Orion Energy Systems, Inc. Q1 FY2026 earnings call

• Orion is recognized for quality in LED lighting, EV charging, and maintenance services. Milestones for FY '26 include a positive resolution by end of third quarter, a growth/profitability/cost containment initiative by end of third quarter, and $84 million revenue with positive adjusted EBITDA by end of fourth quarter.
• In Q1 '26, gross profit percentage rose to over 30% for the first time in about 6 years, and third consecutive quarter of positive adjusted EBITDA. Reduced total operating expenses by 10.6% to $6.9 million. Progress in LED lighting projects, growth in maintenance service revenue, and success with Triton Pro in lighting distribution. Electrical infrastructure as a growth avenue with existing experience in large projects, EV charging, and maintenance services. Retained existing operational structure after review.

LED lighting segment: Revenue increased 1% to $12.9 million in Q1 '26 compared to $12.8 million in Q1 '25. Q1 '26 gross margin was 31.8% vs. 22.6% in Q1 '25. Electrical Maintenance segment: Revenue rose 21% to $4 million in Q1 '26 from $3.3 million in Q1 '25. Q1 '26 gross margin was 22.4% vs. 3.8% in Q1 '25. EV charging solutions: Revenue was $2.7 million in Q1 '26 vs. $3.8 million in Q1 '25. Overall gross profit margin increased to 30.1% in Q1 '26 from 21.6% in Q1 '25.

• Reiterated fiscal '26 revenue growth expectation of 5% to approximately $84 million. Anticipates modest growth in LED lighting and electrical maintenance revenues, and flat to slightly lower EV charging revenues due to near-term funding uncertainty. Expect to manage tariffs with net neutral impact for the business.

• Risks include those described in the company's press release and SEC filings, which could cause actual results to differ materially from forward-looking statements.

Q: Eric Stine asks about the electrical infrastructure piece and revenue pipeline growth into fiscal '27 and beyond.

A: Sally Washlow states they are in early stages of electrical infrastructure, with growth leading to more investment, and the pipeline will benefit beyond the current year. John Per Brodin adds the pipeline will benefit in the current year and years beyond.

Q: William Joseph Dezellem asks about details of the electrical infrastructure contract win and if it's by customer request.

A: Sally Washlow says they're in early innings of the project, started from a customer request, and will provide more details in future releases. John Per Brodin mentions Phase 1 of Boston project was ~$1.3 million, Phase 2 was ~$1 million, and it's an ongoing expansion. Sally Washlow also mentions fluorescent bulb ban dynamics will be followed up on, and it's a driver but ROI is also a big driver.