ERII

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...

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?...

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...

SAN LEANDRO, Calif. (AP) — SAN LEANDRO, Calif. (AP) — Energy Recovery Inc. (ERII) on Wednesday reported a loss of $12.3 million in its first quarter. The San Leandro, California-based company said it had a loss of 23 cents per share. Losses, adjusted for non-recurring costs and stock option expense, came to 11 cents per share. The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 10 cents per share. The maker of energy recovery devices posted revenue of $9.7 million in the period, topping Street forecasts. Three analysts surveyed by Zacks expected $8.7 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ERII at https://www.zacks.com/ap/ERII

Management has temporarily withdrawn 2026 financial guidance due to meaningful exposure to the Middle East and uncertainty regarding the duration of the war in Iran. The company is experiencing project delays as the conflict impacts regional confidence, though management maintains that long-term desalination demand remains robust due to water scarcity. Commercial momentum for the new PX Q650 product is ahead of expectations, with the first commercial order secured shortly after its March launch. Strategic focus remains on manufacturing transformation and cost discipline following previous reductions in force, with limited remaining opportunities for major SG&A cuts. Inventory is being proactively built to ensure the company can immediately serve customers once delayed projects in the Middle East resume. The company is navigating a dual leadership transition following the announced retirement of CEO David Moon and the resignation of CFO Mike Mancini. Management expects the transition to the PX Q650 as the primary product to take approximately two years, likely reaching dominance by 2028. The company is maintaining its target to begin overseas assembly of Q400 units in the Middle East by Q1 to meet local content requirements and capture low-cost benefits. Growth expectations outside the Middle East are focused on ramping desalination activity in China, South America, and potential large-scale projects in Texas. Wastewater revenue targets of $10 million to $15 million are currently on hold alongside total company guidance until visibility improves, likely in Q2 or Q3. Guidance methodology currently assumes that Middle East project delays are shifts from 2026 into 2027 rather than permanent cancellations. Geopolitical risk in the Middle East is the primary headwind, potentially deflating investor confidence and economic growth that underpins project activity. Input cost inflation for materials has caused minor delays in some small-scale wastewater projects, though desalination projects have not yet seen similar impacts. The search for a permanent CEO successor will consider both internal and external candidates to ensure a smooth transition from David Moon. Interim CFO Aidan Ryan has assumed immediate responsibility for finance operations to maintain business continuity. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how y...

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5 p.m. ET Chief Executive Officer — David Moon Interim Chief Financial Officer — Aidan Ryan David Moon: Thank you, operator, and good day, 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 would like to highlight a few important takeaways from that letter. First is our new product, PX Q650. We launched the product in March, have already received our first commercial order, and are working with multiple large customers to design it into large desalination plants. It is off to a strong start and we are excited about the commercial momentum that we have achieved in such a short time. Second, two leadership updates. I have informed the board of my intention to retire, and a search for my successor is underway. Until that person is named, I am fully engaged in my role. Behind me is a strong bench of talent here at Energy Recovery, Inc. that will ensure a smooth transition. We are also announcing that Mike Mancini has resigned as CFO. Aidan Ryan, who joined in 2024, will take over as Interim CFO and ensure business as usual from a finance and shareholder standpoint. Third is the war in Iran. As we talked about in our letter, we have meaningful exposure to the Middle East, and we know the conflict will impact us. As such, our original financial guidance for 2026 is no longer reliable, and we are temporarily withdrawing guidance until we have better visibility on the evolving conflict. We have seen these situations in the past, and while timing is a key factor, we know the demand is there, and we are building inventory to serve customers when they are ready. Our strategic direction will not change during this uncertain time. We remain focused on product innovation, cost discipline, manufacturing transformation, and the growth of our wastewater business. With that, we will now move to the question and answer portion of our conference call. Operator, please open the line for questions. Operator: We will now open the call for questions. Thank you. We will now be conducting a question and answer session. You may press 2 to remove yourself from the queue by pressing the star key. One moment while we poll for a question. Our first ques...

PX Q650 launched in March with a first commercial order and early customer traction, but management expects the Q650 to take a couple of years to become the primary product—“probably 2028”—as many near-term projects remain specified for the existing Q400. Leadership changes announced: CEO David Moon has informed the board he intends to retire and a successor search is underway, while CFO Mike Mancini resigned and Aidan Ryan will serve as interim CFO. Energy Recovery is withdrawing 2026 guidance due to the Middle East conflict, viewing near-term impacts mainly as project timing shifts (some moving into 2027); the company is building inventory, keeping its manufacturing/expansion plans intact, and has also paused guidance on wastewater. Interested in Energy Recovery, Inc.? Here are five stocks we like better. Energy Recovery (NASDAQ:ERII) used its first-quarter 2026 earnings call to highlight early momentum for a newly launched desalination product, announce leadership changes, and address how rising geopolitical risk in the Middle East is affecting its outlook. President and CEO David Moon said the company launched its new PX Q650 product in March and has already received its first commercial order. Moon added that Energy Recovery is “working with multiple large customers to design it into large desalination plants,” calling the rollout “off to a strong start.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Moon also provided a timeline for product mix changes, telling analysts the transition from the company’s current primary product to the Q650 is expected to take time. While the Q650 has “early momentum,” Moon said the company expects it to take “a couple of years for the Q650 to become our primary product,” adding that the company likely does not see that happening until “probably 2028.” Moon noted that many projects in the next 12 to 24 months are already specified for the existing PX Q400 product and are “so far along in the design phases” that it is “unlikely that those projects will change product.” → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Moon said he has informed the board of his intention to retire and that a search for his successor is underway. Asked whether the search would lean internal or external, Moon said, “everything’s on the table.” He added that, until a successor is named, he remains “f...

SAN LEANDRO, Calif., April 17, 2026--(BUSINESS WIRE)--Energy Recovery, Inc. (NASDAQ: ERII or the Company) announced today it will release its financial results for the quarter ending March 31, 2026. The Company will host a conference call to discuss the results and related matters on May 6, 2026, after market close. EARNINGS RELEASE Wednesday, May 6, 2026 (after market close) LIVE CONFERENCE CALL Wednesday, May 6, 2026, 2 p.m. PT / 5 p.m. ET Listen-only, US / Canada Toll-Free: +1 (877) 709-8150 Listen-only, Local / International: +1 (201) 689-8354 CONFERENCE CALL REPLAY Expiration: 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 replay over the internet via webcast. The replay will be available approximately three hours after the live call concludes. 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/20260417185678/en/ Contacts Investor Relations [email protected]

As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the water infrastructure industry, including Energy Recovery (NASDAQ:ERII) and its peers. Trends towards conservation and reducing groundwater depletion are putting water infrastructure and treatment products front and center. Companies that can innovate and create solutions–especially automated or connected solutions–to address these thematic trends will create incremental demand and speed up replacement cycles. On the other hand, water infrastructure and treatment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 5 water infrastructure stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 4.5%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.1% since the latest earnings results. Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ:ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors. Energy Recovery reported revenues of $66.87 million, flat year on year. This print fell short of analysts’ expectations by 19%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates. Energy Recovery delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 34.7% since reporting and currently trades at $10.53. Is now the time to buy Energy Recovery? Access our full analysis of the earnings results here, it’s free. Founded in 1874, Watts Water (NYSE:WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally. Watts Water Technologies reported revenues of $625.1 million, up 15.7% year on year, outperforming analysts’ expectations by 2.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates. Watts Water Technologies pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The mar...

Management is refocusing on its core water business but warned of a near-term "air pocket" as timing delays at three projects pushed revenue into 2027, prompting conservative 2026 guidance while remaining confident in 2027 growth. The new PX Q650, slated for manufacturing in the second half of 2026, should raise effective selling prices and support gross margin expansion as higher-flow units replace older models over a two- to three-year transition. Energy Recovery is winding down its CO2 retail effort to cut costs—expecting to capture most of an approximately $7 million annualized benefit in 2026 with about 20 headcount reductions—and is planning an overseas manufacturing buildout with 2026 capex of $3–6 million and phased production starting in Q1 2027. Interested in Energy Recovery, Inc.? Here are five stocks we like better. Energy Recovery (NASDAQ:ERII) used its fourth-quarter and full-year 2025 earnings call to outline a more concentrated strategic focus on its core water business, while acknowledging near-term revenue pressure from timing shifts at several large desalination projects. Management also reiterated that it is winding down its CO2 retail grocery initiative, citing the need for significant additional time, investment, and risk to reach scaled adoption. Chief Executive Officer David Moon said he is “fully focused” on the company’s water business, describing it as a “large, growing, and profitable end market” where Energy Recovery believes it maintains a strong position with its Pressure Exchanger technology. → Microsoft Is Sliding—An Insider Buy and Oversold Signals Are Changing the Setup However, Moon said the company hit an “air pocket” in 2025 and expects another in 2026 due to delays at several large desalination projects. He emphasized that while the desalination business remains attractive, it can be volatile quarter to quarter because project timing is uneven. Moon added that the company is “confident” about growth in 2027 based on its pipeline and underlying demand trends. In the question-and-answer session, management addressed investor questions about the scale and nature of project timing shifts. Moon confirmed that 2026 guidance assumes three specific desalination projects will slip into 2027, which management said would have otherwise brought results toward the high end of the 2026 outlook. → SoundHound’s New Sales Assist Agent P...

SAN LEANDRO, Calif. (AP) — SAN LEANDRO, Calif. (AP) — Energy Recovery Inc. (ERII) on Wednesday reported fourth-quarter net income of $26.9 million. On a per-share basis, the San Leandro, California-based company said it had net income of 50 cents. Earnings, adjusted for one-time gains and costs, were 53 cents per share. The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 67 cents per share. The maker of energy recovery devices posted revenue of $66.9 million in the period. For the year, the company reported profit of $23 million, or 42 cents per share. Revenue was reported as $135 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ERII at https://www.zacks.com/ap/ERII