Energy Recovery (NASDAQ:ERII – Get Free Report) issued its quarterly earnings results on Wednesday. The industrial products company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.04), FiscalAI reports. Energy Recovery had a return on equity of 2.74% and a net margin of 5.15%. The firm had revenue of $11.20 million for the quarter, compared to analysts’ expectations of $16.16 million.
Here are the key takeaways from Energy Recovery’s conference call:
- Megaproject activity is recovering: Energy Recovery signed more than $30 million in contracts in the last 30 days, has a backlog above $60 million, and sees at least $50 million of Megaproject revenue in 2027. Its project pipeline reached a record $525 million and management says it is becoming more geographically diversified.
- Despite the improving pipeline, shipment timing remains difficult to predict, and the company did not restore guidance. Management said projects are progressing and it knows of no cancellations, but timing uncertainty could affect when revenue is recognized.
- The company highlighted its desalination technology position, saying it won every Megaproject above 100,000 cubic meters per day in 2026. Its new PX Q650 has secured an initial contract for the Jubail plant, and management said the product roadmap has been accelerated.
- After closing its CO2 business, Energy Recovery says it is a debt-free, pure-play water technology company with nearly $86 million in cash and investments and about $26 million in year-to-date free cash flow. Cost actions have reduced quarterly operating expenses 17% from last year, and the company has repurchased nearly $109 million of stock since Q4 2024.
- Management acknowledged wastewater performance was below expectations, though it expects a Q4 improvement following a sales-organization merger and renewed go-to-market focus. Aftermarket customers are also reducing spare-parts inventories amid constrained budgets.
Energy Recovery Trading Up 5.0%
Shares of ERII traded up $0.34 during mid-day trading on Friday, reaching $7.04. The company had a trading volume of 567,015 shares, compared to its average volume of 889,402. The stock has a market cap of $363.10 million, a price-to-earnings ratio of 78.28 and a beta of 0.89. The firm has a fifty day simple moving average of $7.03 and a 200-day simple moving average of $9.49. Energy Recovery has a fifty-two week low of $6.24 and a fifty-two week high of $16.30.
Analyst Upgrades and Downgrades
Several equities research analysts have recently issued reports on the company. Weiss Ratings cut Energy Recovery from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, September 16th. Zacks Research lowered Energy Recovery from a “hold” rating to a “strong sell” rating in a research note on Wednesday. B. Riley Financial reduced their target price on Energy Recovery from $10.00 to $8.00 and set a “neutral” rating on the stock in a research report on Thursday, August 6th. Finally, Seaport Research Partners lowered Energy Recovery from a “buy” rating to a “neutral” rating in a research note on Monday, September 14th. Three analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $11.67.
Check Out Our Latest Report on Energy Recovery
Energy Recovery Company Profile
Energy Recovery, Inc develops and manufactures energy-efficiency technologies for industrial fluid-flow applications. The company is best known for its pressure exchanger systems, which capture hydraulic energy from high-pressure fluid streams and transfer it to lower-pressure incoming fluids. This process can reduce energy consumption and operating costs in demanding industrial environments.
Energy Recovery’s products are used extensively in seawater and brackish-water reverse-osmosis desalination, where its PX Pressure Exchanger technology helps recover energy from the high-pressure reject stream.
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