Major US Retailer Awards Orion with a $14M-$15M LED Exterior Lighting Project
Rhea-AI Summary
Orion Energy Systems (NASDAQ: OESX) was awarded a large LED exterior lighting project with a major international retail chain expected to generate approximately $14 million to $15 million in revenue. Work begins in Orion’s FY26 Q4 with the majority expected complete by end of July 2026. This follows an Oct 21, 2025 renewal of a maintenance contract valued between $42 million and $45 million for more than 2,000 stores.
Orion raised FY 2026 revenue guidance to $84 million–$86 million and reported preliminary unaudited FY26 Q3 revenue of ~$21 million with anticipated positive net income and positive adjusted EBITDA. The company expects positive adjusted EBITDA for full FY 2026 and projects $95 million–$97 million revenue with positive adjusted EBITDA in FY 2027.
Positive
- $14M–$15M expected revenue from new LED exterior lighting project
- Renewal maintenance contract valued at $42M–$45M for >2,000 stores
- Raised FY2026 revenue guidance to $84M–$86M
- Preliminary FY26 Q3 revenue of ~$21M with anticipated positive net income
- Company expects positive adjusted EBITDA for full FY2026
- FY2027 revenue outlook of $95M–$97M with positive adjusted EBITDA
Negative
- Forward-looking adjusted EBITDA guidance is provided on a non-GAAP basis without reconciliation to the most directly comparable GAAP measure
News Market Reaction
On the day this news was published, OESX gained 8.82%, reflecting a notable positive market reaction. Argus tracked a peak move of +5.5% during that session. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $5M to the company's valuation, bringing the market cap to $65M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: notable example IPWR up 13.17% while others are modestly up or down, indicating OESX’s setup appears stock-specific rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 05 | Enterprise contract win | Positive | +14.6% | Announced $3M LED and infrastructure engagement with major food distributor. |
| Dec 08 | Investor conference | Positive | +10.7% | Participation in Singular Research conference with CEO presentation and meetings. |
| Nov 06 | Investor conference | Positive | +18.4% | Craig-Hallum conference appearance with access to one-on-one investor meetings. |
| Nov 05 | Earnings update | Positive | -7.4% | Improved gross margin and profitability with reiterated FY2026 outlook. |
| Oct 28 | Enterprise contracts | Positive | -0.3% | Announced $4.7M LED projects, including start of multi‑year initiative. |
Positive operational and commercial updates often saw positive reactions, but some earnings and contract wins showed muted or negative moves, indicating occasional divergence between fundamentals and price.
Over the past few months, Orion reported improved Q2 FY2026 profitability with revenue of $19.9M and reiterated FY2026 guidance around $84M. It announced multiple enterprise LED engagements, including $4.7M of projects in October 2025 and a $3M initiative in January 2026, supporting its enterprise-focused growth narrative. Conference participation in November and December 2025 helped raise investor visibility and coincided with double‑digit gains. Today’s new large retail project and raised FY2026/FY2027 outlook extend this sequence of contract wins and profitability milestones.
Market Pulse Summary
The stock moved +8.8% in the session following this news. A strong positive reaction aligns with the clearly favorable tone of this announcement, which combines a $14M–$15M project win, a raised FY2026 revenue outlook to $84M–$86M, and an FY2027 revenue view of $95M–$97M with positive adjusted EBITDA. Prior contract wins and profitability improvements often coincided with meaningful moves, but history also shows some reversals after good news, so position sizing and sensitivity to subsequent execution updates would have remained important.
Key Terms
adjusted EBITDA financial
non-GAAP financial
AI-generated analysis. Not financial advice.
Company Increases FY 2026 Revenue Guidance, Expects Positive Net Income in FY26 Q3; Provides FY 2027 Outlook for Increased Revenue Growth and Profitability
MANITOWOC, Wis., Jan. 20, 2026 (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 that it has been awarded a new large-scale LED exterior lighting project with a leading international retail chain, anticipated to generate approximately
The LED exterior lighting project represents a significant incremental project with this enterprise customer. It also follows Orion’s October 21, 2025, announcement of a three-year renewal of a major LED lighting maintenance contract for this customer. That renewal — valued between
“One of the world’s pre-eminent retailers has entrusted Orion with the installation and maintenance of its LED lighting systems at its locations,” said Orion Chief Executive Officer, Sally Washlow. “We are proud to have earned that trust with one of the most respected retailers in the world. We also expect to add even further to our scope of work with this very large enterprise customer in the future.”
Additionally, Orion announced an increase in the Company’s FY 2026 revenue outlook to a range of between
Orion also announced that the Company currently expects to record positive adjusted EBITDA on revenue of between
Orion attributes its higher expectations of growth and profitability to increasing orders by enterprise customers, the success of recent cost-structure improvements and Orion’s heightened prominence in its competitive marketplace.
Orion is providing adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking adjusted EBITDA non-GAAP guidance to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, the amounts of which, based on historical experience, could be significant. For additional information regarding Orion’s non-GAAP measure, see the related explanation presented under “Non-GAAP Measures.”
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 as well as projects through ESCO and distribution partners, 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 and governance priorities, goals and progress here, or visit our website at www.orionlighting.com.
Non-GAAP Measures
Orion uses adjusted EBITDA, a non-GAAP measure, to supplement the financial measures prepared in accordance with United States (U.S.) generally accepted accounting principles (“GAAP”). Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation, acquisition related costs, deferred financing costs, restructuring and severance costs, asset impairment and, earnout expenses) is not prepared in accordance with U.S. GAAP. Orion has provided guidance for this non-GAAP measure to help investors better understand its core operating performance, enhance comparisons of core operating performance from period to period, and allow better comparisons of operating performance to its competitors. Among other things, management uses this non-GAAP measure to evaluate the performance of the business and believes this measurement enables it to make better period-to-period evaluations of the financial performance of core business operations. The non-GAAP measurement is intended only as a supplement to the financial measures prepared in accordance with GAAP, and investors should consider this non-GAAP measurement in addition to, and not in substitution for or as superior to, the measurement of financial performance prepared in accordance with generally accepted accounting principles.
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, including the Company’s expectations for future revenue and adjusted EBITDA. 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.
Engage with Us
X: @OrionLighting and @OrionLightingIR
StockTwits: @OESX_IR
| Investor Relations Contacts | |
| Per Brodin, CFO | Robert Ferri |
| Orion Energy Systems, Inc. | Robert Ferri Partners |
| pbrodin@oesx.com | (415)575-1589 / robert.ferri@robertferri.com |
FAQ
How much revenue will Orion (OESX) generate from the new LED exterior lighting project?
When will Orion (OESX) start and largely complete the new retail lighting project?
What is Orion’s updated FY 2026 revenue guidance (OESX)?
What were Orion’s preliminary unaudited FY26 Q3 results (OESX)?
What does Orion (OESX) expect for FY 2027 revenue and profitability?
Why is Orion (OESX) projecting higher growth and profitability?
