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Orion Energy (OESX)
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Orion Energy Systems (OESX) AI Stock Analysis

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OESX

Orion Energy Systems

(NASDAQ:OESX)

Rating:45Neutral
Price Target:
$0.50
▼(-16.67%Downside)
Orion Energy Systems faces significant financial challenges, with declining revenues and persistent losses impacting the stock's overall appeal. Technical indicators are weak, and valuation is hampered by negative earnings. However, achievements in the EV charging business and cost reductions offer some optimism but are not enough to offset broader challenges.
Positive Factors
Gross Margins
Gross margins for F3Q25 improved to 29.4% due to profitability improvements in the maintenance and lighting segments through price and cost actions.
Sales Growth Outlook
Management expects to capture some of the delayed LED business in the second half of its fiscal year, with outlook provided for 10% expected sales growth in FY2025.
Negative Factors
Delayed Projects
Orion Energy's F3Q25 revenues were impacted by delayed LED lighting projects and general market softness reflecting customer uncertainty concerning the economy.
Government Contracts
Some pressure on the stock may come from Orion Energy's history of winning and deploying government-related contracts in an uncertain environment.

Orion Energy Systems (OESX) vs. SPDR S&P 500 ETF (SPY)

Orion Energy Systems Business Overview & Revenue Model

Company DescriptionOrion Energy Systems, Inc. (OESX) is a leading provider of energy-efficient LED lighting and controls systems. The company operates primarily in the energy efficiency sector, offering comprehensive lighting solutions that aim to improve energy performance and reduce costs for commercial, industrial, and retail clients. Orion's core products include high-performance LED fixtures, smart building control systems, and other energy management solutions that help organizations optimize their energy usage and achieve sustainability goals.
How the Company Makes MoneyOrion Energy Systems makes money through the design, manufacture, and sale of LED lighting systems and energy management solutions. Their revenue model is primarily based on selling energy-efficient lighting products and related services directly to end-users in various sectors, including commercial, industrial, and retail. The company also generates revenue through installation and project management services, ensuring that clients' lighting systems are efficiently integrated and optimized. Additionally, Orion engages in significant partnerships with contractors and distributors to expand their market reach and drive sales. Their ability to offer comprehensive lighting solutions tailored to specific client needs is a crucial factor in their earnings, allowing them to capture a share of the growing market for energy-efficient technologies.

Orion Energy Systems Earnings Call Summary

Earnings Call Date:Jun 26, 2025
(Q4-2025)
|
% Change Since: 1.69%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with significant achievements in the EV charging business and cost reductions balanced by challenges in the lighting segment and a decline in overall revenue, resulting in a slight net loss for the fiscal year.
Q4-2025 Updates
Positive Updates
Strong Growth in EV Charging Business
The Voltrek electric vehicle charging station solutions business achieved 37% growth in revenue, with improved gross margins of 28.3% in FY '25 compared to 27.2% in FY '24.
Cost Reductions and Improved Margins
Meaningful reductions in the cost of LED lighting fixtures and operating overheads by more than $4 million in FY '25, with further reductions planned in FY '26, leading to increased gross profit margins.
Business Reorganization for Growth
Reorganized into two commercial business units, Solutions and Partners, to better capitalize on strengths and optimize success across LED lighting, EV charging, and electrical maintenance.
Positive Adjusted EBITDA
Achieved positive adjusted EBITDA in both Q3 and Q4, along with positive operating cash flow for the full fiscal year.
Negative Updates
Decline in Overall Revenue
Fiscal '25 revenues were $79.7 million, down from $90.6 million in fiscal '24, with LED lighting revenue trailing prior year periods by 33% in Q4 '24 and 22% for the full year.
Challenges in Lighting Segment
Lighting segment revenue remained challenged in FY '25, with reduced major project activity and product demand impacting revenue.
Net Loss for Fiscal '25
Net loss increased slightly to $11.8 million or $0.36 per share compared to a net loss of $11.7 million or $0.36 per share in fiscal '24.
Company Guidance
During the call, Orion Energy Systems provided guidance for fiscal year 2026, with a revenue outlook of approximately 5% growth, targeting around $84 million. The company achieved positive adjusted EBITDA in both Q3 and Q4 of fiscal 2025, despite a decline in annual revenue from $90.6 million in fiscal 2024 to $79.7 million in fiscal 2025. Orion's CEO, Sally Washlow, highlighted a 37% revenue growth in the Voltrek electric vehicle charging station solutions business and improvements in the electrical maintenance segment's profitability. The company reduced operating overheads by over $4 million in fiscal 2025, with an additional $1.5 million in annual reductions planned for fiscal 2026. Gross margins improved to 27.5% in Q4 2025, up from 25.8% in fiscal 2024. Orion is reorganizing into two business units, Solutions and Partners, to better leverage its capabilities, with the Solutions unit focusing on LED lighting, EV charging, and maintenance services, while the Partners unit targets sales through distribution channels. Despite challenges, Orion remains committed to optimizing its strengths and achieving growth and profitability goals.

Orion Energy Systems Financial Statement Overview

Summary
Orion Energy Systems exhibits financial challenges with declining revenues, persistent losses, and margin pressure. The balance sheet is weakened by cumulative losses, posing liquidity risks. Although there's a positive trend in cash flow, it remains insufficient for a strong recovery.
Income Statement
35
Negative
Orion Energy Systems has experienced declining revenue and profitability over recent years. The gross profit margin has decreased from previous years, indicating pressure on cost management or pricing. Consistent net losses and negative EBIT margins highlight ongoing operational challenges. The revenue growth rate is negative, reflecting a contraction in business scale.
Balance Sheet
45
Neutral
The balance sheet reveals a moderate debt-to-equity ratio, reflecting some reliance on debt financing, although it remains manageable. Equity has been eroding over the past periods due to accumulated losses, impacting the equity ratio negatively. This indicates potential risks related to financial stability and liquidity.
Cash Flow
50
Neutral
Cash flow analysis shows improvement in free cash flow, although it remains limited. The operating cash flow to net income ratio is volatile, highlighting fluctuations in operational cash generation. While free cash flow has turned positive, it remains insufficient to cover historical losses fully.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue79.72M90.58M77.38M124.38M116.84M
Gross Profit20.24M20.91M17.51M33.91M30.12M
EBITDA-8.32M-8.29M-14.03M9.93M8.18M
Net Income-11.80M-11.67M-34.34M6.09M26.13M
Balance Sheet
Total Assets52.46M63.17M71.58M86.82M92.82M
Cash, Cash Equivalents and Short-Term Investments5.97M5.16M15.99M14.47M19.39M
Total Debt10.32M12.11M10.02M35.00K49.00K
Total Liabilities40.58M40.63M38.33M21.72M34.75M
Stockholders Equity11.88M22.54M33.25M65.10M58.07M
Cash Flow
Free Cash Flow494.00K-10.93M-2.89M-641.00K776.00K
Operating Cash Flow599.00K-10.09M-2.29M-113.00K1.73M
Investing Cash Flow128.00K-731.00K-6.20M-4.92M-946.00K
Financing Cash Flow90.00K-14.00K10.01M104.00K-10.14M

Orion Energy Systems Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.60
Price Trends
50DMA
0.62
Negative
100DMA
0.68
Negative
200DMA
0.77
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.46
Neutral
STOCH
55.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OESX, the sentiment is Neutral. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.62, and below the 200-day MA of 0.77, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 55.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OESX.

Orion Energy Systems Risk Analysis

Orion Energy Systems disclosed 41 risk factors in its most recent earnings report. Orion Energy Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Orion Energy Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$11.18B15.795.49%1.92%3.14%-24.90%
58
Neutral
$39.03M-43.18%-19.60%-483.35%
45
Neutral
$20.15M-68.57%-11.99%0.06%
43
Neutral
$26.40M-172.05%-58.05%-6.90%
26
Underperform
$44.46M-860.70%-12310.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OESX
Orion Energy Systems
0.60
-0.42
-41.18%
PPSI
Pioneer Power Solutions
3.51
-0.11
-3.04%
GWH
ESS Tech
1.94
-9.17
-82.54%
SDST
Stardust Power
0.53
-11.79
-95.70%

Orion Energy Systems Corporate Events

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Orion Energy Systems Implements Cost-Saving Salary Reductions
Neutral
Feb 11, 2025

On February 11, 2024, Orion Energy Systems announced voluntary salary and retainer reductions for its executive officers and board members as part of temporary cost-saving measures. The company also reported improved financial results for the fiscal 2025 third quarter, including a gross margin increase to 29.4%, reduced net loss, and break-even adjusted EBITDA. Orion’s reorganization into two business units aims to enhance sales and marketing effectiveness, aligning with its focus on long-term growth. Despite lowering its FY 2025 revenue outlook due to project delays and market conditions, Orion’s strategic moves, such as cost reduction and business realignment, position it for better performance in FY 2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025