Energy Recovery misses Q3 revenue estimates

Energy Recovery

05/11/2025 21:49

Overview

Energy Recovery Q3 revenue fell 17% yr/yr, missing analyst expectations

Net income for Q3 decreased 54% yr/yr

Gross margin decreased by 90 bps due to product mix and tariffs

Outlook

Company did not provide specific guidance for future quarters or full year

Result Drivers

REVENUE TIMING - Revenue decline attributed to timing of revenue from contracted projects

GROSS MARGIN PRESSURE - Gross margin decreased due to costs related to product mix and tariffs, partially offset by lower indirect manufacturing costs

OPERATING EXPENSES - Decrease in operating expenses driven by lower employee and development costs, offset by higher consulting costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$32 mln
$32.93 mln (4 Analysts)
Q3 EPS
$0.07
Q3 Net Income
$3.90 mln
Q3 Adjusted EBITDA
$6.80 mln
Q3 Gross Margin
64.20%
Q3 EBIT Margin
11.40%


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 $16.00, about 2.6% below its November 4 closing price of $16.41

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBwcgg1Psa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)