Powering Up with Eversource Energy
Orion Energy Systems, Inc.’s electric vehicle (EV) charging solutions division, Voltrek, has found itself cruising the fast lane to success. Bagging more than $11 million in open construction services contracts from Eversource Energy under its ‘EV Make Ready’ program, Voltrek is revving up for over 25 projects set to charge up the market. These contracts, inked for fiscal 2024, now shift gears for execution within Orion Energy Systems, Inc.’s fiscal year 2025, commencing on Apr 1, 2024. What a ride!
The projects entail both Level 2 and Level 3 chargers, catering to diverse requirements like public, workplace, and fleet charging applications. This electrifying development underscores the soaring demand for EV charging solutions and cements Voltrek’s reputation as a dependable industry player. The road ahead looks charged with potential.
Spark in the EV Charging Business
Diving deeper into the electric realm, Orion’s EV Segment stands out as a beacon of expertise in electric vehicle charging. Offering a spectrum of services from sales and installation of charging stations to software subscriptions and renewals, the company ensures a holistic approach to EV charging solutions catering to all commercial segments.
While Voltrek’s EV charging solutions revenues maintained equilibrium during the third quarter of fiscal 2023 in comparison to the previous year, there was a sequential dip stemming from the timing and variability of substantial projects. But fret not, as Orion Energy Systems, Inc. is steering towards a promising horizon, engaging with a growing clientele base to fulfill their EV charging needs.
The expansion of the Voltrek team and geographic footprint highlights the company’s stride in servicing national customers effectively. With a burgeoning project pipeline north of $50 million, Orion anticipates some fluctuations in the quarter-over-quarter performance of this segment due to the timing of anticipated larger regional and national projects. Powering onward and upward!
Performance Pulse Check
The journey so far has seen Orion Energy Systems, Inc. shares dip by 7.1% over the previous three months, compared to the Zacks Building Products-Lighting industry’s robust growth of 27.7%. Weathering significant inflationary headwinds, the company witnessed older contracts losing their profitability mojo. To counter spiraling costs, OESX took the bold step of increasing prices to align profit margins better with its overarching business objectives. A move for the future.
Ranking Revelations & Potential Picks
Presently adorned with a Zacks Rank of #3 (Hold), Orion remains steadfast in its journey. Sporting a more optimistic outlook, some stars to watch from the Zacks Construction sector include:
Vulcan Materials Company (VMC) geared with a Zacks Rank of #1 (Strong Buy). With a track record of delivering a trailing four-quarter earnings surprise averaging at 19.5%, VMC’s stock sprinted 29.9% in the past half-year. Projections for VMC’s 2024 sales and EPS signal an upswing from yesteryears, setting the stage for a promising performance.
Sterling Infrastructure, Inc. (STRL) strikes the chords with a Zacks Rank of 1. Boasting a trailing four-quarter earnings surprise averaging 20.4%, STRL shares raced ahead by 45.3% over the same period. Estimates for STRL’s 2024 sales and EPS suggest a healthy uptick, laying the groundwork for a bright future.
NVR, Inc. (NVR) holds a Zacks Rank #2 (Buy). Touting a trailing four-quarter earnings surprise averaging at 8.1%, NVR’s stock surged by 33% over the last half-year. Prognostications for NVR’s 2024 sales and EPS indicate a growth trajectory from the previous year, painting a promising picture.
Bright Future Awaits
While the journey may have had its ups and downs, Orion Energy Systems, Inc. is well-positioned to capitalize on the accelerating demand for EV charging solutions. With Voltrek’s recent wins and the promising landscape in the EV space, the company is set to power through challenges and blaze a trail towards a brighter and electrified future.
