ERII

Energy Recovery’s second quarter reflected ongoing challenges as the company’s revenue fell short of Wall Street expectations, largely due to delayed megaproject orders in the Middle East and a continued impact from geopolitical tensions. Interim CEO Alex Buehler pointed to persistent delays in project execution, particularly as risk premiums and procurement challenges have increased due to regional instability. Management also acknowledged that these headwinds limited visibility and contributed to softer-than-expected results. Is now the time to buy ERII? Find out in our full research report (it’s free). Revenue: $12 million vs analyst estimates of $18.83 million (57.2% year-on-year decline, 36.3% miss) Adjusted EPS: -$0.03 vs analyst estimates of -$0.04 (in line) Adjusted EBITDA: -$2.6 million (-21.7% margin, 159% year-on-year decline) Adjusted EBITDA Margin: -21.7% Market Capitalization: $394.1 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Pfingst (B. Riley Securities) asked about visibility for Middle East megaprojects and the impact of formal delays. Interim CEO Alex Buehler clarified that delays are now more formalized due to financing and logistics, but the long-term pipeline remains strong. Ryan Pfingst (B. Riley Securities) inquired about expected margin uplift from the Saudi Arabia facility. Buehler responded that margin improvements will come gradually as the facility ramps up and reduces freight and procurement costs. Ryan Pfingst (B. Riley Securities) questioned actions to accelerate wastewater growth. Buehler explained the focus on resource reallocation, targeting high-growth regions, and balancing efficiency with key account coverage. Ryan Connors (Northcoast) asked if the Iran conflict must be resolved for project activity to resume. Buehler said order recovery depends on reduced geopolitical risk, stating, “We’ll know it when we see it in our project pipeline.” Jeffrey Campbell (Seaport Research Partners) requested guidance on the resiliency of OEM and aftermarket segments. Buehler emphasized these areas should remain resilient for the full year, although some near-term choppiness is expected. Looking ahead, our analysts will be closely monitoring (1) progress on major project awards and any signs of order recovery in the Middle East, (2) the pace of ramp-up and cost savings from the Saudi Arabia manufacturing facility, and (3) the commercial adoption trajectory of new products like the PX Q650 across water and wastewater markets. Progress in these areas will be critical to tracking Energy Recovery’s execution and long-term recovery. Energy Recovery currently trades at $7.81, down from $8.86 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Interim President and Chief Executive Officer - Alexander J. Buehler Interim Chief Financial Officer - Aidan Ryan Operator: Good day, ladies and gentlemen, and welcome to Energy Recovery's Second Quarter 2026 Earnings Call. During today's call, Energy Recovery may make projections and other forward-looking statements under the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the company. These statements may discuss our business, economic and market outlook, growth expectations, new products and their performance, cost structure and business strategy. Forward-looking statements are based on information currently available to the company and on management's beliefs, assumptions, estimates and projections. Forward-looking statements are not guarantees of future performance and are subject to certain risk, uncertainties and other factors. We refer you to documents the company files from time to time with the SEC, specifically the company's annual Form 10-K and quarterly Form 10-Q. These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. All statements made during this call are made only as of today, August 5, 2026, and the company expressly disclaims any intent or obligation to update any forward-looking statements made during this call to reflect subsequent events or circumstances unless otherwise required by law. Our host for today's call are Alex Buehler, Interim President and Chief Executive Officer of Energy Recovery; and Aidan Ryan, Interim Chief Financial Officer. I would now like to turn the call over to Mr. Buehler. Alexander J. Buehler: Thank you, operator, and good afternoon, everyone. Earlier today, we released a letter to shareholders on the Investor Relations section of our website that reviews business and financial performance during the quarter. Prior to opening the line for questions and answers, I'd like to highlight a few important takeaways from that letter. We are focused on bringing our CEO search to a close and have been impressed with the breadth and the quality of the candidate pool. The combination of Energy Recovery's long-term tailwinds, technology leadership and platform strength have allowed us to attract accomplished leaders who are ready to lead our next chapter of growth. We look forward to updating you further as this search progresses. As Interim CEO, I'm focused on ensuring the successful execution of our business initiatives and continuity with our customers and employees during this search process. In addition to my past career across water, energy and infrastructure services; I have also had the privilege of serving on Energy Recovery's Board for over a decade. With this background, I am ensuring that we keep pace on growth, innovation, manufacturing transformation and capital discipline. Moving now to our outlook. We sit in attractive end markets with durable structural growth in the high single digits. While the war has temporarily impacted us and clouded our visibility, we are confident in our long-term pipeline and a return to growth as these headwinds pass. Lastly, we've demonstrated our discipline in operating costs this year and that practice will continue. In addition to a steady pace of improvements in overhead efficiency, our ongoing manufacturing transformation will provide significant cost improvement when our new facility in Saudi Arabia achieves planned run rate production. With that, we will now move to the question-and-answer portion of our conference call. Operator, please open the line for questions. Operator: [Operator Instructions] Our first question is from Ryan Pfingst with B. Riley Securities. Ryan Pfingst: First, could you just talk about your current visibility on Megaproject in the Middle East as of the last call? I believe there were no formal delays given to you guys, but they were expected. Is that still the case? Alexander J. Buehler: Well, let me start kind of with the pipeline and then I'll specifically address the second part of your question, Ryan. I will say the pipeline is strong. I would even characterize it as uniquely strong. We do have really good forward visibility. Obviously in this market, we've got structural durable demand drivers and those certainly have not changed. So we are predicting a market recovery although we're unable at this juncture to kind of put a date and a timeline on that. When we look at our pipeline, we do have named projects in some cases with EPCs appointed, in other cases without, with named customers as well. And that forward visibility can extend out for 5 years. So the pipeline looks good. It looks uniquely strong from my perspective, but we are still in this environment where we are seeing delays. Some of those delays to your specific question have in fact been formalized and communicated. Obviously those are caused by financing challenges in this current environment of geopolitical risk where risk premiums go up. Obviously we have procurement challenges from our EPCs. And then we just have logistic challenges as well in terms of getting things started and proceeding into the execution phases of these things. So good pipeline, but still with uncertain timing is the punchline there. Ryan Pfingst: I appreciate that detail. And then secondly, could you dig in more on the cost impact that your new facility in Saudi Arabia is expected to have and the extent of the potential margin uplift there? Alexander J. Buehler: Yes. So the Saudi Arabia facility is primarily strategic in nature. It's designed to get us closer to customers and to minimize freight and shipping costs to those customers and also to build a local presence in a region that's very important for us over time. It is, I'd say, complementary with our facilities in California. We plan to use both as we talked about in the letter. We do see it as a source of margin improvement in the future and a lot of those margin improvements come from just freight and shipping and procurement and then there are some generally lower operating costs in the region. We'll see those margin improvements come gradually over time as the facility ramps in '27 and '28 and beyond as well as when we introduce new products, including our Q650 into the market. So don't think about it as a we open the factory, all of a sudden margins snap up. It is something that's going to happen over time and it's probably too early to quantify that, but we do expect improvement. Ryan Pfingst: That makes sense. I appreciate that. And then last one for me on the wastewater side. What are some of the key actions that you're taking today to accelerate business there? And when do you think we'll ultimately see a commercial inflection point for Energy Recovery's products in that market? Alexander J. Buehler: Yes. Obviously we like the wastewater market that goes without saying. We continue to invest there. What we see is a growing market as we look at several use cases and applications for our products and technologies. You would have noted in some of our earlier press releases that we have achieved and announced product success and reference projects. We have also expanded and diversified our portfolio of products so we can do high pressure, ultra-high pressure, low pressure and ultra-low pressure that certainly broaden the aperture of our technologies in those range of use cases. But certainly, we are also focused on accelerating market adoption and revenue growth. I think some things we're doing there are we are better allocating our resources to where the market opportunity is. For example, a lot of opportunity in Asia especially in places like China and India where they haven't really taken up MLB, ZLD as industrial or national policies in those markets for obvious reasons. We are also trying to balance kind of our key account management approach and our go-to-market strategy. So we are trying to position with the right sort of OEM players in the right end markets and cover those accounts. Obviously if we can get spec-ed in with some of those RO companies, that could mean a significant uplift in revenue and an opportunity to scale more quickly. We are also thinking we're going to run this with more efficiency as well. So you would have probably picked up on that in the shareholder letter. So we're balancing revenue growth and efficiency and that's through better resource allocation and, in some cases, leaner operations on the sales management side. And that certainly not reducing our sales resources especially as we think about our priority geo markets and target accounts, but running it more efficiently from a sales management perspective. So that's how we think about wastewater. Obviously the results were pretty soft, but we still feel really good about the market, its size, our product success and the case of project references that we are developing. Operator: Our next question is from Ryan Connors with Northcoast. Ryan Connors: I wanted to start off on the big picture and then kind of move down from there. But obviously the Iran conflict is a key part of the story right now. I'm just -- I think one of the unique things about it has been the on again, off again nature of it. One minute we're looking at a resolution and then we're not. I'm just curious what do you think is going to be the catalyst to open the market up and reduce those risk premium as you talked about, Alex. I mean when this thing keeps head faking that it's resolved and then not. Does it have to be resolved for 6 or 9 months very clearly before some of these countries open things back up? Just curious because it seems like a very -- something that just is coming and going almost every other day or week here. Alexander J. Buehler: Yes. Look, obviously difficult to say where things are going on the geopolitical side and yes, we can all acknowledge and appreciate that whiplash, right? There's a deal, there's no deal. Missiles are flying again, now we're in the ceasefire. I think what we need to see on our side is projects moving to financing, EPC appointments as well as sort of execution in terms of award to delivery. In certain cases, we get awards although delivery is pushed out. Obviously that doesn't help. That helps us from a backlog perspective, but not necessarily from a revenue perspective, right, because we're still dependent on that execution timeline. It's one of those things we'll know it when we see it because we'll see normal order of operations, timing and velocity in our detailed pipeline, which is sort of the difference between an award date and a make water date and then earlier than that, the difference between a project manifesting in its award date. Right now we're just out of bounds there. So we will see it come inbounds hopefully soon, but one can never tell, right? How that correlates to geopolitical environment, I can't possibly say, right, like what needs to happen on that side; cease fire, a cessation of hostile activity, whatever that is. What I can tell you we'll know it when we see it in our project pipeline as we measure those key project milestones and then timing between those milestones. Ryan Connors: That's very helpful perspective on it. And that kind of leads to my next question, which was totally understand the impossibility of reinstating guidance in this kind of environment like you described. But the one thing you do stress a couple of times in the release and the letter is the backlog so the $27 million. How do we think about that number? What does that number mean for us? Is that -- can we think about that as kind of a floor for the second half or is that -- I'm just curious? That is the one metric we have and I'm just curious how you would frame that for us. How we should be thinking about that from a modeling perspective? Alexander J. Buehler: Yes. I primarily look at our comments around the strength of the backlog in 2027 and beyond. I think that's when we're going to see growth start to reappear. We have seen some contracting activity this year resume, but there is also some delay in contracting activity. So we disclosed the backlog number, but the ability to use that to read through into the rest of our year I think is limited in this circumstance. So I think we're trying to get the focus to really be on the long-term pipeline and that's on the MPD side though. You've heard us say that OEM and aftermarket business we expect to be resilient through the rest of this year. So keep that in mind too. Ryan Connors: Yes. Now you talked about the PX Q650 earlier. Obviously, this whole air pocket here with the Iran conflict ends up being poorly timed as it relates to that launch. I mean should we think about this as kind of pushing out the PX Q650 launch and rollout to where that's really going to impact the top line? And I guess you've mentioned it will impact the margins as well. I mean do we kind of think about that more as almost a late '27, '28 story at this point where it really moves the needle? Alexander J. Buehler: No, it shouldn't impact the product launches at all, right? So we have launched that product. We are seeing commercial uptake even from key customers and that too is a demonstration of our product leadership, our innovative spirit as well as the strength of our value proposition. We certainly think it makes sense as more countries are launching these multiyear national water programs and trains are getting larger, volumetric flow is increasing, right? So this just seems like a natural play into that changing market environment. It also strengthens our competitive position pretty well, very well I would say. So when you look at our performance against any competitive benchmarks out there, which there aren't many on the MPD side anyway. But as we look at large Megaprojects in the pipeline, when you look at things like efficiency, specific energy consumption, [ tenant ] pressure, useful life, warranty coverage, et cetera. I just think it puts us in such a strong competitive position and strengthens our value proposition accordingly. So the short answer to your question is no, it won't delay the product launch. We are inking deals for the 650, both small and large, and we expect that we will continue to ink those deals. Ryan Connors: Got it. Okay. And then going back to the new facility, the new manufacturing facility in Saudi Arabia. Congratulations on that. I know that's been something that's been in the works for a while. And I want to take that from the flip side as the earlier question on the margin benefit. But in terms of the capital cost there and the cash flow impact over the next I guess 1.5 years as that ramps up, Aidan, do you have anything you can share with us on the total capital cost for that and how that will sequence over the next year or however long that takes? Alexander J. Buehler: Yes. I think about it as a very limited capital cost. As a reminder, we're not greenfielding a new site. We are leasing a space. So the incremental capital cost is really around equipment and some fixed assets. We gave guidance this year for $3 million to $6 million of total CapEx. That still stands. You might remember maintenance CapEx is less than that. So we're talking about a few million bucks this year. There may be some next year as we build out that facility further, but it's a limited CapEx facility. Operator: [Operator Instructions] Our next question is from Jeffrey Campbell with Seaport Research Partners. Jeffrey Campbell: You said that the O&M and aftermarkets are going to remain pretty resilient. Can you give us some kind of broad guidance on what that represents for the rest of '26? And is it going to be similar to the first 2 quarters? How do you think about that? Alexander J. Buehler: Our comment about the resiliency was really a full year comment. In the first half, we've obviously in OEM and aftermarket come down a little bit below where we were last year. But when we look at the second half of the year and when we look at the full year, I'd characterize our expectations as those businesses will remain resilient. There was a little choppiness obviously in the first half from everything that happened in the war. Those businesses are not immune by any means to the goings on there. But again resilient for the full year. Jeffrey Campbell: Okay. You noted that the low-pressure PX energy savings were 23% and 25% in real-world applications. I was just wondering what sort of improvement does that represent over what you were offering prior to the low PX development? Alexander J. Buehler: Pretty similar. Those products really just address other use cases within wastewater. So it's a product that will expand the TAM for us. Jeffrey Campbell: Okay. You mentioned that the Megaproject construction activity had resumed in some Middle East conflict areas. Those apparently are not producing deals for energy recovery at this point. I thought that might be a good opportunity to just review what's the typical lag between when a project starts actual construction and then when you receive a tender for your devices? Alexander J. Buehler: Usually we're on the early side of the procurement cycle. So I would let you know that we're kind of 1% to 2% of the capital value here. But in most cases because of our production schedule, slotting in production, right, they're going to want to order products from us and get those in hand and in-house, right? So we have seen a lag. We have seen that lag grow in this environment. But back to the earlier part of your question, obviously I mean we've got great comprehensive visibility of the MPD pipeline. So there's not a project out there that we don't see and we don't see early and we're not in discussion with those customers. I mean the users are the offtakers, the developers, the EPCs, et cetera. So we've got incredible coverage and early and forward visibility on those projects. So that's the point I would want to reinforce there, right? So we're not going to miss an MPD project. We're going to see them all and we're going to be positioned early and be closely monitoring that project pipeline. Jeffrey Campbell: Okay. And then my last one that I'll ask is going back to this targeted changes that you're making in wastewater, you've already given some good color on that. But I wondered if you could zero in particularly on the synergies that you said you want to unlock with the broader organization. I'm wondering if those are -- are those organizational or are we talking about manufacturing? What kind of synergies are you thinking about? Alexander J. Buehler: Yes. I mean what we're finding is that there are some common customers here. So when we think about sales coverage in a territorial sense, we have sort of separate and parallel business units between water or desal and wastewater. I think what we've done is taken a view of what is the customer overlap, what are the key accounts and then how many salespeople or territory specialists do we need in any specific area to cover those key accounts in that territory. That's one area of, call it, synergies, right? The other area of synergies is on the sales management side. Obviously we do have a sales management infrastructure for desal. We do have a sales management infrastructure for wastewater. In some cases, those are duplicative and overlapping. So we could certainly drive realize efficiencies and economize between those 2. So I would point to both of those kind of overlapping sales resources in certain cases and then overlapping sales management in other cases. Operator: We have reached the end of the question-and-answer session. I would like to turn the floor back over to Alex Buehler for closing comments. Alexander J. Buehler: Thank you, operator. I want to thank all of our stakeholders for your continued interest and support and we look forward to updating you on our next call after the third quarter. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Energy Recovery, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Recovery wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Energy Recovery (ERII) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Energy Recovery, Inc.? Here are five stocks we like better. Middle East desalination growth remains delayed: Energy Recovery’s pipeline is strong and extends several years, but geopolitical risks, financing pressure and logistical challenges have made project timing uncertain. Management expects meaningful growth mainly in 2027 and beyond, rather than relying on the $27 million backlog to drive the rest of 2026. Saudi manufacturing expansion is progressing: The leased facility is expected to reduce freight and procurement costs and improve margins gradually as it ramps in 2027–2028. Capital expenditure guidance remains unchanged at $3 million to $6 million. Product and market initiatives continue despite disruption: The PX Q650 launch is on schedule and gaining commercial traction, while Energy Recovery is broadening wastewater applications and improving sales efficiency. OEM and aftermarket businesses are expected to remain comparatively resilient through the remainder of 2026. Energy Recovery (NASDAQ:ERII) said it remains focused on executing its growth initiatives, managing costs and advancing its manufacturing footprint while geopolitical uncertainty continues to delay the timing of major desalination projects in the Middle East. During the company’s second-quarter 2026 earnings call, Interim President and Chief Executive Officer Alex Buehler said the company is also working to complete its search for a permanent CEO. Buehler said Energy Recovery has attracted a broad pool of experienced candidates, citing the company’s technology position, platform strength and long-term market opportunities. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We are focused on bringing our CEO search to a close,” Buehler said, adding that his role during the transition is to maintain continuity with customers and employees while ensuring execution across growth, innovation, manufacturing transformation and capital discipline. Buehler characterized Energy Recovery’s pipeline for mega desalination projects in the Middle East as “uniquely strong,” with visibility extending as far as five years in some cases. The company has visibility into named projects, customers and, in some instances, engineering, procurement and construction, or EPC, contractors. → 3 Drone Stocks That Should Soar After the Summer Slump However, the company said the war and related geopolitical risk have complicated project schedules. Buehler said some delays have now been formally communicated, driven by financing pressures, procurement issues and logistical challenges. Higher risk premiums have made financing more difficult, while project execution timelines have become less predictable. “Good pipeline, but still with uncertain timing is the punchline there,” Buehler said. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Asked what could restore normal activity, Buehler said Energy Recovery will look for projects to advance through financing, EPC appointments, awards and delivery schedules. The company has received some awards where delivery has subsequently been delayed, which supports backlog but does not immediately translate into revenue. Buehler said the company expects growth to reappear primarily in 2027 and beyond, rather than suggesting that its reported $27 million backlog can be used as a clear indicator for the remainder of 2026. He said contracting activity has resumed in some cases this year, although delays in other project activity persist. Energy Recovery’s planned manufacturing facility in Saudi Arabia is intended primarily to place the company closer to customers in a strategically important market, according to Buehler. The site is expected to reduce freight, shipping and procurement costs while providing a local operating presence. It will complement, rather than replace, the company’s California facilities. The company expects the Saudi facility to provide margin improvement over time, but Buehler cautioned that the benefit will not be immediate when the location begins operating. He said improvements are expected to build as the facility ramps during 2027 and 2028 and as the company brings products including the PX Q650 to market. Energy Recovery is leasing the Saudi site rather than developing a greenfield facility, limiting the expected capital requirement. Buehler said the company’s prior full-year capital expenditure guidance of $3 million to $6 million remains in place. Incremental spending is primarily related to equipment and fixed assets, with potentially some additional spending next year as the site is built out further. Buehler said geopolitical disruption has not delayed the launch of the company’s PX Q650 product. Energy Recovery has already launched the product and is seeing commercial uptake from key customers, including both smaller and larger agreements. He said the Q650 is designed to address a changing desalination market in which countries are pursuing multiyear national water programs, plant trains are becoming larger and volumetric flows are increasing. Buehler said the product strengthens the company’s competitive position through factors including efficiency, specific energy consumption, back pressure, useful life and warranty coverage. “We are inking deals for the 650, both small and large,” Buehler said. Energy Recovery said it continues to view wastewater as an attractive growth market despite what Buehler described as soft recent results. The company has expanded its product portfolio to serve high-pressure, ultra-high-pressure, low-pressure and ultra-low-pressure applications, broadening the range of wastewater use cases it can address. Management highlighted opportunities in Asia, particularly China and India, where Buehler said there is significant potential for minimum liquid discharge and zero liquid discharge applications. The company is seeking to improve adoption by allocating resources toward priority geographies and target accounts, while pursuing relationships with original equipment manufacturers that could incorporate Energy Recovery products into reverse-osmosis systems. The company is also seeking greater efficiency in its wastewater sales organization. Buehler said Energy Recovery is not reducing sales resources in priority markets, but is reassessing territorial coverage, account overlap and management structures shared between its desalination and wastewater businesses. Energy Recovery sees overlap among customers served by its desalination and wastewater operations. The company is evaluating how many salespeople and territory specialists are needed to cover key accounts in each region. Management also sees potential to reduce duplication between separate desalination and wastewater sales-management structures. For its OEM and aftermarket businesses, Buehler said Energy Recovery expects resilience across the full year, despite some “choppiness” in the first half related to the conflict. He noted that these businesses are not immune to regional conditions, but management continues to expect them to remain comparatively stable through the balance of 2026. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Energy Recovery Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: The company noted that the war has temporarily impacted results and clouded visibility, but did not provide specific revenue figures for the quarter. Operating Costs: Demonstrated discipline in operating costs this year, with a continued practice of overhead efficiency improvements. Manufacturing Costs: Ongoing manufacturing transformation expected to provide significant cost improvements when the new Saudi Arabia facility achieves planned run-rate production. Market Growth: End markets are expected to see durable, stronger growth in the high single-digits. Warning! GuruFocus has detected 5 Warning Signs with ERII. Is ERII fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Energy Recovery Inc (NASDAQ:ERII) has a uniquely strong long-term pipeline with forward visibility extending up to five years, including named projects and EPCs. The company is making progress on its CEO search, attracting accomplished leaders due to its strong market position and growth potential. The new Saudi Arabia manufacturing facility is expected to provide gradual margin improvements through reduced freight, shipping, and procurement costs, as well as lower operating costs. The PXQ650 product launch is on track, with commercial uptake from key customers, strengthening the company's competitive position in large desalination projects. Energy Recovery Inc (NASDAQ:ERII) is demonstrating disciplined cost management and operational efficiency, including optimizing sales resources and reducing overhead. Energy Recovery Inc (NASDAQ:ERII) faces significant uncertainty and delays in Middle East mega projects due to geopolitical risks, financing challenges, and procurement issues, impacting near-term revenue visibility. The company has not reinstated guidance due to the unpredictable timing of project recoveries, limiting investor clarity. Wastewater segment results were soft, with market adoption slower than expected, despite ongoing investments and product portfolio expansion. The backlog of $27 million provides limited read-through for the rest of 2026, as contracting activity has been delayed and deliveries pushed out. The ongoing Iran conflict has created a volatile environment, causing project delays and increasing risk premiums, which may persist for an extended period. Q: What is your current visibility on mega projects in the Middle East, and have any formal delays been communicated since the last call? A: Alex Bueller (Interim CEO) stated that the pipeline is "uniquely strong" with good forward visibility extending up to five years, driven by structural demand drivers. However, some project delays have now been formalized and communicated, caused by financing challenges, geopolitical risk premiums, procurement issues with EPCs, and logistical hurdles. The timing of market recovery remains uncertain. Q: Can you elaborate on the cost impact and potential margin uplift expected from the new manufacturing facility in Saudi Arabia? A: Aidan Ryan (Interim CFO) explained that the facility is primarily strategic, designed to get closer to customers and reduce freight costs. It is complementary to the California facilities. Margin improvements will come gradually as the facility ramps in 2027 and 2028, driven by lower shipping, procurement, and operating costs. The impact will be gradual rather than immediate, and it is too early to quantify the exact uplift. Q: What key actions are being taken to accelerate the wastewater business, and when will we see a commercial inflection point? A: Alex Bueller (Interim CEO) noted continued investment in the wastewater market, with a focus on expanding the product portfolio to cover high, ultra-high, low, and ultra-low pressure applications. The company is reallocating resources to high-opportunity regions like Asia (China and India) and refining its go-to-market strategy with key OEM players. While results were soft, the company remains confident in the market's size and its product success, balancing revenue growth with operational efficiency. Q: Given the on-again, off-again nature of the Iran conflict, what will be the catalyst to open up the market and reduce risk premiums? A: Alex Bueller (Interim CEO) stated that the company will know the market is recovering when it sees projects moving to financing, EPC appointments, and normal execution timelines. Currently, the time between project milestones is "out of bounds." The company will recognize the recovery through its project pipeline metrics, though he could not predict the geopolitical events needed to trigger it. Q: How should we interpret the $27 million backlog, and can it be used as a floor for second-half 2026 modeling? A: Aidan Ryan (Interim CFO) clarified that the backlog strength is more relevant for 2027 and beyond, where growth is expected to reappear. The ability to use the backlog to read through to the rest of 2026 is limited due to contracting delays. He emphasized that the OEM and aftermarket businesses are expected to remain resilient for the full year. Q: Will the Iran conflict delay the launch and rollout of the PXQ650 product? A: Alex Bueller (Interim CEO) confirmed that the conflict will not delay the product launch. The company is already seeing commercial uptake from key customers and is inking deals for the PXQ650, both small and large. The product strengthens their competitive position in large mega-projects, particularly as national water programs grow in scale. Q: What is the total capital cost for the new Saudi Arabia facility, and how will it impact cash flow over the next year and a half? A: Aidan Ryan (Interim CFO) stated that the capital cost is very limited since the company is leasing the space rather than greenfielding a new site. The incremental cost is mainly for equipment and fixed assets. The 2026 CapEx guidance of $3 million to $6 million remains unchanged, with possibly a few million more next year for further build-out. Q: Can you provide broad guidance on the OEM and aftermarket business for the rest of 2026? A: Aidan Ryan (Interim CFO) noted that the resiliency comment was a full-year expectation. While the first half saw these businesses come in slightly below last year due to war-related choppiness, the company expects them to remain resilient for the full year, despite not being immune to the geopolitical situation. Q: What is the typical lag between when a mega project starts construction and when Energy Recovery receives a tender for its devices? A: Alex Bueller (Interim CEO) explained that Energy Recovery is usually on the early side of the procurement cycle, as customers want to secure products early for production scheduling. While the lag has grown in the current environment, the company has comprehensive visibility of the MPD pipeline, ensuring it sees all projects early and is positioned to monitor timelines closely. Q: What synergies are you targeting with the organizational changes in the wastewater business? A: Alex Bueller (Interim CEO) highlighted synergies in sales coverage and management. The company is identifying customer overlap between the desal and wastewater business units to optimize territory coverage. Additionally, they are eliminating duplicative sales management infrastructure between the two units to drive efficiencies and economize operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SAN LEANDRO, Calif., August 05, 2026--(BUSINESS WIRE)--Energy Recovery, Inc. (Nasdaq:ERII) ("Energy Recovery", "Company", "we", and "our") today announced its financial results for the second quarter and six months ended June 30, 2026. Management has released a letter to shareholders reviewing business and financial updates from the second quarter and discussing our outlook for 2026. This letter is located under "News and Events" in the "Investors" section on the Energy Recovery website (https://ir.energyrecovery.com/news-events/shareholder-letters). Second Quarter Highlights Revenue of $12.0 million, a decrease of $16.1 million, as compared to Q2’2025. Gross margin of 74.7%, as compared to gross margin of 64.0% in Q2’2025 primarily due to indirect manufacturing costs and channel mix, partially offset by lower volume. Operating expenses of $14.8 million, a decrease of 10.0%, as compared to Q2’2025, primarily due to lower employee compensation costs, including stock-based compensation expense, and lower consulting costs, partially offset by restructuring charges incurred in Q2’2026. Loss from operations of $5.9 million, a decrease of $7.4 million as compared to income from operations of $1.5 million during Q2’2025, due primarily to lower revenue due to the war in Iran. Net loss of $3.2 million and adjusted EBITDA(1) loss of $2.6 million. Cash and investments of $98.1 million, which includes cash, cash equivalents, and short- and long-term investments. Forward-Looking Statements Certain matters discussed in this press release and on the conference call are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates, or projections and are not guarantees of future events or results. Potential risks and uncertainties include risks relating to the future demand for the Company’s products, risks relating to performance by our customers and third-party partners, risks relating to the timing of revenue, and any other factors that may have been discussed herein regarding the risks and uncertainties of the Company’s business, and the risks discussed under "Risk Factors" in the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") for the year ended December 31, 2025, as well as other reports filed by the Company with the SEC from time to time. Because such forward-looking statements involve risks and uncertainties, the Company’s actual results may differ materially from the predictions in these forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements. Use of Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures, including adjusted operating margin, adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions, and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business. Notes to the Financial Results Adjusted operating margin is a non-GAAP financial measure that the Company defines as income (loss) from operations which excludes i) stock-based compensation; ii) restructuring charges, iii) restructuring - inventory reserve, iv) impairment of long-lived assets, and v) impairment of goodwill, divided by revenues. Adjusted net income (loss) is a non-GAAP financial measure that the Company defines as net income (loss) which excludes i) stock-based compensation; ii) restructuring charges; iii) restructuring - inventory reserve, iv) impairment of long-lived assets; v) impairment of goodwill and vi) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item. Adjusted earnings (loss) per share is a non-GAAP financial measure that the Company defines as net income (loss), which excludes i) stock-based compensation; ii) restructuring charges; iii) restructuring - inventory reserve, iv) impairment of long-lived assets; v) impairment of goodwill and vi) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item, divided by basic shares outstanding. Adjusted EBITDA is a non-GAAP financial measure that the Company defines as net income (loss) which excludes i) depreciation and amortization; ii) stock-based compensation; iii) restructuring charges; iv) restructuring - inventory reserve, v) impairment of long-lived assets; vi) impairment of goodwill vii) other income, net, such as interest income and other non-operating income (expense), net; and viii) provision for (benefit from) income taxes. Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities less capital expenditures. Conference Call to Discuss Financial Results LIVE CONFERENCE Q&A CALL:Wednesday, August 5, 2026, 2:00 PM PT / 5:00 PM ETUS / Canada Toll-Free: +1 (877) 709-8150Local / International Toll: +1 (201) 689-8354 CONFERENCE Q&A CALL REPLAY:Available approximately three hours after conclusion of the live call.Expiration: Saturday, September 5, 2026US / Canada Toll-Free: +1 (877) 660-6853Local / International Toll: +1 (201) 612-7415Access code: 13760218 Investors may also access the live call and the replay over the internet on the "Events" page of the Company’s website located at https://ir.energyrecovery.com/news-events/ir-calendar. Disclosure Information Energy Recovery uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Energy Recovery’s investor relations website in addition to following Energy Recovery’s press releases, SEC filings, and public conference calls and webcasts. About Energy Recovery Energy Recovery (Nasdaq: ERII) designs and manufactures world-class energy-saving technology for critical infrastructure that communities rely on every day, driving a more resilient and sustainable future. Grounded in more than 30 years of leadership in the desalination industry, today we use our proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Headquartered in the San Francisco Bay Area, we operate manufacturing and R&D facilities throughout California, with sales and on-site technical support available globally. For more information, please visit www.energyrecovery.com View source version on businesswire.com: https://www.businesswire.com/news/home/20260805275820/en/ Contacts Investor [email protected]

Energy Recovery’s first quarter was marked by strong revenue growth, driven by the commercial launch of its new PX Q650 device and robust demand for desalination solutions. However, the market reacted negatively due to mounting uncertainties in the Middle East, which represents a significant portion of the company’s business. CEO David Moon acknowledged, “Our original financial guidance for 2026 is no longer reliable, and we’re temporarily withdrawing guidance until we have better visibility on the evolving conflict.” Leadership also noted ongoing cost discipline and manufacturing transformation, but external geopolitical risks weighed heavily on sentiment. Is now the time to buy ERII? Find out in our full research report (it’s free). Revenue: $9.71 million vs analyst estimates of $7.86 million (20.3% year-on-year growth, 23.6% beat) Adjusted EPS: -$0.11 vs analyst expectations of -$0.07 (50% miss) Adjusted EBITDA: -$7.1 million (-73.2% margin, 18.4% year-on-year growth) Adjusted EBITDA Margin: -73.2% Market Capitalization: $450 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Connors (Northcoast) asked about the nature of Middle East project delays—whether they are short-term or could result in prolonged regional weakness. CEO David Moon responded that delays are expected to be temporary, with long-term demand for desalination unchanged due to water scarcity. Ryan Connors (Northcoast) questioned inventory strategy given uncertain project timing and the PX Q650 launch. Moon indicated the company is building inventory based on visibility of existing project designs and expects the transition to the new product to take several years. Ryan Connors (Northcoast) inquired if higher global energy costs are resulting in desalination project delays outside the Middle East. Moon replied that, so far, only minor wastewater projects have been affected by cost inflation, with no major desalination delays reported globally. Ryan Pfingst (B. Riley Securities) asked about geographic regions showing project momentum outside the Middle East. Moon identified China and South America as areas with emerging opportunities and noted the potential for large projects in Texas. Pete Lucas (CJS Securities), standing in for Larry Solow, asked about further cost cutting potential. Interim CFO Aidan Ryan stated that significant reductions have already been made, and future efforts will focus on incremental productivity gains rather than large-scale cuts. In future quarters, the StockStory team will be watching (1) progress in the adoption and scaling of the PX Q650 across major desalination projects, (2) updates on the pace and impact of overseas manufacturing expansion in the Middle East, and (3) management’s ability to navigate project delays and adjust cost structures amid ongoing regional instability. Developments in wastewater segment growth and leadership transition will also be important indicators of execution. Energy Recovery currently trades at $8.73, down from $11.61 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

The most recent earnings report from Energy Recovery, Inc. (NASDAQ:ERII) was disappointing for shareholders. However, our analysis suggests that the soft headline numbers are getting counterbalanced by some positive underlying factors. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For anyone who wants to understand Energy Recovery's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$4.6m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Energy Recovery to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from Energy Recovery's earnings over the last year, but we might see an improvement next year. Because of this, we think Energy Recovery's earnings potential is at least as good as it seems, and maybe even better! Better yet, its EPS are growing strongly, which is nice to see. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you'd like to know more about Energy Recovery as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Energy Recovery you should know about. This note has only looked at a single factor that sheds light on the nature of Energy Recovery's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

SAN LEANDRO, Calif., May 06, 2026--(BUSINESS WIRE)--Energy Recovery, Inc. (Nasdaq:ERII) ("Energy Recovery", "Company", "we", and "our") today announced its financial results for the first quarter ended March 31, 2026. Management has released a letter to shareholders reviewing business and financial updates from the first quarter and discussing our outlook for 2026. This letter is located under "News and Events" in the "Investors" section on the Energy Recovery website (https://ir.energyrecovery.com/news-events/shareholder-letters). Key Business Updates Today, Energy Recovery is announcing that David Moon, President and Chief Executive Officer of the Company, has notified the Board of Directors (the "Board") of his intention to retire following the appointment of his replacement. Mr. Moon will remain as President and Chief Executive Officer until a successor is appointed and has committed to support the Company in an advisory capacity during the transition period for as long as is deemed necessary by the Board. The Company has begun a search for Mr. Moon’s successor. The Company is also announcing that Mike Mancini has resigned as Chief Financial Officer, effective today, to pursue a new professional opportunity. Aidan Ryan, current VP of Finance who joined in 2024, has been named Interim Chief Financial Officer. Please refer to the Company’s letter to shareholders and Form 8-K for additional information. The Board has authorized a new share repurchase plan to purchase up to $25.0 million of common stock over the next 12 months. Since November 2024, the Company has now announced $130.0 million of aggregate share repurchase authorizations. First Quarter Highlights Revenue of $9.7 million, an increase of $1.6 million, as compared to Q1’2025. Gross margin of 27.8%, a decrease of 2,750 bps, as compared to Q1’2025 due primarily to $1.6 million of restructuring charges booked to inventory associated with the wind down of the CO2 retail grocery business, which reduced gross margin by 17%, as well as increased costs related to product and channel mix, pricing, tariffs and indirect manufacturing costs. Operating expenses of $17.6 million, an increase of 3.2%, as compared to Q1’2025, due primarily to impairment of goodwill and restructuring charges incurred as part of the wind down of the CO2 retail grocery business. Loss from operations of $14.9 million, a decrease of 18.3%, as compared to Q1’2025, due primarily to impairment of goodwill and restructuring charges incurred as part of the wind down of the CO2 retail grocery business. Net loss of $12.3 million and adjusted EBITDA(1) loss of $7.1 million. Cash and investments of $92.1 million, which includes cash, cash equivalents, and short- and long-term investments. Forward-Looking Statements Certain matters discussed in this press release and on the conference call are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates, or projections and are not guarantees of future events or results. Potential risks and uncertainties include risks relating to the future demand for the Company’s products, risks relating to performance by our customers and third-party partners, risks relating to the timing of revenue, and any other factors that may have been discussed herein regarding the risks and uncertainties of the Company’s business, and the risks discussed under "Risk Factors" in the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") for the year ended December 31, 2025, as well as other reports filed by the Company with the SEC from time to time. Because such forward-looking statements involve risks and uncertainties, the Company’s actual results may differ materially from the predictions in these forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements. Use of Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures, including adjusted operating margin, adjusted net loss, adjusted loss per share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions, and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business. Notes to the Financial Results Adjusted operating margin is a non-GAAP financial measure that the Company defines as loss from operations which excludes i) stock-based compensation; ii) restructuring charges, iii) restructuring - inventory reserve, iv) impairment of long-lived assets, and v) impairment of goodwill, divided by revenues. Adjusted net loss is a non-GAAP financial measure that the Company defines as net loss which excludes i) stock-based compensation; ii) restructuring charges; iii) restructuring - inventory reserve, iv) impairment of long-lived assets; v) impairment of goodwill and vi) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item. Adjusted loss per share is a non-GAAP financial measure that the Company defines as net loss, which excludes i) stock-based compensation; ii) restructuring charges; iii) restructuring - inventory reserve, iv) impairment of long-lived assets; v) impairment of goodwill and vi) the applicable tax effect of the excluded items including the stock-based compensation discrete tax item, divided by basic shares outstanding. Adjusted EBITDA is a non-GAAP financial measure that the Company defines as net loss which excludes i) depreciation and amortization; ii) stock-based compensation; iii) restructuring charges; iv) restructuring - inventory reserve, v) impairment of long-lived assets; vi) impairment of goodwill vii) other income, net, such as interest income and other non-operating income, net; and viii) benefit from income taxes. Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities less capital expenditures. Conference Call to Discuss Financial Results LIVE CONFERENCE Q&A CALL: Wednesday, May 6, 2026, 2:00 PM PT / 5:00 PM ET US / Canada Toll-Free: +1 (877) 709-8150 Local / International Toll: +1 (201) 689-8354 CONFERENCE Q&A CALL REPLAY: Available approximately three hours after conclusion of the live call. Expiration: Saturday, June 6, 2026 US / Canada Toll-Free: +1 (877) 660-6853 Local / International Toll: +1 (201) 612-7415 Access code: 13760218 Investors may also access the live call and the replay over the internet on the "Events" page of the Company’s website located at https://ir.energyrecovery.com/news-events/ir-calendar. Disclosure Information Energy Recovery uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Energy Recovery’s investor relations website in addition to following Energy Recovery’s press releases, SEC filings, and public conference calls and webcasts. About Energy Recovery Energy Recovery (Nasdaq: ERII) designs and manufactures world-class energy-saving technology for critical infrastructure that communities rely on every day, driving a more resilient and sustainable future. Grounded in more than 30 years of leadership in the desalination industry, today we use our proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Headquartered in the San Francisco Bay Area, we operate manufacturing and R&D facilities throughout California, with sales and on-site technical support available globally. For more information, please visit www.energyrecovery.com View source version on businesswire.com: https://www.businesswire.com/news/home/20260506137414/en/ Contacts Investor Relations [email protected]