MANITOWOC, Wis. - Orion Energy Systems, Inc. (NASDAQ: NASDAQ:OESX), known as Orion Lighting, has secured contracts exceeding $2 million with a longstanding automotive OEM client for LED lighting system installations at various U.S. manufacturing sites. Orion's expertise in project management of LED systems played a key role in its selection for these projects, aimed at boosting energy efficiency and supporting the customer's sustainability and workplace safety goals.
Michael Jenkins, CEO of Orion, expressed pride in the company's 18-year relationship with the automotive partner, attributing their choice to Orion's proven LED technology and comprehensive services. The projects are expected to be finalized before the end of Orion's fiscal year on March 31, 2025, with the initial purchase orders already in place and the subsequent project to commence in the third fiscal quarter.
Orion Energy Systems, a provider of energy-efficient solutions, specializes in LED lighting and controls, electric vehicle (EV) charging stations, and maintenance services. The company focuses on full-service solutions from design to installation for large national customers, aiming to assist them in achieving environmental objectives while enhancing overall business performance.
This announcement is based on a press release statement and reflects the company's commitment to responsible operation and its sustainability ambitions. Orion's forward-looking statements regarding future plans and goals are subject to risks and uncertainties that could impact actual results. The company cautions against undue reliance on these statements, which are valid as of the date of the press release. Orion maintains no obligation to update any forward-looking statements publicly in response to new information or future events.
"In other recent news, Orion Energy Systems experienced a 13% increase in Q1 2025 revenue, primarily driven by its electric vehicle charging system installation business. The company secured contracts worth over $11 million for Eversource Energy (NYSE:ES)'s EV make-ready program and anticipates growth in its LED Lighting Solutions and Maintenance Services segments. In addition, Orion Energy Systems' shareholders approved board nominees and executive pay in the 2024 Annual Meeting, with three directors elected to serve until the 2027 Annual Meeting. The compensation of the company's named executive officers also received approval, and BDO USA, P.C. was ratified as the company's independent registered public accounting firm for fiscal year 2025. These are recent developments that have unfolded at Orion Energy Systems. The company's liquidity position remains robust at $14 million as of June 30, 2024. Orion is confident about achieving its revenue growth target of between $100 million and $104 million for fiscal year 2025, despite expecting a contraction in the Maintenance Services segment. Lastly, Orion's CEO Mike Jenkins introduced a new product, TritonPro, aimed at accessing a larger market segment."
InvestingPro Insights
As Orion Energy Systems (NASDAQ: OESX) continues to secure substantial contracts for its energy-efficient LED lighting solutions, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, Orion's market capitalization stands at a modest $27.86 million. Despite the company's recent contract wins, analysts from InvestingPro are skeptical about Orion's profitability in the near term, with expectations set that the company will not be profitable this year.
InvestingPro Tips also suggest a cautious outlook, noting that Orion is quickly burning through cash and the valuation implies a poor free cash flow yield. This could be a concern for investors looking for companies with strong cash generation capabilities. Moreover, the company's stock has been trading near its 52-week low, reflecting a significant price drop over the last three months, a decline of nearly 27.88%.
However, it's not all bleak for Orion. The company's liquid assets do exceed its short-term obligations, providing some financial cushioning. This, coupled with revenue growth of 20.47% over the last twelve months as of Q1 2023, suggests that while Orion faces challenges, it also has some financial levers to pull as it aims to turn around its performance. Orion's commitment to sustainability and efficiency in its operations may resonate with environmentally conscious investors, despite the absence of dividend payments to shareholders.
For investors seeking a deeper dive into Orion's financial metrics and additional InvestingPro Tips, there are 7 more tips available on the InvestingPro platform, which could provide further insights into the company's performance and potential investment opportunities.
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