Orion Energy Systems Reports Q4 and FY'25 Results
Orion Energy Systems, Inc., a provider of energy-efficient LED lighting, electric vehicle (EV) charging stations, and maintenance services solutions, has released its financial results for the fourth quarter (Q4'25) and fiscal year ended March 31, 2025 (FY'25). The company also provided an initial revenue outlook for fiscal 2026 (FY'26).
Financial Highlights
Orion reported a total revenue of $20.9 million for Q4'25, a decrease of 21% compared to $26.4 million in Q4'24. For the full fiscal year, revenue was $79.7 million, down 12% from $90.6 million in FY'24. The company's gross profit for Q4'25 was $5.7 million, with a gross margin of 27.5%, up from 25.8% in Q4'24. Despite the revenue decline, Orion's gross margin for FY'25 improved to 25.4%, an increase of 230 basis points from FY'24.
Net income for Q4'25 was a loss of $2.9 million, or $0.09 per share, compared to a net income of $1.6 million, or $0.05 per share, in Q4'24. For the full fiscal year, the net loss was $11.8 million, or $0.36 per share, consistent with the net loss of $11.7 million in FY'24.
Business and Operational Highlights
Orion's LED lighting revenue for Q4'25 was $10.9 million, a 33% decrease from $16.3 million in Q4'24. EV charging revenue increased by 18% to $5.8 million in Q4'25, while maintenance revenue decreased by 21% to $4.1 million. For the full fiscal year, LED lighting revenue was $47.7 million, EV charging revenue was $16.8 million, and maintenance revenue was $15.2 million.
Notably, Orion achieved its second consecutive quarter of positive adjusted EBITDA in Q4'25 and reported a modest increase in its cash position compared to Q4'24. The company also secured new LED lighting engagements with a five-year revenue potential of $100 million to $200 million.
Strategic Initiatives and Corporate Developments
Orion has implemented business process improvements over the past two years to reduce operating expenses, improve profit margins, and lower its annual adjusted EBITDA breakeven point. The company plans to further reduce its overhead by $1.5 million in FY'26 through targeted expense reductions and cost-saving initiatives.
Additionally, Orion enhanced its liquidity position by entering into a binding term sheet with the former owners of Voltrek, agreeing to arbitrate the amount of the final Voltrek acquisition earnout payments. This agreement includes a payment in common stock and a two-year subordinated 7% note.
Management's Perspective
Orion CEO Sally Washlow commented on the company's progress in supporting growth goals, reducing cost structures, and enhancing margins. She highlighted the impact of lower LED lighting project activity and reduced sales within the electrical contractor and lighting distribution channel on FY'25 revenue. However, she noted the 37% revenue growth from the Voltrek EV charging business and the profitability turnaround in the electrical maintenance business as bright spots.
Washlow also emphasized the expansion of the LED lighting project pipeline and the company's efforts to re-engage with channel partners and secure new customer and contract wins. She mentioned the meaningful reductions in input costs of LED lighting fixtures and the substantial margin rebound in the electrical maintenance business.
Future Outlook
Orion's initial FY'26 outlook anticipates a 5% revenue growth to approximately $84 million. The company expects to approach or achieve positive adjusted EBITDA for the full fiscal year, based on operating cost and gross profit percentage improvements.
Key contracts and projects expected to contribute to FY'26 and future period results include multi-year LED lighting retrofit contracts, a five-year contract extension with a major retail customer, new construction and LED retrofit projects in U.S. Government Agency facilities, and a strong EV charging backlog.
SEC Filing: ORION ENERGY SYSTEMS, INC. [ OESX ] - 8-K - Jun. 26, 2025