Orion Energy Systems Inc

Orion Energy Systems raised its fiscal 2027 revenue outlook to $100 million to $102 million from $95 million to $97 million after a longtime retailer committed to an additional program estimated at $10 million to $15 million. The work covers interior LED lighting retrofits and Internet of Things installations at locations the company has not previously retrofitted, and the revised forecast already incorporates the program, lifting the midpoint by $5 million, or approximately 5.2%, for the fiscal year ending March 31, 2027. The company expects the commitment to be fulfilled through individual purchase orders with uncertain timing, and a significant majority of project revenue is expected in the fiscal second half, while management still expects fiscal second-quarter revenue to decline sequentially from the first quarter's $25.7 million. The new work arrives alongside improving profitability, with fiscal first-quarter revenue of $25.7 million and net income of $2.0 million versus a $1.2 million loss a year earlier, as gross margin rose to 34.6% from 30.1% and a favorable net tariff effect cut cost of goods sold by approximately $0.3 million. Insider Monkey's database showed 3 hedge funds holding Orion Energy Systems at the end of 2Q2026, down from 5 funds three months earlier, based on filings reflecting positions held before the announcement.

Orion Energy Systems reported first quarter fiscal 2027 revenue of $25.7 million, a 32% increase from $19.6 million a year earlier, with net income of $2 million versus a loss of $1.2 million. Adjusted EBITDA rose to $2.5 million from $200,000, marking the company's seventh consecutive quarter of positive adjusted EBITDA. Gross margin improved to 34.6% from 30.1%, helped by a 130 basis point tariff benefit. The company reiterated full-year fiscal 2027 guidance of $95 million to $97 million in revenue and positive adjusted EBITDA, and highlighted early traction in the hyperscale data center market with a multimillion-dollar lighting engagement.

Orion Energy Systems announced the first customer deployment of its MPHL2 LED Lighting solution, a product developed for hyperscale data center operators. The customized lighting platform was created with channel partners to improve energy efficiency in data centers. While the initial deployment covers a single facility, management said the opportunity could expand significantly as adoption increases. The launch is part of Orion's strategy to target high-growth markets where energy efficiency and operational performance are priorities. Earlier, Orion reported fourth-quarter revenue of $25.72 million, up from $20.9 million a year earlier, and its sixth consecutive quarter of positive adjusted EBITDA.