Orion Energy Systems (OESX) investor relations material

Strategic overview and business segments

• Operates in three segments: LED lighting, commercial/industrial EV charging, and lighting/electrical maintenance.

• Revenue streams are diversified, with recurring revenues in maintenance and project-based revenues in other segments.

• Cost structure optimized by removing $6.5 million in expenses, lowering break-even to $80 million.

• Maintains a blue-chip, long-term customer base with repeat business and nimble operations.

• Turnkey project management and multiple go-to-market models provide competitive advantage.

Product innovation and operational capabilities

• Manufactures high-efficiency LED products in the U.S., compliant with BAA and BABA standards.

• Offers both premium and cost-competitive sourced products, with strong uptake in the mid-tier.

• Proprietary manufacturing enables fast response and short lead times for U.S.-made products.

• Maintenance contracts are typically three years, enhancing customer retention and cross-selling opportunities.

• EV charging business strengthened by Voltrek acquisition, with revenues growing from $7.5M to $17M in two years.

Market trends and growth outlook

• LED penetration in commercial/industrial markets is about 40%, with ongoing upgrades from Gen 1 LEDs.

• Lighting projects deliver about 50% energy savings, with payback periods of one to four years.

• Each business segment expected to grow; maintenance growth slower, EV growth conservative but on track with guidance.

• Significant infrastructure need in EV charging supports long-term growth potential.

• M&A opportunities considered in adjacent lighting or EV markets, with organic growth also prioritized.