OESX Stock Forecast & Price Target

Orion Energy Systems Inc. has demonstrated an improvement in gross margins, which reached 27.5% in F4Q25, up from 25.8% in F4Q24, indicating operational efficiencies and effective pricing strategies. The company projects further growth in gross margins, expecting to exceed 30% by FY2027, which suggests a strong potential for profitability enhancement in the near future. Additionally, with anticipated revenues of $84.0 million for the year, reflecting a year-over-year growth of approximately 5%, Orion Energy Systems is well-positioned for sustained financial performance in its core segments.

Orion Energy Systems Inc. experienced significant financial challenges, with F4Q25 revenues declining by 21.0% year-over-year to $20.9 million, falling short of expectations by $0.4 million. The revenue decrease was notably impacted by a $1.9 million drop from a large European project, indicating potential vulnerabilities in its international operations. Furthermore, the company reported a net loss of $2.9 million, a stark contrast to a profit of $1.6 million in the same quarter from the previous year, highlighting the ongoing financial strain.