Energy Recovery IncERII
▼ NegativeGeopoliticsrelevance
Revenue fell 57% due to project execution delays from the war in Iran, causing a net loss.
Impact on stocks 1
Climate Adaptation & Water
Energy Recovery IncEnergy Recovery reported second-quarter 2026 revenue of $12.0 million, a 57% year-over-year decrease driven primarily by project execution delays associated with the war in Iran. Gross margin rose 1,070 basis points to 74.7%, but operating margin swung to negative 49.0% from positive 5.3% a year earlier, and the company posted a net loss of $3.2 million versus net income of $2.1 million in the prior-year quarter. Megaproject revenue plunged 82% to $2.7 million from $14.8 million, while the megaproject backlog stood at $27 million with management noting contracting activity has resumed in certain conflict areas. Interim CEO Alexander J. Buehler said the pipeline is 'uniquely strong' with visibility extending five years, and the company is building a new Saudi Arabia facility expected to improve margins gradually as it reaches planned run-rate production in 2027 and 2028.
Energy Recovery IncRevenue fell 57% due to project execution delays from the war in Iran, causing a net loss.