Welcome back, everyone. We are pleased to welcome Sally Washlow, CEO of Orion Energy Systems, trading on the NASDAQ under the ticker OESX, and the CFO, Per Brodin. Made in America for its fourth decade, Orion is meeting the moment for an industrial build-out that is reshoring, refurbishing, and reasserting leadership throughout the U.S. Happy to welcome you back, Sally. The floor is yours, and let's take questions at the end.
Perfect. Thank you for inviting us here today. It's always gratifying to have a conversation directly with investors. Today, I'll go through some highlights of our business, and as well, you can see our organizational mission that is up as a backdrop slide, and we have a full investor deck available for your reference as well. I would like to give everyone a quick description of Orion Energy Systems, about who we are and what we do. If there is a hammer in your toolbox, a car in your driveway, AI on your phone, a delivery truck dropping off your package, or a school bus picking up your child, there is a chance that it comes from an industrial facility that is lit, charged, or maintained by Orion Energy Systems.
Orion designs, installs, and maintains LED lighting systems, EV charging stations, and electrical infrastructure for data centers, auto manufacturing plants, big box stores, shipping hubs, and vehicular fleets operated by some of the largest and demanding enterprises in the U.S. Our customers range from global data center hyperscalers to worldwide automakers, to nationwide retailers, to the far most reaching public sector agencies.
Our discreet bespoke and turnkey solutions deliver unrivaled efficiency, reliability, scalability, and ROI to industrial facilities with the highest compliance standards. You may have become more aware of our company in the past couple of weeks. Our first quarter fiscal 2027 earnings announcement got some attention when we continued on the growth path that we have established in our previous fiscal year.
Fiscal 2026 was a successful turnaround for us, as we put ourselves on a profitable path for the current fiscal 2027, in which we expect to achieve revenue of between $95 million- $97 million and positive adjusted EBITDA for the full fiscal year. Year-over-year highlights for Q1 fiscal 2027 are a 32% jump in revenue, coming in at $25.7 million, a 15% year-over-year increase in gross margin, coming in at 34.6%, net income of $2 million, up from $-1.2 million, and adjusted EBITDA of $2.5 million, up from $200,000. Q1 2027 was also our seventh positive consecutive quarter of positive adjusted EBITDA.
The quarter also showed the improving quality of our sales funnel, the impact of our cost containment initiatives, and continuous strengthening of our proprietary supply chain. Q1 showed bright spots across the board, which I'd like to share with you. Automotive, retail, and public sector engagements showed strength and continued growth. With customers like large public school bus fleets, we showed our ability to complete complex EV charging infrastructure projects. We are also focused on scaling this business across a broader customer base and geographic footprint.
We are even more confident about this segment after our recent appointment of industry leader Karen Peck to Head EV charging infrastructure sales. Q1 also marked our entry into the data center market with our inaugural multimillion-dollar engagement with one of the biggest hyperscalers. Our lighting fixture in this engagement is designed to integrate quickly and easily onto the floor plan of data centers. We expect significant growth in this extraordinary market.
Orion, as a company, indeed expects continued growth in terms of revenue and profitability, in terms of the number and size of our customers, and in terms of scaling within those customers. Our customers know that when we meet them where they are, that is true whether we are delivering a single-product solution. It is true when we complete turnkey, full-service electrical infrastructure powered by our own products that are designed and engineered, and often made in our hometown of Manitowoc, Wisconsin.
Orion's customers also know that we have an unmatched reputation in reliability. Our proprietary supply chain enables us to deliver regardless of the day-to-day turmoil in international trade. We have spent decades investing in a uniquely robust domestic supply chain, and it has prepared us to meet this moment where we have the confluence of three growth drivers in the electrification of industrial America.
Number one is the reshoring, refurbishment, and resurgence of U.S. industrial facilities, ranging from manufacturing to retailing to government. Number two is the electrification of vehicular fleets of major enterprises in both the private and public sectors, ranging from nationwide logistics to school districts. Number three is the data center building boom, a phenomenon typified by Orion's multimillion-dollar inaugural engagement announced in our first quarter.
Meeting this moment also means beefing up, and Orion is doing that within the recent months, adding new capabilities like our data center lighting solution, battery energy storage systems, electrical contracting, and our recently announced LED roadway lighting product, which extends Orion's LED illumination to public roads. Orion is demonstratively meeting this moment, and we are confident that Orion is an emerging provider of choice for AI and IoT-driven electrification to Fortune 100 corporations and other global leaders. With this overview, we are prepared to take questions.
All right. Thank you so much. Give us an update for what you can expect over the next 12 months, please.
Over the next 12 months, our guidance for this year is between $95 million and $97 million. We started out with a strong first quarter. We reiterated that guidance in our earnings call and expect to see continued growth in all of our segments, whether it is our turnkey solutions, our distribution channel is where we won the data center project from, as well as our ESCO, our energy service channel as well. We are pretty optimistic about the next 12 months, delivering on what we said we are going to do and bringing these new products and solutions to market.
Perfect. You announced several additions to your products and services, ranging from battery storage to electrical contracting and roadway lighting product. You can highlight, describe a couple for us?
Sure. Battery energy storage solutions. This came out of some work we were doing within a customer that asked if we could bring this technology. Because of our turnkey solutions, whether it is installing lighting or EV infrastructure, this was a natural extension of our capabilities. So, the customer came to us, and it started out with 10 facilities in California, and we are currently working on expanding that capability to even more of their facilities. This is a great example of how Orion extends our partnership and our relationship even within existing customers.
What we can provide to them just grows, which provides us a great base for year-over-year, depending on customers to bring us certain projects because they trust us to deliver it on budget, on time, and within the parameters we need. Another great example of a new product that we are just launching is a roadway product that will be built in our Manitowoc, Wisconsin facility.
The need for it to be built in the U.S. is important as we are selling this to municipalities and states. So it marries our ability to manufacture product here in the U.S., along with our great technology to bring this type of product to market as well. Those are just two examples of new products and services that we have started to implement over the past 12 months.
Perfect. Well, I will let you end with this. Your first quarter was a standout. Tell us, how do you see the rest of the fiscal year?
Yeah. We continue to go along the trajectory that we stated. We were just north of $25 million in the first quarter. Positive adjusted EBITDA, strong margins. We continue to expect that to occur throughout the year and meet our guidance of $95 million-$97 million.
Perfect. Well, thank you both for coming on and giving us this update, and we would love to have you back and continuing on with your progress.
Thanks for having us.
Good. Thank you.
All right, everyone. We'll be right back.