Energy Recovery, Inc. (ERII)

In May 2025, the share price experienced a 25% drop, although analysts noted the company's superior earnings growth and future outlook, and Energy Recovery announced contract awards totaling over $7 million. In August 2025, the company reported strong second-quarter earnings, surpassing analyst expectations, and announced a new share repurchase program. In September 2025, Energy Recovery reported contract awards totaling approximately $31 million. Throughout October 2025, insider William Yeung sold a total of 12,698 shares of common stock in multiple transactions. Analyst ratings in the past 90 days have contributed to an average "Buy" rating and a consensus target price of $18.75.

While specific detailed seasonal patterns for Energy Recovery, Inc.'s products and services are not explicitly outlined, the company's revenues from its desalination business are described as "lumpy." The demand for Energy Recovery's products is generally driven by long-term trends such as population growth, increasing water scarcity, and the global pursuit of energy efficiency and environmental protection. Seeking Alpha tracks and displays mean and median monthly returns for ERII to identify potential seasonal patterns, suggesting that some level of seasonality may exist and is monitored by investors.

Energy Recovery, Inc. operates in the Industrials sector, focusing on Pollution & Treatment Controls and Clean Technology. The company designs and manufactures energy-saving technology for critical infrastructure, aiming to drive a more resilient and sustainable future. Its pressure exchanger (PX) technology captures and transfers pressure energy to make commercial and industrial processes more efficient, lower costs, save energy, and minimize emissions. Major products include the PX® Pressure Exchanger®, which reduces energy use in seawater reverse osmosis (SWRO) desalination facilities by up to 60%, along with hydraulic turbochargers and high-pressure pumps used in desalination, wastewater treatment, and CO2 refrigeration.

Headquartered in the San Francisco Bay Area, Energy Recovery operates manufacturing and research and development facilities throughout California. The company has a global presence, with sales and on-site technical support available worldwide. Its products are sold in numerous countries across the Americas, the Middle East, Africa, Asia, and Europe, with specific operations and customer bases in the US, China, India, Latin America, Spain, Saudi Arabia, and the UAE.

Energy Recovery maintains a strong brand reputation, particularly within the desalination industry, where it has been a trusted global leader for over 30 years. In December 2024, the company was honored with "The Breakthrough Innovation Award for Most Innovative Company in Desalination Technology" at the IDRA World Congress. This award highlighted the deployment of over 35,000 pressure exchangers across seven continents, serving clean water to more than 70 million people daily and saving an estimated $6.3 billion in energy costs annually for customers. The company's PX Pressure Exchanger technology is considered the gold standard in energy recovery solutions for seawater reverse osmosis desalination.

Institutional investors hold a significant portion of Energy Recovery's stock, owning 83.58% of the company's shares. Ameriprise Financial Inc. increased its holdings by 5.1% in the second quarter of 2025 to own 5,401,044 shares, and Vanguard Group Inc. grew its holdings, owning 3,494,872 shares after purchasing an additional 242,494 shares in the second quarter. Other notable institutional investors that have recently modified their holdings include Legal & General Group Plc, Invesco Ltd., and Select Equity Group L.P. William Yeung, the Chief Legal Officer, directly owned 97,369 shares after selling 12,698 shares in October 2025.