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 announced unaudited preliminary revenue results for its fiscal 2025 second quarter (Q2'25) ended September 30, 2024, in anticipation of its participation today at the LD Micro Main Event XVII investor conference in Los Angeles. CEO Mike Jenkins and CFO Per Brodin will provide an overview presentation at the conference today at 8:30 a.m. PT / 11:30 a.m. ET (webcast details below) and will also be available for in person investor meetings.
Orion plans to report its Q2'25 results and hold a conference call on Wednesday, November 6th at 10.00 a.m. ET; call details will be announced in advance.
Q2'25 Preview
Orion reported preliminary Q2'25 revenue of approximately $19.4M compared to $20.6M in Q2'24. Orion also reported preliminary FY 2025 first six months revenue (6M'25) of approximately $39.3M compared to $38.2M in 6M'24.
- EV charging solutions revenue rose 40% to $4.7M compared to Q2'24, benefitting from Eversource Energy's "EV Make Ready" program contracts and additional work for Boston Public Schools.
- LED lighting revenue declined approximately 20% to $10.8M in Q2'25 vs. Q2'24, following the completion of a large European retrofit project in Q1'25. This project benefited the prior-year period versus no revenue in Q2'25. Due to customer delays, several projects did not yet commence in Q2'25 as anticipated but are expected to start in Q3'25 or Q4'25. Orion maintains a robust pipeline in the automotive, retail, technology, logistics/distribution, financial and public sectors, from a mix of existing and new customers. In addition, Orion recently secured a new 5-Year, $25M contract to supply LED lighting fixtures for new store construction projects for its largest customer, a major national retailer.
- Maintenance services revenue rose 5% to $3.8M in Q2'25 compared to the year-ago quarter, delivering better than expected performance following the Q1'25 revenue decrease that resulted from the lapse of unprofitable customer contracts. Maintenance services gross profit percentage rebounded 2,290 basis points in Q2'25 from a negative margin in Q2'24.
- Orion ended the quarter with cash of approximately $5.4M after a $1M debt repayment on the Company's bank facility in Q2'25.
FY 2025 Outlook Update
Principally reflecting project delays in the LED lighting business, Orion is revising its FY'25 revenue outlook to growth of approximately 10% over FY 2024, from its prior outlook of 10-15% growth, and it expects second half revenue to be more heavily weighted to the fourth quarter. Orion continues to expect solid growth in its EV charging business in FY'25 and a decrease in maintenance services revenue principally reflecting the roll-off of unprofitable legacy contracts. Orion will provide more detail on its outlook when it reports Q2'25 results.
