Energy Recovery, Inc. maintains a fortress balance sheet with a debt-to-equity ratio of 0.05, yet its reliance on lumpy, project-based desalination revenue creates significant earnings instability. While the company is attempting to pivot toward CO2 refrigerat...
Price trend, volume and key moving averages
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 5, 2026 | -$0.03-66.7% vs -$0.02 | $12M-34.7% vs $18M |
Q2 2026 May 6, 2026 | -$0.23-130.0% vs -$0.10 | $10M+15.9% vs $8M |
Q1 2026 Feb 25, 2026 | $0.53-20.9% vs $0.67 | $67M-19.0% vs $83M |
Q4 2025 Nov 5, 2025 | $0.12+33.3% vs $0.09 | $32M+6.9% vs $30M |
Diamond Hill Small-Mid Cap Strategy increased 9.73% (net of fees) compared to a 20.26% increase for the Russell 2500 Index. Shares of electrical product manufacturer Regal Rexnord rose in 2Q26 after reporting solid results on strong data center demand. Given the fundamental headwinds Wix.com is facing, we exited our position to deploy capital to more attractive opportunities.
Energy Recovery (ERII) reported a 60% revenue collapse in 2Q26, with Desalination down 80% and significant weakness beyond the Middle East. Unexplained revenue declines in Europe and Asia raise concerns about potential structural or competitive issues beyond the Iran conflict. ERII's balance sheet strength is overstated due to depleted receivables; much of current cash will be needed to rebuild working capital if business recovers.
The Fund increased 9.71% compared to a 20.26% increase for the Russell 2500 Index. We initiated a position in managed care provider Centene. Shares of website design software provider Wix.com were sold as the company's core business has experienced slowing growth due to AI-driven vibe coding.
Energy Recovery, Inc. (ERII) Q2 2026 Earnings Call Transcript
Benchmark ERII against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Energy Recovery, Inc. (ERII)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $6.80 | $350.51M | 16.19 | -7.07% | 17.05% | 11.03% | — | |
| $96.30 | $4.25B | 29.91 | 5.44% | 7.06% | 11.55% | — | |
| $9.80 | $1.2B | 1256.41 | -12.13% | -1.15% | -1.49% | — | |
| $69.52 | $2.3B | 47.94 | 4.11% | 8.01% | 7.65% | — | |
| $55.25 | $8.93B | 13.95 | 2.28% | 16.24% | 17.13% | — | |
| $108.64 | $25.37B | 27.71 | 5.52% | 11.07% | 9.01% | — |
Energy Recovery, Inc. (ERII) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Energy Recovery, Inc. (ERII) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 5, 2026·SEC
Jul 13, 2026·SEC
Jun 8, 2026·SEC
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Energy Recovery, Inc. (ERII) stock FAQ — growth, dividends, profitability & financials explained
Energy Recovery, Inc. (ERII) reported $120.3M in revenue for fiscal year 2025. This represents a 500% increase from $20.1M in 2006.
Energy Recovery, Inc. (ERII) saw revenue decline by 7.1% over the past year.
Yes, Energy Recovery, Inc. (ERII) is profitable, generating $15.3M in net income for fiscal year 2025 (17.0% net margin).
Energy Recovery, Inc. (ERII) has a return on equity (ROE) of 11.0%. This is reasonable for most industries.
Energy Recovery, Inc. (ERII) generated $38.6M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
