Energy Recovery, Inc. (ERII) Earnings
Energy Recovery, Inc. is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $0.01. ERII has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise -46.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $-0.02 | $-0.03 | -66.7% | $12M | -34.7% |
| May 6, 2026 | $-0.10 | $-0.23 | -130.0% | $10M | +15.9% |
| Feb 25, 2026 | $0.67 | $0.53 | -20.9% | $67M | -19.4% |
| Nov 5, 2025 | $0.09 | $0.12 | +33.3% | $32M | -61.3% |
| Aug 6, 2025 | $0.02 | $0.07 | +250.0% | $28M | -34.5% |
| Feb 26, 2025 | $0.42 | $0.50 | +19.0% | $67M | -0.5% |
| Jul 31, 2024 | $0.05 | $0.09 | +91.1% | $27M | +18.4% |
| May 1, 2024 | $-0.11 | $-0.08 | +27.3% | $12M | -10.5% |
| Feb 21, 2024 | $0.38 | $0.34 | -10.5% | $57M | -8.4% |
| Nov 1, 2023 | $0.05 | $0.17 | +240.0% | $37M | +18.5% |
| Aug 2, 2023 | $-0.01 | $-0.03 | -200.0% | $21M | -14.7% |
| May 3, 2023 | $-0.12 | $-0.08 | +33.3% | $13M | +3.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Pipeline & Demand Outlook - Structural, durable long-term demand drivers for the company's core desalination business remain unchanged - The company holds a uniquely strong, multi-year forward project pipeline extending up to 5 years, with named customers and many projects already at defined planning stages - Near-term project execution has been broadly delayed due to prevailing market conditions, with uncertain near-term timing for project kickoffs - New Saudi Arabia Facility Update - The facility is primarily strategic, designed to locate production closer to key regional customers, reduce freight and shipping costs, and build local market presence - It operates as a complement to the company's existing California production facility, with both sites to remain in use - Margin improvements from the facility will ramp gradually between 2027 and 2028 and beyond, rather than delivering immediate margin uplift after opening - Capital expenditure for the facility is limited: the facility uses leased space rather than greenfield development, with only incremental spending for equipment and fixed assets - Wastewater Business Development - The company continues to invest in the wastewater market, which has strong long-term growth potential - The product portfolio has been expanded to cover high pressure, ultra high pressure, low pressure, and ultra low pressure use cases, broadening the total addressable market - Operational changes are being implemented to accelerate adoption: resources are being reallocated to high-opportunity geographies (notably China and India), the go-to-market strategy is being refocused on partnerships with key OEM players to drive spec-in adoption, and operations are being streamlined to balance revenue growth with efficiency - Organizational synergies are being unlocked by consolidating overlapping sales coverage and sales management infrastructure between the desalination and wastewater business units, leveraging shared customer overlap - New Product Launch (PXQ650) - The PXQ650 product launch is proceeding on schedule with no delays from near-term geopolitical uncertainty, and commercial agreements are already being signed with customers - The product is designed for the industry trend of larger multi-billion-gallon national water projects with higher flow volumes, and delivers strong improvements in energy efficiency, product lifespan, and warranty coverage that strengthen the company's competitive position
Guidance
- Full-year 2026 guidance cannot be reinstated due to prevailing uncertain market conditions, and the disclosed 27 million backlog cannot be reliably used to model second half 2026 revenue, as much of the backlog is tied to 2027 and beyond delivery timelines - Management reaffirmed prior full-year 2026 capital expenditure guidance of $3 to $6 million, which includes all planned spending for the Saudi Arabia facility ramp - OEM and aftermarket businesses are expected to remain resilient for full-year 2026, despite modest first half year-over-year weakness
Segment performance
No segment-level absolute financial results or revenue contribution percentages were disclosed in this transcript. Only high-level commentary was provided: wastewater segment results were characterized as soft, while OEM and aftermarket businesses are expected to remain resilient through 2026 after a slight year-over-year decline in the first half of the year.
Risks & headwinds
- Persistent geopolitical instability (notably the ongoing on-again, off-again Iran conflict) has pushed up project risk premiums, created widespread financing challenges for customers, and delayed project finalization and execution timelines - Broader supply chain and logistics challenges continue to slow the transition of planned projects into active execution phases - Near-term project visibility remains limited, as the timing of recovery in project contracting and execution activity cannot be forecast with confidence at this juncture
Analyst Q&A
Q: What catalyst will reduce risk premiums and reopen the project market amid the volatile Iran conflict, and does the conflict need to be fully resolved long-term before activity recovers? /
A: Management cannot predict how geopolitical developments will unfold, but they will recognize a market recovery when they see it via sustained progress on core project milestones: financing closure, EPC appointments, and consistent execution velocity from award through to delivery. Current activity is well below normal baseline timelines between project initiation and award.
Q: How should investors interpret the disclosed 27 million backlog for modeling 2026 second half performance? /
A: The majority of the backlog growth is tied to projects scheduled for delivery in 2027 and beyond, so the backlog number cannot be reliably used to estimate 2026 second half revenue. OEM and aftermarket business, however, is expected to hold up well through the end of 2026.
Q: Has the PXQ650 product launch been delayed by the current market slowdown, and when will it move the needle on revenue? /
A: The launch is proceeding on schedule with no delays, and the company is already signing commercial deals for the product with both small and large customers. The product is well-positioned for the industry trend of larger national water projects, and it significantly strengthens the company's competitive position on key performance metrics.
Q: What capital expenditure is required for the new Saudi Arabia facility, and what is the cash flow impact over the next 18 months? /
A: Total capital cost is very limited because the facility is built in leased space rather than greenfield development. Most incremental spending is for equipment and fixed assets, and the 2026 $3 to $6 million CapEx guidance remains on track. Only modest additional spending may be required in 2027 to complete the ramp.
Q: What synergies are being unlocked by the wastewater business operational restructuring? /
A: The company is consolidating overlapping sales resources and sales management infrastructure between the desalination and wastewater business units, which share common customers and overlapping territory coverage. This consolidation eliminates duplication and drives operating efficiency without cutting sales resources for priority target markets and accounts.