Orion Receives $2M LED Lighting Projects From Automotive OEM
Orion Energy Systems, Inc. OESX received two projects worth more than $2 million from a longstanding automotive OEM customer to manage, install, and commission LED lighting systems across its multiple manufacturing facilities in the United States.
The projects are expected to be completed in fiscal 2025 (ending March 31, 2025). Orion has already received purchase orders for the first project. The second project is scheduled to begin in third-quarter fiscal 2025.
The deal highlights Orion’s established reputation for excellence in LED lighting system project management. The upcoming LED upgrades are designed to enhance energy efficiency, along with sustainability and workplace safety objectives.
OESX is a provider of energy-efficient LED lighting systems, wireless Internet of Things-enabled control solutions, commercial and industrial electric vehicle charging infrastructure solutions and lighting and electrical maintenance services.
The company’s Lighting Segment develops and sells lighting products and provides construction and engineering services for its commercial lighting and energy management systems. In the fiscal first quarter, revenues grew on variability in the timing of larger lighting projects. This reflects the completion of a significant Department of Defense project in Europe, as well as ongoing major account, ESCO and distribution business. Several other significant projects anticipated in the rest of fiscal 2025 include the automotive, retail, technology, logistics/distribution, financial and public sectors.
The company expects LED lighting segment revenue growth in fiscal 2025, supported by new and existing customers. Also, it expects the LED lighting business to benefit from state regulations banning the sale of fluorescent fixtures and replacement tubes.
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The company's shares have plunged 42.6% in the past three months against the Zacks Building Products-Lightning industry's growth of 8.7%. The company has been facing significant inflationary pressures in the past several quarters, leading to many older contracts becoming unprofitable. In response to higher costs, OESX increased its pricing to align its profit margin more closely with its overall business.
OESX's Zacks Rank & Other Key Picks
OESX currently carries a Zacks Rank #2 (Buy).
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M-tron Industries, Inc. MPTI currently carries a Zacks Rank #2. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%.
The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 16.1% and 76.6%, respectively, from prior-year levels.
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