Energy Recovery Q2 revenue misses estimates as megaproject sales drop

Energy Recovery

05/08/2026 21:57

Overview
U.S. energy-saving tech maker's Q2 revenue dropped 57%, missing analyst expectations
Company posted Q2 net loss and negative adjusted EBITDA
Revenue decline driven by lower megaproject sales due to war in Iran

Outlook
Company did not provide specific guidance in the press release

Result Drivers
MEGAPROJECT SALES DROP - Co said lower megaproject sales, primarily due to the war in Iran, drove revenue decline
GROSS MARGIN IMPROVEMENT - Gross margin rose to 74.7% from 64.0%, helped by channel mix and lower indirect manufacturing costs, partly offset by lower volume
OPERATING EXPENSES DOWN - Operating expenses fell 10% due to lower employee compensation and consulting costs, partially offset by restructuring charges

Company press release: ID:nBw7qhflPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$12 mln
$19.52 mln (4 Analysts)
Q2 Loss Per Share
 
$0.06
 
Q2 Net Loss
 
$3.20 mln
 
Q2 Adjusted EBITDA
 
-$2.60 mln
 
Q2 Gross Margin
 
74.70%
 
Q2 EBIT Margin
 
-49.00%
 

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(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.)