Energy Recovery Reports Strong Q2 2025 Performance

Energy Recovery ( (ERII) ) has released its Q2 earnings. Here is a breakdown of the information Energy Recovery presented to its investors.

Energy Recovery, a company specializing in energy recovery devices and solutions for water and CO2 industries, has reported its Q2 2025 earnings, showcasing strong financial performance and strategic advancements. The company operates primarily in the water desalination and wastewater sectors, with a growing focus on CO2 applications.

In the latest earnings report, Energy Recovery highlighted robust revenue growth, with total revenue reaching $28.1 million, a 3% increase from the previous year. The company also reported a net income of $2.1 million and an adjusted EBITDA of $4.4 million. Notably, the company has expanded its share repurchase authorization by an additional $25 million, reflecting its strong cash position and confidence in future growth.

Key financial metrics include a gross margin of 64%, consistent with the previous year, and a significant reduction in operating expenses to $16.5 million, down from $19.6 million in Q2 2024. The company also made strategic advancements in its Desalination and Wastewater businesses, securing multiple large-scale projects in MENA, Europe, and India, and adding key sales positions in North America and Asia. Additionally, Energy Recovery is progressing with its NextGen PX product, expected to enhance performance and energy efficiency.

Looking ahead, Energy Recovery maintains a positive outlook, reiterating its full-year revenue guidance of $147 million to $159 million. The company anticipates a strong second half of the year, driven by a robust project pipeline and strategic initiatives to mitigate tariff impacts. With a focus on innovation and market expansion, Energy Recovery is well-positioned to capitalize on long-term trends in water scarcity and CO2 adoption.