Orion Commences $3M in Turnkey, Energy-Efficient LED Lighting Retrofits and Electrical Infrastructure Upgrades for Federal Agency

Rhea-AI Summary

Orion Energy Systems (OESX) has begun implementing a $3 million turnkey LED lighting installation project for a federal government agency in the Southeastern United States. The project encompasses BAA-compliant LED lighting retrofit systems, electrical infrastructure upgrades, and project management services.

The installation is scheduled for completion in the first half of Orion's FY'26, with potential for expanded project scope. This initiative follows Orion's recent $9.6 million LED lighting retrofit project for the Department of Defense in Europe, building on their 20+ year relationship with federal entities.

Positive

• Secured new $3M federal contract for LED lighting and infrastructure upgrades
• Potential for expanded project scope beyond initial $3M
• Demonstrates continued success in government sector following $9.6M DoD contract
• 20+ year relationship with federal clients indicates strong market position

Negative

• None.

Insights

Financial Analyst

This $3 million federal contract represents a substantial win for Orion, constituting approximately 11% of their current market capitalization. The project's scope extends beyond simple LED installations to include critical electrical infrastructure upgrades, positioning Orion for potentially larger future contracts.

The Buy American Act compliance requirement is particularly noteworthy as it creates a significant barrier to entry for foreign competitors, especially considering recent government initiatives to strengthen domestic manufacturing. This compliance, combined with their 20+ year relationship with federal entities, provides Orion with a competitive moat in the government sector.

The contract's structure offers two key advantages: First, the potential for expanded project scope could lead to additional revenue opportunities beyond the initial $3 million. Second, the infrastructure upgrade component suggests deeper facility integration, making Orion more integral to the client's operations and increasing switching costs.

This win, following their $9.6 million Department of Defense contract in Europe, demonstrates Orion's ability to secure and execute large-scale government projects. The timing of completion in H1 FY'26 provides clear revenue visibility and suggests a healthy project pipeline. Their track record of maintaining long-term government relationships (20+ years) is particularly valuable in the federal sector, where past performance and reliability are important factors in contract awards.

MANITOWOC, Wis., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Orion Energy Systems, Inc. (Nasdaq: OESX) (Orion Lighting), a provider of energy-efficient LED lighting and controls, electric vehicle (EV) charging station solutions, and maintenance services announced today that it has commenced on-site LED lighting installation for a federal government agency. Project purchase orders to date total approximately $3 million, with future potential for an expanded project scope. The project is expected to be completed in the first half of Orion’s FY’26.

Orion is providing a turnkey solution for a facility in the Southeastern United States, including the installation of Buy American Act (BAA)-compliant LED lighting retrofit systems, significant upgrades to the facility’s electrical infrastructure, and project management services. This project will greatly enhance the facility’s energy efficiency and achieve their modernization initiatives.

“We are proud to build upon our longstanding 20+ year relationship working with this Federal entity to improve the energy efficiency of their facilities,” stated Mike Jenkins, CEO of Orion. “This project builds on our long-standing work in the government sector, providing energy-efficient solutions that enhance workplace environments and safety. Our team is excited to contribute to the facility’s extensive remodel by delivering top-tier, BAA-compliant LED lighting systems and critical infrastructure upgrades.”

This contract follows Orion’s continued service to government entities, including a $9.6 million LED lighting retrofit project in Europe for the Department of Defense.

About Orion Energy Systems (www.orionlighting.com)
Orion provides energy efficiency and clean tech solutions including LED lighting and controls, maintenance services and electrical vehicle (EV) charging solutions. Orion specializes in turnkey design-through-installation solutions for large national customers, with a commitment to helping customers achieve their business and environmental goals with healthy, safe and sustainable solutions that reduce their carbon footprint and enhance business performance.

Orion is committed to operating responsibly throughout all areas of our organization. Learn more about our sustainability priorities, goals and progress here or visit our website.

Safe Harbor Statement
Certain matters discussed in this press release, are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or words of similar import. Similarly, statements that describe our future plans, objectives or goals, including business relationships with government customers, are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected including, but not limited to, the risks described in our filings with the Securities and Exchange Commission.

Shareholders, potential investors and other readers are urged to consider risks and uncertainties carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://investor.oriones.com/ in the Investor Relations section of our Website. Except as required by applicable law, we assume no obligation to update any forward-looking statements publicly or to update the reasons why actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

Twitter: @OrionLighting and @OrionLightingIR
StockTwits: @Orion_LED_IR

Investor Relations Contacts
Per Brodin, CFO			William Jones; David Collins
Orion Energy Systems, Inc			Catalyst IR
pbrodin@oesx.com			(212) 924-9800 or OESX@catalyst-ir.com

FAQ

What is the value of Orion Energy's (OESX) new federal contract in 2025?

Orion Energy (OESX) has secured a $3 million contract for LED lighting installation and electrical infrastructure upgrades for a federal agency.

When will OESX complete the new federal LED lighting project?

The project is expected to be completed in the first half of Orion's FY'26.

What services is OESX providing in the new federal contract?

OESX is providing a turnkey solution including BAA-compliant LED lighting retrofit systems, electrical infrastructure upgrades, and project management services.

Where is OESX's new federal LED lighting project located?

The project is being implemented at a federal facility in the Southeastern United States.

What was OESX's previous major government contract before this project?

Prior to this project, OESX completed a $9.6 million LED lighting retrofit project in Europe for the Department of Defense.