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An announcement from Energy Recovery ( (ERII) ) is now available.
On February 25, 2026, Energy Recovery moved to exit its CO2 retail grocery business within the Emerging Technologies segment, concluding that the initiative would require excessive time, capital and risk to achieve scale, and no longer fit its return criteria. The wind-down, expected to be largely completed by the end of the first quarter of fiscal 2026, will trigger an estimated $4.5 million to $5.5 million in one-time charges, including cash severance and non-cash inventory and goodwill impairments, and is aimed at sharpening strategic focus and maximizing shareholder value.
On the same date, the company reported fourth-quarter 2025 revenue of $66.9 million, essentially flat year-on-year, with gross margin slipping to 67.2% due to product mix and tariffs but operating income rising 22.3% to $31.3 million on sharply lower operating expenses. Net income climbed to $26.9 million in the quarter while full-year 2025 revenue declined 7% to $135 million, and Energy Recovery ended the period with $83.3 million in cash and investments, underscoring solid profitability and liquidity despite softer annual sales.
The most recent analyst rating on (ERII) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Energy Recovery stock, see the ERII Stock Forecast page.
Spark’s Take on ERII Stock
According to Spark, TipRanks’ AI Analyst, ERII is a Neutral.
Energy Recovery’s overall stock score reflects solid financial performance and a positive outlook from the latest earnings call, despite technical indicators suggesting short-term bearish momentum. The high P/E ratio indicates growth expectations, but the lack of a dividend yield may deter income-focused investors. The company’s strategic focus on cost control and growth in wastewater and CO2 initiatives supports long-term confidence.
To see Spark’s full report on ERII stock, click here.
More about Energy Recovery
Energy Recovery, Inc., listed on Nasdaq as ERII, operates in the industrial technology and energy efficiency sector, supplying pressure exchanger and related solutions that improve energy use in applications such as desalination and other fluid-processing industries. The company focuses on high-margin, technology-driven products and maintains a strong cash position to support its capital allocation priorities and shareholder returns.
Average Trading Volume: 356,776
Technical Sentiment Signal: Buy
Current Market Cap: $851.3M
For detailed information about ERII stock, go to TipRanks’ Stock Analysis page.