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Energy Recovery (ERII) investor relations material
Energy Recovery Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
2025 guidance reiterated on all metrics, with wastewater guidance reinstated due to improved tariff outlook.
Q2 2025 revenue was $28.1 million, with net income of $2.1 million, and gross margin at 64.0%, reflecting a decrease due to product mix and tariffs.
Operating expenses decreased 15.8% year-over-year, mainly from lower employee and consulting costs.
Core desalination business remains resilient, supported by large deals and a strong contract pipeline.
Long-term business trends in desalination, water reuse, and CO2 refrigeration installations are accelerating.
Financial highlights
Q2 2025 net income was $2.1 million, or $0.04 per diluted share, compared to a net loss of $0.6 million in Q2 2024.
Six-month revenue was $36.1 million, down 8% from the prior year period.
Cash and investments at quarter end totaled $93.7 million, up from $29.6 million at year-end 2024.
Operating cash flow for the first half of 2025 was $14.8 million.
Adjusted EBITDA for Q2 2025 was $4.4 million.
Outlook and guidance
Full-year revenue visibility is strong based on current contracts and pipeline.
Wastewater tariff impacts are less severe than initially expected, supporting renewed guidance.
Management expects existing cash, investments, and operating cash flow to meet liquidity needs for at least the next 12 months.
Guidance for 2026 will be provided in the next quarterly call as clarity improves.
Management reaffirmed expectations for quarterly revenue cadence in 2025.
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