Orion Energy Systems Inc (OESX) Q4 2025 Earnings Call Highlights: Navigating Challenges with ...
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Trump Asks Bank CEOs to Pitch Fannie, Freddie Stock Offering
(Bloomberg) — President Donald Trump is bringing in bank leaders to meet with him one by one at the White House. Beyond the economic discussion, there's a chance at a big payday for their firms. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Trump is asking chief executive officers for their pitches on monetizing mortgage giants Fannie Mae (FNMA, FNMAS, FNMAO, FNMAL) and Freddie Mac (FMCC), including a major public offering of stock, according to people familiar with the matter. Last week, Trump invited JPMorgan Chase & Co. (JPM) CEO Jamie Dimon to meet him at the White House. Goldman Sachs Group Inc. CEO David Solomon was set to meet with Trump on Thursday afternoon, and Bank of America Corp. CEO Brian Moynihan is also expected to meet the president in coming days. Talks are likely to include other banks as well, the people said. Officially named the Federal National Mortgage Association and Federal Home Loan Mortgage Corp., the two entities are massive financial organs of the US housing system. The companies have been under government conservatorship since the 2008 financial crisis. Fannie and Freddie have both returned to steady profitability, with earnings being retained. Trump said in May that he's giving 'very serious consideration to bringing Fannie Mae and Freddie Mac public.' Small portions of the stock already trade publicly, but a vast majority of the firms' shares are held by the government. After Bloomberg reported on the talks with bankers, shares of both companies rose in extended trading on light volume as of 4:30 p.m. in New York, with Fannie Mae climbing 14% and Freddie Mac advancing 5.7%. Policymakers in Washington have struggled for years with what to do with the so-called government-sponsored enterprises — one of the last loose ends from the crisis era. Efforts to overhaul the US housing finance system and release the mortgage giants from government control have repeatedly foundered in Congress amid concerns about the potential impact on mortgage costs and the companies' role in financing affordable housing. The nonpartisan Congressional Budget Office released a report last week finding that the sale of Fannie and Freddie would be a mixed bag for the government, at least in terms of accounting. The government could make $206 billion from its stake in the companies, the CBO said, but only if they were put in receivership. Hedge funds and other investors have long called for the US to release the pair from conservatorship, which could provide a windfall for shareholders. Analysts have said it could be one of the biggest public offerings ever — meaning it would probably offer hefty fees for the banks picked to lead it. Many complex details would have to be worked out for any such plan, including what stake would initially be offered in any sale, and how investors who hold existing shares would be treated. Trump is asking the CEOs to offer their ideas on the strategy for taking the organizations public and how their banks might play a role, the people said, asking not to be identified discussing private information. The administration also has conferred with Wells Fargo & Co. as it speaks with lenders, one person said. A spokesperson for the White House had no immediate comment. White House Press Secretary Karoline Leavitt, asked earlier Thursday about Trump's meeting with Solomon, declined to detail the purpose. 'I won't discuss the president's private meetings from this podium,' she said. Spokespeople for the banks declined to comment or didn't respond to messages. —With assistance from Yizhu Wang, Patrick Clark and Katy O'Donnell. (Updates with Wells Fargo in 11th paragraph.) Burning Man Is Burning Through Cash Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy
Yahoo
23 minutes ago
- Yahoo
Apple Growth Rebounds on Strength of iPhone 16 Line, China
(Bloomberg) -- Apple Inc. reported its fastest quarterly revenue growth in more than three years, easily topping Wall Street estimates, after demand picked up for the iPhone and products in China. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Revenue rose 9.6% to $94 billion in the fiscal third quarter, which ended June 28, the company said in a statement Thursday. Analysts estimated $89.3 billion on average, according to data compiled by Bloomberg. Apple also predicted that fourth-quarter revenue would be up by a percentage in the mid- to high-single digits — better than the 3% that analysts had forecast. 'We saw an acceleration of growth around the world in the vast majority of markets we track, including Greater China and many emerging markets,' Chief Executive Officer Tim Cook said on a conference call with analysts. Though US tariffs have increased Apple's cost of doing business, they provided a sales benefit last quarter — with consumers rushing to stores to get out ahead of expected price increases. Still, this effect only amounted to 1 percentage point of the 10-point sales gain, Cook said. The company also has been staging a comeback in China, a market where local phone brands have made inroads with consumers. Services were another bright spot, topping Wall Street projections. Apple shares rose about 1.6% in premarket trading on Friday after closing at $207.57 in New York. They had been down 17% this year, putting the company well below Nvidia Corp. and Microsoft Corp. among the world's most valuable businesses. Apple had projected a $900 million headwind from tariffs during the third quarter, saying that revenue would grow in the low- to mid-single digits. Ultimately, the levies cost the company $800 million, Apple said Thursday. It sees tariffs adding $1.1 billion in expenses during the current period. Third-quarter earnings rose to $1.57 a share, beating the average estimate of $1.43. In China, Apple reported revenue of $15.4 billion, up 4.4% from a year earlier. Wall Street had been looking for sales of $15.2 billion from that crucial market. The Cupertino, California-based company generated $44.6 billion from iPhone sales during the June quarter, topping estimates of $40.1 billion. Beyond the tariff-spurred spending, the iPhone business got a boost in February from a new low-end model dubbed the 16e. That device costs $599, far exceeding the price of the model it replaced, the $429 iPhone SE. Apple will announce its next iPhones in September, and the next-generation devices typically go on sale in the final weeks of the fiscal fourth quarter. Services continue to be the company's biggest growth driver, with sales rising 13% to $27.4 billion in the third quarter. Apple didn't provide guidance for the segment when the company discussed its March results, citing uncertainty from 'several factors,' but Wall Street had been looking for about $26.8 billion. Though it's been a bright spot for Apple, the services business faces a variety of threats. Regulators around the world are proposing changes to its App Store policies, potentially reducing revenue from software and subscriptions. Separately, the US Justice Department is likely to upend an agreement with Google that makes the search engine Apple's default option. That arrangement generates roughly $20 billion a year for the iPhone maker. Apple also is struggling to keep up with rivals in artificial intelligence. The company is even considering outsourcing its large language models, or LLMs, the technology underpinning generative AI, Bloomberg has reported. On the conference call, Cook was upbeat about Apple's progress in AI, saying the company is upping its investment in the technology. He declined to comment on whether he believes LLMs will become commoditized, saying it would give away some of Apple's strategy. That suggests a shift toward outside technology may be in the cards. Cook also said he was open to acquisitions if they can accelerate Apple's road map. The company has already acquired seven small companies this year, he said, while signaling that bigger deals may be possible. 'We are are not stuck on a certain size company,' Cook said. Apple's Mac lineup was a highlight last quarter. The product chalked up sales of $8.05 billion, beating Wall Street expectations of $7.3 billion. The company released new MacBook Air and Mac Studio models with faster processors in early March, bolstering the division. The iPad generated $6.58 billion in revenue, down 8.1% from a year earlier. That missed Wall Street estimates of $7.1 billion. The year-earlier period included the launch of a revamped, pricey iPad Pro, making the comparison more difficult. Apple hasn't yet released a new iPad Pro this year, but does plan to launch one with an M5 chip and camera changes, Bloomberg News has reported. The company's Wearables, Home and Accessories segment — which includes AirPods, smartwatches, TV set-top boxes, Vision Pro headsets and HomePod speakers — remains in a downward spiral. Its sales fell 8.6% to $7.4 billion in the quarter. Wall Street had been looking for $7.8 billion. The business was once seen as a way to decrease Apple's reliance on iPhone sales, which account for roughly half its revenue. But the division peaked in 2021, when it had almost $15 billion during the holiday quarter. Apple blamed the decline on it launching major new iPad accessories in the year-ago quarter. A lack of compelling new products, however, is likely a bigger factor. The Apple Watch Ultra in 2022 was the last major change to the company's smartwatch lineup. The company also hasn't rolled out a new version of the AirPods Pro since 2022, and the low-end models from last year haven't been as big a hit as anticipated. The biggest snag for the category might be the Vision Pro, which costs $3,499 and took nearly a decade and several billion dollars to develop. Despite its high price, the device hasn't moved the needle for wearables revenue and has been a commercial flop. The company is planning a refreshed model later this year with a new chip — but meaningful changes to the product aren't planned until 2027. Still, the category may get a boost in the coming years when Apple rolls out smart glasses, rivaling a popular product from Meta Platforms Inc. Apple is also planning a new Ultra watch this year with satellite connectivity, a feature aimed at hikers looking to stay in contact when away from cellular networks. And it's developing new AirPods, an updated Apple TV box and a smart home device with a screen and fresh operating system, Bloomberg News has reported. On the call, Cook was asked whether consumers might eventually switch to some kind of screen-free AI device — posing a threat to the iPhone. He said that the company's flagship product will be tough to replace. 'It's difficult to see a world where iPhone's not living in it,' he said. 'And that doesn't mean that we are not thinking about other things as well, but I think that the devices are likely to be complementary devices, not substitution.' (Updates with premarket share move in sixth paragraph.) Burning Man Is Burning Through Cash Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
24 minutes ago
- CNET
Act Fast to Get These Top-Rated ANC Anker Headphones for Just $38
If you're money-conscious but still want a quality pair of headphones, then you're in luck. Anker makes some of our favorite pairs for under $100. While there are plenty of good options out there, sometimes the most enticing thing is a big discount. Right now, Amazon has the Anker Soundcore Life Q20 Hybrid headphones down from $60 to just $38, which is lower than they were during Prime Day. This is only for the black version of the headphones though, but you can get the other colors for a few dollars more if that's what you want. While these affordable Anker headphones won't compete with premium pairs from Bose or Sony, they're a pretty great value for just $40. Internal and external microphones provide decent noise cancellation, and they have 40mm drivers for hi-res audio. Hey, did you know? CNET Deals texts are free, easy and save you money. The headphones also offer an impressive 60-hour battery life and there's an aux port for wired listening. They're also fairly comfortable thanks to the foam earpads and lightweight 255g design. This is definitely one of the best headphone deals going on right now. It's a limited-time deal though, so there's no telling how long it'll actually be around for. Why this deal matters Even at full price, Anker's Soundcore Life Q20 Hybrid headphones are a pretty incredible value. They offer active noise cancellation, solid audio quality and an impressive 60-hour battery life. Plus, this deal drops them down to an all-time low price.
