Orion Energy Systems, Inc.

Good morning, everyone, and welcome to Orion Energy Systems' fiscal 2026 third quarter conference call. At this time, all participants are in a listen-only mode. In this call, Sally Washlow, Orion's CEO, and Per Brodine, its CFO, will review the company's third quarter results and its fiscal 2026 and fiscal 2027 outlooks. We will then open the call to investor questions. Today's call is being recorded. A replay will be posted in the investor section of the company's website, orionlightning.com. I will now turn the call over to Per Brodine, Orion CFO. Please go ahead.

Thank you, Michelle. First, 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 our current expectations. Risks include, among other matters, those that Orion has described in its press release issued this morning and in its SEC filings. Except as described therein, Orion disclaims any obligation to update or revise forward-looking statements made as of today. In addition, reconciliations of certain non-GAAP financial metrics to their nearest GAAP measures are also provided in today's press release. Now I'll turn the call over to Orion CEO, Sally Washlow.

Thank you, Per. Good morning, everyone, and thank you for being with us today. I am delighted to report our results for Q3, our fifth straight quarter of positive adjusted EBITDA. In our last investor call, I said that we were on track to achieve three milestones in FY2026. Milestone one. maintain our NASDAQ listing, and maximize our opportunity for growth in shareholder value. As our shareholders can attest, we have checked that box. Milestone two, by the end of third quarter, the enactment of a growth, profitability, and cost containment initiative that enables Orion to become a recognized long-term market leader. As today's earnings report can attest, we have checked that box too. And milestone three, by the end of the fourth quarter, $84 million in revenue at or near a positive adjusted EBITDA for the full fiscal year. As we announced two weeks ago, we believe we are on track to meet or exceed this milestone. The most illustrative way to bring you up to date about Orion is to review the two news items we announced a couple weeks ago. First, We upticked our guidance range for our current fiscal year and set expectations for increasingly profitable growth in our next fiscal year, which begins April 1st. We raised our FY26 outlook to a range of between 84 and 86 million in revenue at positive adjusted EBITDA. Again, that's up from our previous outlook of 84 million in revenue at or approaching positive adjusted EBITDA. Our guidance range increase was sparked by our Q3 expectations of about $21 million in revenue and our fifth straight quarter of positive adjusted EBITDA, which are indeed the results that we are reporting today. Additionally, we now expect positive adjusted EBITDA for the full FY26, which ends March 31st. We expect continued up and to the right profitable growth in FY27 with positive adjusted EBITDA on revenue between $95 million and $97 million. We based our uptick on increasing orders and the success of our recent cost structure improvements. A few of these recent orders include an exterior lighting project valued between $14 and $15 million beginning now in our current Q4 with the bulk of it completed in the first half of our FY2027. This is an example how we expand our scope of work within our current customer base. We expect more of this expansion in FY27 along with more new customer wins as well. Our strategy to expand the products and services we provide is exemplified by the recent three-year renewal of the maintenance contract, as well as a growing backlog. We grow our business by listening to our customers and developing the products and services they need. Another area of focus that we are continuing to quote and win more and more work is within electrical infrastructure, which we define as integrated offerings within our LED lighting and EV charging lines of business. An emerging example of this for some customers is our initial integration of a localized battery storage solution that enables facilities to minimize cost and maximize efficiency by drawing on stored energy. Another example is the Orion Voltrek announcement just this week of our latest work for the Boston Public School System, a $4 million installation of 105 EV charging stations and related infrastructure. Orion-Voltrek is a recurring partner in the BPS initiative to electrify 100% of the district's 750 school buses, the largest school bus electrification program in the Northeast. As I've said before, a number of industrial, commercial, and public sector facilities operated by some of the largest enterprises in the United States relying on Orion. Year after year, our largest long-time customers stay with us and grow with us because we deliver unsurpassed quality and unsurpassed ROI on an ongoing basis. One reason that they rely on us is that we are reliable, in part because our proprietary supply chain enables us to maximize efficiencies minimize dwell times, and avoid choke points, as they also know that our built-from-the-ground-up supply chain also helps insulate us from the risk factors associated with the headlines of the day. Another reason our customers rely on us is that we earn more of their confidence the more we do with them. That includes retailers, two of the largest automakers on earth, and one of the biggest school systems in America. Customers require the most demanding standards of efficiency, reliability, and compliance repeatedly increase our scope of work because we deliver on time and on budget. We see increasing market customer and market demand ahead of us as evidenced by our uptick expectations of growth and profitability through FY27. We expect to benefit from market tailwinds especially in building, reshoring, and refurbishing industrial facilities ranging from data centers to manufacturing plants, the big box retail stores, and public sector buildings. EV fast charging continues to be an area of opportunity according to Perrin Research. While the U.S. EV charging market faced uncertainty in 2025, the most recent Perrin report expects 8% growth in 2026. Perrin also cites growth trends in ports per site and rip and replace of existing EV charging infrastructure. It foresees what it calls a private-led expansion and improved CPO economics. The report puts a premium on execution quality and asset efficiency. We believe we have right-sized and recalibrated Orion for that environment that Perrin describes, and we believe that puts us in position for market expansion, product extensibility, and profitable growth. We could not be more energized about the remainder of the current fiscal year and the entirety of the next year. With that, let me turn to Orion CFO, Per Brodine, to review our financial performance and outlook.