Energy Recovery, Inc. (ERII)

Over the past six months, Energy Recovery, Inc.'s stock price has experienced a significant decline. As of April 2, 2026, the stock price was $10.20 per share, representing a 29.22% decrease from April 4, 2025. The stock's price has decreased by 31.77% over the last 12 months, with a year-to-date return of -24.39%. A major event impacting the stock was the Q4 2025 earnings report released on February 25, 2026, which led to a 35.3% decline in shares due to the abandonment of the CO2 business, missing desalination guidance, and a weak outlook for desalination in 2026. Additionally, an Energy Recovery director sold 2,419 shares of common stock on April 6, 2026, to satisfy a margin call.

Explicit information regarding the demand seasonality for Energy Recovery, Inc.'s products and services is not available. However, the demand for its products is generally driven by global trends such as population growth, water scarcity, and increased environmental protection. The company's focus on critical infrastructure suggests a relatively stable, project-based demand rather than strong seasonal fluctuations tied to consumer spending. The company has also been building a sales team to target municipal and industrial wastewater treatment plants, indicating a strategic, long-term growth approach rather than seasonal sales cycles.

Energy Recovery, Inc. is an American manufacturer of energy efficiency technology, operating within the Industrials sector and focusing on Power Boiler and Heat Exchanger Manufacturing and Special Industry Machinery. The company designs and manufactures solutions that generate cost savings, increase energy efficiency, and reduce carbon emissions across various industries. Its core technology is the PX® Pressure Exchanger®, primarily used in seawater reverse osmosis desalination applications, reducing energy consumption by up to 60%. The company has expanded its product offerings to include pressure exchangers for desalination and wastewater treatment, hydraulic turbochargers and pumps, and technologies like the PX G1300 for industrial and commercial refrigeration applications.

Headquartered in the San Francisco Bay Area, Energy Recovery has manufacturing and research and development facilities in California and Texas. The company provides sales and on-site technical support globally. In fiscal year 2025, the Middle East accounted for 50.51% of its product revenue, followed by Africa at 11.12%, and other regions contributing 38.37%. The company also leases offices in Dubai, United Arab Emirates, and Shanghai, People's Republic of China. Energy Recovery products are installed in over 100 countries worldwide.

Energy Recovery is recognized as a trusted global leader in energy efficiency technology, with over 30 years of leadership in the desalination industry. The company's technologies are credited with cutting over 14 billion kWh of energy annually and producing more than 12 billion liters of clean water daily. As of 2023, Energy Recovery, Inc. received an MSCI ESG Rating of AAA, indicating a strong environmental, social, and governance performance. The company continues to highlight its commitment to a resilient and sustainable future through its energy-saving technologies and has unveiled its next-generation PX Q650 Pressure Exchanger and enhanced its product assurance program.

Energy Recovery, Inc. has a diverse ownership structure, with institutional investors holding a significant portion of the company's stock. As of April 8, 2026, there were 192 institutional owners holding a total of 42,862,607 shares. 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. The largest individual shareholder is Ole Peter Lorentzen, who owns 21,985,907 shares, representing 41.62% of the company.