Overview

• US LED lighting and EV charging provider's fiscal Q4 revenue rose 23% yr/yr, beating analyst expectations

• Company's Q4 net loss narrowed to $1.5 mln from $2.9 mln a year ago

• Q4 gross margin improved to 37% from 27.5% on pricing and cost improvements

Outlook

• Orion expects FY'27 revenue between $95 mln and $97 mln

• Company anticipates positive adjusted EBITDA for FY'27

• Company cites improved backlog and project demand as drivers for FY'27 outlook

Result Drivers

• LED LIGHTING PROJECTS - Higher LED lighting revenue driven by increased large project activity and an expanded project pipeline

• PRICING AND COST IMPROVEMENTS - Gross margin improvement attributed to pricing and cost improvements across all three segments

• SOLAR CONTRACT AMENDMENT - Q4 revenue included $1.3 mln from a solar energy contract amendment with no associated cost of goods

Company press release: ID:nGNX5Y0zjj

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$25.72 mln	$24 mln (3 Analysts)
Q4 EPS		-$0.39
Q4 Net Income		-$1.5 mln
Q4 Adjusted EBITDA		$783,000	$2 mln (1 Analyst)
Q4 Gross Profit		$9.5 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Orion Energy Systems Inc is $23.85, about 161.5% above its June 3 closing price of $9.12

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 35 three months ago

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