Orion's (OESX) Voltrek Wins $11M Eversource Energy Contracts

Orion Energy Systems, Inc.'s OESX electric vehicle charging solutions division, Voltrek, secured more than $11 million of open construction services contracts from Eversource Energy under its ‘EV Make Ready' program. These contracts were finalized in the fiscal 2024 and represent more than 25 individual projects.
These projects, previously part of Orion's revenue outlook, are now contracted and slated for execution within the company's fiscal year 2025 (starting Apr 1, 2024). They involve Level 2 and Level 3 chargers, serving various needs such as public, workplace and fleet charging applications. This reflects the growing demand for EV charging solutions. This reflects the growing demand for EV charging solutions, marking significant progress in OESX's EV charging business and reaffirming Voltrek's position as a trusted industry partner.

Focus on EV Charging Business

The company's EV Segment provides leading expertise in electric vehicle charging, offering sales, installation of sourced charging stations, and related software subscriptions and renewals. It also delivers turnkey installation solutions with ongoing support to all commercial verticals.
During third-quarter fiscal 2023, the company's Voltrek EV charging solutions revenues remained flat compared with the year-ago period's levels. It declined sequentially, primarily due to the variability and timing of larger projects. However, OESX is witnessing promising progress in the development of its long-term EV charging project pipeline as it engages with new and existing customers to meet their EV charging needs.
OESX has made significant progress in expanding the Voltrek team and its geographic coverage to cater to the needs of large national customers. The company enjoys a broader customer base and opportunities, leading to growth in its project pipeline, which currently exceeds $50 million. It anticipates some variability in the quarter-over-quarter performance of this segment due to the timing of expected larger regional and national projects.

Price Performance

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The company's shares have dropped 7.1% in the past three months against the Zacks Building Products-Lightning industry's growth of 27.7%. The company has been facing significant inflationary pressures in the past several quarters, leading to many older contracts becoming unprofitable. In response to higher costs, OESX increased its pricing to align its profit margin more closely with its overall business.

Zacks Rank & Key Picks

Orion currently carries a Zacks Rank #3 (Hold).
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NVR, Inc. NVR currently sports a Zacks Rank #2 (Buy). NVR delivered a trailing four-quarter earnings surprise of 8.1%, on average. The stock has gained 33% in the past six months.
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