Orion Energy Systems (OESX) Q1 2027 Earnings Call Transcript

Image source: The Motley Fool.

DATE

Wednesday, Aug. 5, 2026 astatine 10:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Sally Washlow

• Chief Financial Officer - Per Brodin

Full Conference Call Transcript

Operator: Good morning, everyone, and invited to Orion Energy Systems Fiscal 2027 First Quarter Conference Call. [Operator Instructions] In this call, Sally Washlow, Orion's CEO; and Per Brodin, its CFO, volition reappraisal the company's archetypal 4th results arsenic good arsenic its fiscal 2027 outlook. Then we volition unfastened the telephone to capitalist questions. Today's telephone is being recorded. A replay volition beryllium posted successful the Investor conception of the company's website implicit astatine orionlighting.com. I volition present crook the telephone implicit to Per Brodin, Orion's CFO.

John Brodin: Thank you, Stephen. First, arsenic a reminder, prepared remarks and answers to questions see statements that are forward-looking nether the Private Securities Litigation Reform Act of 1995. Forward-looking statements mostly see words specified arsenic "anticipate, "believe", "expect", "project" oregon akin words. Also, immoderate statements describing aboriginal objectives oregon goals, institution plans and outlook are besides forward-looking. These forward-looking statements are taxable to assorted risks that could origin existent results to disagree materially from existent expectations. Risks include, among different things, those that Orion has described successful its property merchandise issued this greeting and successful its SEC filings. Except arsenic described therein, Orion disclaims immoderate work to update oregon revise forward-looking statements made arsenic of today.

In addition, reconciliations of definite non-GAAP fiscal metrics to their nearest GAAP measures are besides provided successful today's property release. And present I volition crook the telephone implicit to Orion's CEO, Sally Washlow.

Sally Washlow: Thank you, Per. Good morning, everyone, and convey you for being with america today. I americium pleased to study our results for Q1, our seventh consecutive 4th of affirmative adjusted EBITDA. The archetypal 4th of fiscal 2027 represents an fantabulous commencement to the year. In Q1, we delivered connected the maturation we established successful the erstwhile year. Fiscal 2026 was a palmy turnaround twelvemonth for Orion, marking a instrumentality to maturation successful some gross and profitability. Fiscal '26 came successful astatine $86 cardinal successful gross and $2 cardinal successful affirmative adjusted EBITDA, results that outperformed our guidance. Fiscal '26 was a twelvemonth successful which we enactment ourselves connected a way of profitable growth.

And successful the existent fiscal 2027, we expect to execute gross of $95 cardinal to $97 cardinal and affirmative adjusted EBITDA for the afloat fiscal year. As to Q1 fiscal 2027, year-over-year, Orion recorded a 32% leap successful gross coming successful astatine $25.7 million, a 15% summation successful gross borderline coming successful astatine 34.6%, nett income of $2 million, up from a antagonistic $1.2 cardinal and adjusted EBITDA of $2.5 million, up from $200,000 year-over-year. Today's net study is besides further illustration of the improving prime of our income funnel, the interaction of our outgo containment initiatives and the continuous strengthening of our proprietary proviso chain. Automotive, retail and nationalist assemblage engagements proceed to amusement notable spot and continued growth.