Overview

* Energy Recovery ( ERII ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $28.10 $25.40

Revenue mln mln (3

Analysts

)

Q2 EPS $0.04

Q2 Net $2.10

Income mln

Q2 Beat $4.40 $1.07

Adjusted mln mln (3

EBITDA Analysts

)

Q2 Gross 64.0%

Margin

Q2 EBIT 5.3%

Margin

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 ( ERII ) 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:

(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.)