Orion Energy Systems, Inc.

Good morning, everyone, and welcome to Orion Energy Systems' fiscal 2026 fourth quarter and full fiscal year conference call. At this time, all participants are in a listen-only mode. In this call, Sally Washlow, Orion's CEO, and Pierre Brodin, its CFO, will review the company's fourth quarter and full fiscal year results, as well as its fiscal 2027 outlook. Then we will open the call to investor questions. Today's call is being recorded. The replay will be posted in the investor section of the company's website at orionlightning.com. I will now turn the call over to Pierre Rodin, Orion CFO. Sir, please go ahead.

Thank you, Michelle. First, 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 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 will 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 pleased to report our results for Q4, our sixth consecutive quarter of positive adjusted EBITDA, and for the full fiscal 2026 year. Fiscal 26 represents an exceptional year at Orion. It was a year of growth in revenue and newly achieved profitability. It was a year of strengthened incumbencies in some of our most largest customers. And it was a year of product and market expansion. You may recall from earlier calls that we discussed three milestones for FY26. Milestone one, to maintain our NASDAQ listing and maximize our opportunity for growth in shareholder value. We achieved this goal. Milestone two, by the end of the third quarter, the enactment of a growth profitability and cost containment initiative that enables Orion to become a recognized long-term market leader. We achieved that goal as well. And milestone three, by the end of the fourth quarter, 84 million in revenue at or near positive adjusted EBITDA for the full fiscal year. We beat this goal with 86 million in revenue and 2 million in positive adjusted EBITDA. Looking forward, Orion's FY27 outlook expects revenue of $95 to $97 million, with potential upside in the number of opportunities. Based on our enhanced operating discipline, our growth outlook should once again enable Orion to achieve positive adjusted EBITDA for the full fiscal year. We have come a long way to get to this point. marked the first year in some time that we experienced growth and positive adjusted EBITDA. Fiscal 26 represented a pivot point for this company, a year in which we embarked on a course of increased revenue, expanded profitability, and elevated prominence in our competitive market. When I arrived as CEO of Orion at the beginning of FY26, I was immediately inspired by the team that greeted me. We agreed that FY26 could be more than just a transition year of riding the ship. We had a stellar reputation for quality, along with a track record of growing our business with large Fortune 50 global leaders. We had an unrivaled, built from the ground up, proprietary supply chain that served to insulate our customers from much of the brunt of Exonera's shocks. And we had tailwinds from a multi-year invigoration of U.S. manufacturing facilities, private and public sector vehicle fleets, and AI-driven data centers, like the data center product that we announced last week. To put it simply, we planned, measured, and executed, and the results of FY26 represented not only a market improvement over the previous fiscal year, but a jump above our originally announced expectations. FY26 was indeed a year of right-sizing as we enacted a sustained and necessary cost containment initiative. It was a year of sharpened focus on profitable growth illustrated by our six consecutive quarters of positive adjusted EBITDA through the end of the fiscal year. And it was a year of maintaining our NASDAQ listing and bolstering our balance sheet. Through it all, we received a demonstratable show of support in the market by existing and new shareholders. The results and expectations we report today are testimony to Orion's success on the number of fronts, including renewed aggressiveness in acquiring and expanding within large customers, a quantum improvement in the size and quality of our sales funnel, disciplined cost containment, and an ongoing build-out of our robust proprietary supply chain. Today's report also speaks to some key growth sparks that put us on this up and to the right trajectory. Our focus on expanding opportunities and revenues within new and existing large customers in the automotive, retail, and public sectors, whether by deployments of LED lighting systems, electrical infrastructure, or EV charging infrastructure. Our focus on maximizing our service to long-term EV charging customers which is enabling us to manage our adjustment to the present environment in the sector. And our focus on adding capabilities such as battery energy storage systems and electrical contracting. Adding capabilities continues to be a theme here at Orion as last week's entry into the booming data center market demonstrated. As you undoubtedly know, there is an immense amount of new construction of data centers being driven largely by exponentially increasing demand for artificial intelligence and cloud computing. About 3,000 new data centers are being planned in the United States. ABI Research expects more than 10,000 to be operational by 2030, with another 2,000 coming online before 2035. Orion fully intends to be the LED lighting provider of choice for many of these thousands of data centers. And as we announced last week, we have the product to do it. Orion's multipurpose linear lighting fixture brings to the current data center building boom a customizable product designed specifically to fit the architecture and floor plan of data centers. We listened to our customers and we developed a product that fits the needs of these hyperscale data centers and ensures the flexibility and shortened lead times that come with building in-house right here in our Wisconsin manufacturing facility. And the needs of data centers are significant. Energy-efficient lighting is a priority in data centers whose AI-driven applications impose unprecedented demands on energy. Requiring unprecedented levels of power, data centers are prioritizing solutions to minimize their electricity consumption and carbon footprint. Hyperscale data centers emphasize three particular themes that we address squarely in the development of the product. AI workloads are increasing power density and uptime requirements across data centers, expanding demand for infrastructure solutions that can improve efficiency and lower total operating costs. For operators and investors alike, solutions that reduce energy consumption can offer meaningful economic value when deployed at scale across large footprint facilities. As AI-driven data center construction accelerates, products that combine performance, scalability, cost effectiveness, and ease of integration may be positioned to benefit from a long-term infrastructure upgrade cycle. Hyperscale data centers can count on Orion because we are known for delivering on these points. We are reliable, durable, and scalable. We are on time and on budget, and we do it with our own proprietary supply chain, which serves to reduce customers' exposures to choke points, lengthening dwell times, and market disruptions. Data centers are now learning what other large industrial facilities in retail, automotive, and public sectors already know. Orion can provide the most energy efficient and reliable LED lighting solutions in the marketplace. We intend to become a provider of choice in this growing and long-term market opportunity. We have the same ambitions for incumbency in data centers that we have in our longtime historic markets. Decade after decade, longtime customers stay with us and expand their scope of work with us because we are consistently deliver unsurpassed quality, unsurpassed reliability, unsurpassed scalability, and unsurpassed ROI. Again, today's report marks a milestone for Orion, and I am extremely optimistic about our future. With that, let me turn to Orion's CFO, Per Brodine, to review our financial performance and outlook.