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Orion Energy Systems, Inc. (NASDAQ:OESX): Are Analysts Optimistic?

Simply Wall St · 5d ago

We feel now is a pretty good time to analyse Orion Energy Systems, Inc.'s (NASDAQ:OESX) business as it appears the company may be on the cusp of a considerable accomplishment. Orion Energy Systems, Inc., together with its subsidiaries, researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, area lighting, industrial applications, and government in North America and Germany. With the latest financial year loss of US$12m and a trailing-twelve-month loss of US$6.2m, the US$60m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Orion Energy Systems will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Orion Energy Systems is bordering on breakeven, according to the 2 American Electrical analysts. They expect the company to post a final loss in 2027, before turning a profit of US$669k in 2028. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 70%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
NasdaqCM:OESX Earnings Per Share Growth January 6th 2026

We're not going to go through company-specific developments for Orion Energy Systems given that this is a high-level summary, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Orion Energy Systems

Before we wrap up, there’s one issue worth mentioning. Orion Energy Systems currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Orion Energy Systems' case is 87%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Orion Energy Systems, so if you are interested in understanding the company at a deeper level, take a look at Orion Energy Systems' company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

  1. Historical Track Record: What has Orion Energy Systems' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Orion Energy Systems' board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.