OESX Stock Forecast & Price Target

Orion Energy Systems Inc. has demonstrated an improvement in gross margins for the fourth quarter of FY2025, rising to 27.5% from 25.8% in the previous year, primarily due to effective price and cost management strategies. The company anticipates further enhancements in gross margins, projecting them to exceed 30% by FY2027, indicating strong operational efficiency and profitability potential. Additionally, Orion is forecasting revenues of $84.0 million for the year, reflecting a year-over-year growth of approximately 5%, which underscores a positive trajectory in its financial performance.

Orion Energy Systems Inc. reported F4Q25 revenues of $20.9 million, reflecting a significant 21.0% year-over-year decline, primarily driven by a $1.9 million drop in revenue from a notable European project. Additionally, the company experienced a net loss of $2.9 million, or $0.09 per share, contrasting sharply with a net gain of $1.6 million, or $0.05 per share during the same quarter of the previous year. These financial results highlight substantial challenges in revenue generation and profitability, contributing to a negative outlook for the company's stock.