OESX Stock Forecast & Price Target

Orion Energy Systems Inc. has reported an improvement in gross margins for F4Q25, rising to 27.5% from 25.8% in F4Q24, driven by effective pricing and cost management strategies. The company anticipates gross margins will further enhance, projecting to exceed 30% by FY2027. Additionally, Orion expects to achieve revenues of $84.0 million for the year, reflecting a year-over-year growth of approximately 5%, indicating strong operational performance and a positive trajectory for the business.

Orion Energy Systems Inc reported F4Q25 revenues of $20.9 million, representing a significant 21.0% year-over-year decline, which fell short of expectations by $0.4 million. This decline was exacerbated by a $1.9 million revenue drop associated with a large European project, highlighting vulnerability to international market fluctuations. Furthermore, the company experienced a net loss of $2.9 million for the quarter, contrasting sharply with a net gain of $1.6 million reported in the same period of the prior year, indicating deteriorating financial health.