Energy Recovery (NASDAQ:ERII) Releases Quarterly Earnings Results, Misses Expectations By $0.13 EPS

Energy Recovery (NASDAQ:ERII) released its quarterly earnings data on Wednesday, May 6th. The industrial products company reported ($0.23) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.13), Zacks reports. Energy Recovery had a net margin of 15.07% and a return on equity of 10.89%. The firm 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• The company has withdrawn 2026 financial guidance due to exposure to the Middle East conflict and uncertainty, though it is building inventory to serve customers when projects resume.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 Stock Performance

Shares of Energy Recovery stock opened at $8.01 on Monday. The company has a market capitalization of $412.84 million, a P/E ratio of 21.08 and a beta of 0.94. The stock has a fifty day simple moving average of $9.75 and a 200 day simple moving average of $12.28. Energy Recovery has a 12-month low of $7.94 and a 12-month high of $18.32.

Wall Street Analyst Weigh In

Several analysts recently issued reports on ERII shares. Freedom Capital downgraded shares of Energy Recovery from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 11th. Northcoast Research lowered shares of Energy Recovery from a “buy” rating to a “neutral” rating in a research note on Wednesday, April 15th. Seaport Research Partners reiterated a “buy” rating and set a $12.00 price objective on shares of Energy Recovery in a report on Wednesday, May 13th. Loop Capital set a $13.00 target price on shares of Energy Recovery in a research report on Monday, March 2nd. Finally, Weiss Ratings lowered shares of Energy Recovery from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 11th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Energy Recovery has a consensus rating of “Hold” and an average price target of $15.00.

Insider Buying and Selling at Energy Recovery

In other news, Director Arve Hanstveit sold 165,292 shares of the stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $10.14, for a total value of $1,676,060.88. Following the completion of the sale, the director owned 384,928 shares in the company, valued at $3,903,169.92. This represents a 30.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Pamela L. Tondreau purchased 20,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average cost of $8.34 per share, for a total transaction of $166,800.00. Following the completion of the transaction, the director directly owned 37,362 shares of the company’s stock, valued at $311,599.08. This represents a 115.19% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Energy Recovery

A number of institutional investors have recently added to or reduced their stakes in the company. Amundi boosted its stake in Energy Recovery by 323.6% in the fourth quarter. Amundi now owns 2,851,691 shares of the industrial products company’s stock valued at $38,457,000 after acquiring an additional 2,178,560 shares during the last quarter. ArrowMark Colorado Holdings LLC bought a new position in shares of Energy Recovery during the 4th quarter valued at approximately $5,086,000. State Street Corp increased its stake in shares of Energy Recovery by 22.6% during the 4th quarter. State Street Corp now owns 1,764,522 shares of the industrial products company’s stock worth $23,803,000 after purchasing an additional 325,280 shares during the last quarter. Legal & General Group Plc increased its stake in shares of Energy Recovery by 32.2% during the 3rd quarter. Legal & General Group Plc now owns 1,307,738 shares of the industrial products company’s stock worth $20,165,000 after purchasing an additional 318,584 shares during the last quarter. Finally, Qube Research & Technologies Ltd raised its holdings in shares of Energy Recovery by 146.0% in the 2nd quarter. Qube Research & Technologies Ltd now owns 459,425 shares of the industrial products company’s stock worth $5,871,000 after purchasing an additional 272,648 shares during the period. 83.58% of the stock is owned by 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.