Orion Secures Over $2 Million in LED Lighting Retrofit Projects from Leading U.S. Automotive OEM

Rhea-AI Summary

Orion Energy Systems (NASDAQ: OESX) has secured LED lighting retrofit projects worth over $2 million from a leading U.S. automotive OEM. The projects involve project management, installation, and commissioning of LED lighting systems across multiple U.S. manufacturing facilities. These upgrades aim to enhance energy efficiency and support sustainability and workplace safety objectives.

The selection underscores Orion's 18-year relationship with the customer and its reputation for excellence in LED lighting system project management. CEO Michael Jenkins emphasized the customer's trust in Orion's technology and services. The projects are expected to be completed before March 31, 2025, with the first project already underway and the second scheduled to begin in Orion's fiscal Q3.

Positive

• Secured LED lighting retrofit projects worth over $2 million
• Projects span multiple manufacturing facilities in the U.S.
• 18-year relationship with the automotive OEM customer
• Projects expected to complete before March 31, 2025
• First project already received purchase orders

Negative

• None.

Insights

Financial Analyst

The $2 million+ LED lighting retrofit projects secured by Orion Energy Systems represent a significant win for the company. This deal underscores Orion's strong position in the energy-efficient lighting sector and its ability to retain long-term clients. The 18-year relationship with the automotive OEM customer demonstrates Orion's consistent delivery of value and quality service. From a financial perspective, these projects will positively impact Orion's revenue for FY 2025, providing a boost to the company's top line. The multi-facility nature of the projects also suggests potential for future expansions or additional contracts within the same customer's network. Investors should note the project completion timeline, which aligns with Orion's fiscal year end, potentially contributing to a strong year-end financial performance.

Sustainability Expert

This deal highlights the growing trend of large manufacturers investing in energy-efficient solutions. The automotive OEM's commitment to LED lighting upgrades across multiple facilities signals a strong push towards sustainability goals in the automotive industry. Orion's role in this project positions them as a key player in industrial sustainability transformations. The focus on both energy efficiency and workplace safety through these LED upgrades demonstrates a holistic approach to sustainable manufacturing practices. This project could serve as a benchmark for other automotive manufacturers, potentially leading to increased demand for similar energy-efficient lighting solutions across the industry. The long-term partnership also suggests that Orion's solutions deliver tangible benefits in terms of energy savings and improved working conditions, which are important factors in sustainable manufacturing.

Market Research Analyst

Orion's success in securing this project from a long-standing customer indicates a strong market position in the LED lighting retrofit sector. The deal's size and scope suggest a growing market for energy-efficient lighting solutions in industrial settings, particularly among large manufacturers. This trend could signal increased opportunities for companies like Orion in the coming years. The emphasis on project management and turnkey services highlights a shift towards comprehensive solution providers rather than just product suppliers. This could be a key differentiator for Orion in a competitive market. The automotive industry's focus on sustainability could also drive similar investments across other manufacturing sectors, potentially expanding Orion's target market. Investors should watch for similar deals in other industries as indicators of market growth and Orion's ability to capitalize on this trend.

MANITOWOC, Wis., Sept. 18, 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 services solutions, today announced it has been awarded projects totaling more than $2 million from a longstanding automotive OEM customer. These projects encompass the project management, installation, and commissioning of LED lighting systems across multiple manufacturing facilities in the United States.

Orion’s selection for this project highlights the company’s established reputation for excellence in LED lighting system project management. The upcoming LED upgrades are designed to enhance energy efficiency and support the customer’s sustainability and workplace safety objectives.

“We are honored to extend our 18-year relationship with this valued automotive partner,” stated Michael Jenkins, Orion CEO. “Their long-standing trust and appreciation of Orion’s LED lighting technology and electrical systems knowledge, combined with our turnkey project management and installation services, was pivotal in their choosing us for these projects. This is a testament to our commitment to delivering excellent customer experiences while advancing energy efficiency and sustainability goals.”

Orion expects to complete the projects before the close of its FY 2025 year ending March 31, 2025. Orion has already received purchase orders for the first project, and the second project is scheduled to begin in Orion’s fiscal Q3.

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		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 the LED lighting retrofit projects secured by Orion Energy Systems (OESX)?

Orion Energy Systems (OESX) has secured LED lighting retrofit projects worth over $2 million from a leading U.S. automotive OEM.

When does Orion Energy Systems (OESX) expect to complete the LED lighting retrofit projects?

Orion Energy Systems (OESX) expects to complete the LED lighting retrofit projects before the close of its FY 2025 year ending March 31, 2025.

What services will Orion Energy Systems (OESX) provide for the automotive OEM's LED lighting projects?

Orion Energy Systems (OESX) will provide project management, installation, and commissioning of LED lighting systems across multiple manufacturing facilities in the United States.

How long has Orion Energy Systems (OESX) been working with this automotive OEM customer?

Orion Energy Systems (OESX) has been working with this automotive OEM customer for 18 years, demonstrating a long-standing relationship.