Energy Recovery, Inc. (ERII)

Several events have influenced Energy Recovery, Inc.'s stock price in the past six months. On November 5, 2025, the company reported its Third Quarter 2025 financial results, with EPS of $0.12 and revenue of $32 million, exceeding analyst expectations, leading to a 5.06% increase in shares in after-hours trading. The company announced a new share repurchase program on August 6, 2025. The rollout of its CO2 refrigeration technology has been slower than anticipated, with commercialization expected around 2027. The stock has seen an increase of 8.81% over the last six months, though it experienced an 8.90% decline from January 3, 2025, to January 2, 2026.

The demand for Energy Recovery, Inc.'s products and services, particularly in the water segment, is characterized by "lumpy revenues" due to large, contracted projects. The fourth quarter tends to be a strong period for the company, with management often expecting a significant portion of its yearly revenues to be generated during this time. Delays in large desalination projects, influenced by factors such as higher interest rates and geopolitical conflicts, can impact the revenue cadence.

Energy Recovery, Inc. (ERII) specializes in energy recovery devices for industrial applications, operating in the Industrials sector. The company designs, manufactures, and sells energy efficiency technology solutions, with its flagship product being the PX® Pressure Exchanger®. This device recovers pressure energy to reduce electricity and maintenance costs, mainly in seawater reverse osmosis (SWRO) desalination. Energy Recovery has expanded its product offerings to include pressure exchangers for desalination, wastewater treatment, and CO2 refrigeration. The company aims to enhance sustainability and efficiency in essential industries through energy recovery.

Energy Recovery, Inc. is headquartered in San Leandro, California, with manufacturing and R&D facilities in the state. The company has a global presence with sales and on-site technical support available worldwide, and its products are installed in over 100 countries. In fiscal year 2024, the Middle East and Africa accounted for 62.55% of its revenue, followed by Asia at 24.88%, Europe at 6.36%, and the Americas at 6.21%.

Energy Recovery, Inc. is recognized as a trusted global leader in energy efficiency technology, particularly for its PX Pressure Exchanger technology in seawater desalination. The company's commitment to sustainability and its track record in delivering cost-saving and environmentally beneficial solutions have contributed to a strong brand image. The slower-than-expected commercialization of its CO2 refrigeration technology has been noted, but there haven't been specific events that have significantly damaged the company's overall reputation.

Energy Recovery, Inc. has significant institutional ownership, with approximately 74.89% to 83.58% of its stock held by institutions, including BlackRock, Inc., Ameriprise Financial Inc, Vanguard Group Inc, FIL Ltd, State Street Corp, Legal & General Group Plc, and Geode Capital Management, Llc. Individual investors hold around 2.96%, while insiders hold about 3.20% of the stock and have been net sellers in the past three months.