Energy Recovery (NASDAQ:ERII) Posts Quarterly Earnings Results

Posted by Brian Himes on Aug 5th, 2026

Energy Recovery (NASDAQ:ERII – Get Free Report) posted its quarterly earnings results on Wednesday. The industrial products company reported ($0.03) EPS for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.01), FiscalAI reports. The company had revenue of $12.00 million during the quarter, compared to the consensus estimate of $18.36 million. Energy Recovery had a return on equity of 10.89% and a net margin of 15.07%.

Here are the key takeaways from Energy Recovery’s conference call:

Geopolitical conflict continues to delay mega-project execution in the Middle East, with financing, EPC appointments, procurement and logistics affected; management cannot yet provide a timeline for market recovery or reinstate guidance.
Energy Recovery reported a strong, uniquely positioned long-term pipeline extending up to five years, but cautioned that the disclosed $27 million backlog has limited value for forecasting 2026 revenue; management expects MPD growth to reappear in 2027 and beyond.
OEM and aftermarket businesses are expected to remain resilient for full-year 2026, despite some weakness and volatility in the first half.
The PX Q650 launch remains on track, with commercial adoption already underway and new deals being signed; management views the product as strengthening Energy Recovery’s competitive position in larger water projects.
The Saudi Arabia manufacturing facility is expected to improve margins gradually from 2027 onward through lower freight, shipping and procurement costs, while requiring only limited incremental capital spending.

Energy Recovery Trading Down 2.8%

Shares of NASDAQ:ERII traded down $0.26 during trading on Wednesday, reaching $8.87. The company had a trading volume of 911,117 shares, compared to its average volume of 810,284. The company has a fifty day moving average of $8.61 and a two-hundred day moving average of $10.61. The stock has a market capitalization of $456.90 million, a P/E ratio of 23.33 and a beta of 0.91. Energy Recovery has a 12 month low of $7.83 and a 12 month high of $18.32.

Insider Activity

In other news, Director Colin R. Sabol purchased 11,180 shares of the stock in a transaction on Monday, June 15th. The shares were acquired at an average price of $8.88 per share, for a total transaction of $99,278.40. Following the completion of the transaction, the director directly owned 55,671 shares of the company’s stock, valued at approximately $494,358.48. This trade represents a 25.13% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Pamela L. Tondreau acquired 20,000 shares of the business’s stock in a transaction dated Wednesday, May 13th. The stock was purchased at an average price of $8.34 per share, with a total value of $166,800.00. Following the completion of the acquisition, the director directly owned 37,362 shares in the company, valued at approximately $311,599.08. This represents a 115.19% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ERII. Aviva PLC lifted its holdings in shares of Energy Recovery by 4.9% in the 4th quarter. Aviva PLC now owns 33,974 shares of the industrial products company’s stock worth $458,000 after acquiring an additional 1,599 shares during the last quarter. Wexford Capital LP bought a new stake in Energy Recovery in the third quarter worth $27,000. Russell Investments Group Ltd. boosted its position in Energy Recovery by 6.0% during the fourth quarter. Russell Investments Group Ltd. now owns 36,225 shares of the industrial products company’s stock valued at $489,000 after buying an additional 2,051 shares during the period. State Board of Administration of Florida Retirement System boosted its position in Energy Recovery by 14.3% during the fourth quarter. State Board of Administration of Florida Retirement System now owns 18,191 shares of the industrial products company’s stock valued at $245,000 after buying an additional 2,274 shares during the period. Finally, Parallel Advisors LLC bought a new position in shares of Energy Recovery during the fourth quarter valued at about $38,000. 83.58% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts have commented on ERII shares. Northcoast Research downgraded Energy Recovery from a “buy” rating to a “neutral” rating in a research note on Wednesday, April 15th. Freedom Capital downgraded shares of Energy Recovery from a “strong-buy” rating to a “hold” rating in a report on Monday, May 11th. Seaport Research Partners restated a “buy” rating and issued a $12.00 price objective on shares of Energy Recovery in a research report on Wednesday, May 13th. Weiss Ratings cut shares of Energy Recovery from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, June 25th. Finally, Wall Street Zen lowered shares of Energy Recovery from a “hold” rating to a “sell” rating in a report on Saturday, May 16th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Energy Recovery currently has a consensus rating of “Hold” and a consensus price target of $15.00.

View Our Latest Stock Analysis on Energy Recovery

About Energy Recovery

(Get Free Report)

Energy Recovery, Inc (NASDAQ: ERII) is an energy technology company specializing in the design and manufacture of high-efficiency devices that capture and repurpose energy in fluid-handling applications. The company’s core offering, the Pressure Exchanger® (PX®) device, enables seawater reverse osmosis (SWRO) desalination plants to recover and reuse hydraulic energy that would otherwise be lost during brine discharge. By integrating PX technology into desalination processes, Energy Recovery helps operators significantly reduce the energy consumption and operating costs of producing fresh water from seawater or brackish sources.

In addition to desalination solutions, Energy Recovery has expanded its portfolio to serve the oil and gas sector through turbocharger systems that improve the energy efficiency of hydraulic fracturing operations.