Tuesday, December 3, 2024

Highlights from Orion Energy Systems Inc’s Q2 2025 Earnings Call: Strategies for Sustained Growth

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Orion Energy Systems Inc (NASDAQ:OESX) reported mixed financial results for Q2, with total revenue declining to $19.4 million from $20.6 million year-over-year. However, the company’s EV charging station revenue surged by 40%, reaching $4.7 million, while maintenance services revenue increased modestly to $3.8 million. Despite facing project delays and a net loss of $3.6 million—an improvement over the previous year—the company reported a strengthened gross margin of 23.1%. Notably, Orion secured a significant five-year $25 million contract for LED lighting with a national retailer, and its fiscal 2025 revenue growth outlook was revised to around 10%, down from an earlier estimate of 10-15%. The company also indicated it is well-positioned to benefit from state-led initiatives promoting energy-efficient LED technologies.

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