Energy Recovery (NASDAQ:ERII) Sets New 52-Week Low on Disappointing Earnings

Energy Recovery, Inc. (NASDAQ:ERII)’s share price hit a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $10.70 and last traded at $10.96, with a volume of 675678 shares. The stock had previously closed at $16.12.

The industrial products company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.14). Energy Recovery had a net margin of 17.01% and a return on equity of 12.21%. The company had revenue of $66.59 million during the quarter, compared to analyst estimates of $82.59 million. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS.

More Energy Recovery News

Here are the key news stories impacting Energy Recovery this week:

• Positive Sentiment: Q4 operating profit, net income and year-over-year EPS improved and cash on the balance sheet rose, showing operating leverage and a stronger cash position that partially cushions near-term risks. QuiverQuant: ERII stock falls on Q4 2025 Earnings
• Neutral Sentiment: Management says it is re-allocating Emerging Technologies spend (some to wastewater) and portraying 2026 guidance as “de-risked” (which could be conservative). The full earnings call transcript and highlights provide more color for modeling timing risk. Earnings Call Transcript Yahoo Finance: Q4 highlights
• Negative Sentiment: The company announced it has exited its CO2 refrigeration business, removing a notable optionality that investors had valued; that strategic retreat contributed to the stock drop. Seeking Alpha: CO2 Refrigeration Melted
• Negative Sentiment: Q4 revenues ($66.6–66.9M) and diluted EPS (reported ~$0.50–0.53 depending on source) missed Street estimates; desalination project revenues were delayed, driving the top-line shortfall. Yahoo UK: ERII misses Q4 revenue estimates
• Negative Sentiment: FY‑2026 guidance was cut: EPS guidance of $0.50–0.70 (below consensus ~$0.75) and revenue guidance ~ $115–140M (consensus ~ $159M). Seeking Alpha and company commentary also signaled desalination revenue guidance materially below 2025 levels and penciled into 2027 timing for some projects — a direct hit to growth expectations.
• Negative Sentiment: Insider sell activity and heavy intraday volume amplified downside as investors revised growth and optionality assumptions; short‑term sentiment turned negative. QuiverQuant: insider activity

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ERII. B. Riley Financial reiterated a “neutral” rating on shares of Energy Recovery in a report on Thursday, November 6th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Energy Recovery in a report on Monday, December 29th. Finally, Loop Capital set a $18.20 target price on shares of Energy Recovery in a research note on Monday, November 10th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $17.07.

Insider Transactions at Energy Recovery

In other news, insider William Yeung sold 7,271 shares of the company’s stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $14.55, for a total value of $105,793.05. Following the completion of the sale, the insider directly owned 90,098 shares of the company’s stock, valued at approximately $1,310,925.90. This represents a 7.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Arve Hanstveit sold 15,000 shares of the business’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $14.97, for a total value of $224,550.00. Following the sale, the director directly owned 640,220 shares in the company, valued at approximately $9,584,093.40. The trade was a 2.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 25,260 shares of company stock worth $374,213 over the last 90 days. 3.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ERII. Wexford Capital LP acquired a new stake in Energy Recovery in the 3rd quarter valued at about $27,000. Hantz Financial Services Inc. lifted its stake in Energy Recovery by 2,581.9% during the third quarter. Hantz Financial Services Inc. now owns 1,931 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 1,859 shares during the last quarter. Parallel Advisors LLC acquired a new stake in Energy Recovery during the fourth quarter valued at approximately $38,000. State of Alaska Department of Revenue bought a new position in shares of Energy Recovery in the third quarter valued at $46,000. Finally, Comerica Bank lifted its position in shares of Energy Recovery by 150.5% during the 4th quarter. Comerica Bank now owns 3,868 shares of the industrial products company’s stock valued at $52,000 after acquiring an additional 2,324 shares during the last quarter. Institutional investors own 83.58% of the company’s stock.

Energy Recovery Stock Performance

The firm has a market capitalization of $552.48 million, a P/E ratio of 24.26 and a beta of 1.09. The firm has a 50 day moving average price of $14.60 and a two-hundred day moving average price of $14.89.

Energy Recovery Company Profile

Energy Recovery, Inc (NASDAQ: ERII) is an energy technology company specializing in the design and manufacture of high-efficiency devices that capture and repurpose energy in fluid-handling applications. The company’s core offering, the Pressure Exchanger® (PX®) device, enables seawater reverse osmosis (SWRO) desalination plants to recover and reuse hydraulic energy that would otherwise be lost during brine discharge. By integrating PX technology into desalination processes, Energy Recovery helps operators significantly reduce the energy consumption and operating costs of producing fresh water from seawater or brackish sources.

In addition to desalination solutions, Energy Recovery has expanded its portfolio to serve the oil and gas sector through turbocharger systems that improve the energy efficiency of hydraulic fracturing operations.