Orion Energy Systems secures $7M in automotive LED lighting contracts

Published 30/07/2025, 13:46
Orion Energy Systems secures $7M in automotive LED lighting contracts

MANITOWOC, Wis. - Orion Energy Systems, Inc. (NASDAQ:OESX) announced Wednesday it has secured LED lighting and electrical infrastructure engagements worth up to $7 million for fiscal year 2026 from long-time automotive industry customers in North America. The contracts represent a significant opportunity for the company, which currently has a market capitalization of $20.2 million and has faced challenging market conditions with revenue declining 12% over the last twelve months.

The contracts involve deployments and upgrades of LED lighting and electrical infrastructure, along with ongoing managed services, at several manufacturing and distribution facilities. The facilities are owned primarily by three major automotive industry customers, including two global leaders among North America’s most prominent automakers.

These engagements are part of ongoing updates to LED lighting and electrical infrastructure at manufacturing and distribution facilities operated by all three customers, according to the company’s press release statement.

Orion CEO Sally Washlow said, "The decades-long trust in Orion we have built with automakers and other manufacturers is a key asset for our company as they contemplate broad based upgrades in their plants."

The company expects to review its automotive market position and new-business pipeline during its first quarter conference call scheduled for August 6. Orion projects fiscal year 2026 revenue of approximately $84 million and anticipates approaching or achieving positive adjusted EBITDA.

Orion Energy Systems provides energy efficiency solutions including LED lighting, controls, electric vehicle charging solutions, and maintenance services. The company specializes in turnkey design-through-installation solutions for large national customers and projects through ESCO and distribution partners. For detailed financial analysis and exclusive insights, including 12+ additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Orion Energy Systems reported its fourth-quarter fiscal year 2025 earnings, showing a revenue decrease to $20.9 million from $26.4 million in the same quarter the previous year, although this was an improvement from the prior quarter. The company also posted a net loss of $0.09 per share, which did not meet analyst expectations of a $0.05 loss per share. Meanwhile, H.C. Wainwright reduced its price target for Orion Energy Systems from $3.00 to $2.00, citing a weaker-than-expected revenue outlook for fiscal year 2026. Orion projects annual revenue of $84.0 million, which represents approximately 5% year-over-year growth but falls short of H.C. Wainwright’s previous expectation of $94.1 million. Despite these challenges, the firm maintained a Buy rating on Orion, indicating confidence in its potential. These developments highlight the mixed reactions and adjustments from analysts and investors regarding Orion’s financial performance and future projections.

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