ERII
Energy Recovery, Inc.

Energy Recovery, Inc.ERII

Industrials · Pollution & Treatment Controls
7.12USD
+1.28%
Sep 23, 2026
ERII overview ready
Energy Recovery's Pressure-Exchangers Enable Energy-Efficient Desalination
Energy Recovery is a specialized energy-efficiency equipment supplier to reverse-osmosis desalination and emerging high-pressure water-reuse applications.
Narrative is still early
Exposed to the Water Security and Circular Water Infrastructure narrative through Energy-Efficient Desalination and Advanced Water Reuse — bottleneck supplier.
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Declining revenue growth.
Market Sep 22Filing Jun 30Price action Sep 22Research Sep 1

Conviction Level

NarrativeHeat6.0ThemeHeat6.4PriceAction1.4Valuation7.9CompanyPosition7.3
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$363.4M
Avg Volume (60D)
1.0M
60 sessions
Revenue Growth YoY
-6.9%
FY2025 vs FY2024
Gross Margin
+64.0%
Trailing twelve months
Operating Margin
+11.8%
Trailing twelve months
Free Cash Flow Yield
+10.6%
Distance from 200DMA
-33.1%
Next Earnings
2026-11-04
P/E
23.7x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

Both valuation perspectives agree this company is cheap.
Energy Recovery, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 10.6% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis
Energy Recovery is a specialized energy-efficiency equipment supplier to reverse-osmosis desalination and emerging high-pressure water-reuse applications.
Opportunity
Moderate opportunity
Deployment of reverse-osmosis desalination, potable reuse, and high-recovery wastewater systems to create drought-resilient water supply while lowering the substantial energy cost of pressurized treatment.
Key risk
Declining revenue growth.

Narrative & Theme

Water Security and Circular Water Infrastructure
Part of Energy-Efficient Desalination and Advanced Water Reuse, with strong fit.
ERII has a direct, specific revenue connection to desalination and high-pressure reverse-osmosis deployment rather than a generic environmental-services adjacency.
Narrative HeatNeutral6.0 / 10
Theme HeatNeutral6.4 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Industrials · Pollution & Treatment Controls
What they do

Energy Recovery, Inc. designs, manufactures, and sells energy efficiency technology solutions primarily for water treatment industries worldwide, operating through Water and Emerging Technologies segments.

How it earns

The company generates revenue primarily through transactional sales of its energy recovery products and related equipment.

Products & services
High and low pressure exchangers
Hydraulic turbochargers
High-pressure feed and circulation pumps
Customers & end markets
Water treatment industry
Seawater and brackish desalination plants
Wastewater treatment facilities
Market position

Niche player specializing in energy recovery solutions within the water treatment sector.

Demand drivers
Medium cyclicality

Demand is influenced by infrastructure spending and environmental regulations affecting water treatment projects.