Orion Energy Systems Partners with Leading Energy Management Service Provider

Rhea-AI Summary

Orion Energy Systems (NASDAQ: OESX) has announced a new partnership with a major energy management service provider that serves over 6,500 customer locations nationwide. The collaboration is expected to generate $2-$5 million in annual revenue, with initial revenue anticipated in Q4 fiscal 2025 (ending March 31, 2025).

Under this partnership, Orion will provide facility lighting audits, lighting retrofit installations, and ongoing maintenance support. The company aims to improve energy efficiency and sustainability while enhancing lighting quality for the service provider's customer base. CEO Michael Jenkins emphasized the company's experience in delivering comprehensive lighting retrofit programs as a key factor in securing this partnership.

Positive

• New partnership expected to generate $2-$5M annual revenue
• Access to over 6,500 potential customer locations nationwide
• Revenue generation to begin in Q4 fiscal 2025

Negative

• None.

Insights

Financial Analyst

This partnership represents a meaningful revenue opportunity for Orion Energy Systems, with projected annual revenue of $2-5 million. For a company with a market cap of $27.6 million, this deal could contribute approximately 7-18% to their annual revenue stream. The initial revenue recognition in Q4 FY2025 suggests a near-term catalyst. The partnership's scope, covering 6,500+ customer locations, provides significant scaling potential and recurring revenue through maintenance services. This diversification into energy management services strengthens their business model beyond just LED lighting and EV charging stations. The maintenance component should provide steady cash flow, while the nationwide exposure could lead to additional opportunities with similar service providers.

Energy Industry Analyst

The strategic partnership positions Orion advantageously in the growing energy efficiency sector. By offering comprehensive services including audits, retrofits and maintenance, they're capturing multiple revenue streams while helping clients achieve sustainability goals. The partner's extensive network of 6,500+ locations provides significant scalability potential. The focus on lighting efficiency aligns with increasing corporate ESG initiatives and regulatory pressures for energy reduction. This turnkey solution approach is particularly attractive to large enterprises seeking to streamline their energy management efforts through a single provider. The maintenance component ensures long-term client relationships and recurring revenue opportunities.

MANITOWOC, Wis., Dec. 09, 2024 (GLOBE NEWSWIRE) -- Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, electric vehicle (EV) charging stations, and maintenance service solutions, is pleased to announce a new relationship with a prominent energy management service provider that serves over 6,500 customer locations across the county. Orion expects this relationship to generate revenue of $2 - $5 million per year, with initial revenue anticipated in its fiscal 2025 fourth quarter ending March 31, 2025.

Orion will conduct facility lighting audits, install lighting retrofits and provide ongoing maintenance support to improve energy efficiency and promote sustainability for the service provider’s diverse nationwide customer base. Additionally, it seeks to enhance the quality of the lighting environment, contributing to a safer and more inviting atmosphere.

“We are committed to helping our new turnkey customer decrease their clients’ facility energy consumption while reducing environment impacts,” stated Michael Jenkins, Orion CEO. “Our extensive experience in delivering comprehensive lighting retrofit programs for large national customers played a crucial role in our selection for this partnership. Our strategy not only focuses on energy efficiency and savings, but also assists businesses in achieving their sustainability goals while improving lighting conditions at their facilities.”

About Orion Energy Systems
Orion provides energy efficiency and clean tech solutions, including LED lighting and controls, electrical vehicle (EV) charging solutions, and maintenance services. 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 goals and progress here, or visit our website at www.orionlighting.com.

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.

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Marketing Contact
Steve Paulus, Director, Marketing and Communications Orion Energy Systems, Inc. spaulus@oesx.com (920) 239-8007
Investor Relations Contacts
Per Brodin, CFO Orion Energy Systems, Inc. pbrodin@oesx.com	William Jones; David Collins Catalyst IR (212) 924 9800 or oesx@catalyst-ir.com

FAQ

What is the expected annual revenue from Orion Energy Systems' (OESX) new partnership?

Orion Energy Systems expects to generate $2-$5 million in annual revenue from the new partnership with the energy management service provider.

When will Orion Energy Systems (OESX) begin generating revenue from the new energy management partnership?

Initial revenue from the partnership is anticipated in Orion's fiscal 2025 fourth quarter, ending March 31, 2025.

What services will Orion Energy Systems (OESX) provide under the new partnership?

Orion will provide facility lighting audits, lighting retrofit installations, and ongoing maintenance support to improve energy efficiency and sustainability.