Business
Energy Recovery Achieves 22% Year-on-Year Quarterly Revenue Growth, Beating Guidance
SAN LEANDRO, Calif.--(BUSINESS WIRE)-- Energy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the
About this update from Energy Recovery, Inc.
[{"type":"text","content":" SAN LEANDRO, Calif.--(BUSINESS WIRE)--\nEnergy Recovery, Inc. (Nasdaq:ERII) (“Energy Recovery” or the “Company”) today announced its financial results for the third quarter and nine months ended September 30, 2023.\n\n\nThird Quarter Highlights\n\n\n\nRevenue of $37.0 million, exceeding the upper end of our guidance which was attributed to an increase in megaproject revenues.\n\n\n\nGross margin of 69.9%, higher than our estimates due to a change in product mix coupled with an increase in sales of our PX®.\n\n\n\nOperating expenses of $16.7 million, in line with prior quarters.\n\n\n\nIncome from operations of $9.1 million.\n\n\n\nNet income of $9.7 million and adjusted EBITDA(1) of $12.0 million\n\n\n\nCash and investments of $105.9 million, which include cash, cash equivalents, and short-term and long-term investments.\n\n\n\nIssued our annual Sustainability Report, which includes our commitment to reduce our emissions in relation to revenue by 65% by 2026. The full Sustainability Report can be found on our Sustainability page at energyrecovery.com.\n\n\n\nDavid Moon, Interim Chief Executive Officer, commented on the financial results, “We delivered strong third quarter results, beating the upper end of our guidance for the quarter and we remain well-positioned to deliver on our overall Water guidance for the full year. As we look to 2024, we see growth in desalination for the 10th consecutive year despite a challenging macroeconomic environment and project to potentially double wastewater revenue in 2024. Further, we continue to see a path to our 2026 water revenue targets.”\n\n\nMr. Moon added, “In our CO2 business, we have a number of new installations of our PX G1300 planned for the fourth quarter, have received repeat orders for additional deployments from current end-users, and are currently in advanced talks with a number of national, and multi-national, supermarket chains in Europe and the United States. We were also awarded the Refrigeration Innovation of the Year for the XTE by RAC Cooling Industry Awards, together with our partner Epta, for Epta’s next-generation commercial CO2 refrigeration system, which utilizes the PX G1300. This award provides further third-party validation of our technology. It’s an exciting time to join the Energy Recovery team as the Interim President and CEO, and I look forward to working w...