Energy Recovery, Inc.
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Range $8 – $13
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About the company
Energy Recovery, Inc. (ERII) is a global technology firm that engineers, manufactures, and distributes cutting-edge solutions predominantly for the seawater reverse osmosis (SWRO) desalination and industrial wastewater treatment industries. The company manages its operations through two distinct divisions: Water and Emerging Technologies.
- CEO
- Alexander J. Buehler
- IPO
- 2008
- Employees
- 230
- HQ
- San Leandro, CA, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $396.07M
- P/E
- 26.23
- Fwd P/E
- 33.41
- PEG
- -0.85
- P/S
- 3.29
- P/B
- 2.29
- EV/EBITDA
- 12.39
- Div Yield
- 0.00%
- Gross Margin
- 65.39%
- Op Margin
- 16.40%
- Net Margin
- 12.75%
- ROE
- 8.25%
- ROIC
- 9.47%
Latest fiscal year · YoY change
- Revenue
- $134.70M-7.1%
- Gross Profit
- $87.78M-9.4%
- Op Income
- $24.55M
- Net Income
- $22.96M-0.4%
- EPS
- $0.43+7.5%
- OCF Growth
- -8.5%
- FCF Growth
- -9.3%
- 52W High
- $18.32
- 52W Low
- $7.51
- 50D MA
- $8.56
- 200D MA
- $11.46
- Beta
- 0.92
- RSI (14)
- 38
- Avg Volume
- 946.25K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Energy Recovery said the quarter was marked by strong pipeline visibility and disciplined costs, but near-term results remain pressured by war-related delays and uncertain timing in Middle East megaprojects.· August 5, 2026
- Management said the MPD pipeline is “uniquely strong” with visibility extending up to 5 years, but project timing remains uncertain.
- Some project delays in the Middle East have now been formally communicated, tied to financing, EPC procurement, and logistics issues.
- The Saudi Arabia facility is expected to improve margins over time through lower freight, shipping, procurement, and operating costs, but management said the benefit will ramp gradually in 2027, 2028 and beyond.
- Wastewater remains a strategic growth area, with product expansion across pressure ranges and a push to improve resource allocation and sales efficiency.
- O&M and aftermarket are expected to stay resilient for the full year despite some first-half softness.
- Management reaffirmed 2026 capex guidance of $3 million to $6 million and said the Saudi facility is a limited-capital project because the site is being leased.
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.
The bull case is that Energy Recovery believes its MPD pipeline is unusually strong, with named projects, named customers, and visibility out as far as 5 years. Management also said the Q650 is already launched with early commercial uptake, and the Saudi facility should eventually add margin leverage through better local economics and lower logistics costs.
The bear case is that timing remains highly uncertain because war-related risk premiums, financing problems, EPC delays, and logistics issues are still pushing projects out. Management would not quantify the backlog as a near-term floor, said 2026 visibility is limited, and acknowledged first-half softness in OEM, aftermarket, and wastewater. The Saudi margin benefit is also not expected to be immediate, with improvements described as gradual and mostly a 2027-2028 story.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 96.1%
- Shares Outstanding
- 51.55M
- Float Shares
- 49.52M
of shares held by institutions
200 13F filers
Buy/sell ratio 0.25. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 6.34M | ▲ 253.33K |
| Amundi | 4.00M | ▲ 263.23K |
| Vanguard Group Inc | 3.85M | ▲ 89.70K |
| Vanguard Capital Management LLC | 2.18M | ▼ 46.55K |
| Legal & General Group PLC | 2.06M | ▲ 157.24K |
| Fil Ltd | 1.72M | ▼ 272.20K |
| Geode Capital Management, LLC | 1.70M | ▲ 402.44K |
| State Street Corp | 1.63M | ▼ 147.06K |
| Morgan Stanley | 1.24M | ▲ 444.31K |
| Mackenzie Financial Corp | 1.19M | ▲ 1.19M |
| Invesco Ltd. | 925.55K | ▲ 99.25K |
| Dimensional Fund Advisors LP | 878.72K | ▲ 1.29K |
Held by 226 ETFs
Biggest fund positions in ERII by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jul 27, 26 | Clemente Rodney | other | 2,320 |
| Jul 28, 26 | Clemente Rodney | sell | 5,387 |
| Jul 27, 26 | Yeung William | other | 2,828 |
| Jul 28, 26 | Yeung William | sell | 2,048 |
| Jul 9, 26 | Mitchell John Joseph | other | 16,797 |
| Jul 9, 26 | Mitchell John Joseph | other | 0 |
| May 6, 26 | Ryan Aidan | other | 18,518 |
| Jun 15, 26 | Sabol Colin R | buy | 11,180 |
| Jun 15, 26 | BUEHLER ALEXANDER J | other | 15,327 |
| Jun 15, 26 | BUEHLER ALEXANDER J | sell | 14,900 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our ERII coverage
Recent articles, reports, and earnings notes.
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Generate ERII report →Energy Recovery Losses Revenues Outside Of The Middle East Despite The War
seekingalpha.com · Aug 12
Diamond Hill Small-Mid Cap Fund Q2 2026 Portfolio Review
seekingalpha.com · Aug 6
Energy Recovery, Inc. (ERII) Q2 2026 Earnings Call Transcript
seekingalpha.com · Aug 6
Energy Recovery (ERII) Reports Q2 Loss, Misses Revenue Estimates
zacks.com · Aug 5
Energy Recovery Q2 Earnings Call Highlights
marketbeat.com · Aug 5
Energy Recovery Reports its Second Quarter 2026 Financial Results
businesswire.com · Aug 5
Energy Recovery Signs Lease for New Manufacturing Facility Near Dammam, Saudi Arabia
businesswire.com · Jul 28
Energy Recovery Technology to Help Deliver Water Security to One Million People Across Saudi Arabia's Mecca, Al-Baha, and Asir Regions
businesswire.com · Jul 20
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