October 29, 2024
Orion’s Performance Points to Lighting Decline, EV Growth
Halfway through fiscal year, company pulls back on its revenue guidance
Orion Energy Systems, Inc. (NASDAQ: OESX), a Wisconsin-based provider of LED lighting, EV charging solutions, and related services, released a preliminary preview of its fiscal 2025 second-quarter results for the period ended September 30, 2024.
Orion plans to publish its full Q2 2025 earnings report on November 6. This preview comes amid continued challenges for the company, including a delisting notice from Nasdaq received on September 20—the third such notice in under a year—as Orion’s stock has traded below the $1.00 threshold since August 9, 2024.
Revenue Performance and Segment Highlights
In Q2 2025, Orion reported preliminary revenue of approximately $19.4 million, down from $20.6 million in the same period last year. For the first half of fiscal 2025, the company’s revenue totaled $39.3 million, a modest increase from $38.2 million in the first six months of fiscal 2024.
A significant revenue driver this quarter was Orion’s EV charging solutions segment, which saw a 40% increase over Q2 2024, reaching $4.7 million. This growth reflects important contracts with Eversource Energy’s “EV Make Ready” program and projects for Boston Public Schools, highlighting Orion’s expanding role in the EV infrastructure market. By contrast, LED lighting revenue declined 20%, attributed to the completion of a large European retrofit project in the prior quarter and delayed U.S. projects expected to commence in the second half of fiscal 2025.
Orion reports that it recently secured a five-year, $25 million contract to supply LED fixtures for new store construction for a national retailer, an agreement that may provide long-term revenue stability for its LED segment despite current challenges.
Maintenance Services Growth and Cash Management
Orion’s maintenance services segment recorded a 5% increase year-over-year, totaling $3.8 million in Q2 2025. Following declines earlier in the fiscal year, this segment rebounded, improving profitability with a 2,290 basis-point increase in gross margins compared to Q2 2024. The company ended the quarter with $5.4 million in cash, reflecting strategic cash management that included a $1 million debt repayment on its bank facility.
Company Revises Full Year Outlook
Given delays in LED project starts, Orion revised its fiscal 2025 revenue growth outlook to approximately 10%, down from its prior 10-15% estimate. The company anticipates that postponed projects will bolster revenue more heavily in the fourth quarter. Orion remains optimistic about ongoing EV segment growth, even as its maintenance services revenue is expected to decrease due to the planned elimination of unprofitable contracts.
Orion’s Q2 earnings report on November 6 will offer a complete financial and operational review as the company navigates fluctuating demand across its lighting and EV solutions sectors, and as it addresses ongoing compliance with Nasdaq listing standards.
