Executives from Orion Energy Systems (NASDAQ:OESX) outlined the company’s strategy and recent project activity during a conference presentation, emphasizing its role as a provider of energy efficiency and clean-tech solutions across LED lighting, maintenance and technical services, and electric vehicle (EV) charging systems.
Business overview and go-to-market approach
CEO Sally Washlow said the company’s mission is to help customers meet sustainability, energy savings, and carbon footprint reduction goals “through innovative technology and exceptional service.” Orion’s core offerings are organized across three segments: lighting, maintenance/technical services, and EV charging.
Washlow highlighted Orion’s U.S.-based manufacturing footprint, describing a 266,000-square-foot manufacturing facility located next to its headquarters in Manitowoc, Wisconsin. She said the domestic manufacturing capability supports flexibility and accelerated product development, and helps the company meet requirements related to Buy American Act (BAA) and Build America, Buy America (BABA) compliance, while Orion also leverages global supply chain partners for additional flexibility and cost effectiveness. Washlow said Orion can deliver products “within four to six months” compared with longer lead times elsewhere in the market.
Maintenance services and recurring revenue
Orion’s maintenance and technical services group provides recurring services across lighting and EV systems, including preventative and reactive lighting work, electrical services, and EV maintenance. Washlow referenced a previously announced three-year renewal with one of Orion’s largest customers and partners, which is expected to provide $45 million of maintenance services over three years. She added that this contract supports a national service footprint, supported by a network of skilled and certified professionals and a dedicated 24-hour response capability.
When asked about the mix of recurring and project-based revenue, Washlow said Orion breaks out maintenance revenue separately in its financial reporting, and described maintenance revenue as “a little north of $15 million every year.” She added that EV revenue is “about the same,” with the remainder of the company’s revenue coming from lighting-related business.
EV charging and the Voltrek platform
In EV charging, Orion operates under the Voltrek brand and provides end-to-end commercial EV charging solutions, including site design, installation, and commissioning. Washlow said Orion works with equipment suppliers including ChargePoint and ABB, and focuses on Level 2 and DC fast charging installations as well as fleet deployments. She also cited networking and maintenance services within EV charging as a recurring revenue contributor.
Washlow said Voltrek brought 15 years of EV experience to Orion and described the business as one of the premier resellers of EV charging stations. She added that Orion is a preferred contractor for ABB, ChargePoint, and In-Charge Energy, and stated the company has more than 7,300 charging ports under management.
Recent project highlights: BESS and electrical contracting
During the Q&A session, Washlow discussed a newly announced rollout of localized battery energy storage systems (BESS) at an initial three sites in California. She said the project originated from an existing customer relationship and reflects inbound customer requests for expanded capabilities beyond Orion’s existing turnkey and maintenance work. Washlow said Orion expects the initial rollout to expand to more than 10 sites within the broader project, with approximately 10 sites potentially completed over the next nine months.
Washlow also tied battery storage to EV charging economics, saying battery systems can help operators reduce costs by drawing power during peak pricing periods from stored energy rather than from the grid.
Separately, Washlow addressed a recently announced $3.1 million electrical contracting and infrastructure engagement that is part of a multi-year modernization initiative. She described electrical contracting as an emerging growth area and an extension of Orion’s turnkey project management capabilities. Washlow said some opportunities begin as smaller lighting projects and expand into “seven-figure” engagements as customers request additional work, including facility upgrades to meet code requirements.
Financial and operational commentary
Washlow shared summary metrics covering the most recent 12 months, stating that Orion’s last-twelve-month revenue was “just above $80 million,” with gross margin “around a little under 30%.” She also said the company expects to be positive on adjusted EBITDA “through the year based on our guidance,” noting adjusted EBITDA of $1.7 million through the third quarter of 2024.
On profitability initiatives, Washlow said Orion has removed $6.5 million in costs over the past year, and has held gross margin near the 30% level. Discussing controls and IoT integration, she said Orion does not develop its own controls and is “control agnostic,” partnering with various controls providers to meet customer requirements and connect into building management systems through those third-party solutions.
On the outlook, Washlow pointed to Orion’s previously issued fiscal 2027 guidance, stating that fiscal 2026 ends at the end of March and that the company is guiding “within the mid-nineties” for fiscal 2027 revenue.
About Orion Energy Systems (NASDAQ:OESX)
Orion Energy Systems, Inc is a U.S.-based provider of energy-efficient lighting and building controls solutions. Founded in 1996 and headquartered in Manitowoc, Wisconsin, the company specializes in designing, manufacturing and deploying LED lighting fixtures and integrated energy management systems for commercial and industrial customers.
The company’s product portfolio includes a range of LED light fixtures, smart sensors, networked controls and cloud-based energy management software.
