Energy Recovery (NASDAQ:ERII) Announces Earnings Results

Energy Recovery (NASDAQ:ERII) announced its quarterly earnings data on Wednesday. The industrial products company reported ($0.03) earnings per share for the quarter, missing the consensus estimate 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 net margin of 15.07% and a return on equity of 10.89%.

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 Stock Down 2.8%

Shares of ERII traded down $0.26 during trading hours on Wednesday, reaching $8.87. 911,117 shares of the company traded hands, compared to its average volume of 810,284. The company’s fifty day moving average price is $8.61 and its two-hundred day moving average price is $10.61. The company has a market capitalization of $456.90 million, a price-to-earnings 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 Buying and Selling

In other Energy Recovery news, SVP Rodney Clemente sold 5,387 shares of Energy Recovery stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $8.56, for a total transaction of $46,112.72. Following the sale, the senior vice president directly owned 108,301 shares of the company’s stock, valued at approximately $927,056.56. The trade was a 4.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Pamela L. Tondreau bought 20,000 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The stock was purchased at an average cost of $8.34 per share, with a total value of $166,800.00. Following the transaction, 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 SEC filing for this purchase provides additional information. 2.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Energy Recovery

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ERII. Wexford Capital LP bought a new position in Energy Recovery in the third quarter worth $27,000. Parallel Advisors LLC purchased a new position in Energy Recovery during the fourth quarter valued at $38,000. Tower Research Capital LLC TRC boosted its holdings in shares of Energy Recovery by 172.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,011 shares of the industrial products company’s stock valued at $77,000 after buying an additional 3,803 shares in the last quarter. PDT Partners LLC purchased a new stake in shares of Energy Recovery in the 2nd quarter worth about $159,000. Finally, Man Group plc purchased a new stake in shares of Energy Recovery in the 3rd quarter worth about $162,000. 83.58% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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

Energy Recovery Company Profile

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.