Energy Recovery misses Q4 revenue expectations, net income up 15%

Energy Recovery

25/02/2026 21:58

Overview

Energy-saving tech firm's Q4 revenue declined $0.2 mln yr/yr, missing analyst expectations

Net income for Q4 rose 15% yr/yr, driven by lower operating expenses

Outlook

Company did not provide specific guidance for 2026

Result Drivers

REVENUE TIMING - Revenue decreased slightly due to timing of revenue from contracted projects

GROSS MARGIN DECLINE - Gross margin fell by 300 bps due to costs related to product mix and tariffs

OPERATING EXPENSES - Operating expenses dropped significantly due to lower employee, consulting, and restructuring costs

Company press release: ID:nBwccX0wja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$66.90 mln
$82.51 mln (4 Analysts)
Q4 EPS
$0.50
Q4 Net Income
$26.90 mln
Q4 Adjusted EBITDA
$33.60 mln
Q4 Gross Margin
67.20%
Q4 EBIT Margin
46.80%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $18.20, about 13.3% above its February 24 closing price of $16.07

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

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