Energy Recovery (NASDAQ:ERII) Announces Earnings Results

Energy Recovery (NASDAQ:ERII - Get Free Report) posted its quarterly earnings data on Wednesday, May 6th. The industrial products company reported ($0.23) EPS for the quarter, missing analysts' consensus estimates 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 analysts' expectations 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• The company has withdrawn 2026 financial guidance due to exposure to the Middle East conflict and uncertainty, though it is building inventory to serve customers when projects resume.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 Down 0.3%

Shares of NASDAQ:ERII traded down $0.03 on Thursday, reaching $8.65. The company had a trading volume of 353,369 shares, compared to its average volume of 823,625. The stock has a market capitalization of $446.08 million, a P/E ratio of 22.78 and a beta of 1.04. The stock has a 50-day moving average price of $10.00 and a 200 day moving average price of $12.58. Energy Recovery has a twelve month low of $8.14 and a twelve month high of $18.32.

Insider Activity at Energy Recovery

In related news, SVP Rodney Clemente sold 20,568 shares of the company's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $10.61, for a total transaction of $218,226.48. Following the completion of the sale, the senior vice president directly owned 116,008 shares of the company's stock, valued at approximately $1,230,844.88. This represents a 15.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Pamela L. Tondreau bought 20,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average price of $8.34 per share, for a total transaction of $166,800.00. Following the completion of the purchase, the director directly owned 37,362 shares in the company, valued at $311,599.08. The trade was a 115.19% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have sold 238,551 shares of company stock valued at $2,456,512. Corporate insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On Energy Recovery

Large investors have recently made changes to their positions in the business. Aviva PLC grew its holdings in Energy Recovery by 4.9% in the 4th quarter. Aviva PLC now owns 33,974 shares of the industrial products company's stock valued at $458,000 after buying an additional 1,599 shares during the last quarter. Wexford Capital LP bought a new stake in shares of Energy Recovery in the third quarter valued at approximately $27,000. Russell Investments Group Ltd. grew its stake in shares of Energy Recovery by 6.0% in the fourth quarter. Russell Investments Group Ltd. now owns 36,225 shares of the industrial products company's stock worth $489,000 after acquiring an additional 2,051 shares during the last quarter. State Board of Administration of Florida Retirement System increased its position in Energy Recovery by 14.3% during the fourth 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 acquiring an additional 2,274 shares during the period. Finally, Parallel Advisors LLC acquired a new position in Energy Recovery during the 4th quarter valued at $38,000. Institutional investors and hedge funds own 83.58% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Wall Street Zen cut shares of Energy Recovery from a "hold" rating to a "sell" rating in a research report on Saturday, May 16th. Seaport Research Partners restated a "buy" rating and set a $12.00 price target on shares of Energy Recovery in a report on Wednesday, May 13th. Loop Capital set a $13.00 price objective on shares of Energy Recovery in a research note on Monday, March 2nd. Northcoast Research downgraded shares of Energy Recovery from a "buy" rating to a "neutral" rating in a research report on Wednesday, April 15th. Finally, Freedom Capital cut shares of Energy Recovery from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Energy Recovery has an average rating of "Hold" and an average price target of $15.00.

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.