OESX Stock Forecast & Price Target

Orion Energy Systems Inc. has demonstrated an improvement in gross margins, rising to 27.5% in F4Q25 from 25.8% in F4Q24, driven by strategic pricing and cost management initiatives. Additionally, the company forecasts gross margins will exceed 30% by FY2027, indicating a positive trend in operational efficiency. Moreover, Orion anticipates annual revenues of $84.0 million, reflecting year-over-year growth of approximately 5%, which underscores the company's solid market position within the commercial and industrial lighting and energy management sectors.

Orion Energy Systems Inc. reported a significant revenue decline of 21.0% year-over-year for the fourth quarter of fiscal year 2025, with total revenues of $20.9 million, falling short of expectations by $0.4 million. The revenue shortfall was notably impacted by a loss of $1.9 million from a large European project, indicating potential challenges in international operations. Additionally, the company faced a net loss of $2.9 million, reversing from a profit of $1.6 million in the same quarter of the previous year, highlighting deteriorating financial performance.