That said, I'd like to announce our next featured speaker from Orion Energy Systems, Mike Jenkins, the Chief Executive Officer. Mike, take it away.
Thank you very much, and thank you everyone for your interest in Orion Energy Systems. At Orion, everything goes back to our original mission. So we're in business to help our customers achieve their sustainability, energy savings, and carbon footprint reduction goals through our technology and service. Really, this mission has been consistent since our founding in 1996. These are the officers of our company: myself, Per Brodin, our CFO, who's with me today, and Scott Green, who runs our services business. I like to call this slide our business on a page, and so on the left side of it, you see segments. These are essentially the P&Ls of the business. So we have a lighting segment. This is our heritage. What's different about Orion and our lighting system is that we're predominantly a retrofit lighting company and not new lighting.
We're not making inventory to be put on a shelf. All of our sales are going towards projects to help customers reduce their energy footprint, largely by converting from fluorescent or older technology today to today's latest technology of LED, which, by the way, we're kind of in generation four of the technology for LED. About 30%-40% more efficient than generation one LED, which was circa 2012 to 2013. As I mentioned, this is our heritage. Most recently, we've diversified the business by broadening out into a couple of areas at the request of customers. First, we entered the lighting and electrical maintenance space on behalf of our largest customer. You'll see a case study coming up, which was a very significant home improvement center around the U.S. that we did a major retrofit project.
They asked us to stay on and do their lighting and light electrical maintenance, so we built out a business segment for that and subsequently did an acquisition in that space. And then most recently, we've entered the EV charging space. So to be clear, we don't make EV chargers. We are 100% on the infrastructure side in terms of installation, turnkey installation. So these are our three segments as a business. The vertical markets that we participate in, first of all, we're all 100% commercial and industrially focused. We have a lot of customers in the industrial manufacturing space, commercial office and real estate. Retail for us tends to be big box retail. Automotive is both manufacturing, so some of the largest OEM manufacturers of vehicles in the world, as well as their dealerships.
Logistics is warehouse and logistics firms, international, very large firms. Healthcare typically is hospitals. Agriculture is a bit of a legacy for us. It's more dairy. We are from Wisconsin after all, and then lastly is public sector. We do quite a bit at the state, local, and federal levels. Most recently, we just wrapped up a $9.6 million project for the Department of Defense, which was actually done in Germany to support them. Another interesting thing about our company, which does make us unique, is we have three paths to market. So starting on the bottom, we do sell through distributors. As I mentioned, everything we do, for the most part, is for a project and a retrofit project, but we do work with agents and distributors on that piece.
We do a lot in the ESCO space, and if you're not familiar with ESCOs, they're energy service companies. These are companies which are in business to help other companies lower their energy consumption and footprint. Lighting is just one portfolio for them. They also focus on compressed air, they're into EVs, and HVAC. Lastly, the thing that really defines Orion in terms of uniqueness is our turnkey approach, and this is where we can work with very large, complex customers, multi-site customers, and execute a project from audit of their facilities to through design of the solution, implementation, where we oversee and project manage that through third-party contractors. We commission it, and then we're there for maintenance as well as warranty work, and that's truly unique to Orion, and you'll see that coming up in our case study.
As a result, we have four different revenue streams, from our product to our turnkey services, our EV and maintenance business. We're very bullish about the future. One of the things that we're excited about, not only about the organic momentum of Orion, but about some of the macro environmental factors that are impacting our business. Energy prices, of course, move up and down, but directionally, we expect that they're gonna get more expensive over time. Climate and ESG is a major factor, especially for our public customers out there. The EV revolution, we may find that some of the early projections in the EV market were a bit overly bullish, but nonetheless, this market continues to grow significantly, and we are an infrastructure play in that market. Regulatory, for the first time ever, there are some regulatory impacts in lighting.
There are now eight states which have banned fluorescent, the sale of fluorescent fixtures and tubes. So to be clear, nobody's gonna go in and rip out fixtures in buildings, but they are gonna prevent the sale of those within states. Some of the larger states that have already passed this are California, Minnesota. Illinois's ban, I think, is coming through this week. Most of these bans start to go into effect January of 2025 and then carry on from there. A lot of federal funding has been approved, particularly for EV. The NEVI Act, which appropriates over $5 billion of funding for high-speed infrastructure, DC fast charge, is out there. That money is just starting to flow from the federal government to the states, states to projects, so it's just starting to hit the ground.
LED penetration, we think we're about 40% penetrated overall in the commercial industrial space, so there's still 60% of the market to go, and that doesn't include the early adopter clients, which we can now go back to and re-LED. So we see a significant market there on our mainstay business as well. Lastly, we are a domestic manufacturer, so we do source some finished product from Asia, certainly components from globally. But we do manufacture most of our interior project products in Wisconsin. As a result of that, we have engineered two different lines. One meets the BAA requirements, and that's Buy American Act. That's for selling into the federal government. The other product line is for the BABA, which is Build America, Buy America.
That's a more stringent standard and requires that 55% of your, your bill of material costs must come from domestic sources. We have a product line that, that meets that as well, and that unleashes federal funding for states, schools, universities, et cetera. That program is just getting implemented now nationwide, and we're on the leading edge of having a product portfolio to meet that need. As I mentioned, we have three different businesses. On the lighting business, we've done over 25,000 projects since our inception. Very strong commercial, industrially, interior, as well as exterior applications. We have deep controls and, knowledge of IoT. One of the things that's happening right now in our industry is all fixtures have the opportunity to have sensors and controls.
It does two purposes: One, it controls the luminaire, potentially, and the other is it can be a data-gathering device. So in today's age of AI and connecting those to building management systems, we see more and more companies are moving up in terms of the functionality of sensors and controls that they're adopting. On the maintenance side, we do lighting and light electrical maintenance services, both on a preventative as well as a reactive basis. Preventative is scheduled maintenance. We'll go into clients twice a year, quarterly, something like that, into a big box retailer, typically, and then we'll also be there with quick response reactiveness. We do a lot of special projects. The maintenance part of our business typically is done under a three-year contract, so that does give our business recurring revenue. Lastly, EV charging.
Talked a little bit about this before. Major partners here are ChargePoint and ABB, both Level 2 as well as DC fast charge. So we are doing fleet applications. Recently did the city of Boston public schools. We're taking the business of Voltrek, which we acquired, and we're nationalizing those capabilities to allow us to effectively cross-sell across the country, and there are networking and maintenance recurring revenues with this business as well. A little bit more about how we achieve things, particularly on the lighting side. Typically, our customers, when we go through a retrofit, they're experiencing a one- to four-year payback on the investment. Orion has the highest lumens per watt portfolio in the industry. So think of lumens as the metric for light and watt as the metric for energy.
So the more lumens you get to a single watt, the more efficient your light is. We have the highest performing portfolio in the industry. As I referenced earlier, we have a 266,000 sq ft manufacturing facility in Wisconsin, where we manufacture the majority of our interior lights. We've expanded our portfolio to the exterior, and we do have a new contractor line called Triton Pro, which is priced more aggressively to give us a broader view of contracts and more, quote-unquote, "at bats". From there, we can either close with Triton Pro or sell them up to Orion products. This is just an example of some of our clients, our historical clients. Certainly logos on here that you all are familiar with, both from a retail standpoint, manufacturing standpoint, Department of Defense, et cetera.
This is our kind of number one customer case study. So we were presented with an opportunity several years back. This is a very large home improvement company in the U.S., one that we would all recognize and you frequent. They have over two thousand stores altogether, and the project was that they were seeking to lower their carbon footprint, reduce their energy consumption, and save money while improving their overall store experience. There were several other larger, much larger lighting companies that were involved in this prior to Orion getting involved, and the project wasn't working. It wasn't working for those companies, not that they didn't have good product, but the overall project of tying it together from an accountability, on time, and complete standpoint was not working with all the intermediaries. Orion stepped forward.
We like to say we're the single throat to choke, so we provided a full offering for them, custom fixtures made on time and complete, and managed the entire project. It was overall a $250 million project for our client and for us. It paid back for the client in less than a year and a half, and they're the ones who, since then, they maintain being our number one customer because we're on. We provide maintenance services to them, and they constantly give us additional projects. So this is our marquee customer. I already referenced BAA and BABA, so we're fairly unique in the ability to meet these needs. A couple of other things about us which are unique, we have the lowest lead time in the industry for our customers.
A lot of it's because we have common components that we manufacture and customize at the last possible moment. So our lead time typically is two to three weeks. Even during COVID, and the supply chain crisis, we maintained that lead time. Most of our competitors were out eight to 16 weeks during that period of time. This is just a representative portfolio. These are interior offerings, high bays, linears, et cetera. You can see these little medals underneath there. Those signify kind of where we fall in the industry from a lumens per watt standpoint or efficiency, so a lot of number ones plus, and then we also have, as I mentioned earlier, an exterior as well as wet room portfolio.
Wet rooms are used a lot, or vapor tights as well, are used in garages. They're used in food processing and other manufacturing environments. Talked about lighting and lighting controls and sensors, so we can go from all the way from very basic, which is on/off dim. You walk in and the lights go on, to connected systems and network systems, so a full IoT system, like we provided to our number one customer. They had a million luminaires. Each one of them has their own sensor and control. They can adjust that independently and also gather data on their environment. Turnkey capabilities we spoke about earlier, this is essentially what it really means. It starts with a facility audit.
We go into a customer's location, really diagnose what they have in place, what the incumbent technology is, the voltage, et cetera, and then design a new solution for them, sometimes involving custom fixtures. We'll manufacture that in-house often, and then oversee the installation, commissioning, help them with rebates, which maximizes their return on investment and payback, and then we're there for the maintenance and warranty as well, often. I mentioned the market earlier. We think we're about 35%-40% through the initial conversion to LED. Again, a lot of this, this was done with early adopters, and today's technology is 30%-40% more efficient, so we can actually go back and relight some of the early adopters. Our maintenance unit I spoke about. We acquired a company in addition to our organic build around our number one customer.
This gave us nationwide capabilities and some new portfolio of accounts. This business is done on both a preventative and reactive basis under three-year contracts. There's just kind of a list of clients that we work with or have worked with on the maintenance side. Voltrek. Very excited to expand our business into the EV charging area. The reason for that was really twofold. One is we saw it as an area of interest. We saw it as tangential in terms of our capabilities around electrical systems, and our customers began asking us about it. Again, as a turnkey provider and a maintenance provider, we're embedded with our customers and their facilities groups, their sustainability groups, and as customers began to think about their electrification strategy, we were a natural partner for them to reach out to.
So this acquisition was very strategic for us. Kathleen Connors, who was the pioneer who started this business in 2010, is still with us running it. Again, we're a turnkey provider, not a manufacturer in this case, really a service provider. Very strong in the Northeast, which is where the business was founded, and we're in the process of expanding that nationwide through our cross-selling efforts. A list of some of our historical customers. Obviously, again, the business was Northeast centric, so you see that represented here in the historical customers, but a lot of different verticals represented here. Our equipment partners, as I mentioned earlier, ChargePoint and ABB are our two largest, although we do work with a host of other equipment providers based on the client's needs.
We've all seen the early projections of EV and kind of the ups and downs of those projections. This is the latest that we can see from Bank of America, which is calling for a 20% penetration by the end of 2025 of new vehicles, and then 25% by the end of 2027. We don't really care quite frankly if these are right or not. Directionally, what's required to support EVs is a lot more infrastructure, and a lot of that infrastructure has already been appropriated through the federal government, the states, and utilities. So that money is flowing through, and that's where we come in.
Speaking of that, you know, the National Electric Vehicle Infrastructure Act, or NEVI, appropriated $5 billion of federal funds that is flowing from the states to the states and through the states right now, and that was to increase the publicly available fast chargers network out there from less than 100,000 to 500,000 by 2030. It's still a big goal. We'll see if we get there, but the monies are now starting to finally come through. You also have states and utilities, like, as an example, Eversource and in Massachusetts, which is appropriating $300 million-$400 million over the next several years on a make-ready basis, which means installation, to help build out the EV grid.
And then we also see a very strong trend in fleets, the electrification of fleets as well, and that requires DC fast charge systems, speaking of DC fast charge. This is an example of a level 3 or DC fast charge system we put in for Boston public schools. They initially electrified 20 out of their 100 school buses, and we were there to help them build out, design, and execute the system for that. And subsequent to this, we have also been there to help them with other phases. This was a $1.5 million phase one. From an ESG standpoint, you know, we walk the talk at Orion. We- as I mentioned, that is part of our mission, is helping our customers. In addition to that, 20% of the energy we consume is either site-produced renewables or purchased renewables.
Very female-friendly: 60% of our outside board of directors are female, higher than average for a manufacturing company female workforce. From a governance standpoint, we take our responsibilities on compliance very seriously. From a financial standpoint, you know, we've guided to grow this year about 10%-15%. Our quarter one, we were up 13% on revenue, so in that range. We have said that the revenues will be weighted heavily to the second half of this year. With that, I'd be happy to take any questions.
Thank you, Mike. Appreciate the time that went into making this presentation. I think we all found it very informative. So, yeah, on behalf of H.C. Wainwright, we're very grateful you're here in person.
Thank you.
Would like to open it up to the floor. Just, raise your hand, and I'll give you the mic.
On the EV front, is the model install- you know, acquire the product from a OEM, install it? Is there any, you know, follow-on type work, maintenance, or owner-operator-
Yeah
... type model?
Good question. We're not currently pursuing owner/operator in terms of us owning the assets. But we do have some recurring revenue streams from a networking and maintenance standpoint. Sir?
Thanks. Yeah, on the customer acquisition side for the lighting business, market's matured a bit. People are pretty familiar with ROI-driven retrofit. How are you getting the market for new customers that are out there? I assume, you know, big-box stores, you get into one, you can go through multiple stores, but what about new customers in that space?
Yeah, we have a very... You're right, the market is mature, but as I said earlier, 60% of the market has not yet gone to LED. On top of that, for the first time ever, we have this regulatory push, which is certainly motivating a lot of customers. As an example, we have one automotive OEM. Everybody in here would know who they are. They're a top OEM across the country. We relight their sites every, you know, five, seven years, something like that, but they still had some sites which hadn't been converted yet. These bans which are going in place are motivating them to do these projects and to pull forward their schedule, and actually bringing new sites in that maybe the ROI wasn't as high-
Right
... but now all of a sudden they have to do it. So we have as high a pipeline as we've ever had right now on the lighting side.
So that's what I'm wondering. It's moving. There was always an ROI-driven spend, right?
Yeah.
And now there's more regulatory.
Good point. So there's really three motivations on the LED side. There's the ROI, there's ESG, and now there's bans.
Bans. Okay.
Yep. Yep.
Great. Thank you.
Yep.
Any other questions from the crowd? Thanks again, Mike, and we hope the rest of your conference is productive.
Thank you. Appreciate everybody's time.