Orion Energy Systems (NASDAQ: OESX) today announced its financial results for the first quarter of fiscal year 2026 (Q1'26), reporting revenue of $19.6 million. Gross margin improved by 850 basis points to 30.1%, and the company achieved positive Adjusted EBITDA of $0.2 million, marking the third consecutive quarter of achieving this goal. Additionally, the company reaffirmed its fiscal 2026 outlook for 5% revenue growth to approximately $84 million, which, if achieved, is expected to drive the full year to near or positive Adjusted EBITDA.

Revenue decreased by 2% year-over-year, partially offset by growth in the Maintenance Services and LED lighting segments despite a decline in EV charging revenue. Maintenance Services revenue grew 21% to $4.0 million, while LED lighting revenue increased slightly by 1% to $12.9 million. However, EV charging revenue fell 30% to $2.7 million, attributed to timing fluctuations in large project deliveries and current uncertainties. The gross margin improvement reflects pricing strategies, revenue mix changes, and cost improvements across all segments. Operating expenses decreased to $6.9 million, contributing to a reduced net loss of $1.2 million, an improvement of $2.6 million year-over-year. Furthermore, the company paid down $1.75 million on its revolving credit facility. However, EV charging project execution remains constrained by near-term risks related to scope, pace, and funding availability, with segment revenue for fiscal 2026 projected to be flat or slightly down.

CEO Sally Washlow emphasized that the results benefited from pricing and cost actions implemented in FY2025. She expressed anticipation for the completion of new projects in the second quarter, such as a $3.0 million public school EV charging project. The company is advancing multiple contracts across North America, including a $7.0 million LED lighting and electrical infrastructure project for an automotive customer and increased facility orders from government agencies totaling $7.0 million. These initiatives support the growth target. Based on improved gross margins and operational optimization, the company is confident in achieving its full-year financial objectives once business, economic, and policy uncertainties stabilize.
url:https://www.globenewswire.com/news-release/2025/08/06/3128170/0/en/30-1-Gross-Margin-and-Lower-Operating-Expenses-Enable-Orion-to-Generate-Positive-Adjusted-EBITDA-on-Q1-26-Revenue-of-19-6M-Reiterates-FY-2026-Outlook.html