olivLaw · US equity research
Energy Recovery, Inc. ERII
Special Industry Machinery, NEC · SIC 3559 · Vertical: Special Industry Machinery, NEC (SIC 3559)
Energy Recovery designs and manufactures energy-recovery devices built on its pressure exchanger technology, used mainly in desalination and wastewater treatment. The company has gone through a difficult year, with revenue falling sharply in the second quarter of 2026, which makes its dependence on large projects and on Middle East and Africa markets especially relevant, with revenue of 134,987 thousand USD in 2025.
At the close of 04 Nov 2026, Energy Recovery, Inc. (ERII) stock was 7.17 USD (+0.00% on the day), with market capitalisation 366.0 m USD, P/E 26.0 on diluted EPS of 0.28 USD over the last 12 months, beta 1.12, 52-week range 6.64–17.26 USD. Latest reported quarter (Q2 2026): revenue of 12.0 m USD (−57.2% YoY), net income of -3.2 m USD (−255.7% YoY), diluted EPS -0.06 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 59.8
- strong (55–70)
- Bollinger (20, 2)
- 6.47 – 7.22
- in the upper half of the band · %B 0.94 · band width 10.9%
- SMA 50 / 200
- 7.06 / 9.49
- mixed trend
- MACD (12, 26, 9)
- 0.03 / -0.05
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +5.0% | −2.0% | +7.0 pp | — |
| 3 months | −19.1% | −2.2% | −16.9 pp | — |
| 6 months | −38.2% | +4.3% | −42.5 pp | — |
| Year to date | −46.8% | +10.6% | −57.4 pp | — |
| 1 year | −56.3% | +10.5% | −66.8 pp | +23.7% |
| 3 years | −60.3% | +73.7% | −134.0 pp | +27.4% |
| 5 years | −68.0% | +61.7% | −129.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 38.6 m | 67.1 m | 8.1 m | 28.1 m | 32.0 m | 66.9 m | 9.7 m | 12.0 m |
| Cost of revenue | 13.5 m | 20.0 m | 3.6 m | 10.1 m | 11.4 m | 21.9 m | — | — |
| Gross profit | 25.1 m | 47.1 m | 4.5 m | 18.0 m | 20.6 m | 45.0 m | 2.7 m | 9.0 m |
| Research & development | 4.0 m | 4.0 m | 3.0 m | 3.5 m | 3.7 m | 2.9 m | 2.8 m | 2.8 m |
| Operating income | 7.1 m | 25.6 m | -12.6 m | 1.5 m | 3.7 m | 31.3 m | -14.9 m | -5.9 m |
| Depreciation & amortisation | 1.0 m ≈ | 996.0 k | 962.0 k | 944.0 k ≈ | 913.0 k ≈ | 941.0 k | 978.0 k | 1.0 m ≈ |
| Pre-tax income | 8.8 m | 26.9 m | -11.5 m | 2.4 m | 4.6 m | 32.1 m | -14.0 m | -5.1 m |
| Income tax | 344.0 k | 3.4 m | -1.6 m | 334.0 k | 680.0 k | 5.2 m | -1.8 m | -1.9 m |
| Net income | 8.5 m | 23.5 m | -9.9 m | 2.1 m | 3.9 m | 26.9 m | -12.3 m | -3.2 m |
| Diluted EPS | 0.15 | 0.40 ≈ | -0.18 | 0.04 | 0.07 | 0.50 ≈ | -0.23 | -0.06 |
| Operating cash flow | -3.0 m ≈ | 9.0 m | 10.7 m | 4.1 m ≈ | -3.1 m ≈ | 7.1 m | 21.0 m | 16.3 m ≈ |
| Capex | 169.0 k ≈ | 104.0 k | 191.0 k | 135.0 k ≈ | 342.0 k ≈ | 662.0 k | 814.0 k | 875.0 k ≈ |
| Share repurchases | 0 ≈ | 50.4 m | 4.5 m | 17.1 m ≈ | 10.6 m ≈ | 3.4 m | 10.7 m | 10.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 18 percentile of its own 39-quarter history (min 14.2, median 46.0, max 517.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 74.5 m | 86.9 m | 119.0 m | 103.9 m | 125.6 m | 128.3 m | 144.9 m | 135.0 m |
| Revenue YoY | +7.8% | +16.7% | +36.9% | −12.7% | +20.9% | +2.2% | +12.9% | −6.9% |
| Net income | 22.1 m | 10.9 m | 26.4 m | 14.3 m | 24.0 m | 21.5 m | 23.1 m | 23.0 m |
| Net income YoY | +20.4% | −50.6% | +141.8% | −45.9% | +68.5% | −10.6% | +7.2% | −0.4% |
| Diluted EPS | 0.40 | 0.19 | 0.47 | 0.24 | 0.42 | 0.37 | 0.40 | 0.42 |
| Diluted EPS YoY | +21.2% | −52.5% | +147.4% | −48.9% | +75.0% | −11.9% | +8.1% | +5.0% |
| net % | 29.6% | 12.6% | 22.2% | 13.7% | 19.1% | 16.8% | 15.9% | 17.0% |
| Free cash flow | 2.3 m | -2.1 m | 10.1 m | 6.8 m | 8.4 m | 23.5 m | 19.2 m | 17.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 48.1 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 206.2 m USD
- Total assets
- 231.5 m USD
- Debt / equity
- unavailable
- Current ratio
- 10.44x
- ROE
- 11.0%
- ROA
- 9.7%
- FCF margin
- 12.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 119.0 m | 103.9 m | 125.6 m | 128.3 m | 144.9 m | 135.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | — | 32.7 m | 38.2 m | 41.3 m | 48.0 m | 47.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | — | 71.2 m | 87.4 m | 87.1 m | 96.9 m | 87.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 23.4 m | 20.1 m | 17.9 m | 17.0 m | 16.2 m | 13.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | 31.3 m | 13.8 m | 24.8 m | 19.1 m | 19.7 m | 23.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 3.9 m | 4.5 m | 4.8 m | 4.1 m | 4.0 m | 3.8 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | 35.2 m ≈ | 18.3 m ≈ | 29.6 m ≈ | 23.2 m ≈ | 23.8 m ≈ | 27.6 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 0 | — | — | — | — | — | SEC (XBRL)· 12 Mar 2021verified |
| Pre-tax income | 32.1 m | 14.0 m | 26.1 m | 22.7 m | 25.7 m | 27.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | 5.7 m | -265.0 k | 2.0 m | 1.2 m | 2.7 m | 4.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | 26.4 m | 14.3 m | 24.0 m | 21.5 m | 23.1 m | 23.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | 0.47 | 0.24 | 0.42 | 0.37 | 0.40 | 0.42 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 56.6 m | 58.7 m | 57.6 m | 57.7 m | 57.8 m | 54.2 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 94.3 m | 74.4 m | 56.4 m | 68.1 m | 29.6 m | 48.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Receivables | 11.8 m | 20.6 m | 34.1 m | 46.9 m | 64.1 m | 76.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 11.7 m | 20.4 m | 28.4 m | 26.1 m | 24.9 m | 24.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 143.2 m | 151.8 m | 157.9 m | 185.5 m | 173.7 m | 181.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 20.2 m | 20.4 m | 19.6 m | 18.7 m | 15.4 m | 12.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | 12.8 m | 12.8 m | 12.8 m | 12.8 m | 12.8 m | 12.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 49.0 k | 37.0 k | 0 | — | — | — | SEC (XBRL)· 22 Feb 2023verified |
| Total assets | 204.3 m | 213.7 m | 217.0 m | 253.0 m | 242.8 m | 231.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 1.1 m | 909.0 k | 814.0 k | 3.0 m | 3.1 m | 2.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 15.7 m | 19.8 m | 18.3 m | 21.5 m | 23.4 m | 17.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 32.7 m | 34.9 m | 31.7 m | 33.2 m | 32.8 m | 25.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 171.6 m † | 178.8 m † | 185.3 m † | 219.8 m † | 210.0 m † | 206.2 m † | SEC (XBRL)· 25 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 16.9 m | 13.5 m | 12.6 m | 26.1 m | 20.5 m | 18.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 6.8 m | 6.7 m | 4.2 m | 2.6 m | 1.3 m | 1.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 10.1 m ≈ | 6.8 m ≈ | 8.4 m ≈ | 23.5 m ≈ | 19.2 m ≈ | 17.4 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | 46.6 m | -20.6 m | -6.9 m | -19.1 m | -15.7 m | 34.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | 4.4 m | -12.8 m | -23.7 m | 4.8 m | -43.3 m | -34.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Share repurchases | 0 | 23.3 m | 26.7 m | 0 | 50.4 m | 35.6 m | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 366.0 m USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.78 – 9.68 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E5.78 – 9.68 (Mid 8.51)7 companies used · median multiple 30.9x · quartiles 21.0x – 35.2xACLS, ACMR, ASYS, CRCT, CVV, LRCX, SOTK
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 12.7% | 67 (vs peers) | 11% |
| FCF conversion · Quality | 251.6% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 2.4% | 20 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | 0.0% | 0 (on a fixed band) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 8.1x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 26.0x | 63 (vs peers) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 10.5% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 9.5% | 100 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth10/100 · 2/2 factors with a value
- Quality83/100 · 2/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation79/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Energy Recovery, Inc. (ERII). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 135.0 m USD in 2025; YoY growth -6.9%; net margin 12.7%; ROE 8.6%.
The estimated value range is 5.78–9.68 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 8.51 USD, the price of 7.17 USD leaves a potential of 18.6% (value / price − 1) and a margin of safety of 15.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 251.6%
- Current ratio: 8.1x
- FCF yield: 10.5%
- Shareholder yield (distributions): 9.5%
What contradicts it
- Revenue CAGR 3Y: 2.4%
- EPS CAGR 3Y: 0.0%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Special Industry Machinery, NEC (SIC 3559) · same industry (4-digit SIC) · compared with 12 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LRCXLam Research Corporation | 288.2 bn | 34.4 | 70.1% | 32.3% | +26.0% | +48% / +222% |
| ACLSAxcelis Technologies Inc | 2.8 bn | 30.9 | 8.9% | 10.7% | −17.6% | +11% / −26% |
| VECOVeeco Instruments Inc | 2.2 bn | 100.5 | 2.6% | 3.4% | −7.4% | +23% / +26% |
| CRCTCricut, Inc. | 1.9 bn | 20.9 | 25.9% | 12.7% | −0.5% | +87% / +29% |
| AZTAAzenta, Inc. | 1.7 bn | — | -7.7% | -20.0% | +3.6% | +10% / −31% |
| ACMRACM Research, Inc. | 629.9 m | 21.0 | 10.6% | 14.5% | +15.2% | +33% / +167% |
| ERIIEnergy Recovery, Inc. | 366.0 m | 26.0 | 8.6% | 12.7% | −6.9% | −56% / −60% |
| ASYSAmtech Systems, Inc. | 216.2 m | 46.7 | 4.8% | 4.9% | −21.6% | +57% / +60% |
| VELOVelo3D, Inc. | 181.5 m | — | -61.5% | -89.6% | +12.1% | +6% / −99% |
| SOTKSono Tek Corp | 71.0 m | 36.0 | 10.1% | 9.3% | +2.0% | +24% / −10% |
| TRTTrio-Tech International | 51.5 m | — | -0.1% | -0.1% | +71.6% | +16% / +103% |
| CVVCvd Equipment Corporation | 26.8 m | 2.7 | 32.7% | 62.0% | −4.1% | +10% / −19% |
| ASMLAsml Holding NV | — | — | 50.5% | 29.4% | +15.6% | +41% / +119% |
1- and 3-year price returns: for ERII from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.53 Total return -37% · Per year -37% | 8.01 Total return 12% · Per year 12% | 12.08 Total return 69% · Per year 69% |
| 3 years | 4.21 Total return -41% · Per year -16% | 8.41 Total return 17% · Per year 5% | 13.95 Total return 94% · Per year 25% |
| 5 years | 3.92 Total return -45% · Per year -11% | 8.82 Total return 23% · Per year 4% | 16.10 Total return 124% · Per year 18% |
- Exit P/E± 2.10
- Net margin± 1.47
- Annual revenue growth± 1.23
- Annual dilution± 0.12
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Energy Recovery designs and manufactures energy-recovery devices built on its pressure exchanger technology, used mainly in desalination and wastewater treatment. The company has gone through a difficult year, with revenue falling sharply in the second quarter of 2026, which makes its dependence on large projects and on Middle East and Africa markets especially relevant, with revenue of 134,987 thousand USD in 2025 12.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Dependence on large projectshigh
MPD revenue can fall sharply if projects are postponed, and contracts not delivered by year end cannot be recognised in that year 12.
- CO2 business wind-downmedium
The decision to wind down the CO2 business creates costs and removes CO2-refrigeration revenue, which may weigh on the Emerging Technologies segment 1.
- Growing competitionmedium
Rivals can offer similar or better products, and price pressure could reduce margins and market share 1.
- Geopolitical riskhigh
Conflicts in Europe and the Middle East can affect demand and project financing in the regions where the company is active 12.
- Wastewater market adoptionmedium
There is no guarantee the wastewater market will adopt the company's products, especially where regulation is minimal 1.
Investment thesis
What would need to be true (bull case)
- If desalination projects and the conversion of older plants resume, revenue could return to earlier levels, and the high gross margin could support profitability 13.
- The financial position remains solid, with significant cash and investments, giving flexibility to invest in new technologies 3.
- Expansion in wastewater could diversify revenue if rules become stricter in more countries 1.
What would break the thesis
- If large projects continue to be postponed, revenue could stay low and operating losses could persist 23.
- Rising competition could force price cuts and margin compression, especially for standard products 1.
- The CO2 wind-down and related costs could weigh on the results of the Emerging Technologies segment 1.
What to watch
- Trend in MPD revenue and new order intakeQ3 2026
- Effect of regional conflicts on deliveries to the Middle East2026
- Wastewater segment results and adoption of its products2027
- Full-year 2026 figures in the annual reportnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Energy Recovery, Inc., headquartered in San Leandro, California, builds its business around its proprietary pressure exchanger technology, which transfers pressure energy between high- and low-pressure fluid streams. Its PX device helped make seawater reverse osmosis desalination viable and is described by the company as the industry standard 1. Products include pressure exchangers, hydraulic turbochargers and high-pressure pumps, sold through a direct sales force, and a significant part of revenue comes from outside the US 1. In February 2026 the company decided to wind down its CO2 business within Emerging Technologies, affecting revenue from CO2-based refrigeration 1.
Revenue is tracked by channel: megaproject (MPD), original equipment manufacturer (OEM) and aftermarket (AM). In the first half of 2026 MPD revenue fell 79% year on year, while OEM was more stable 2. The company now reports two segments, Desalination and Wastewater, after the Water segment was split in the first quarter of 2026 2.
Gross margin has remained high compared with typical industry levels but compressed in 2025 due to lower volumes and tariff-related costs 1. In the second quarter of 2026, gross margin rose to 74.7% on lower volume and a change in channel mix 3.
Segments
Desalination
The Desalination segment supplies energy-recovery devices for seawater and brackish reverse osmosis plants, which the company has historically relied on for most of its revenue. In the first half of 2026 the segment generated 20,390 thousand USD of total revenue of 21,702 thousand USD 2.
Market context
The water market is driven by population growth, urbanisation and climate pressure, and the company estimates that global freshwater demand will exceed supply by 40% by 2030 1. The market relies heavily on large projects and financing, which makes revenue volatile from quarter to quarter 12.
The conversion from thermal desalination to reverse osmosis keeps creating demand for RO equipment, and zero liquid discharge rules are spreading in wastewater 1. The company notes, however, that many regions have minimal regulation, which could slow adoption 1.
Trends
- Rising demand for fresh watertailwind
Freshwater scarcity and climate change support demand for desalination, which could sustain long-term projects if financing remains available 1.
- Shift to reverse osmosistailwind
Ageing thermal plants are being replaced with RO technology, creating new demand for the company's products 1.
- Wastewater regulationmixed
Zero or minimum liquid discharge is spreading in some countries, but many regions have minimal rules, so adoption could be delayed 1.
- Delays in large projectsheadwind
Weak economies, regional conflicts and difficult financing could postpone MPD projects, which has coincided with lower revenue in 2026 12.
Competitive position
The market for energy-recovery devices is becoming more competitive, with rivals offering similar products, sometimes at lower prices 1. Some competitors may have greater financial and technical resources, allowing broader product packages 1.
The company argues its advantage comes from alumina ceramic parts and the durability of the PX device 1. Competition could nonetheless pressure margins if rivals offer superior products or better prices 1.
- Other energy-recovery device makers
The filing refers generally to several competitors offering similar devices for desalination and water treatment, without naming them.
- RO system and pump suppliers
Companies offering complete reverse osmosis systems can compete through broader product packages, as the filing describes.
- Thermal technology providers
Thermal desalination and water treatment compete indirectly, with high energy costs but still widespread use.
- Alternative wastewater treatment providers
Wastewater treatment solutions that do not use reverse osmosis are an alternative for industrial customers.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Can Trump’s Venezuela Oil Plan Derail the Country’s Energy Recovery?Modern Diplomacy · 02 Sept 2026 · EN
- IMF chief warns energy recovery to take time after US-Iran ceasefireEuractiv · 16 Jun 2026 · RO
SEC filings
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report13 Jul 2026Departure or appointment of officers · Financial statements and exhibits
- Current report (amendment)11 Jun 2026Departure or appointment of officers
- Current report08 Jun 2026Shareholder vote
- Current report28 May 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Departure or appointment of officers · Other events · Financial statements and exhibits
- Proxy statement21 Apr 2026
- Annual report25 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Energy Recovery, Inc. · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Energy Recovery, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Energy Recovery, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.