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Energy Recovery Reports its Fourth Quarter 2024 Financial Results
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 fourth quarter and year ended December 31, 2024.\n\n\nFourth Quarter Highlights\n\n\n\nRevenue of $67.1 million, an increase of 17% as compared to Q4’2023 and resulting in full-year revenue at the midpoint of guidance.\n\n\n\nGross margin of 70.2%, an increase of 110 bps, as compared to Q4’2023, due primarily to benefits from our manufacturing transformation.\n\n\n\nOperating expenses of $21.5 million, an increase of 13.9%, as compared to Q4’2023, due primarily to $2.5 million of restructuring costs related to our announced workforce reduction and executive transition costs.\n\n\n\nIncome from operations of $25.6 million, an increase of 24.3%, as compared to Q4’2023, mainly due to higher revenue and higher gross margin.\n\n\n\nNet income of $23.5 million and adjusted EBITDA(1) of $31.3 million.\n\n\n\nCash and investments of $99.9 million, which includes cash, cash equivalents, and short- and long-term investments.\n\n\n\nIn conjunction with these financial results, management has released a letter to shareholders reviewing business and financial updates from the fourth quarter and discussing our outlook for 2025. This letter is located under “Financial Info” in the “Investors” section on the Energy Recovery website (https://ir.energyrecovery.com/financial-information).\n\n\nFinancial Highlights\n\n\n\n\n \n\n\n\n\n\n\nQuarter-to-Date\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\nYear to Date\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\nQ4’2024\n\n\n\n\n\n\n \n\n\n\n\n\n\nQ4’2023\n\n\n\n\n\n\n \n\n\n\n\n\n\nvs. Q4’2023\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n2024\n\n\n\n\n\n\n \n\n\n\n\n\n\n2023\n\n\n\n\n\n\n \n\n\n\n\n\n\n2024 vs. 2023\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n(In millions, except net income per share, percentages and basis points)\n\n\n\n\n\n\n\n\nRevenue\n\n\n\n\n\n\n$67.1\n\n\n\n\n\n\n \n\n\n\n\n\n\n$57.2\n\n\n\n\n\n\n \n\n\n\n\n\n\nup 17%\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n$144.9\n\n\n\n\n\n\n \n\n\n\n\n\n\n$128.3\n\n\n\n\n\n\n \n\n\n\n\n\n\nup 13%\n\n\n\n\n\n\n\n\nGross margin\n\n\n\n\n\n\n70.2%\n\n\n\n\n\n\n \n\n\n\n\n\n\n69.1%\n\n\n\n\n\n\n \n\n\n\n\n\n\nup 110 bps\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n66.9%\n\n\n\n\n\n\n \n\n\n\n\n\n\n67.8%\n\n\n\n\n\n\n \...