Energy Recovery (NASDAQ:ERII) Announces Earnings Results

Energy Recovery (NASDAQ:ERII) issued its quarterly earnings results on Wednesday, May 6th. The industrial products company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.13), Zacks reports. Energy Recovery had a return on equity of 10.89% and a net margin of 15.07%.The business had revenue of $9.71 million for the quarter, compared to the consensus estimate of $8.37 million.

Here are the key takeaways from Energy Recovery’s conference call:

• PX Q650 launched in March, has its first commercial order and early customer design wins, and management expects a multi-year transition with the Q650 becoming primary around 2028.
• CEO David Moon announced his intention to retire and the CFO resigned, with Aidan Ryan named interim CFO, creating near-term leadership transition risk.
• The company has withdrawn 2026 financial guidance due to exposure to the Middle East conflict and uncertainty, though it is building inventory to serve customers when projects resume.
• Management expects most Middle East impacts to be short-term delays rather than permanent demand loss and is watching growth opportunities in China, South America, and potentially Texas.
• Company remains focused on cost discipline and manufacturing transformation, targeting overseas Q400 assembly by Q1 and ongoing factory productivity initiatives to lower costs over time.

Energy Recovery Price Performance

ERII traded up $0.42 during trading on Thursday, hitting $9.41. The stock had a trading volume of 844,828 shares, compared to its average volume of 851,506. The company has a 50 day moving average price of $9.48 and a 200-day moving average price of $11.96. The firm has a market cap of $485.04 million, a price-to-earnings ratio of 24.74 and a beta of 0.94. Energy Recovery has a one year low of $7.83 and a one year high of $18.32.

Wall Street Analyst Weigh In

Several research analysts have weighed in on ERII shares. Northcoast Research lowered Energy Recovery from a “buy” rating to a “neutral” rating in a research report on Wednesday, April 15th. Wall Street Zen lowered shares of Energy Recovery from a “hold” rating to a “sell” rating in a research report on Saturday, May 16th. Freedom Capital cut shares of Energy Recovery from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Seaport Research Partners reissued a “buy” rating and issued a $12.00 price objective on shares of Energy Recovery in a research report on Wednesday, May 13th. Finally, Weiss Ratings lowered shares of Energy Recovery from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 11th. One investment 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. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $15.00.

Insiders Place Their Bets

In other Energy Recovery news, Director Colin R. Sabol purchased 11,180 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was bought at an average cost of $8.88 per share, for a total transaction of $99,278.40. Following the completion of the transaction, the director owned 55,671 shares in the company, valued at approximately $494,358.48. This represents a 25.13% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director Pamela L. Tondreau purchased 20,000 shares of the company’s stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average price of $8.34 per share, with a total value of $166,800.00. Following the completion of the transaction, the director owned 37,362 shares of the company’s stock, valued at $311,599.08. This represents a 115.19% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Energy Recovery

A number of hedge funds have recently added to or reduced their stakes in the stock. Wexford Capital LP acquired a new stake in shares of Energy Recovery during the 3rd quarter worth $27,000. Parallel Advisors LLC bought a new stake in Energy Recovery during the fourth quarter worth about $38,000. Tower Research Capital LLC TRC grew its stake in Energy Recovery by 172.2% during the second quarter. Tower Research Capital LLC TRC now owns 6,011 shares of the industrial products company’s stock worth $77,000 after buying an additional 3,803 shares in the last quarter. Man Group plc bought a new position in Energy Recovery in the 3rd quarter valued at about $162,000. Finally, Envestnet Asset Management Inc. bought a new position in Energy Recovery in the 3rd quarter valued at about $184,000. Institutional investors own 83.58% of the company’s stock.

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.