Orion Energy Systems, Inc. OESX has secured a new contract to provide lighting retrofit solutions for a major building products distributor in North America. The distributor operates more than 400 locations across the region.
The project will start in Orion’s third-quarter fiscal 2025 and is expected to continue for several years. The company estimates the total value of the contract to be between $12 million and $18 million, with about $1 million expected in fiscal 2025.
Orion to Oversee Nationwide LED Lighting Upgrade
Orion will carry out site visits, lighting audits and manage the installation of LED lighting systems across the customer’s national store network. The company will manufacture and supply a mix of LED high bays, strip fixtures, office troffers and some exterior lighting, tailored to each location's requirements.
The lighting-upgrade initiative aims to significantly cut down on the customer’s annual energy consumption and reduce its carbon footprint from lighting. This will also improve the lighting quality and safety in each location, benefiting employees, customers and vendors.
OESX has been building on its track record with national accounts through the company’s turnkey LED lighting retrofit projects. Orion’s ability to offer advanced LED lighting solutions, along with its complete installation services, helps streamline large projects while delivering improved light levels, energy savings and reduced carbon emissions for clients.
Price Performance of OESX’s Shares
Shares of Orion have lost 1.2% in the past three months against the industry’s 33.6% growth. The company has faced significant inflationary pressures in the past several quarters, leading to many older contracts becoming unprofitable. Additionally, its LED lighting segment was impacted by customer delays, with several projects are expected to begin in the second half of fiscal 2025.
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Despite delays in starting new retrofit projects, the company has been experiencing strong quoting activity in its LED lighting business. Both new and existing customers are contributing to this demand.
In response to higher costs, OESX has increased its pricing to align the company’s profit margin more closely with its overall business. Also, continuous contact wins will help the company boost its top line (read more: Orion Secures $25 Million LED Lighting Contract, Boosts Growth)
OESX's Zacks Rank & Key Picks
OESX currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Construction sector.
Sterling Infrastructure, Inc. STRL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have risen 67.8% in the past six months. The Zacks Consensus Estimate for STRL’s 2024 sales and earnings per share (EPS) implies an increase of 9% and 33.3%, respectively, from the prior-year levels.
Louisiana-Pacific Corporation LPX currently flaunts a Zacks Rank of 1. LPX delivered a trailing four-quarter earnings surprise of 30.7%, on average. The stock has gained 28% in the past six months.
The Zacks Consensus Estimate for LPX’s 2024 sales and EPS indicates an increase of 12.7% and 72.1%, respectively, from a year ago.
MasTec, Inc. MTZ presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has gained 29.9% in the past six months.
The Zacks Consensus Estimate for MTZ’s 2024 sales and EPS indicates an increase of 1.9% and 84.3%, respectively, from a year ago.
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Free: See Our Top Stock And 4 Runners UpLouisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
Orion Energy Systems, Inc. (OESX) : Free Stock Analysis Report
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