Q2 2025 Orion Energy Systems Inc Earnings Call Transcript
Key Points
- Orion Energy Systems Inc (OESX) reported a strong rebound in its maintenance services business, achieving better-than-expected revenue and returning to solid gross margin profitability.
- The company secured a five-year $25 million contract to supply LED lighting fixtures for new store construction projects for a major national retailer, extending their existing relationship.
- Orion Energy Systems Inc (OESX) is experiencing robust quoting activity in its LED lighting project business, with a new multi-year contract expected to exceed $10 million.
- The EV charging station segment saw a 40% revenue growth in Q2, driven by construction contracts for Eversource Energy customers and additional work for Boston public schools.
- The company is well-positioned to capitalize on state-led bans on fluorescent lighting, which is expected to accelerate the conversion to more energy-efficient LED lighting technologies.
- The LED lighting segment was impacted by customer delays, with several projects slipping into the second half of the fiscal year.
- Distribution channels, including energy service companies and electrical contractors, faced timing delays and softness in new construction markets.
- Year-over-year revenue comparisons were negatively influenced by the completion of a large European retrofit project in the previous year.
- Orion Energy Systems Inc (OESX) revised its fiscal 2025 revenue growth outlook to approximately 10%, down from the prior outlook of 10 to 15% growth, due to project delays.
- The company incurred $300,000 in restructuring and severance costs in Q2, reflecting actions to rightsize the maintenance business following the roll-off of unprofitable legacy accounts.
Good morning, everyone and welcome to Orion Energy Systems fiscal 2025 2nd quarter conference call at this time, all participants are in a listen-only mode after the speaker's presentation, there will be a question and answer session to ask a question during the session (Operator Instructions). I'll now turn the call over to Bill Jones Investor Relations to begin.
Thank you, Kathy and Good morning to everyone and thank you for joining this call. Orion reported its fiscal 2025 2nd quarter results this morning.
And Mike Jenkins, the company's CEO and Per Brodin Orion's CFO will review its Q2 results financial position and fiscal 2025 outlook. Following their prepared remarks, we will open the call to investor questions.
Today's conference call is being recorded and a replay will be posted in the investors section of Orion's corporate website, Orionlighting dotcom as a reminder, remarks and answers to questions that follow include statements which are forward-looking under the Private
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