Orion Energy Systems Secures $7M in LED Lighting Contracts from Major Auto Giants

Orion Energy Systems (OESX) has secured $7M in LED lighting contracts with major auto giants, expected to bring in revenue for FY 2026. The contracts involve comprehensive deployments, upgrades, and managed services across multiple manufacturing and distribution sites in North America. This highlights Orion's dominance in the automotive industry's infrastructure improvement efforts. Despite financial challenges, the company's focus on energy-efficient solutions and expertise in LED lighting positions it well for future growth.

Orion Energy Systems, Inc. (NASDAQ: OESX) has secured LED lighting and electrical infrastructure engagements worth up to $7 million for fiscal year 2026 from long-time automotive industry customers in North America. This significant win underscores the company's dominance in the automotive industry's infrastructure improvement efforts and positions it for future growth, despite recent financial challenges.

The contracts involve deployments and upgrades of LED lighting and electrical infrastructure, along with ongoing managed services, at several manufacturing and distribution facilities. These facilities are primarily owned by three major automotive industry customers, including two global leaders among North America’s most prominent automakers. The engagements are part of ongoing updates to LED lighting and electrical infrastructure at manufacturing and distribution facilities operated by all three customers [1].

Orion CEO Sally Washlow highlighted the decades-long trust the company has built with automakers and other manufacturers, stating, "The re-shoring, refurbishing, and rebuilding of American manufacturing facilities is driving increased demand for installation, rebuilding, and maintenance of LED lighting and Electrical Infrastructure. We are proud to build on these long-term relationships to execute their LED lighting project needs as well as their electrical infrastructure improvements" [3].

Orion Energy Systems provides energy efficiency solutions, including LED lighting, controls, electric vehicle charging solutions, and maintenance services. The company specializes in turnkey design-through-installation solutions for large national customers and projects through ESCO and distribution partners [2]. Despite a 12% decline in revenue over the last twelve months, the company projects fiscal year 2026 revenue of approximately $84 million and anticipates approaching or achieving positive adjusted EBITDA [1].

The contracts represent a significant opportunity for Orion, contributing to its projected FY 2026 revenue and helping the company move towards profitability. The recurring revenue aspect through managed services and the established vendor relationship with these automotive manufacturers further solidify Orion's position in the market. The timing of these contracts aligns with broader economic trends of manufacturing re-shoring and facility modernization in North America, creating tailwinds for Orion's services [3].

The company will discuss its expanding automotive market leadership and growing new-business pipeline during its first quarter conference call on August 6, 2025. Despite mixed reactions from analysts, Orion maintains a Buy rating, indicating confidence in its potential [1].

References
[1] https://www.investing.com/news/company-news/orion-energy-systems-secures-7m-in-automotive-led-lighting-contracts-93CH-4159914
[2] https://seekingalpha.com/news/4474281-orion-announces-up-to-7m-in-led-lighting-and-electrical-infrastructure-engagements-with-automotive-industry-customers
[3] https://www.stocktitan.net/news/OESX/orion-announces-up-to-7m-in-led-lighting-and-electrical-r7taeinwstim.html