Orion Energy Systems Reaffirms FY2027 Outlook After 32% Revenue Growth

Key Points

• Orion reaffirmed its fiscal 2027 outlook for revenue of $95 million to $97 million and positive adjusted EBITDA after first-quarter revenue rose 32% year over year to $25.7 million.
• Profitability improved sharply, with gross margin reaching 34.6%, net income turning positive at $2 million, and adjusted EBITDA increasing to $2.5 million; the quarter marked the company’s seventh consecutive quarter of positive adjusted EBITDA.
• Growth initiatives center on industrial electrification, including a new multimillion-dollar hyperscaler data-center project, expanded EV fleet-charging work, battery storage, electrical contracting and U.S.-made roadway lighting.

Orion Energy Systems NASDAQ: OESX said it expects continued revenue and profitability growth in fiscal 2027 following what Chief Executive Officer Sally Washlow described as a successful turnaround in fiscal 2026.

Speaking during an investor event, Washlow said the company continues to forecast fiscal 2027 revenue of $95 million to $97 million and positive adjusted EBITDA for the full year. The company reiterated that outlook after reporting a strong first quarter, she said.

For the first quarter of fiscal 2027, Orion reported revenue of $25.7 million, up 32% year over year. Gross margin increased 15% year over year to 34.6%, while net income was $2 million, compared with a loss of $1.2 million in the prior-year period. Adjusted EBITDA reached $2.5 million, compared with $200,000 a year earlier.

Washlow said the first quarter represented Orion’s seventh consecutive quarter of positive adjusted EBITDA. She attributed the performance to an improving sales funnel, cost-containment initiatives and continued development of the company’s proprietary supply chain.

Focus on Industrial Electrification

Orion designs, installs and maintains LED lighting systems, EV charging stations and electrical infrastructure. Its customers include data center operators, automakers, retailers, shipping hubs and fleet operators, according to Washlow.

The company sees three principal growth drivers in the electrification of U.S. industrial facilities:

• Reshoring, refurbishment and expansion of manufacturing, retail and government facilities.
• Electrification of private- and public-sector vehicle fleets, including logistics operations and school districts.
• Data center construction activity.

Washlow said Orion’s domestic supply chain and manufacturing capabilities position it to serve customers amid changes in international trade conditions. The company designs and engineers products, with some products made in Manitowoc, Wisconsin, she said.

Data Centers, EV Infrastructure and New Offerings

During the first quarter, Orion entered the data center market through what Washlow called an inaugural multimillion-dollar engagement with one of the largest hyperscalers. The company’s lighting fixture for the project was designed to integrate quickly into data center floor plans, she said.

Washlow said Orion won the data center project through its distribution channel and expects growth across its turnkey-solutions, distribution and energy-service-company, or ESCO, channels over the next 12 months.

Automotive, retail and public-sector activity also showed strength during the quarter, according to Washlow. She highlighted the company’s work on complex EV charging infrastructure projects for large public school bus fleets and said Orion is seeking to expand that business across a broader customer base and geographic footprint.

The company recently appointed Karen Peck to lead EV charging infrastructure sales, Washlow said.

Orion has also added battery energy storage systems, electrical contracting and LED roadway lighting to its offerings. Washlow said the battery storage initiative began after an existing customer asked Orion to provide the technology. The initial work involved 10 facilities in California, and the company is working to expand the capability to additional sites for that customer.

The newly launched roadway lighting product will be manufactured at Orion’s Manitowoc facility, Washlow said. She said U.S.-based production is important for sales to municipalities and states.

Outlook Reaffirmed

Washlow said the company expects the first-quarter pattern of positive adjusted EBITDA and strong margins to continue through the rest of fiscal 2027. She said Orion remains focused on executing against its stated revenue outlook while bringing newer products and services to market.

“We continue to expect that to occur throughout the year and meet our guidance of $95 million-$97 million,” Washlow said.

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.

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