Orion Energy Systems (OESX) Sidoti Micro-Cap Virtual Conference summary

Business overview and strategy

• Focuses on sustainability, energy savings, and carbon reduction through innovative technology and service.

• Operates in three main segments: lighting retrofits, EV charging systems, and lighting/electrical maintenance.

• Provides turnkey solutions, acting as a single point of accountability for large clients.

• Revenue streams include LED products, turnkey services, maintenance, and EV charging.

• Cross-selling between lighting and EV charging businesses is a growing opportunity, with a $30M pipeline.

Market trends and growth drivers

• Rising energy prices and AI adoption are expected to increase demand for energy-efficient solutions.

• Regulatory actions, such as bans on fluorescent fixtures in eight states starting January 2025, are accelerating LED adoption.

• Federal funding from IRA and Infrastructure Acts supports EV infrastructure and building efficiency.

• LED market penetration is about 40%, with significant room for growth and re-LEDing early adopters.

• EV infrastructure demand is driven by fleet electrification and state/federal funding programs like NEVI.

Operations and competitive advantages

• Manufactures most products in Wisconsin, qualifying for Buy American and Build America, Buy America programs.

• Maintains industry-leading lead times of 2-3 weeks, compared to competitors' 4-8 weeks.

• Offers the highest lumens per watt portfolio and flexible manufacturing for custom solutions.

• Technology-agnostic approach allows integration with best-of-breed controls and IoT systems.

• National execution capabilities for both lighting and EV charging projects.