Energy Recovery (ERII)
NASDAQ:ERII
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Earnings Data
Report Date
May 06, 2026TBA (Not Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.14Last Year’s EPS
-0.18Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call balanced positive strategic developments—product innovation (PX Q650), cost reductions (OpEx down ~$13M, CO2 annualized savings ~$7M), planned manufacturing expansion, and a profitable wastewater opportunity—against material near-term execution challenges: an "air pocket" caused by delayed large desalination projects with an identified $25–30M assumed slip plus another $15–25M at risk (totaling ~$40–55M potential slippage), the disappointing wind-down of the CO2 initiative (and related ~20 headcount reduction), and tariff/market timing risks for wastewater growth. Management emphasized discipline, confidence in the 2027 outlook driven by pipeline, and actions to control costs and deploy capital, but near-term revenue timing remains the key risk factor.Company Guidance
Strategic Focus on Water Business
Company is now fully focused on its water business, citing a large, growing and profitable end market where it claims best pressure exchanger technology and a strong market position; management confident in growth for 2027 based on pipeline and demand trends.
New PX Q650 Product and ASP / Margin Upside
Introduced PX Q650 (higher flow) which is expected to result in a higher effective ASP per unit and gross margin expansion versus legacy units; manufacturing for the Q650 to begin in the second half of 2026 and the product will cannibalize/replace older models over a 2-3 year transition.
Operating Expense Reduction
Reported OpEx decreased from $77 million to $64 million (a reduction of $13 million, ~16.9%), with further opportunities cited to improve margins; CO2-related costs are being removed from the base OpEx figure.
CO2 Wind-Down Yields Annualized Savings
Decision to wind down CO2 retail grocery business expected to deliver approximately $7 million of annualized savings (not fully realized in the current year); management considered this the optimal path for shareholder value creation.
Manufacturing Expansion and CapEx Plan
Planning site selection for an outside-U.S. manufacturing facility by end of H1 2026 with phased production aiming for Q1 2027; 2026 CapEx guidance $3M–$6M (vs ~ $1.5M/year the prior two years), implying ~2x–4x increase in planned spending to establish the new facility.
Wastewater Business Growth Opportunity
Wastewater business has historical revenue of $10–12 million and mid- to high-60% gross margins; management has recently hired salespeople and expects significant growth, with the 2026 priority being to add reference cases to accelerate adoption.
Capital Allocation Discipline and Share Buybacks
Management emphasized a high bar for capital allocation, continued investment in innovation, cost control, and share buybacks as levers to enhance shareholder value.
ERII Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ERII Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | $16.12 | $10.43 | -35.30% |
Nov 05, 2025 | $17.26 | $14.49 | -16.05% |
Aug 06, 2025 | $13.62 | $14.65 | +7.56% |
May 07, 2025 | $15.04 | $12.25 | -18.55% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Energy Recovery (ERII) report earnings?
Energy Recovery (ERII) is schdueled to report earning on May 06, 2026, TBA (Not Confirmed).
What is Energy Recovery (ERII) earnings time?
Energy Recovery (ERII) earnings time is at May 06, 2026, TBA (Not Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ERII EPS forecast?
ERII EPS forecast for the fiscal quarter 2026 (Q1) is -0.14.