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Orion Lighting secures $11M in EV charging contracts

EditorIsmeta Mujdragic
Published 04/03/2024, 08:42 AM
OESX
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MANITOWOC, Wis. - Orion Energy Systems, Inc. (NASDAQ: NASDAQ:OESX), operating under the brand Orion Lighting, has reported securing over $11 million in construction service contracts for its EV charging division, Voltrek, under the Eversource EV Make Ready program.

These contracts, which represent more than 25 individual projects with Eversource Energy (NYSE:ES), a utility prioritizing sustainability, have been finalized in the fiscal year 2024 and are set to be executed within the fiscal year 2025 starting April 1, 2024.

The projects, which were already accounted for in Orion's revenue outlook, will involve the installation of both Level 2 and Level 3 EV chargers. These chargers will serve a variety of applications, including public, workplace, and fleet charging. Voltrek's President, Kathleen Connors, expressed enthusiasm about the diversity of the projects and their alignment with the company's commitment to flexibility, innovation, and customer satisfaction.

Voltrek's collaboration with Eversource is part of a long-standing relationship that has continued to evolve, with the new contracts aimed at bolstering EV infrastructure in the Northeast. The company's approach to understanding and meeting client needs has been highlighted as a key factor in its ability to consistently exceed expectations and foster client loyalty.

Orion Energy Systems offers a range of energy-efficient solutions, including LED lighting and controls, maintenance services, and electric vehicle charging solutions. The company emphasizes turnkey design-through-installation solutions for large national customers, promoting sustainable solutions that aim to reduce carbon footprint and enhance business performance.

This announcement is based on a press release statement.

InvestingPro Insights

Orion Energy Systems, Inc. (NASDAQ: OESX), while making strides in securing new contracts for its EV charging division, faces a challenging financial landscape. According to InvestingPro data, the company's market capitalization stands at a modest $29.11 million USD, reflecting a relatively small enterprise in the vast energy solutions market. The financial metrics reveal a negative P/E ratio of -1.56, which worsens slightly when adjusted for the last twelve months as of Q3 2024, dropping to -1.94. This indicates that investors are currently valuing the company's earnings negatively, which often occurs when losses are expected to continue.

Furthermore, the company's stock price has experienced significant volatility, with a one-year price total return of -55.3%, highlighting the risks associated with investing in OESX. This volatility is also underscored by the fact that the stock price is currently at 44.04% of its 52-week high, suggesting a considerable decline over the past year.

Despite these challenges, there are positive indicators in the company's revenue growth, with a 10.26% increase over the last twelve months as of Q3 2024. This growth is a testament to Orion's ability to secure new contracts and expand its business operations in the competitive energy solutions sector.

InvestingPro Tips for Orion Energy Systems underscore the company's current financial state, with analysts not expecting profitability this year and a valuation that implies a poor free cash flow yield. However, it's worth noting that the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, which could provide some financial stability in the short term.

For investors seeking a more comprehensive analysis of Orion Energy Systems, including additional InvestingPro Tips, a visit to https://www.investing.com/pro/OESX is recommended. There are a total of 10 InvestingPro Tips available, which can offer deeper insights into the company's financial health and stock performance. To further enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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