Orion Energy Systems, Inc. Q2 FY2026 earnings call

• Achieved 4th consecutive quarter of positive adjusted EBITDA. Q2 revenue was $19.9 million vs $19.4 million in Q2 '25.
• Milestones met: Maintained NASDAQ listing, initiated growth initiatives leading to 34% higher gross profit in Q2. On track for $84 million revenue and positive adjusted EBITDA for fiscal year.
• Lighting: Significant new business wins, including $11M in government lighting and $7M in automotive LED lighting. Q2 gross margin improved.
• EV charging: Bounced back from sector uncertainty, with $8.5M in work in Massachusetts and federal EV charging fund clarity.
• Maintenance: Grew 18% despite lapsing unprofitable contract, with ongoing managed services ramping recurring revenue.
• Product initiatives: Triton Pro LED fixtures gaining traction, electrical infrastructure bundling to integrate offerings like LED, EV charging, and maintenance services.

LED lighting segment revenue decreased 2% to $10.7 million in Q2 '26 compared to $10.8 million in Q2 '25, with Q2 '26 gross margin at 27.5% vs 25.4% in Q2 '25. Maintenance segment revenue increased 18% to $4.5 million in Q2 '26 from $3.8 million in Q2 '25, with Q2 '26 gross margin at 23.7% vs 15.3% in Q2 '25. EV charging solutions revenue was $4.8 million in Q2 '26 compared to $4.7 million in Q2 '25, with Q2 '26 gross margin at 45.8% vs 23.7% in Q2 '25. Overall gross margin increased to 31% in Q2 '26 vs 23.1% in Q2 '25.

• Fiscal '26 revenue expected ~$84 million, 5% growth.
• Revenue growth anticipates modest growth in LED lighting and maintenance, flat to slightly lower EV charging.
• Overall gross margin expected to remain strong but vary quarter-to-quarter due to revenue mix and volume.

• Forward-looking statements subject to risks described in press releases and SEC filings, including those related to market conditions, competition, and operational uncertainties.

Q: Eric Stine on EV business and bundled offerings A: Sally Washlow on enterprise customers integrating LED and EV, geographic expansion with hiring in Florida and targeting other areas Q: Sameer Joshi on EV outlook, gross margins, earn-out payments A: John Brodin on EV guidance (flat to slightly lower year-over-year), margin expectations (high 20s to 30% range), and earn-out accruals (payments made, remaining balance subject to arbitration) Q: William Dezellem on Lighting ESCO distribution, maintenance revenue headwind, maintenance as lead generator A: John Brodin on ESCO channel progress (distribution channel revenue increase), Sally Washlow on maintenance revenue impact from unprofitable contract lapse (less than $0.5M headwind) and maintenance as lead generator for product sales Q: Steve Rudd on cost containment A: John Brodin on rightsizing business for breakeven at $80-83M revenue, leveraging infrastructure for growth while balancing savings and investment in growth opportunities