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ERII

Energy Recovery, Inc.

ERII

Energy Recovery, Inc. • NASDAQ
$14.45 ▲ 0.49% (+0.07)
Market Cap $765.45 M
52w High $18.32
52w Low $10.86
Dividend Yield 0%
P/E 42.5
Volume 172.45K
Outstanding Shares 52.97M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $32M ▲ $16.896M ▲ $3.874M ▲ 12.106% ▲ $0.073 ▲ $5.965M ▲
Q2-2025 $28.051M ▲ $16.48M ▼ $2.054M ▲ 7.322% ▲ $0.038 ▲ $2.89M ▲
Q1-2025 $8.065M ▼ $17.02M ▼ $-9.88M ▼ -122.505% ▼ $-0.18 ▼ $-10.597M ▼
Q4-2024 $67.075M ▲ $21.505M ▲ $23.471M ▲ 34.992% ▲ $0.41 ▲ $29.544M ▲
Q3-2024 $38.584M $18.055M $8.481M 21.981% $0.15 $8.513M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $70.381M ▼ $209.645M ▼ $28.813M ▲ $180.832M ▼
Q2-2025 $79.517M ▼ $212.275M ▼ $27.068M ▼ $185.207M ▼
Q1-2025 $83.545M ▲ $225.394M ▼ $27.281M ▼ $198.113M ▼
Q4-2024 $78.019M ▼ $242.792M ▼ $32.782M ▲ $210.01M ▼
Q3-2024 $118.625M $262.705M $28.832M $233.873M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $3.874M ▲ $-3.131M ▼ $3.446M ▼ $-10.391M ▲ $-9.947M ▼ $-3.473M ▼
Q2-2025 $2.054M ▲ $4.146M ▼ $20.892M ▲ $-17.152M ▼ $7.913M ▼ $4.011M ▼
Q1-2025 $-9.88M ▼ $10.678M ▲ $12.674M ▲ $-3.874M ▲ $19.511M ▲ $10.487M ▲
Q4-2024 $23.471M ▲ $8.955M ▲ $6.517M ▼ $-49.079M ▼ $-33.636M ▼ $8.851M ▲
Q3-2024 $8.481M $-3.003M $21.659M $4.293M $22.95M $-3.172M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Emerging Technologies Segment
Emerging Technologies Segment
 $0 ▲$0 ▲$0 ▲$0 ▲
Water Segment
Water Segment
 $70.00M ▲$10.00M ▼$30.00M ▲$30.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Energy Recovery shows a pattern of steady, moderate growth with consistent profitability over the past several years. Revenue has gradually increased while maintaining very strong gross margins, suggesting the company can price its products well relative to their cost. Operating and net income have stayed positive each year, though at relatively modest levels, indicating a disciplined cost structure but not hyper‑growth. Earnings per share have moved around somewhat from year to year, which is normal for a project‑driven industrial business, but the overall trend still points to a stable, profitable core franchise rather than a turnaround or a distressed situation.

Balance Sheet

Balance Sheet The balance sheet looks conservative and generally healthy. Total assets have inched up over time, and shareholders’ equity has steadily grown, which reflects retained profits and a stronger capital base. Debt levels are very low, so the company does not appear to be relying heavily on borrowing to fund its operations or growth. Cash balances have come down from earlier peaks, which is worth watching, but they still sit within a range that seems manageable given the low leverage and positive profitability. Overall, the company appears to be financially solid rather than stretched.

Cash Flow

Cash Flow Energy Recovery consistently generates cash from its operations, and free cash flow has remained positive through the period shown. This means the business is generally bringing in more cash than it needs to run and reinvest in itself. Capital spending has been quite modest, implying that the core business is not extremely capital‑intensive and that management can fund innovation and growth without large, risky build‑outs. The combination of positive operating cash flow, positive free cash flow, and low debt suggests a business model that is self‑funding and relatively resilient, though not immune to swings in project timing or customer orders.

Competitive Edge

Competitive Edge The company operates from a position of strength in its niche, centered on its pressure exchanger technology for desalination and related applications. It holds a dominant share in the desalination energy‑recovery market, backed by a long track record, strong reliability data, and a large installed base. Patents, proprietary materials, and in‑house manufacturing of key components raise barriers to entry and make it hard for competitors to match performance and durability. Customers face meaningful switching costs once systems are installed, which supports recurring business. The main competitive risks are dependency on a specialized set of end markets and the potential for new technologies or alternative processes to gradually chip away at its advantages if the company ever slows its innovation pace.

Innovation and R&D

Innovation and R&D Innovation is clearly the core of Energy Recovery’s strategy and identity. The company’s flagship pressure exchanger has been continually improved and adapted to new uses, which has extended its life beyond seawater desalination. Management is actively trying to replicate its desalination success in newer areas such as CO₂ refrigeration and industrial wastewater treatment, both driven by regulatory change and efficiency needs. These newer markets could provide meaningful long‑term growth if adoption is successful, but commercialization timelines and customer acceptance are uncertain and may be bumpy. The firm’s focus on in‑house materials science, engineering talent, and sustained R&D spending supports its technological edge, yet also requires patience, as not every new initiative (such as past oil and gas efforts) will necessarily scale quickly or at all.

Summary

Overall, Energy Recovery looks like a specialized industrial technology company with a solid financial base and a clear competitive edge in its core desalination niche. The income statement and cash flows reflect a profitable, cash‑generative business rather than a speculative story, and the balance sheet is conservative with low leverage. Its moat is rooted in proven performance, patents, and high switching costs, providing a degree of stability. The main upside potential lies in expanding its pressure‑exchanger platform into refrigeration and industrial wastewater, which could broaden the business beyond desalination. The main risks center on execution in these new markets, reliance on capital‑intensive customer projects, and exposure to regulatory and infrastructure cycles. In essence, this is a focused, innovation‑driven company with a strong core and meaningful, but not guaranteed, growth optionality.

NEWS

November 5, 2025 · 4:05 PM UTC

Energy Recovery Reports its Third Quarter 2025 Financial Results

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October 9, 2025 · 7:00 AM UTC

Energy Recovery to Release Third Quarter 2025 Financial Results

Read more