Energy Recovery, Inc.

The transcript did not state quarterly revenue, EPS, or gross margin figures. Management did say the first half saw OEM and aftermarket come down a little below last year, while the second half and full year are expected to remain resilient. The company also reiterated 2026 capital spending guidance of $3 million to $6 million, and said the backlog strength is more relevant to 2027 and beyond than to modeling the rest of 2026. No next-quarter or full-year revenue/EPS guidance was reinstated.

Interim CEO Alexander Buehler emphasized continuity during the CEO search and said the candidate pool has been broad and high quality. He framed the company as positioned for long-term growth given structural demand, technology leadership, and platform strength, while acknowledging that the war has clouded visibility and delayed projects. His tone was constructive but cautious, repeatedly stressing that timing remains uncertain even though the pipeline is strong.

The transcript did not include a separate prepared financial review from the CFO, but management provided financial and capital comments during Q&A. Buehler said 2026 capex remains guided to $3 million to $6 million, with the Saudi facility requiring only limited incremental spending because it is a leased site and mainly needs equipment and fixed assets. He also said cost discipline is continuing, overhead efficiency is improving, and the Saudi facility should drive gradual margin improvement over time through freight, shipping, procurement, and lower regional operating costs.

Analysts focused on the Middle East megaproject pipeline, asking when conflict-related risk premiums might normalize and how to model the $27 million backlog. Management said projects need to move into financing, EPC appointments, and execution before demand turns into revenue, and that the backlog is not a good near-term read-through; instead, they expect growth to reappear in 2027 and beyond. On the new PX Q650, management said the product is already launched and seeing commercial uptake, so the conflict should not delay rollout. On wastewater, management said the strategy is to broaden product coverage, focus on geographies like China and India, and improve sales coverage and sales-management efficiency around overlapping customer bases.