Energy Recovery, Inc. (ERII)

In the past six months, Energy Recovery, Inc.'s shares reached a new 52-week low on May 8, 2026. On May 6, 2026, the company reported a first-quarter 2026 EPS miss despite a revenue beat, withdrew its full-year 2026 guidance due to regional risks, announced the retirement of CEO David Moon and a CFO transition, and authorized a $25 million share repurchase program, leading to an 18.8% stock drop. Around April 15, 2026, news of a potential Middle East ceasefire and a downgrade from Northcoast Research caused a 4.9% stock drop. On March 9, 2026, Energy Recovery launched the PX Q650 Pressure Exchanger and enhanced its product assurance program. The company reported its fourth-quarter 2025 financial results on February 25, 2026. Energy Recovery Inc. missed EPS estimates by 22.4% in the previous quarter on April 22, 2026.

Seasonality appears to influence Energy Recovery, Inc.'s financial performance, with analysts noting a typical first-quarter loss. While long-term demand for desalination is driven by consistent factors, the timing of large projects can be irregular. Financial reports and stock performance data are analyzed for seasonal patterns, indicating predictable behaviors in market trends.

Energy Recovery, Inc. specializes in energy efficiency technology, particularly in the water industry. It operates in the Industrials sector, focusing on Industrial Products and Machinery. The company is divided into Water and Emerging Technologies segments, with the Water segment providing solutions for desalination and wastewater treatment, including the PX Pressure Exchanger. The Emerging Technologies segment targets fluid-flow and gas markets with products like the PX G1300.

Energy Recovery, Inc. is headquartered in the San Francisco Bay Area, with facilities in California and Texas. It provides global sales and support with offices in Dubai and Shanghai. In fiscal year 2025, 50.51% of its revenue came from the Middle East, 11.12% from Africa, and 38.37% from other regions.

Energy Recovery is recognized as a trusted global leader in energy efficiency technology, particularly in the desalination industry. The launch of the PX Q650 Pressure Exchanger and enhanced warranties have bolstered its reputation for innovation. However, the withdrawal of full-year 2026 financial guidance, an earnings miss in Q1 2026 due to geopolitical risks, and the winding down of the CO2 retail grocery business have negatively impacted its financial reputation among investors.

Energy Recovery, Inc. has a diverse ownership structure with 188 institutional owners holding 43,006,623 shares as of May 5, 2026. Major institutional shareholders include BlackRock, Inc., Ameriprise Financial Inc, Vanguard Group Inc, Amundi, FIL Ltd, State Street Corp, Legal & General Group Plc, Geode Capital Management, Llc, Morgan Stanley, and Dimensional Fund Advisors Lp. Ole Peter Lorentzen is the largest individual shareholder, owning 21.99 million shares, representing 41.62% of the company. Institutions hold approximately 88.6% of the shares, individual insiders 1.67%, employee share schemes 1.86%, and the general public 7.87%.