Energy Recovery (NASDAQ:ERII) Issues Earnings Results

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

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 1.6%

ERII traded down $0.14 during trading hours on Thursday, hitting $8.72. The stock had a trading volume of 392,894 shares, compared to its average volume of 861,387. Energy Recovery has a 1 year low of $7.83 and a 1 year high of $18.32. The company’s fifty day simple moving average is $8.61 and its 200 day simple moving average is $10.61. The stock has a market cap of $449.43 million, a PE ratio of 22.91 and a beta of 0.91.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on ERII. B. Riley Financial dropped their price objective on shares of Energy Recovery from $10.00 to $8.00 and set a “neutral” rating on the stock in a research note on Thursday. Freedom Capital cut Energy Recovery from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Wall Street Zen lowered shares of Energy Recovery from a “hold” rating to a “sell” rating in a research note on Saturday, May 16th. Northcoast Research cut shares of Energy Recovery from a “buy” rating to a “neutral” rating in a report on Wednesday, April 15th. Finally, Weiss Ratings lowered shares of Energy Recovery from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, June 25th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $13.50.

Insider Activity

In other Energy Recovery news, Director Pamela L. Tondreau acquired 20,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average cost of $8.34 per share, with a total value of $166,800.00. Following the acquisition, the director owned 37,362 shares in the company, valued at approximately $311,599.08. This represents a 115.19% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Rodney Clemente sold 5,387 shares of the firm’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $8.56, for a total value of $46,112.72. Following the completion of the transaction, the senior vice president directly owned 108,301 shares of the company’s stock, valued at $927,056.56. The trade was a 4.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 2.50% of the company’s stock.

Institutional Trading of Energy Recovery

Institutional investors and hedge funds have recently bought and sold shares of the company. State Board of Administration of Florida Retirement System boosted its position in shares of Energy Recovery by 14.3% during the 4th quarter. State Board of Administration of Florida Retirement System now owns 18,191 shares of the industrial products company’s stock valued at $245,000 after acquiring an additional 2,274 shares during the last quarter. Inceptionr LLC raised its position in Energy Recovery by 29.8% during the fourth quarter. Inceptionr LLC now owns 23,549 shares of the industrial products company’s stock valued at $318,000 after purchasing an additional 5,402 shares in the last quarter. Envestnet Asset Management Inc. purchased a new stake in Energy Recovery in the third quarter worth approximately $184,000. State of Wyoming raised its stake in shares of Energy Recovery by 31.1% during the second quarter. State of Wyoming now owns 19,486 shares of the industrial products company’s stock worth $249,000 after acquiring an additional 4,622 shares in the last quarter. Finally, Nebula Research & Development LLC lifted its holdings in shares of Energy Recovery by 68.7% in the 2nd quarter. Nebula Research & Development LLC now owns 24,475 shares of the industrial products company’s stock worth $313,000 after acquiring an additional 9,969 shares during the last quarter. 83.58% of the stock is currently owned by hedge funds and other institutional investors.

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.