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Energy Recovery, Inc.’s core product, the PX pressure exchanger, transfers pressure energy from high-pressure fluid to lower-pressure fluid, helping seawater desalination plants reduce energy use. Customers buy the equipment for new plants, expansions and retrofits. Most water-treatment revenue comes from large projects, where buyers emphasize lifetime operating costs rather than just the equipment’s purchase price. Those buyers include companies that develop, design, build, own or operate desalination plants.
The company also sells equipment to suppliers that assemble smaller desalination and wastewater systems, and earns additional revenue from spare parts, repairs and field services for installed equipment. It decided in February 2026 to wind down its CO2 refrigeration business.
Sales are primarily international and concentrated in the Middle East and Africa. Revenue depends heavily on when large water projects obtain funding, proceed through approvals and construction, and take delivery of equipment, so it can vary substantially between periods. A few customers can account for a substantial share of sales, but their identities shift with project deliveries. Export controls also restrict certain destinations or customers and can require licenses.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Energy Recovery’s results hinge on large seawater desalination projects, particularly in the Middle East and Africa, and when their pressure exchangers ship—not on the businesses of the supplied companies.
Energy Recovery, Inc. earningsThis company
Energy Recovery earns most of its revenue from water-treatment equipment, and this report will show whether desalination shipments support sales and gross margin.
Read Water revenue alongside gross margin, the share of sales left after product costs. Rising revenue with a steady margin would show that project shipments are adding sales without eroding the profit earned on each dollar. Falling revenue or margin would point to delayed shipments, too little volume to spread fixed costs, or pressure from product mix, pricing, or tariffs.
