Energy Recovery (NASDAQ:ERII) Announces Quarterly Earnings Results

Energy Recovery (NASDAQ:ERII) announced its earnings results on Wednesday. The industrial products company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.01), FiscalAI reports. Energy Recovery had a return on equity of 8.05% and a net margin of 12.72%.The firm had revenue of $12.00 million during the quarter, compared to the consensus estimate 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 1.0%

Shares of NASDAQ ERII traded down $0.09 during midday trading on Friday, hitting $8.64. The stock had a trading volume of 584,875 shares, compared to its average volume of 865,999. The company has a market capitalization of $445.56 million, a price-to-earnings ratio of 30.87 and a beta of 0.91. Energy Recovery has a 1-year low of $7.83 and a 1-year high of $18.32. The company has a fifty day moving average price of $8.61 and a 200 day moving average price of $10.57.

Analyst Upgrades and Downgrades

ERII has been the topic of several recent analyst reports. Wall Street Zen downgraded Energy Recovery from a “hold” rating to a “sell” rating in a research note on Saturday, May 16th. Weiss Ratings raised Energy Recovery from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday. Northcoast Research lowered Energy Recovery from a “buy” rating to a “neutral” rating in a report on Wednesday, April 15th. Freedom Capital cut shares of Energy Recovery from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Finally, Seaport Research Partners reaffirmed a “buy” rating and issued a $12.00 target price on shares of Energy Recovery in a research report on Wednesday, May 13th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $13.50.

Insider Activity at Energy Recovery

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

Hedge Funds Weigh In On Energy Recovery

A number of hedge funds have recently modified their holdings of ERII. State Board of Administration of Florida Retirement System increased its stake 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 worth $245,000 after purchasing an additional 2,274 shares during the last quarter. Inceptionr LLC boosted its position in shares of Energy Recovery by 29.8% in the fourth quarter. Inceptionr LLC now owns 23,549 shares of the industrial products company’s stock valued at $318,000 after acquiring an additional 5,402 shares during the period. Envestnet Asset Management Inc. bought a new position in Energy Recovery in the 3rd quarter valued at $184,000. State of Wyoming grew its holdings 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 purchasing an additional 4,622 shares in the last quarter. Finally, Nebula Research & Development LLC increased 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 buying an additional 9,969 shares during the last quarter. 83.58% of the stock is owned by institutional investors and hedge funds.

About Energy Recovery

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.