Overview
Energy Recovery Q2 revenue rises 3% to $28.1 mln, beating analyst expectations
Adjusted EBITDA for Q2 beats estimates, reaching $4.4 mln
Operating expenses decreased 15.8%, boosting income from operations by 173.2%
Outlook
Company's Q2 results align with internal expectations for 2025 revenue cadence
Result Drivers
REVENUE TIMING - Revenue increased due to timing of revenue from contracted projects
COST MANAGEMENT - Operating expenses decreased by 15.8% due to lower employee and consulting costs
PRODUCT MIX IMPACT - Gross margin decreased due to costs related to product mix and tariffs
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$28.10 mln
$25.40 mln (3 Analysts)
Q2 EPS
$0.04
Q2 Net Income
$2.10 mln
Q2 Adjusted EBITDA
Beat
$4.40 mln
$1.07 mln (3 Analysts)
Q2 Gross Margin
64.0%
Q2 EBIT Margin
5.3%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Energy Recovery Inc is $15.50, about 12.1% above its August 5 closing price of $13.63
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago
Press Release: ID:nBw586PBJa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)