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Orion Energy Systems, Inc. OESX has announced a new collaboration with a well-known energy management service provider in the United States, serving a customer base of about 6,500.
Following the partnership announcement, OESX stock gained 2.4% during the trading hours and 3.6% in the after-hours on Monday.
Sneak Peek at Orion’s New Partnership
Per the partnership, Orion will ensure facility lighting audits, install lighting retrofits and provide continuous maintenance support to improve energy efficiency and promote sustainability for the energy management service provider throughout the country. Also, OESX will offer services to enhance the quality of the lighting environment, which will result in a safer and more inviting atmosphere.
Per Michael Jenkins, Orion’s 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.”
The company believes that this strategic partnership will aid it in generating revenues in the range of $2-$5 million annually. The initial revenues are expected to reflect in its fiscal 2025 fourth quarter ending March 31, 2025.
Partnerships & Product Innovation – OESX’s Growth Driver
Orion is witnessing robust quoting activity in its LED lighting project business, which reflects activities from both new and existing customers. Recently, the company received a contract from a products distributor in the country for which it will be offering LED lighting products and retrofit turnkey project management services. The total program value is expected to be more than $10 million. The program is expected to start by the third quarter of fiscal 2025 and has the chance of turning into a multi-year relationship. In October 2024, the company won a five-year $25 million contract to supply LED lighting fixtures for new store construction projects for its largest customer, a major national retailer.
Regarding product innovation, Orion has been benefiting from its value-oriented LED lighting product lines such as Triton Pro and the new exterior products launched during the second quarter of fiscal 2024. These product launches aided the company in generating $4 million in revenues in the first six months of fiscal 2025, with an open pipeline of more than $18 million. After the notable success of these products, Orion is currently investing in the expansion of its value price Triton Pro offerings, including recent product launches of round high bays or UFOs, strip lights and troffers.