Orion Energy Systems (OESX) 17th Annual LD Micro Main Event XVII Conference summary

Business segments and growth

• Specializes in retrofit lighting to reduce energy consumption, with new build products also offered.

• EV charging is a rapidly growing segment, showing 40% growth in the last quarter.

• Lighting and electrical maintenance is a key service, often under three-year contracts.

• Four revenue streams: product, services, maintenance, and EV charging.

• Maintenance business restructured, now profitable and expected to be 10%-15% of revenue.

Market focus and customer base

• 100% commercial and industrial focus, serving manufacturing, office, retail, automotive, logistics, healthcare, agriculture, and public sector.

• Completed a $9.6M project for the Department of Defense in Germany.

• Largest customer is a big box retailer with a $250M retrofit project, achieving payback in under 1.5 years.

• Repeat business with major retailers, manufacturers, and government agencies.

Industry trends and regulatory drivers

• Rising energy prices and ESG commitments are driving demand for energy-efficient solutions.

• State bans on fluorescent lighting in 11 states, including California, effective January 2025, accelerating LED adoption.

• Federal and state funding supports EV charging infrastructure and LED conversion.

• LED penetration in commercial/industrial markets is about 40%, with opportunities for upgrades.