Orion Energy Systems, Inc.

Good morning, everyone, and welcome to Orion Energy Systems' fiscal 2027 first quarter conference call. At this time, all participants are in a listen-only mode. In this call, Sally Washlow, Orion's CEO, and Per Brodin, its CFO, will review the company's first quarter results as well as its fiscal 2027 outlook. Then we will 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, OrionLighting.com. I will now turn the call over to Per Brodin, Orion CFO.

Thank you, Steven. 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, leave, 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 things, 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. and now I will turn the call over to Orion's 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 Q1, our seventh consecutive quarter of positive adjusted EBITDA. The first quarter of fiscal 2027 represents an excellent start to the year. In Q1, we delivered on the growth we established in the previous year. Fiscal 2026 was a successful turnaround year for Orion, marking a return to growth in both revenue and profitability. Fiscal 26 came in at $86 million in revenue and $2 million in positive adjusted EBITDA, results that outperformed our guidance. Fiscal 26 was a year in which we put ourselves on a path of profitable growth. And in the current fiscal 2027, we expect to achieve revenue of 95 to 97 million and positive adjusted EBITDA for the full fiscal year. As to Q1 fiscal 2027, year over year, Orion recorded a 32% jump in revenue coming in at $25.7 million. A 15% increase in gross margin coming in at 34.6%, net income of $2 million up from a negative $1.2 million, and adjusted EBITDA of $2.5 million up from $200,000 year over year. Today's earnings report is also further illustration of the improving quality of our sales funnel, the impact of our cost containment initiatives, and the continuous strengthening of our proprietary supply chain. Automotive, retail and public sector engagements continue to show notable strength and continued growth. With customers like public bus fleets, the Orion Voltrek EV charging segment is recognized widely for its ability to complete complex EV charging infrastructure projects. We are focused on scaling this business across a broader customer base and geographic footprint. And we are especially confident about this business with our recent appointment of industry leader Karen Peck to head EV charging infrastructure sales. Furthermore, the hyperscale data center market looks especially attractive now that we have made our initial entry into it. Our customers recognize that we meet them where they are, whether we deliver a product-only solution or provide complete turnkey, full service electrical infrastructure powered by our own products that are designed engineers and made in Manitowoc, Wisconsin. Over the decades, Orion has built a well-earned reputation for quality products, onsite service and an ability to scale no matter how big the customer or project. We have a reputation for unmatched reliability with a proprietary supply chain that includes a Made in America facility enabling us to deliver on time and on budget. And we are widely known for our unsurpassed ability to deliver turnkey installation and services for electrical infrastructure and EV charging stations. Today's Q1 fiscal 27 earnings report is a further validation that Orion is prepared to meet this moment when we have a confluence of three growth drivers in the electrification of industrial America. Number one, the reshoring, refurbishment, and resurgence of U.S. industrial facilities ranging from manufacturing to retailing to government. Number two is the electrification of vehicular fleets of major enterprises in both the private and public sectors, ranging from nationwide logistics to school districts. And number three, the building boom of AI-driven data centers typified by the multimillion-dollar engagement we announced in Q1 with our multipurpose linear lighting fixture designed specifically to integrate quickly and easily into the floor plan of data centers. Today's report also highlights several growth initiatives. Our focus is on expanding opportunities and revenues within new and existing large customers in the automotive, retail, and public sectors, whether by deployment of LED lighting systems, electrical infrastructure, or EV charging infrastructure, our focus on maximizing our service and maintenance to long-term EV charging customers, and our focus on adding capabilities such as data center lighting solutions, battery energy storage systems, electrical contracting, and our recently announced LED roadway lighting products. Delivering efficiency and cost-effective solutions at scale to industrial America at a time of unprecedented need, we believe that Orion is an emerging provider of choice for AI and IoT-driven electrification to Fortune 100 corporations and other global leaders. Orion designs, installs, and maintains LED lighting systems EV charging stations, and the complete footprint electrical infrastructure for some of the largest enterprises in the United States. Whether deployed independently or in a combination with our partners, Orion's discrete, bespoke, and turnkey solutions generate unrivaled ROI to industry facilities requiring the most demanding standards of efficiency, reliability, and compliance. Made in America for its fourth decade, Orion is meeting the moment for an industrial build-out that is reshoring, refurbishing, and reasserting leadership throughout the United States. With that, let me turn to Orion's CFO, Per Brodin, to review our financial performance and outlook.