Orion Energy Systems, Inc.

Good morning everyone and welcome to Orion Energy Systems Fiscal 2025 fourth quarter conference call. At this time all participants are in a listen-only mode. Now I'll turn to Bill Jones, Investor Relations, to begin.

Thank you and good morning to all. Today Sally Washlow, Orion CEO and Per Brodean, CFO, will review the company's fiscal 2025 results and outlook and following their prepared remarks will open the call to investor questions. Today's conference is being recorded. A replay will be posted in the investor section of the company's website orionlighting.com. As a reminder please, as a reminder prepared remarks and answers to questions include statements that are forward looking under the Private Securities Litigation Reform Act of 1995. Forward looking statements generally include words such as anticipate, believe, expect, project, or similar words. Also any statements describing future objectives or goals, company plans, and outlook are also forward looking. These forward looking statements are subject to various risks that could cause actual results to differ materially from current expectations. Risks include among other matters those that Orion has described in its press release issued this morning and in SEC filings. Except as described therein, Orion disclaims any obligation to update, revise forward looking statements which are made as of today. Reconciliation of certain non-GAAP financial metrics to their nearest GAAP measures are also provided in today's press release. Now I will turn the conference over to Orion CEO Sally Washla to begin.

Good morning and thank you for your interest in Orion. As you may know, I took on the CEO position in mid-April following nearly three years of service on Orion's board of directors. I've had chance to speak with some of our investors since becoming CEO, but for most of you this is the first time and I look forward to getting to know you. It's an honor and exciting opportunity to lead Orion's impressive team. Over the past few years Orion has made great strides in diversifying and enhancing a portfolio of complimentary industry leading products and services to better meet our customers' needs. We have also made significant progress reducing our cost structure and enhancing gross profit margins and we have been very productive in developing new revenue opportunities. I feel we are moving in the right direction, however it's clear that we need to do a better job both developing and executing on our pipeline of product and service opportunities with greater urgency and that is my principal goal. While our lighting segment revenue remained challenged in FY25, we achieved 37% growth in revenue at our Voltrek electric vehicle charging station solutions business. We also accomplished a substantial turnaround in the profitability of our electrical maintenance business. Based on the strength of that business capabilities and performance, maintenance returned to sequential growth in FY25 through the expansion of existing customer engagements. Looking into FY26 and beyond, I am pleased to report that we have expanded our pipeline for LED lighting projects with a number of project wins that underscore our unique value proposition and enhance future revenue visibility. In our Q3 reporting, we highlighted new customer relationships and contracts that provide between 100 and 200 million in total revenue potential over the next five years and last month we announced additional project wins that build on that potential. On the cost side, we have made meaningful reductions in the cost of our LED lighting fixtures through product reengineering, plant efficiency efforts, and diversified sourcing which are benefiting our LED lighting margins without impacting our ability to deliver the highest levels of design, quality, and energy efficiency in our products. We also reduced our operating overheads by more than 4 million in FY25, 2 million of which will be reflected as we progress through FY26 and we intend to implement a further 1.5 million in annual overhead reductions during FY26. Despite lower revenue, our operating discipline allowed Orion to achieve positive adjusted EBITDA in both Q3 and Q4 and positive operating cash flow for full fiscal 2025 year. My role is to build on this progress by bringing enhanced leadership, focus, and urgency to our team and its efforts to achieve our growth and profitability goals. I strongly believe the Orion team possesses the skills, has industry leading products, technical expertise, resources, customer relationships, and service commitment to do just that. To better capitalize on the strengths of our three lines of business and the substantial base of customer relationships Orion has built over the past 20 years, we have reorganized our company into two commercial business units effective with the April 1st start of our fiscal 2026 year. The two units are solutions which includes products and services that we develop, manage, and deliver to specific end customers and partners which is focused on product sales via distribution agents, electrical contractors, and energy service companies or ESCO channels. To provide a bit more insight, our solutions business unit is focused on developing and executing across our full range of LED lighting, EV charging, and maintenance service solutions. Solutions taps are full array of capabilities to deliver the greatest potential value to our customers and typically involve large projects in terms of revenue. The solutions business unit also provides the potential to cross sell and build new project and reoccurring revenue opportunities with our long-term customers. Our partners business unit is focused on the sale of LED lighting and EV charging products through distribution channels such as ESCO's electrical product distributors and lighting contractors. To strengthen our position in the partners channel, Orion has developed new product lines such as Triton Pro which balance performance, energy efficiency, and design at competitive price points. These new products have been well received and we're building on their success with additional products designed based on partner feedback to resonate with our customers. We are also making both focused investments to drive growth in the partners business unit including the addition of an industry veteran who will focus solely on this channel and our partners. Overall, our business reorganization is intended to deliver a more cohesive combination of capabilities across LED lighting, EV charging, and electrical maintenance to optimize our success. Though we have made some progress in developing business synergies over the past several months, it has become clear that we need to better leverage our engineering, design, and national project management capabilities within the combined solutions business unit. There is work to be done to further integrate the solution segment including implementing systems and training to support our team members to represent and execute on our full array of offerings. Structure aside, the imperative for the team is to stay close in close contact with our customers and prospects and to maintain focus and urgency to progress opportunities to the finish line or reassess and redeploy resources on more promising projects to fully maximize our business performance. In summary, Orion is clearly differentiated by the unique platform of high quality, industry-leading products, and innovative services we have been providing over more than two decades. These strengths, combined with our large base of long-term customers, our progress on costs, margins, and growing our project pipeline position Orion to deliver improving financial performance in FY26 and longer term. I'm firmly committed and incentivized to make this happen for all of our stakeholders. With that overview, I will turn the call over to our CFO, Pair Borudin, to review our financial performance and fiscal 2026 outlook.