Orion Energy Systems begins $3M LED lighting project for US agency

MANITOWOC, Wis. – Orion Energy Systems, Inc. (NASDAQ:OESX), known as Orion Lighting, has initiated a $3 million LED lighting installation for an undisclosed federal government agency, the company announced today. The project, which is already underway, involves a comprehensive retrofit of LED lighting systems compliant with the Buy American Act (BAA). It is expected to be completed in the first half of Orion’s fiscal year 2026. According to InvestingPro data, this contract represents a significant opportunity for the company, which currently has a market capitalization of $27.55 million and generated revenue of $85.26 million in the last twelve months.

The turnkey solution is being implemented in a facility located in the Southeastern United States and includes substantial electrical infrastructure enhancements and project management services. Orion’s CEO, Mike Jenkins, emphasized the company’s 20-plus-year history of collaboration with federal entities and expressed enthusiasm for improving the energy efficiency and modernization of the agency’s facilities. With a gross profit margin of 25.07%, the company maintains operational efficiency despite challenging market conditions. InvestingPro analysis indicates the stock is currently undervalued, with analysts setting price targets between $2 and $3.

This project expands Orion’s portfolio in the government sector, following a $9.6 million LED retrofit project for the Department of Defense in Europe. Orion Lighting specializes in energy-efficient solutions, including LED lighting and controls, and electric vehicle (EV) charging station solutions, as well as maintenance services.

The company prides itself on its commitment to sustainability, aiming to assist customers in reducing their carbon footprint while enhancing business performance. Orion’s approach to sustainability is outlined in their public statements, where they detail their priorities, goals, and progress in this area.

Orion’s forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995, indicate plans and objectives that involve risks and uncertainties. These include the company’s business relationships with government customers and other factors that may impact their performance. Shareholders and investors are cautioned to consider these risks when evaluating such statements. InvestingPro subscribers have access to additional insights, including 6 key ProTips and comprehensive financial health metrics that can help evaluate investment risks and opportunities in OESX and other stocks.

The information for this article is based on a press release statement from Orion Energy Systems, Inc.

In other recent news, Orion Energy Systems reported a decline in its third-quarter fiscal year 2025 revenue, which fell to $19.6 million from $26 million in the same quarter of the previous year. The company’s earnings per share (EPS) were in line with forecasts, showing a loss of $0.05. Despite the revenue decline, Orion Energy Systems managed to improve its gross margin by 490 basis points, reaching 29.4%. Analysts from Craig Hallum Capital Group and H.C. Renwright noted the company’s strategic focus on LED lighting and EV charging solutions, highlighting Orion’s anticipation of double-digit revenue growth in fiscal year 2026.

Additionally, the company has projected its fiscal year 2025 revenue to be between $77 million and $83 million, with expectations for positive adjusted EBITDA in fiscal year 2026. Orion Energy Systems announced a restructuring of its business into two commercial business units to better serve its customers and enhance revenue opportunities. The company also disclosed a reduction in its annual breakeven point by at least 20% due to improvements in gross margin and reductions in fixed costs. Orion’s management and board have agreed to a 10% reduction in salaries and retainers until business performance improves, reflecting their commitment to cost management and future growth.

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