Orion Energy Systems (OESX) Q3 2026 earnings summary

Executive summary

• Achieved fifth consecutive quarter of positive adjusted EBITDA and positive operating income, reflecting ongoing operational improvements and cost containment initiatives.

• Q3 2026 revenue reached $21.1M, up 7.7% year-over-year, driven by strong EV and maintenance segment growth.

• Net income for Q3 2026 was $0.2M ($0.04 per share), a turnaround from a net loss of $1.5M in Q3 2025.

• Raised fiscal 2026 revenue guidance to $84–$86M and set fiscal 2027 expectations at $95–$97M, both with positive adjusted EBITDA.

• Secured major multi-year contracts, including a $14–$15M exterior lighting project and a $42–$45M maintenance renewal.

Financial highlights

• Q3 2026 revenue was $21.1M, up from $19.6M in Q3 2025, with gross profit increasing to $6.5M from $5.8M.

• Gross margin improved to 30.9% from 29.4% year-over-year, reflecting higher margins in EV and maintenance segments.

• Net income for Q3 2026 was $0.2M ($0.04 per share) versus a net loss of $1.5M ($0.46 per share) in Q3 2025.

• Adjusted EBITDA improved to $0.8M in Q3 2026 from $0.0M in Q3 2025.

• Operating expenses declined to $6.1M from $7.0M year-over-year.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $84–$86M with positive adjusted EBITDA.

• Fiscal 2027 revenue expected between $95–$97M, maintaining positive adjusted EBITDA.

• Management expects continued growth in Q4 2026 and into fiscal 2027, supported by strong project pipeline.

• Backlog increased to $20.1M, with most expected to convert to revenue within a year.

• Anticipates strong Q4 2026, especially from the Turnkey Group and ongoing project pipeline.