Orion Energy Systems, Inc.‘s OESX electric vehicle charging solutions division, Voltrek, recently secured more than $11 million of open construction services contracts from Eversource Energy under its ‘EV Make Ready’ program. These contracts were finalized in fiscal 2024 and represent over 25 individual projects. The projects consist of Level 2 and Level 3 chargers, catering to public, workplace, and fleet charging applications, in response to the surging demand for EV charging solutions. This milestone marks a significant advancement in OESX’s EV charging business, solidifying Voltrek’s position as a trusted industry collaborator.
Growth in EV Charging Business
Orion’s EV Segment continues to thrive, providing top-notch expertise in electric vehicle charging by offering sales, installation of charging stations, and related software subscriptions and renewals. The company also offers turnkey installation solutions with continuous support across all commercial sectors. Despite flat revenue from Voltrek’s EV charging solutions during the third quarter of fiscal 2023 compared to the previous year, OESX is making significant strides in establishing a robust long-term EV charging project pipeline. By engaging with both new and existing customers, the company aims to fulfill their EV charging requirements effectively.
Orion has been proactive in expanding the Voltrek team and geographic coverage to cater to the demands of large national clients. With an expanding customer base and a projected project pipeline exceeding $50 million, the company anticipates some level of quarter-over-quarter revenue fluctuation in this segment due to the timing of larger regional and national projects.
Price Performance and Market Analysis
In the past three months, Orion’s shares experienced a 7.1% decline, contrasting with the Zacks Building Products-Lightning industry’s robust 27.7% growth. The company has grappled with significant inflationary pressures over recent quarters, resulting in older contracts becoming less profitable. In response to soaring costs, OESX implemented price adjustments to align profit margins more closely with its overall business goals.
Zacks Rank & Top Picks
Currently holding a Zacks Rank #3 (Hold), Orion is diligently striving towards cementing its position in the construction sector. For investors seeking potentially more lucrative options, Zacks offers some top picks within the industry:
- Vulcan Materials Company (Zacks Rank #1 – Strong Buy), delivering a trailing four-quarter earnings surprise of 19.5% on average and registering a stock gain of 29.9% in the past six months with an optimistic outlook for 2024.
- Sterling Infrastructure, Inc. (Zacks Rank #1 – Strong Buy), showing a trailing four-quarter earnings surprise of 20.4% on average and a stock growth of 45.3% in the last six months, with promising sales and EPS projections for 2024.
- NVR, Inc. (Zacks Rank #2 – Buy), boasting a trailing four-quarter earnings surprise of 8.1% on average and an impressive stock gain of 33% in the past six months, along with a positive outlook on sales and EPS growth for 2024.
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