Energy Recovery Reports Q3 2026 Revenue Decline Amid Record Megaproject Pipeline
Energy Recovery, Inc. (ERII) reported a significant year-over-year decline in third-quarter 2026 revenue, falling to $11.2 million from much higher levels in the prior year. This contraction was primarily driven by lower volumes in its Megaproject segment and desalination business due to regional conditions in the Middle East. The company also reported a net loss of $6.3 million, compared to a profit in the same period last year. Despite the immediate financial downturn, management highlighted a record-high Megaproject pipeline of $525 million and signed over $30 million in new contracts recently. The company is focusing on cost reduction, having lowered operating expenses by 17.2% through reduced compensation and consulting costs. With zero debt and $85.6 million in cash, ERII remains positioned to capitalize on a projected $30 billion global desalination build-out between 2027 and 2030.
Tickers: $ERII
Topics: cash flow megaproject pipeline revenue decline stock buybacks