6 days ago
Orion Energy Systems Inc (OESX) Q4 2025 Earnings Call Highlights: Navigating Challenges with ...
Q4 2025 Revenue: $20.9 million, up from $19.6 million in Q3 2025, but down from $26.4 million in Q4 2024.
Fiscal 2025 Revenue: $79.7 million, compared to $90.6 million in fiscal 2024.
EV Charging Revenue Growth: 18% in Q4 2025 and 37% for the full fiscal year 2025.
EV Charging Gross Margin: Improved to 28.4% in FY25 from 27.9% in FY24.
LED Lighting Revenue Decline: 33% in Q4 2025 and 22% for fiscal 2025 compared to prior year periods.
LED Lighting Gross Margin: 28.4% in fiscal 2025, compared to 27.3% in fiscal 2024.
Electrical Maintenance Revenue: $4.1 million in Q4 2025, down from $5.2 million in Q4 2024.
Maintenance Services Gross Margin: Improved to 24.6% in fiscal 2025 from 15.6% in fiscal 2024.
Overall Gross Profit Margin: Increased to 27.5% in Q4 2025 from 25.8% in fiscal 2024.
Q4 2025 Net Loss: $2.9 million or $0.09 per share, compared to net income of $1.6 million or $0.05 per share in Q4 2024.
Fiscal 2025 Net Loss: $11.8 million or $0.36 per share, compared to a net loss of $11.7 million or $0.36 per share in fiscal 2024.
Operating Cash Flow: Positive $0.6 million in fiscal 2025, improved from negative $10.1 million in fiscal 2024.
Revolver Borrowings: Reduced to $7 million at the end of fiscal 2025 from $10 million a year ago.
Fiscal 2026 Revenue Outlook: Approximately $84 million, with modest growth in LED lighting and electrical maintenance revenues.
Warning! GuruFocus has detected 2 Warning Signs with OESX.
Release Date: June 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Orion Energy Systems Inc (NASDAQ:OESX) achieved 37% growth in revenue at its Voltrek Electric Vehicle Charging Station Solutions business.
The company accomplished a substantial turnaround in the profitability of its Electrical Maintenance Business.
Orion Energy Systems Inc (NASDAQ:OESX) has expanded its pipeline for LED lighting projects, enhancing future revenue visibility.
The company reduced operating overheads by more than $4 million in FY25, with further reductions planned for FY26.
Orion Energy Systems Inc (NASDAQ:OESX) achieved positive adjusted EBITDA in both Q3 and Q4, along with positive operating cash flow for the full fiscal 2025 year.
Lighting segment revenue remained challenged in FY25, with a 33% decline in Q4 and a 22% decline for the fiscal year.
The company reported a net loss of $2.9 million in Q4 25, compared to net income of $1.6 million in Q4 24.
Fiscal 25 revenue decreased to $79.7 million from $90.6 million in fiscal 24, reflecting reduced major project activity.
Orion Energy Systems Inc (NASDAQ:OESX) anticipates flat to slightly lower EV charging revenues in fiscal 26 due to uncertainty around project funding.
The company experienced a $3.5 million year-over-year increase in Voltrek earnout expense, impacting fiscal 25 operating expenses.
Q: Can you provide insights into the order trends and their consistency throughout the quarter? A: Sally Washlow, CEO, noted that the year started strong with orders, particularly in April, and continued to progress in May and June. The reduction in noise at the federal level has helped, and they expect this trend to continue. Per Brodin, CFO, added that some orders are actualizations of past projects, now reflecting in the pipeline.
Q: What assumptions are behind the flat to down outlook for the EV charging business in fiscal '26? A: Sally Washlow explained that they are taking a conservative approach due to uncertainties in the macro environment. Despite a strong pipeline, the noise at the federal level has impacted some projects. They continue to focus on capturing market share and progressing on several projects.
Q: Are you being overly cautious with the EV outlook given the strong Q4 revenue? A: Per Brodin stated that while they have a strong pipeline, they are cautious due to potential impacts from federal funding issues. One significant project was canceled, but they believe utility and state funding will support their conservative objectives.
Q: What is the thought process behind settling earnout obligations with stock at current prices? A: Per Brodin explained that the agreement was to mitigate near-term liquidity impacts, combining shares, cash, and a subordinated note to satisfy obligations satisfactorily for both parties.
Q: Can you elaborate on the impact of federal government rule changes on your business? A: Sally Washlow mentioned minimal impact from federal changes on the EV segment, with one project canceled. The lighting segment remains strong with ongoing projects in various government sectors. Per Brodin added that utility and state funding drive much of their business, less affected by federal changes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
