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Orion Collaborates With an Energy Management Service Provider

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Orion Energy Systems, Inc. (OESX - Free Report) 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.

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Shares of this provider of energy-efficient LED lighting, electric vehicle (EV) charging stations and maintenance service solutions have lost 2.3% in the past three months against the Zacks Building Products - Lighting industry’s 29.2% growth. The company’s performance was impacted by several customer and time delays along with softness in new construction markets. However, Orion’s product innovation initiatives and strategic collaborations are expected to aid growth in the upcoming quarters.

OESX’s Zacks Rank & Key Picks

Orion currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Construction sector.

Sterling Infrastructure, Inc. (STRL - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have surged 61% in the past six months. The Zacks Consensus Estimate for STRL’s 2025 sales and earnings per share (EPS) implies an increase of 7.3% and 8.1%, respectively, from the prior-year levels.

Louisiana-Pacific Corporation (LPX - Free Report) currently sports a Zacks Rank of 1. LPX delivered a trailing four-quarter earnings surprise of 30.7%, on average. The stock has gained 28.8% in the past six months.

The consensus estimate for LPX’s 2025 sales indicates an increase of 4.3% while the estimate for EPS implies a decline of 7.3% from a year ago.

MasTec, Inc. (MTZ - Free Report) presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has gained 24.9% in the past six months.

The Zacks Consensus Estimate for MTZ’s 2025 sales and EPS indicates an increase of 8.6% and 45.5%, respectively, from a year ago.

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