revise forward-looking statements made as of today. In addition, reconciliations of certain non-GAAP financial metrics to their nearest GAAP measures are also provided in today's press release. And now I will turn the call over to Orion's CEO, Sally Washlow. Sally Washlow: Thank you, Per. Good morning, everyone, and thank you for being with us today. I am pleased to report our results for Q1, our seventh consecutive quarter of positive adjusted EBITDA. The first quarter of fiscal 2027 represents an excellent start to the year. In Q1, we delivered on the growth we established in the previous year. Fiscal 2026 was a successful turnaround year for Orion, marking a return to growth in both revenue and profitability. Fiscal '26 came in at $86 million in revenue and $2 million in positive adjusted EBITDA, results that outperformed our guidance. Fiscal '26 was a year in which we put ourselves on a path of profitable growth. And in the current fiscal 2027, we expect to achieve revenue of $95 million to $97 million and positive adjusted EBITDA for the full fiscal year. As to Q1 fiscal 2027, year-over-year, Orion recorded a 32% jump in revenue coming in at $25.7 million, a 15% increase in gross margin coming in at 34.6%, net income of $2 million, up from a negative $1.2 million and adjusted EBITDA of $2.5 million, up from $200,000 year-over-year. Today's earnings report is also further illustration of the improving quality of our sales funnel, the impact of our cost containment initiatives and the continuous strengthening of our proprietary supply chain. Automotive, retail and public sector engagements continue to show notable strength and continued growth. With customers like public bus fleets, the Orion Voltrek EV charging segment is recognized widely for its ability to complete complex EV charging infrastructure projects. We are focused on scaling this business across a broader customer base and geographic footprint. And we are especially confident about this business with our recent appointment of industry leader Karen Peck to head EV charging infrastructure sales. Furthermore, the hyperscale data center market looks especially attractive now that we have made our initial entry into it. Our customers recognize that we meet them where they are, whether we deliver a product-only solution or provide complete turnkey, full-service electrical infrastructure powered by our own products that are designed, engineered and made in Manitowoc, Wisconsin. Over the decades, Orion has built a well-earned reputation for quality products, on-site service and an ability to scale no matter how big the customer or project. We have a reputation for unmatched reliability with a proprietary supply chain that includes a Made-in-America facility, enabling us to deliver on time and on budget. And we are widely known for our unsurpassed ability to deliver turnkey installation and services for electrical infrastructure and EV charging stations. Today's Q1 fiscal '27 earnings report is a further validation that Orion is prepared to meet this moment when we have a confluence of three growth drivers in the electrification of industrial America. Number 1, the reshoring, refurbishment and resurgence of U.S. industrial facilities ranging from manufacturing to retailing to government. Number 2 is the electrification of vehicular fleets of major enterprises in both the private and public sectors, ranging from nationwide logistics to school districts. And number 3, the building boom of AI-driven data centers typified by the multimillion-dollar engagement we announced in Q1 with our multi-purpose linear lighting fixture designed specifically to integrate quickly and easily into the floor plan of data centers. Today's report also highlights several growth initiatives. Our focus is on expanding opportunities and revenues within new and existing large customers in the automotive, retail and public sectors, whether by deployment of LED lighting systems, electrical infrastructure or EV charging infrastructure. Our focus on maximizing our service and maintenance to long-term EV charging customers and our focus on adding capabilities such as Data Center Lighting Solutions, Battery Energy Storage Systems, Electrical Contracting and our recently announced LED Roadway Lighting product. Delivering efficiency and cost-effective solutions at scale to Industrial America at a time of unprecedented need, we believe that Orion is an emerging provider of choice for AI and IoT-driven electrification to Fortune 100 corporations and other global leaders. Orion designs, installs and maintains LED lighting systems, EV charging stations and the complete footprint electrical infrastructure for some of the largest enterprises in the United States. Whether deployed independently or in a combination with our partners, Orion's discrete, bespoke and turnkey solutions generate unrivaled ROI to industry facilities requiring the most demanding standards of efficiency, reliability and compliance. Made in America for its fourth decade, Orion is meeting the moment for an industrial build-out that is reshoring, refurbishing and reasserting leadership throughout the United States. With that, let me turn to Orion's CFO, Per Brodin, to review our financial performance and outlook. John Brodin: Thank you, Sally. Today we reported Q1 '27 revenue of $25.7 million, as compared to $19.6 million in Q1 '26, an increase of over 30%. LED lighting segment revenue in Q1 '27 was $17.7 million, compared to $12.9 million in Q1 '26. Q1 '27 Lighting segment revenue performance reflected increased project activity and distribution channel sales, partially offset by a decrease in ESCO channel sales. Orion's expanded LED lighting project pipeline and efforts to drive growth in the distribution channel are continuing to contribute to higher expected revenues in fiscal '27. Lighting achieved a Q1 '27 gross margin of 37.8% versus 31.8% in Q1 '26. Maintenance segment revenue was $4.1 million in Q1 '27, up from $4 million in Q1 '26. We achieved a Maintenance segment gross margin of 28.3% in Q1 '27 versus 22.4% in Q1 '26. EV charging solutions revenue was $4 million in Q1 '27 compared to $2.7 million in Q1 '26, reflecting relative strength despite sector-wide uncertainty regarding the market environment in the United States. EV achieved a gross margin of 26.9% in Q1 '27 versus 33.8% in Q1 '26. Our overall gross profit margin was 34.6% in Q1 '27 versus 30.1% in Q1 '26. Q1 '27 included a benefit of approximately 130 basis points for the net effect of tariff changes and refunds. We expect our overall gross margin to remain strong throughout fiscal '27, though it will likely vary on a quarter-by-quarter basis due to revenue mix and volume changes. Total operating expenses were $6.8 million in Q1 '27, down from $6.9 million in Q1 '26. Reductions in compensation costs and general and administrative expenses were mostly offset by increased commission expenses, including in sales and marketing costs. Reflecting stronger gross margin and lower operating expenses, Orion's Q1 '27 net income was $2 million or $0.47 per diluted share or $0.48 basic per common share, compared to a net loss of $1.2 million or $0.37 per share in Q1 '26. Adjusted EBITDA was positive $2.5 million in Q1 '27 versus $200,000 in Q1 '26. As Sally noted, this was Orion's seventh consecutive quarter of positive adjusted EBITDA. Regarding our outlook, as Sally highlighted, we expect a continued increase in profitable growth in fiscal '27 with positive adjusted EBITDA on revenue between $95 million to $97 million. And this concludes our prepared remarks. Operator, would you please commence the question-and-answer session? Operator: [Operator Instructions] Our first question comes from the line of Amit Dayal of H.C. Wainwright. Amit Dayal: Congratulations on the win in the AI data center space. It looks like a pretty significant market has opened up for you over there. So in that context, Sally, are you being conservative with the outlook for fiscal 2027 revenues? Sally Washlow: I don't think we're being overly conservative with our revenue. We're certainly bullish on the year. With entry into the data center, as we announced, we worked with a customer to really build the right solution that we could scale to other customers as well. So I think we're in the pretty early innings of data centers, and we have conversations going on with others, but we'll wait until later in the year to provide any further updates. Amit Dayal: Okay, thank you. And then can you talk about some of the pipeline, I guess, that you are building for that market? What kind of activities are you undertaking? What kind of discussions are you having with potential customers? Just any color on how that sales pipeline is being built up? And do you expect to convert some of that pipeline in the next few quarters? Or will it take a little bit more time for you to start getting more momentum with orders from this space? Sally Washlow: Yes, so particularly in this space, we think a lot of it will come in our next fiscal year in terms of revenue. We are starting to ship product. Oftentimes, how we're winning in this arena is you're winning building by building on a data center campus. And as they grow, we're winning more and more. I'm not going to say we're single-sourced as well. Most have mitigated the risk. So we believe that the pipeline will continue to grow as we continue to deliver in that channel. Amit Dayal: Just one follow-up on that. Should we assume the deployments at a single data center could be significantly larger or multiples of what a typical deployment for a single facility is usually for you guys? Sally Washlow: Yes, buildings often represent 7 figures per building. Operator: Our next question comes from the line of Eric Stine of Craig-Hallum. Eric Stine: Just curious, I mean, obviously, a pretty positive commercial environment on the demand side. I know last quarter you did provide a backlog number. And I also know that was because you were entering the fiscal year. But curious whether it's being more specific about backlog or just commentary on where backlog stands, exiting the quarter. The positive order trends that you saw end of fiscal '26, presumably those have continued into the first quarter and what you're seeing here in the second quarter. John Brodin: As we exited the first quarter, our pipeline was right around $24 million -- or I'm sorry, our backlog. As Sally mentioned, the strength of our pipeline, we think continues to improve. So we expect to see some significant conversions as we move forward, but that's where we sit today. Eric Stine: Got it. And I know that backlog at a point in time can be -- there's a lot of timing to that specific number, but that's helpful. Then maybe you talked about the guide $95 million to $97 million. I know that at least to this point, you've not been including anything from the potential opportunity with Home Depot, the stores where you're doing the outside lighting, but there's that inside opportunity. So just curious where that stands. I know you'd made progress. I think you were the only company that was really in the mix for that. It was more about dialing things in. But maybe where that stands and could that still be fiscal '27 revenue? Or would that be more fiscal '28? Sally Washlow: We're still in play on opportunities like that and, quite frankly, some others as well. So there's testing that goes on and final product selection, but we're still pretty positive about that opportunity. Operator: Our next question comes from the line of Gowshihan Sriharan of Singular Research. Gowshihan Sriharan: My first question is on the exterior lighting program, you sized it at $14 million to $15 million and it was supposed to be complete by the end of the first half. How much of that ran through Q4 and Q1? And what's left to deliver? John Brodin: You might be confusing a couple of different announcements we had about our largest customer. The $45-ish million opportunity we mentioned with them was a 3-year contract for the maintenance services that we provide that will occur over fiscal years beginning April 1, 2026, so fiscal '27, '28 and '29. And we had also discussed previously an exterior project, which we said was in the $15 million range, most of which has been recognized in Q4 and Q1. So we're pretty much through most of that. And then to the previous caller's questions, we still have an opportunity that we've talked about for an interior project, but we do not have that order yet, but do believe it's progressing and are optimistic that will come through -- I'll call it, in the relative near term. Gowshihan Sriharan: Okay. And on the gross margin sustainability, if we ex the $300,000 of tariff benefit and as you guys have indicated that services are going to trend towards 50% of revenue as you indicated in your deck, where does the consolidated gross margin kind of actually settle at the end of fiscal '27? John Brodin: We still foresee that it would settle in the 30-plus range. But there are -- to your comment in my script, there was a 130 basis point benefit related to tariffs and the previous quarter had some onetime type benefits in it. So I think in the 30% to 32% range is how we're thinking about things at this time. Gowshihan Sriharan: Okay. I know you guys are still maintaining $95 million to $97 million and with positive EBITDA. We are already in the positive terrain. So what kind of drop should we assume on the roughly $70 million of revenue left in the year? What kind of risks are there? John Brodin: Yes. I'm sorry, did you say risks? Gowshihan Sriharan: No, what kind of, I suppose, pullback on the EBITDA numbers that will drag it into just the negative territory for the $70 million? John Brodin: I think it'd have to be some type of unexpected performance from a -- I mean, assuming we achieve the top line guidance, then there'd have to be something that would happen from a negative basis on gross margin rate that would impact that or some unexpected expense that we don't -- operating expense that we don't anticipate. Gowshihan Sriharan: Okay. And I'll just sneak in one last question. You know on your June -- you said in June that the data centers, the distribution typically with being in the low margins. But if we are to look at the CapEx that is required for these data center roadway volumes to come through as you hope, at what revenue level does the plant require any kind of investment? John Brodin: The investment required to support any of these programs would be very minimal and would primarily come through as a component of gross margin because any related asset would be amortized over a period of time, but we don't foresee any significant fixed asset investment needed for either of those programs that you mentioned or at all. Operator: [Operator Instructions] Our next question comes from the line of Bill Dezellem of Tieton Capital. William Dezellem: Relative to the data centers, have the shipments begun to that first data center customer? Where are you at in that delivery process? Sally Washlow: They have started, but it is -- initial product going into the data centers. We don't expect the ramp until late next year in our fiscal year and then into next year. William Dezellem: That's helpful. Tell us a little bit about the sales lead time to get the lead to close the order. Sally Washlow: I'm sorry, let me repeat, it got a bit broken up. Did you want insight into the sales and how we achieved this win? William Dezellem: No, I'm sorry, Sally. And hopefully the quality here is better, but I was looking for just the regular sales cycle with data centers in terms of number of months to close a deal. Sally Washlow: I hate to answer a question with "it can vary", but I will start with that. In terms of this product, we had in the works working with this particular partner and end user being the data center for several months, fine-tuning the product and making sure it was easy to install. What could we take and do at our factory here in Wisconsin to make it easier to install as well? So I think that cycle might have been a bit longer because of the product development involved in it. As we go to a wider array of customers, a lot of it's going to depend on their build-out schedule as well, which we know can vary. So we have the product ready and we can customize it to the data center needs. And we're pretty flexible in that capacity. But I think that most of the revenue ramp, all that being said, will be in the following years. This year, so it takes a bit to get them up and running. William Dezellem: That's helpful. And then, Sally, relative to new data centers versus replacement data centers -- excuse me, replacement product within the data centers, which do you see as a bigger opportunity? And I guess the spirit of the question is, is the lighting that's in existing data centers outdated enough or you are enough more efficient that there's a whole other opportunity in the replacement arena? Sally Washlow: We see most of the opportunity in the new build-out right now. Many of the data centers are relatively new, so they're not ready for that replacement cycle yet. So most of what we are pursuing is new build-out. William Dezellem: Great. That's helpful. And then I'm going to shift, if I may, to the maintenance side of the business. So the gross margin improvement that you have experienced there, is that structural? Or was there something special in this quarter? John Brodin: I would say it's relatively structural. There will always be some variance because we have within the segment, quarter-to-quarter basis, the mix between product and service does vary. And in that segment, product margins are higher than the service margins themselves. So I would say it's -- there was nothing unusual in the quarter other than there's probably more, I'll say, continued gains in efficiencies as well as mix impact. William Dezellem: That's helpful, Per. And I know that you have been working for a couple of years now to improve that gross margin. Is there more improvement still -- more structural improvement still to come? Or are we essentially in the range at this point? John Brodin: I think we're pretty much in the range. I would consider this quarter a very good quarter for them from a rate standpoint. William Dezellem: Great. And then one additional question relative to maintenance and this comes from a point of ignorance. So you had really good LED revenue growth. You had good EV charging revenue growth. And then the maintenance revenue was essentially flat, the $4.1 million versus $4 million. So the question is, is there a timing issue here where maintenance revenue follows product revenue by whether it be 1 year or some period of time before you all start seeing some maintenance activity on product that you had sold? John Brodin: I don't think there's a real true correlation to be made there. William Dezellem: Great. Thank you for helping clear that up and congratulations on a great quarter. Actually, I'm going to ask one more question, if I may, before I hop off. How would you characterize the typical seasonality of the business at this point? Sally Washlow: There's not a lot of seasonality. Some of our businesses get a bit more impacted by weather, if you think snowy days in the Northeast and sub-zero temperatures can encounter some timing shifts of things, but -- which could affect the quarter, but not a lot of seasonality. It's more the projects. William Dezellem: Part of where I'm going with that question is over the last few years you have seen revenues ramp over the course of the year, first quarter being close to the lowest quarter and then ramping as the fiscal year moved forward. And relative to your guidance, I'm trying to -- I guess I'm trying to relate those two factors, which seem a little bit at odds with each other. John Brodin: Yes, I think maybe the thing to keep in mind for the recent quarter is, as we had disclosed, we had a significant project that had a pretty fair amount of revenue associated with it, this exterior lighting project we've talked about. So that helped bolster the first quarter. We had other projects that are also helping. So I think that, to Sally's point, there's not necessarily an overall seasonal pattern you can look to. It really depends on the timing of projects, when the customers want to complete those projects, when they can commence and bring them to completion. So it's -- there will always be some variability on a quarter-to-quarter basis. And I think as we even said on the previous call, we're not expecting that ramp in the current fiscal year that we've seen in previous years. Operator: Thank you. This concludes the question-and-answer session. I'll now turn the conference back to Sally Washlow for concluding remarks. Sally Washlow: I want to thank everyone again for taking the time to join us today. We look forward to updating investors on our second quarter fiscal '27 call in November. We also look forward to meeting with many of you, whether in person or virtually between now and then. We will be presenting at a number of conferences, so please watch for our forthcoming announcements regarding scheduling. Please also reach out to our Investor Relations team to set up a meeting or for any other information. Their contact information is at the bottom of today's press release. Many thanks again for your interest in Orion. I look forward to continuing to update you on our progress. Operator: Thank you. This concludes today's conference call. You may now disconnect. Before you buy stock in Orion Energy Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Orion Energy Systems wasn’t one of them. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Orion Energy Systems (OESX) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Orion Energy Systems, Inc. (OESX) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to a loss of $0.4 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4,800.00%. A quarter ago, it was expected that this company would post earnings of $0.14 per share when it actually produced earnings of $0.04, delivering a surprise of -71.43%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Orion Energy Systems, which belongs to the Zacks Building Products - Lighting industry, posted revenues of $25.74 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.11%. This compares to year-ago revenues of $19.58 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Orion Energy Systems shares have lost about 32.4% since the beginning of the year versus the S&P 500's gain of 13%. While Orion Energy Systems has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Orion Energy Systems was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $23.43 million in revenues for the coming quarter and $0.25 on $96.33 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Lighting is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, LSI (LYTS), has yet to report results for the quarter ended June 2026. This lighting and LED display company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +11.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. LSI's revenues are expected to be $220.15 million, up 42% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Orion Energy Systems, Inc. (OESX) : Free Stock Analysis Report LSI Industries Inc. (LYTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Orion Energy Systems Inc (NASDAQ:OESX) reported a 32% year-over-year revenue increase to $25.7 million in Q1 fiscal 2027, marking an excellent start to the year. The company achieved its seventh consecutive quarter of positive adjusted EBITDA, with Q1 adjusted EBITDA of $2.5 million, up significantly from $200,000 in the prior year. Gross margin improved substantially to 34.6% in Q1, up from 30.1% year-over-year, driven by strong performance in the LED lighting segment (37.8% margin). Orion Energy Systems Inc (NASDAQ:OESX) has made an initial entry into the hyperscale data center market, with a multi-million dollar engagement and a product designed for easy integration, representing a significant growth opportunity. The company maintains a strong fiscal 2027 outlook, expecting revenue of $95-97 million and positive adjusted EBITDA, supported by a robust backlog of approximately $24 million. Orion Energy Systems Inc (NASDAQ:OESX) continues to see strength in automotive, retail, and public sector engagements, including EV charging infrastructure projects, and has appointed an industry leader to head EV charging sales. The EV charging segment experienced a decline in gross margin to 26.9% in Q1, down from 33.8% in the prior year, reflecting sector-wide uncertainty in the US market. The company noted that Q1 gross margin included a benefit of approximately 130 basis points from tariff changes and refunds, which may not be sustainable in future quarters. Revenue from the maintenance segment was essentially flat at $4.1 million compared to $4.0 million year-over-year, showing limited growth in this area. The data center opportunity is still in early innings, with most revenue expected to materialize in the next fiscal year, meaning near-term contributions will be limited. Orion Energy Systems Inc (NASDAQ:OESX) faces potential risks to its EBITDA guidance if gross margins decline or unexpected operating expenses arise, as the company acknowledged in the Q&A session. The company's growth is dependent on project timing, which can cause significant quarter-to-quarter variability, and management noted they are not expecting the typical revenue ramp seen in previous years. Warning! GuruFocus has detected 2 Warning Signs with OESX. Is OESX fairly valued? Test your thesis with our free DCF calculator. Q: Are you being conservative with the fiscal 2027 revenue outlook given the significant data center win? A: Sally Washlow (CEO): We are not being overly conservative. We are bullish on the year with our entry into the data center market. We worked with a customer to build a scalable solution and are in the early innings, with conversations ongoing with other potential customers. We will provide further updates later in the year. Q: Can you provide color on the data center sales pipeline and when you expect to convert it? A: Sally Washlow (CEO): A lot of the revenue from this space will come in our next fiscal year. We are starting to ship product and are winning building by building on data center campuses. As these campuses grow, we win more business. We believe the pipeline will continue to grow as we deliver in this channel. Q: Should we assume deployments at a single data center could be significantly larger than a typical facility deployment? A: Sally Washlow (CEO): Yes, buildings often represent seven-figure revenue per building. Q: Where does backlog stand exiting the first quarter, and have positive order trends continued? A: Per Brodin (CFO): As we exited the first quarter, backlog was right around $24 million. The strength of our pipeline continues to improve, and we expect to see significant conversions as we move forward. Q: Where does the potential interior lighting opportunity with Home Depot stand, and could it be fiscal 2027 revenue? A: Sally Washlow (CEO): We are still in play on that opportunity and others. There is testing and final product selection ongoing, but we remain positive about the opportunity. Q: How much of the $14-15 million exterior lighting program ran through Q4 and Q1, and what is left to deliver? A: Per Brodin (CFO): Most of the exterior project revenue has been recognized in Q4 and Q1. Separately, the $45 million opportunity with our largest customer is a three-year maintenance services contract covering fiscal 2027, 2028, and 2029. We still have an interior project opportunity that is progressing, but we do not have that order yet. Q: Excluding the tariff benefit, where does the consolidated gross margin settle for fiscal 2027? A: Per Brodin (CFO): We still foresee the gross margin settling in the 30% to 32% range. The 130 basis point benefit in Q1 was related to tariffs, and the previous quarter had some one-time benefits. Q: What kind of pullback on EBITDA could drag the remaining $70 million of revenue into negative territory? A: Per Brodin (CFO): Assuming we achieve the top-line guidance, it would require an unexpected negative performance on gross margin rate or an unexpected operating expense that we do not anticipate. Q: At what revenue level would the data center and roadway programs require significant capital investment? A: Per Brodin (CFO): The investment required to support these programs would be very minimal and would primarily come through as a component of gross margin. Any related assets would be amortized over time. We do not foresee any significant fixed asset investment needed for either program. Q: Have shipments begun to the first data center, and where are you in the delivery process? A: Sally Washlow (CEO): Shipments have started, but it is initial product. We do not expect the ramp until later in our fiscal year and into next year. Q: What is the typical sales cycle for data centers in terms of months to close a deal? A: Sally Washlow (CEO): It can vary. For this particular product, we worked with the partner and end user for several months to fine-tune the product and ensure ease of installation. The cycle may have been longer due to product development. As we go to a wider array of customers, it will depend on their build-out schedules. Most of the revenue ramp will be in the following fiscal year. Q: Do you see a bigger opportunity in new data centers or replacement lighting in existing data centers? A: Sally Washlow (CEO): We see most of the opportunity in new build-outs right now. Many data centers are relatively new and not ready for a replacement cycle, so most of what we are pursuing is new construction. Q: Is the gross margin improvement in the maintenance segment structural or was there something special in the quarter? A: Per Brodin (CFO): It is relatively structural. There will always be variances due to the mix between product and service, but there was nothing unusual in the quarter. The improvement reflects continued gains in efficiencies and mix impact. Q: Is there more structural improvement to come in maintenance gross margins, or are you essentially in the range? A: Per Brodin (CFO): We are pretty much in the range. I would consider this quarter a very good quarter from a rate standpoint. Q: Is there a timing issue where maintenance revenue follows product revenue by a year or more? A: Per Brodin (CFO): I don't think there is a real direct correlation to be made there. Q: How would you characterize the typical seasonality of the business at this point? A: Per Brodin (CFO): There is not a lot of seasonality. Some businesses can be impacted by weather, like snowy days in the Northeast, which can cause timing shifts, but it is more project-driven. We are not expecting the revenue ramp in the current fiscal year that we have seen in previous years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Strong first-quarter revenue growth, expanding margins, and a return to profitability were supported by higher LED lighting demand and continued momentum across the company’s diversified energy solutions business. Orion Energy Systems (NASDAQ:OESX) increased first-quarter revenue 32% year over year to $25.7 million, driven by strong growth in LED lighting and EV charging. The company returned to profitability with net income of $2.0 million, compared with a $1.2 million loss a year earlier. Gross margin expanded 450 basis points to 34.6%, while adjusted EBITDA remained positive for a seventh consecutive quarter. Orion highlighted a multimillion-dollar hyperscale data center lighting engagement as a potential growth driver for its LED lighting business. Management reaffirmed fiscal 2027 revenue guidance of $95 million to $97 million and expects positive adjusted EBITDA for the full year. Orion Energy Systems (NASDAQ:OESX) reported fiscal first-quarter 2027 revenue of $25.7 million, up 32% from $19.6 million in the prior-year period. Gross profit increased 51% to $8.9 million, lifting gross margin to 34.6% from 30.1%. The company generated net income of $2.0 million, or $0.47 per diluted share, compared with a net loss of $1.2 million, or $0.37 per share, a year earlier. Adjusted EBITDA improved to $2.5 million from $0.2 million, marking Orion’s seventh consecutive quarter of positive adjusted EBITDA. Growth was led by the LED lighting segment, where revenue rose 37% to $17.7 million on increased large-project activity. EV charging revenue climbed 48% to $4.0 million, while maintenance services revenue increased 2% to $4.1 million. During the quarter, Orion entered the hyperscale data center market with a new LED lighting solution and secured a multimillion-dollar customer engagement with one of the world’s largest hyperscale data center operators. The company also continued expanding its EV charging business, strengthened its sales leadership, and introduced additional products, including battery storage, electrical contracting services, and an LED roadway lighting solution. The balance sheet also improved, with operating cash flow turning positive at $1.4 million, liquidity increasing to $18.1 million from $9.8 million a year earlier, and the company’s revolving credit facility extended through June 2030. The quarter suggests Orion’s efforts to improve profitability are beginning to translate into stronger financial performance. Revenue growth was broad-based across its core businesses, while expanding margins and stable operating expenses enabled the company to move back into profitability. The seventh straight quarter of positive adjusted EBITDA also indicates continued operating discipline. The company’s entry into the hyperscale data center market could provide an additional long-term growth opportunity if it converts further customer engagements into recurring projects. At the same time, management acknowledged ongoing uncertainty surrounding the pace and funding of EV charging infrastructure projects, highlighting that not all growth segments face the same demand environment. By reaffirming its fiscal 2027 outlook despite market uncertainties, Orion signaled confidence in its sales pipeline and its ability to sustain profitable growth. Investors will likely monitor: Execution of the newly awarded hyperscale data center lighting project. Additional customer wins across LED lighting and electrical infrastructure. Demand trends in the EV charging business amid funding uncertainty. Progress toward achieving the company’s fiscal 2027 revenue target of $95 million to $97 million while maintaining positive adjusted EBITDA. Orion Energy Systems stock price

MANITOWOC, Wis., Aug. 05, 2026 (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 reported results for its fiscal 2027 first quarter (Q1’27) ended June 30, 2026. Orion’s Q1’27 revenue was $25.7M versus $19.6M in Q1’26 up 32%, while Q1’27 gross margin was up by 450 basis points year-over-year at 34.6% versus 30.1% in Q1’26. The Company achieved net income of $2.0M in Q1’27, compared to a net loss of $1.2M in Q1’26. The Company achieved Q1’27 adjusted EBITDA of $2.5M — marking its seventh consecutive quarter of positive adjusted EBITDA – compared to adjusted EBITDA of $0.2M in Q1’26. “Orion is on a path of profitable growth, increasing profitability and continued market expansion in FY’27,” said Orion’s Chief Executive Officer, Sally Washlow. “Today’s results for Q1’27 — our seventh straight quarter of positive adjusted EBITDA — demonstrate that we are advancing on that path.” Ms. Washlow pointed to growth drivers ranging from Orion’s expanding business within large customers to a multimillion-dollar entry into the burgeoning hyper-scale data center market to an array of new Orion offerings introduced to the marketplace in recent months. “Product and service introductions show continued traction, ranging from LED Lighting for hyper-scale data centers to Battery Storage and Electrical Contracting,” said Ms. Washlow. “We have similarly high aspirations for our newly introduced LED Roadway product designed for public roads.” Ms. Washlow also cited Orion’s strengthening capabilities, such as a newly installed ERP system designed to scale with the Company’s expected growth. She also noted its unsurpassed proprietary supply chain reliability, quality control and domestic sourcing compliance which are critical for government contracts, federal incentives and Buy American compliance. Orion is scheduled to discuss these results in an investor call today at 10:00 a.m. ET (details below). Webcast and Call DetailsDate / Time: Wednesday, August 5, 2026, at 10:00 a.m. ETLive Call Registration: https://register-conf.media-server.com/register/BI9310cd50094241a1a190c4035fc8e3f6Live call participants must pre-register using the URL above to receive the dial-in information. Anyone can re-register if they lose the dial-in or PIN #. Webcast & Replay: https://register-conf.media-server.com/register/BI9310cd50094241a1a190c4035fc8e3f6 Q1'27 and Prior Three Quarters Financial Performance Q1’27 Business Highlights: Commentary from CEO Sally Washlow Orion’s first-quarter results and full-year expectations continue to illustrate a strong sales funnel, expansion of wallet share within large customers, continuous strengthening of a truly unrivaled proprietary supply chain and continued cost management. Orion’s first quarter illustrated noteworthy indicators of YOY growth: — Orion entered the hyper-scale data center market with an LED lighting solution specifically designed for this massive market in Q1’27. Quickly following the product announcement, the Company was awarded a multimillion-dollar customer engagement with one of the world's largest hyper-scale data centers. Orion designed the MPHL2 to be a tailor-made LED Lighting solution for thousands of data centers to be built over the coming years. Meanwhile, the ability to provide unrivaled reliability, flexibility and scalability enables Orion to be a trusted supplier to the current data-center building boom. These unique attributes are of particular importance to Orion’s inaugural data-center customer. — Orion/Voltrek continued to adapt strategically to an evolving U.S. EV Charging Infrastructure environment. We continue to strengthen our incumbencies with respected innovators like the Boston Public Schools. And we bolstered our organization tremendously with our recent appointment of recognized industry leader Karen Peck to head EV Charging Infrastructure sales. — Maintenance recorded solid performance, thanks in large part to our customer-first approach. Automotive, retail and public-sector engagements continue to show notable strength and continued growth. Our customers are seeing that we meet them where they are — whether we deliver a product-only solution or provide complete turnkey, full-service electrical infrastructure powered by our own products that are designed, engineered and made right here in Manitowoc or sourced leveraging our proprietary supply chain. Q1’27 Financial Results Orion’s Q1’27 revenue was $25.7M versus $19.6M in Q1’26, while Q1’27 gross margin was 34.6% versus 30.1% in Q1’26. The Company achieved net income of $2.0M in Q1’27 versus a net loss of $1.2M in Q1’26. The Company achieved Q1’27 adjusted EBITDA of $2.5M — marking its seventh consecutive quarter of positive adjusted EBITDA — compared to adjusted EBITDA of $0.2M in Q1’26. Orion also reported the following Q1’27 segment performance: LED lighting revenue increased approximately 37% to $17.7M in Q1’27, compared to $12.9M in Q1’26, reflecting increased large project activity. Maintenance services revenue increased 2% to $4.1M in Q1’27 from $4.0M in Q1’26, reflecting the benefit of new customer contracts, as well as the expansion of certain existing customer relationships. EV charging solutions revenue was $4.0M in Q1’27 compared to $2.7M in Q1’26, reflecting the variability in timing of larger projects. Orion/Voltrek notes current uncertainty around the near-term scope, pace and funding availability for EV charging projects, Orion’s Q1’27 gross margin was 34.6% versus 30.1% in Q1’26, primarily due to pricing and cost improvements across the lighting and maintenance segments. Total operating expenses decreased to $6.8M in Q1’27 from $6.9M in Q1’26, reflecting the Company's continued careful management of its cost structure. Primarily reflecting stronger gross margin and lower operating expenses, Orion achieved net income of $2.0M in Q1’27, $0.48 basic earnings per share and $0.47 diluted earnings per share, versus a net loss of $1.2M, or $0.37 per share, in Q1’26. Orion’s adjusted EBITDA improved to $2.5M in Q1’27 compared to $0.2M in Q1’26, reflecting the benefit of the Company’s financial discipline. Balance Sheet and Cash Flow Orion ended the quarter with current assets of $39.2M, including $5.2M of cash, $14.4M of accounts receivable, $7.4M of revenue earned but not billed, and $10.4M of inventories. Net of current liabilities, working capital was $13.7M at June 30, 2026, compared to $6.1M at June 30, 2025. Orion’s financial liquidity at June 30, 2026, was $18.1M as compared to $9.8M at June 30, 2025. Further, Orion generated $1.4M of cash flow from operations in Q1'27 compared to a use of cash of $0.5M in the prior year period. Finally, Orion recently extended the maturity date of its revolving credit facility from June 30, 2027, to June 30, 2030. Orion reiterated its previously announced expectations of positive adjusted EBITDA on revenue of between $95 million and $97 million in FY’27, which began April 1, 2026. About Orion Energy SystemsOrion provides energy efficiency and clean tech solutions, including LED lighting and controls, electrical vehicle (EV) charging solutions, and maintenance services. Orion specializes in turnkey design-through-installation solutions for large national customers as well as projects through ESCO and distribution partners, with a commitment to helping customers achieve their business and environmental goals with healthy, safe, and sustainable solutions that reduce their carbon footprint and enhance business performance. Non-GAAP Measures In addition to the GAAP results included in this presentation, Orion has also included the non-GAAP measures, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA (EBITDA adjusted for stock-based compensation, acquisition related costs, deferred financing costs, restructuring and severance costs, asset impairment and, earnout expenses). The Company has provided these non-GAAP measures to help investors better understand its core operating performance, enhance comparisons of core operating performance from period to period, and allow better comparisons of operating performance to its competitors. Among other things, management uses these non-GAAP measures to evaluate the performance of the business and believes these measurements enable it to make better period-to-period evaluations of the financial performance of core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and Orion compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with generally accepted accounting principles. Consistent with Regulation G under the U.S. federal securities laws, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measures, and this reconciliation is located under the heading “Unaudited EBITDA Reconciliation” following the Unaudited Condensed Consolidated Statements of Cash Flows included in this press release. Safe Harbor Statement Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words of similar import. Similarly, statements that describe our future outlook, plans, expectations, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) our ability to achieve our budgeted fiscal 2027 revenue expectations, and related public fiscal 2027 revenue guidance, will have a significant impact on our cash flow and stock price and ability to fund our operations and satisfy our debt obligations; (ii) we have launched a new ERP system, which will continue to involve substantial cost and potential disruption to our previously normal operations; our inability to successfully manage the implementation of our new ERP system could adversely affect our ability to operate our business and otherwise negatively affect our financial reporting and the effectiveness of our internal control over financial reporting; (iii) government tariffs and other actions have adversely affected, and may continue to adversely affect, our business, resulting in increased costs and reduced gross margins; (iv) the reduction or elimination of incentives from the United States government for investments in electric vehicle (“EV”) charging infrastructure may reduce demand for public EV charging products, in addition to reducing overall demand for EVs; (v) we do not have major sources of recurring revenue, a substantial portion of our revenues is derived from major project-based retrofit work that is awarded through a competitive bid process and we depend upon a limited number of customers in any given period to generate a substantial portion of our revenue, and it is generally difficult to predict the timing of projects that will be awarded, which can impact our ability to achieve our expected financial results; (vi) the reduction of revenue from our most significant customer over the past several fiscal years has had, and the potential future loss of other significant customers or a major customer would likely have, a materially adverse effect on our results of operations, financial condition and cash flows; (vii) the reduction or elimination of investments in, or incentives to adopt, light emitting diode (“LED”) lighting or the elimination of, or changes in, policies, incentives or rebates in certain states or countries that encourage the use of LEDs over some traditional lighting technologies, including due to federal funding restrictions in the United States, could cause the demand for our lighting products to slow; (viii) we are experiencing ongoing increasing pressures to reduce the average selling price of our products and related negative impact on our gross margins, driven largely by the ongoing increase in competition from foreign competitors; (ix) our products use components and raw materials that may be subject to price fluctuations, shortages or interruptions of supply, particularly resulting from tariffs and other trade restrictions; (x) we increasingly rely on third-party manufacturers for the manufacture and development of our products and product components; (xi) we are subject to the risk of a cybersecurity breach; (xii) macroeconomic pressures in the markets in which we operate may adversely affect our financial results; (xiii) adverse conditions in the global economy, including due to changes in diplomatic and trade relationships, have negatively impacted, and could in the future negatively impact, our customers, suppliers and business; (xiv) the success of our LED lighting retrofit solutions depends, in part, on our ability to claim market share away from our competitors; and (xv) the other risks described in our filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://investor.oriones.com in the Investor Relations section of our website. Engage with UsX: @OrionLighting and @OrionLightingIRStockTwits: @OESX_IR

Interested in Orion Energy Systems, Inc.? Here are five stocks we like better. Strong first-quarter performance: Revenue increased 32% year over year to $25.7 million, while net income reached $2 million and adjusted EBITDA rose to $2.5 million, marking the seventh consecutive quarter of positive adjusted EBITDA. Lighting drove growth and margins: LED lighting revenue climbed to $17.7 million, and consolidated gross margin improved to 34.6%, though management expects normalized margins of roughly 30% to 32% excluding tariff-related benefits. Outlook reaffirmed: Orion maintained its fiscal 2027 revenue forecast of $95 million to $97 million and positive adjusted EBITDA, supported by approximately $24 million in backlog and potential growth from data centers, EV charging and large customer projects. Orion Energy Systems (NASDAQ:OESX) reported fiscal 2027 first-quarter revenue growth of 32% year over year and its seventh consecutive quarter of positive adjusted EBITDA, while reaffirming its full-year outlook for revenue of $95 million to $97 million and positive adjusted EBITDA. Revenue for the quarter totaled $25.7 million, compared with $19.6 million in the prior-year period. Net income was $2 million, or $0.47 per diluted share, compared with a net loss of $1.2 million, or $0.37 per share, a year earlier. Adjusted EBITDA rose to $2.5 million from $200,000 in the first quarter of fiscal 2026. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control CEO Sally Washlow said the quarter extended the growth established during fiscal 2026, when the company recorded $86 million in revenue and $2 million in positive adjusted EBITDA. She pointed to activity in automotive, retail and public-sector markets, as well as opportunities in EV charging infrastructure and data-center lighting. LED lighting revenue rose to $17.7 million from $12.9 million in the prior-year quarter. CFO Per Brodin said the increase reflected higher project activity and distribution-channel sales, partly offset by lower sales through the energy-service-company, or ESCO, channel. The lighting segment’s gross margin increased to 37.8% from 31.8%. → 3 Drone Stocks That Should Soar After the Summer Slump Maintenance revenue was $4.1 million, compared with $4 million a year earlier, while segment gross margin improved to 28.3% from 22.4%. Brodin said the margin improvement was “relatively structural,” reflecting continued efficiency gains and product-service mix, although he noted that quarterly mix can vary. He characterized the first-quarter maintenance margin as a particularly strong result and said the business is largely within its expected margin range. EV charging solutions revenue increased to $4 million from $2.7 million. The segment’s gross margin declined to 26.9% from 33.8% in the prior-year quarter. Brodin said the business showed relative strength despite uncertainty in the broader U.S. EV market. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Consolidated gross margin rose to 34.6% from 30.1%. The first-quarter result included an approximately 130-basis-point benefit from the net effect of tariff changes and refunds. Brodin said Orion expects gross margin to remain strong during fiscal 2027 but to fluctuate by quarter based on sales volume and revenue mix. Excluding unusual tariff-related benefits, he said the company is currently thinking about a consolidated gross-margin range of roughly 30% to 32%. Total operating expenses declined to $6.8 million from $6.9 million. Lower compensation and general-and-administrative expenses were largely offset by higher commissions and sales-and-marketing costs, Brodin said. Washlow said Orion has begun initial product shipments to its first data-center customer following the company’s entry into the hyperscale data-center market. However, she said the business is still in its early stages and that most data-center revenue is expected in the company’s next fiscal year rather than fiscal 2027. The company has worked with a customer for several months to tailor a lighting product designed for data-center installations, according to Washlow. She said the sales cycle can vary, particularly when product development and customer build-out schedules are involved. Orion expects to pursue primarily new data-center construction, rather than replacement lighting projects, because many existing facilities are relatively new. Washlow said data-center projects are often won building by building on a campus, and individual buildings can represent seven-figure opportunities. She added that customers generally use more than one supplier to mitigate risk. Orion also continues to pursue an interior lighting opportunity with a large customer after completing most of a previously discussed exterior lighting project valued at about $15 million. Brodin said most revenue from that exterior project was recognized during the fourth quarter of fiscal 2026 and the first quarter of fiscal 2027. The potential interior project has not yet been ordered, though management said it is progressing and remains an opportunity in the near term. Brodin said Orion exited the first quarter with backlog of approximately $24 million. He said management believes the sales pipeline continues to improve and expects significant conversions as projects advance. The company maintained its fiscal 2027 outlook for revenue of $95 million to $97 million and positive adjusted EBITDA. Brodin said that if Orion achieves its revenue guidance, a return to negative EBITDA would likely require an unanticipated deterioration in gross margin or unexpected operating expenses. Management said it does not expect a meaningful fixed-asset investment to support data-center or roadway-lighting programs. Brodin said any related investment would be minimal and would primarily affect gross margin through amortization over time. Washlow and Brodin also said Orion’s revenue does not follow a pronounced seasonal pattern, though project timing and weather can affect individual quarters. Brodin noted that the recently completed exterior lighting project helped support first-quarter revenue, and said the company is not expecting the same fiscal-year revenue ramp seen in some prior years. Orion Energy Systems, Inc is a U.S.-based provider of energy-efficient lighting and building controls solutions. Founded in 1996 and headquartered in Manitowoc, Wisconsin, the company specializes in designing, manufacturing and deploying LED lighting fixtures and integrated energy management systems for commercial and industrial customers. The company's product portfolio includes a range of LED light fixtures, smart sensors, networked controls and cloud-based energy management software. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Orion Energy Systems Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Fiscal 2026 served as a strategic pivot point, transitioning the company from a turnaround phase to a period of growth and consistent profitability. Performance was driven by strengthened incumbency with large Fortune 50 global leaders and a renewed aggressiveness in acquiring new customers in automotive and retail sectors. Management attributes operational resilience to a proprietary, built-from-the-ground-up supply chain that insulates customers from exogenous shocks and logistics choke points. The company successfully executed a rightsizing and cost containment initiative, enabling six consecutive quarters of positive adjusted EBITDA through the end of the fiscal year. Strategic expansion into electrical contracting and battery energy storage systems (BESS) is diversifying the revenue base beyond traditional LED lighting. The entry into the data center market leverages a customizable, in-house manufactured linear lighting product designed to meet the high power density and uptime requirements of AI workloads. Fiscal 2027 revenue guidance of $95 million to $97 million assumes relatively even quarterly distribution and continued positive adjusted EBITDA. Management expects the LED lighting segment to maintain strength driven by a mix of project delivery, electrical contracting, and distribution channel growth. The data center initiative is expected to contribute more significantly to revenue in the latter half of fiscal 2027 and into future years as hyperscale facilities come online. Gross margins are targeted at approximately 30% for the full year, though management notes this will fluctuate quarterly based on revenue mix and volume. The company plans to leverage its domestic manufacturing facility in Wisconsin to provide shortened lead times and customization for large-scale infrastructure projects. Orion has officially exited the solar business following a contract amendment and a $1.1 million non-cash write-off of solar assets in Q4. The lighting segment gross margin in Q4 was bolstered by a $1.3 million contract amendment payment that carried no associated cost of sales. All earn-out payment requirements related to the Voltrek acquisition have been fully satisfied, removing this expense from fiscal 2027 and beyond. The company extended its credit facility maturity from June 2027 to June 2030, enhancing long-term financial liquidity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the current backlog is the strongest in 4-5 years and is well-distributed across all business segments. Early fiscal 2027 performance has started strong, supporting management's confidence in the full-year growth outlook. Electrical contracting now includes new store build-outs for major retailers and infrastructure work for EV charging and logistics customers. Management confirmed they have sufficient working capital to service the $21 million array of projects currently in the pipeline. The new data center product was developed in close collaboration with end-users to meet specific efficiency and architectural requirements under NDA. The primary competitive advantage cited is the ability to customize fixtures and manufacture them domestically to meet tight construction timelines. Testing for a major outdoor lighting expansion with a long-term customer is ongoing to finalize product selections. Management clarified that Orion is currently the only provider being considered for this specific opportunity, with no other competitors in the mix.

Orion Energy Systems, Inc. (OESX) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.14 per share. This compares to a loss of $0.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -71.43%. A quarter ago, it was expected that this company would post a loss of $0.18 per share when it actually produced earnings of $0.04, delivering a surprise of +122.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Orion Energy Systems, which belongs to the Zacks Building Products - Lighting industry, posted revenues of $25.72 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.87%. This compares to year-ago revenues of $20.87 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Orion Energy Systems shares have lost about 40.7% since the beginning of the year versus the S&P 500's gain of 10.4%. While Orion Energy Systems has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Orion Energy Systems was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.14 on $23.86 million in revenues for the coming quarter and $0.33 on $96.02 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Lighting is currently in the top 48% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Construction sector, Worthington Enterprises (WOR), has yet to report results for the quarter ended May 2026. The results are expected to be released on June 23. This metal manufacturer is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of -1.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Worthington Enterprises' revenues are expected to be $385.7 million, up 21.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Orion Energy Systems, Inc. (OESX) : Free Stock Analysis Report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Q4 '26 Revenue: $25.7 million, up from $20.9 million in Q4 '25. Fiscal '26 Revenue: $86.3 million, compared to $79.7 million in fiscal '25. LED Segment Revenue (Q4 '26): $20.3 million, compared to $20.9 million in Q4 '25. LED Segment Revenue (Fiscal '26): $55.9 million, up from $47.7 million in fiscal '25. Gross Margin (Q4 '26): 37%, up from 27.5% in Q4 '25. Gross Margin (Fiscal '26): 32.6%, compared to 25.4% in fiscal '25. Net Loss (Q4 '26): $1.5 million or $0.39 per share, compared to $2.9 million or $0.88 per share in Q4 '25. Net Loss (Fiscal '26): $3.2 million or $0.89 per share, compared to $11.8 million or $3.59 per share in fiscal '25. Adjusted EBITDA (Q4 '26): Positive $0.8 million, compared to $0.2 million in Q4 '25. Adjusted EBITDA (Fiscal '26): Positive $2.2 million, compared to negative $2.9 million in fiscal '25. Operating Expenses (Q4 '26): $10.3 million, up from $8.4 million in Q4 '25. Operating Expenses (Fiscal '26): $29.7 million, down from $30.8 million in fiscal '25. Cash Used by Operations (Fiscal '26): $1.1 million, compared to cash provided by operations of $0.6 million in fiscal '25. Net Working Capital (Q4 '26): $11 million, up from $8.7 million at year-end fiscal '25. Available Financial Liquidity (End of Fiscal '26): $15.4 million, compared to $13 million at the previous year-end. Fiscal '27 Revenue Outlook: $95 to $97 million with positive adjusted EBITDA expected. Warning! GuruFocus has detected 2 Warning Signs with OESX. Is OESX fairly valued? Test your thesis with our free DCF calculator. Release Date: June 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Orion Energy Systems Inc (NASDAQ:OESX) achieved its sixth consecutive quarter of positive adjusted EBITDA, marking a significant turnaround. The company reported a fiscal year 2026 revenue of $86.3 million, surpassing its goal of $84 million. Orion Energy Systems Inc (NASDAQ:OESX) maintained its NASDAQ listing, which is crucial for growth and shareholder value. The company has expanded its product offerings, including entry into the data center market with a new linear lighting fixture. Orion Energy Systems Inc (NASDAQ:OESX) has a strong fiscal 2027 outlook, expecting revenue between $95 million and $97 million with continued positive adjusted EBITDA. The EV Charging Solutions segment saw a decline in revenue to $2.3 million in Q4 '26 from $5.8 million in Q4 '25, reflecting market uncertainty. Total operating expenses increased to $10.3 million in Q4 '26 from $8.4 million in Q4 '25, partly due to earn-out expenses and a non-cash write-off. The company reported a net loss of $1.5 million in Q4 '26, although this was an improvement from the previous year. Cash used by operating activities was $1.1 million in fiscal '26, compared to cash provided by operations of $0.6 million in fiscal '25. The maintenance segment revenue decreased to $3.2 million in Q4 '26 from $4.1 million in Q4 '25, due to the timing of seasonal work. Q: Can you provide commentary on the backlog and order trends for fiscal '27? A: Sally Washlow, CEO: Fiscal '27 has started strong, with a well-distributed backlog across various segments. We are optimistic about continuing to grow the backlog and executing the projects we need to deliver on. Q: What are the expectations for revenue linearity in fiscal '27, particularly regarding the outdoor lighting opportunity? A: J. Per Brodin, CFO: We expect revenue to play out relatively evenly over the year, following a strong Q4 with revenue north of $25 million. Q: Can you elaborate on the electrical contracting work and whether you have the working capital to service this backlog? A: Sally Washlow, CEO: Yes, we have the working capital to service the backlog. The electrical contracting work includes new store buildouts and expanding work within EV infrastructure, among others. Q: Does the backlog include any potential revenue from the new data center AI domain? A: Sally Washlow, CEO: The backlog does not currently reflect this. We have high expectations for this segment, with revenue expected later in the fiscal year and in the coming years. Q: Is Orion exiting the solar business, and will there be any impact on fiscal '27 numbers? A: J. Per Brodin, CFO: We have exited the solar business, with no further activity expected to carry forward into fiscal '27. Q: What is different about your data center product, and how is it being sold? A: Sally Washlow, CEO: Our multipurpose linear light is customized for data centers, focusing on efficiency and specific requirements. The sales effort began with our distribution channel, but it could expand to other channels. Q: Are there any plans to report the electrical infrastructure segment separately? A: J. Per Brodin, CFO: We haven't considered reporting it separately yet. It is managed within our services group, and significant projects will be announced as orders are received. Q: What are the revenue expectations for the EV side, particularly with battery energy storage deployment in California? A: Sally Washlow, CEO: The EV work is part of our $95 to $97 million revenue guidance. We see significant opportunity in this segment, although we are still early in the solution. For the complete transcript of the earnings call, please refer to the full earnings call transcript.