Stock events for Energy Recovery, Inc. (ERII)
In September 2025, Energy Recovery reported contract awards totaling approximately $31 million, followed by an announcement in November 2025 of significant project wins in Saudi Arabia, totaling $32.8 million. In November 2025, the company reported its third-quarter 2025 financial results, which were in line with internal expectations, however, revenue for the nine months ended September 30, 2025, decreased by 13% compared to the same period in 2024. On February 25, 2026, Energy Recovery announced its fourth-quarter and full-year 2025 financial results, missing Wall Street's revenue and EPS expectations, leading to a significant drop in the stock price. Alongside the Q4 earnings, the company announced its decision to immediately phase out its CO2 retail grocery segment. The company also provided a weak outlook for desalination revenue in 2026, guiding for $105–125 million, down from $127 million in 2025. In February 2025, the Board of Directors approved a new share repurchase program.
Demand Seasonality affecting Energy Recovery, Inc.’s stock price
Energy Recovery, Inc.'s revenue, particularly from its core desalination business, exhibits a lumpy revenue cadence. The company's sales are often heavily backloaded, with a significant portion of the year's revenue expected to close in the fourth quarter. Slippage in project timing can also result in revenue being moved from one fiscal year to the next.
Overview of Energy Recovery, Inc.’s business
Energy Recovery, Inc. specializes in engineering, designing, manufacturing, and supplying solutions that enhance the efficiency and sustainability of industrial processes, operating within the Industrials sector, primarily in the Industrial Products and Industrial Machinery industries, with a strong focus on water and CO2 refrigeration applications. The company's core business revolves around its proprietary Pressure Exchanger (PX) technology, which significantly reduces energy consumption and operating costs in large-scale industrial fluid-flow processes. Its major products include the PX Pressure Exchanger (PX) used in seawater reverse osmosis (SWRO) desalination to recover up to 98% of energy, Hydraulic Turbochargers and Pumps for the reverse osmosis desalination market and wastewater treatment activities, and PX G1300 previously developed for industrial and commercial CO2 refrigeration applications.
ERII’s Geographic footprint
Energy Recovery, Inc. is headquartered in San Leandro, California, with manufacturing and research and development (R&D) facilities located across California and Texas. The company maintains a global presence with sales and on-site technical support available worldwide. Geographically, the company operates in the U.S. and other international countries, with a significant portion of its revenue, approximately 60%, derived from the Middle East and Africa as of February 2025.
ERII Corporate Image Assessment
Energy Recovery, Inc. is widely recognized as a trusted global leader in energy efficiency technology with a strong foundation in the desalination industry. The company's PX Pressure Exchanger technology is considered an industry standard in seawater reverse osmosis desalination. The significant drop in stock price following the Q4 2025 earnings miss, the abandonment of the CO2 business, and the weak 2026 desalination outlook could indirectly impact investor and market perception.
Ownership
Energy Recovery, Inc.'s ownership is broadly distributed, with institutional investors holding a significant majority, approximately 74.30% to 82.90% of the outstanding shares as of early March 2026. Individual insider ownership stands at approximately 12.14% of outstanding equity as of February 19, 2026. Retail and other public investors hold the remaining shares, approximately 13.56% to 18.29%.
