Energy Recovery (NASDAQ:ERII) Updates FY 2026 Earnings Guidance

Energy Recovery (NASDAQ:ERII) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.500-0.700 for the period, compared to the consensus estimate of 0.750. The company issued revenue guidance of $115.0 million-$140.0 million, compared to the consensus revenue estimate of $159.1 million.

Energy Recovery Price Performance

Shares of NASDAQ ERII traded down $5.16 during mid-day trading on Thursday, hitting $10.96. The company had a trading volume of 2,717,066 shares, compared to its average volume of 366,828. The company has a market capitalization of $580.50 million, a PE ratio of 32.40 and a beta of 1.09. The business’s 50-day simple moving average is $14.68 and its 200 day simple moving average is $14.92. Energy Recovery has a 1-year low of $10.22 and a 1-year high of $18.32.

Energy Recovery (NASDAQ:ERII) last released its earnings results on Wednesday, February 25th. The industrial products company reported $0.53 earnings per share for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.14). Energy Recovery had a return on equity of 10.09% and a net margin of 14.44%.The firm had revenue of $66.59 million for the quarter, compared to analysts’ expectations of $82.59 million. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS. On average, analysts expect that Energy Recovery will post 0.36 EPS for the current year.

Wall Street Analysts Forecast Growth

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

Insider Activity at Energy Recovery

In other news, insider William Yeung sold 7,271 shares of Energy Recovery stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $14.55, for a total value of $105,793.05. Following the sale, the insider owned 90,098 shares of the company’s stock, valued at $1,310,925.90. The trade was a 7.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Arve Hanstveit sold 15,000 shares of Energy Recovery stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $14.97, for a total value of $224,550.00. Following the completion of the sale, the director directly owned 640,220 shares in the company, valued at $9,584,093.40. This represents a 2.29% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 25,260 shares of company stock valued at $374,213 in the last 90 days. Company insiders own 3.20% of the company’s stock.

Key Energy Recovery News

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

• Positive Sentiment: Q4 operating profitability improved — operating profit rose ~22% YoY and net income increased ~15%, showing improved operating leverage despite the top-line miss. Read More.
• Positive Sentiment: Cash position strengthened — cash and cash equivalents reported at ~$47.1M (up ~59% YoY), giving the company balance-sheet flexibility. Read More.
• Neutral Sentiment: Company hosted an earnings call/posted a transcript that outlines the sources of project delays and strategic shifts — useful for investors who want management’s cadence and remediation plans. Read More.
• Negative Sentiment: Q4 top-line and EPS missed expectations — revenue was ~$66.6–66.9M vs. consensus ~82–84M and diluted EPS missed estimates (reported ~$0.50–0.53 vs. consensus ~0.67–0.68). These misses were the immediate catalyst for the selloff. Read More.
• Negative Sentiment: FY?2026 guidance materially below Street expectations — company guided EPS of $0.50–0.70 (consensus ~0.75) and revenue $115M–$140M (consensus ~$159M), reducing near?term growth visibility. Read More.
• Negative Sentiment: Insider selling and heightened volume — recent insider sales flagged by third?party trackers and today’s volume far above average likely amplified downside pressure. Read More.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Wexford Capital LP acquired a new stake in Energy Recovery during the third quarter worth approximately $27,000. Parallel Advisors LLC purchased a new stake in shares of Energy Recovery in the fourth quarter valued at $38,000. Tower Research Capital LLC TRC grew its position in shares of Energy Recovery by 172.2% in the second quarter. Tower Research Capital LLC TRC now owns 6,011 shares of the industrial products company’s stock valued at $77,000 after purchasing an additional 3,803 shares during the period. PDT Partners LLC acquired a new position in Energy Recovery in the second quarter valued at $159,000. Finally, Man Group plc purchased a new position in Energy Recovery during the third quarter worth about $162,000. Hedge funds and other institutional investors own 83.58% of the company’s stock.

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.