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Energy Recovery (ERII) investor relations material
Energy Recovery Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
CEO search is ongoing, with strong candidates attracted by the company’s technology and market position.
Interim leadership is focused on executing business initiatives and maintaining continuity.
Q2 2026 revenue fell 57% year-over-year to $12.0 million, primarily due to the war in Iran impacting demand.
Gross margin improved to 74.7% from 64.0% year-over-year, despite lower volumes.
The company completed a restructuring, winding down its Emerging Technologies segment and incurring related charges.
Financial highlights
Six-month revenue was $21.7 million, a 40% decrease from $36.1 million year-over-year.
Net loss for the first half of 2026 was $15.4 million, compared to a $7.8 million loss in the prior year.
Operating cash flow for the first half was $37.3 million, up from $14.8 million year-over-year.
Cash and investments totaled $98.1 million at quarter end.
Q2 2026 diluted loss per share was $0.06, down from $0.04 earnings per share in Q2 2025.
Outlook and guidance
Long-term pipeline remains robust, with forward visibility extending up to five years.
Management expects existing resources and cash from operations to be sufficient for at least the next 12 months.
Market recovery is anticipated, but timing remains uncertain due to ongoing geopolitical risks and project delays.
Backlog strength is emphasized for 2027 and beyond, with limited ability to project near-term results.
Additional capital may be needed for acquisitions or rapid technology adoption.
- Record revenue masked a delayed project and lower full-year operating profit.ERII
Q4 2023 - All proposals passed, including director elections and incentive plan amendment.ERII
AGM 2026 - Revenue up 20% year-over-year, but net loss widens and gross margin falls on restructuring.ERII
Q1 2026 - Proxy covers director elections, pay, auditor ratification, and incentive plan amendment, with strong ESG focus.ERII
Proxy filing - Project delays and lower revenue are offset by cost cuts and new products, supporting 2027 growth.ERII
Q4 2025 - Q3 2025 revenue and net income fell, but cost control and OEM growth offset megaproject declines.ERII
Q3 2025 - Expanding from desalination, patented tech drives growth in wastewater and CO2 refrigeration.ERII
15th Annual Midwest IDEAS Investor Conference - Q2 revenue up 31% YoY, adjusted profitability improved, and full-year guidance reaffirmed.ERII
Q2 2024 - Revenue dropped 33% to $8.1M, but free cash flow and margin guidance were reaffirmed.ERII
Q1 2025
Next Energy Recovery earnings date
Next Energy Recovery earnings date
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