OESX Stock Forecast & Price Target

Orion Energy Systems Inc. has demonstrated significant improvement in gross margins, increasing to 27.5% in F4Q25 from 25.8% in F4Q24, attributed to both pricing enhancements and cost management strategies. The company projects further growth in gross margins to exceed 30% by FY2027, indicating a positive trajectory in profitability. Additionally, with anticipated revenues of $84.0 million for the year, reflecting a year-over-year growth of approximately 5%, Orion Energy Systems shows a solid demand outlook in its core segments.

Orion Energy Systems Inc reported a significant 21.0% year-over-year decline in revenues for F4Q25, totaling $20.9 million, which fell short of expectations. The company's financial results were adversely affected by a $1.9 million revenue drop stemming from a large European project, indicating challenges in market demand or project execution. Additionally, the company incurred a net loss of $2.9 million, compared to a net profit of $1.6 million in the same quarter of the prior year, reflecting a deteriorating financial performance.