ORION ENERGY SYSTEMS, INC. Q2 FY2025 earnings call

• Voltrek EV charging station business continues to show strength with momentum expected in the second half.
• LED lighting segment has robust quoting activity despite customer delays, with new projects and contracts in the works.
• Maintenance services business rebounded with better-than-expected revenue, improved margins, and restructuring to right-size the business.
• Macro tailwinds include energy prices, climate/ESG, transportation electrification, state LED fluorescent bans, and bi-American initiatives.
• Triton Pro and new exterior products have generated over $4 million in revenue with an open pipeline of over $18 million.

LED Lighting

• Q2 2025 revenue was impacted by customer project delays, but there's robust quoting activity. A large European retrofit project from Q1 2024 didn't carry over. Recently received POs for a multi-year, over $10 million project with a products distributor and a $25 million contract with a major national retailer for new store construction.

Voltrek EV Charging Station

• Revenue grew 40% to $4.7 million in Q2 2025 from $3.4 million in Q2 2024. Benefited from Eversource Energy's EV Make Ready program and Boston Public Schools projects. Pipeline remains steady at $45 million to $50 million.

Maintenance Services

• Revenue grew to $3.8 million in Q2 2025 from $3.6 million in Q2 2024. Improved margins due to pricing discipline, with a 2,300 basis point improvement. Expected fiscal 2025 decline lower than initial $4M-$5M range.

• Revised fiscal 2025 revenue growth to approximately 10% from prior 10%-15% due to LED project delays, with revenue weighted more towards Q4.
• Expect positive adjusted EBITDA in the second half of fiscal 2025 and neutral for the full year.
• EV business expected to maintain similar pace or slightly above in the second half.
• Maintenance business decline expected to be lower than initial $4M-$5M range.

• Risks include those described in press release and SEC filings, such as impact of tariffs, macroeconomic uncertainties, customer project delays, and potential differences between projected and actual results.

Q: Eric Stein asks about revenue growth expectation and segment breakdown.

A: Mike Jenkins says LED to recover in second half, EV to maintain pace, maintenance now more profitable with lower decline than expected.

Q: Amit Dayal asks about macro impact of tariffs and on-shoring.

A: Mike Jenkins says tariffs could be favorable for Orion, and they are active in on-shoring-related new builds with Triton Pro.

Q: Bill Dezellem asks about maintenance restructuring and LED weighting.

A: Mike Jenkins explains maintenance restructuring and says LED will grow in second half.

Q: Gowshihan Sriharan asks about project delays, EV pipeline, Triton Pro feedback.

A: Per Brodin says delays will carry over to fiscal 2026, EV target to be exceeded, Triton Pro performing well with strong numbers.