Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — Q2 2025 Earnings Presentation
11 slides from Energy Recovery's earnings presentation, Aug 6, 2025
Slide 1: ERII Q2 2025 Letter to Shareholders
ERII Q2 2025 Letter to Shareholders Fellow Shareholders, ◦ We are pleased with our execution during the period, namely: ▪ Posted strong revenue, Adjusted EBITDA(1) and Free Cash Flow(1) for the quarter. ▪ Booked over $2 million of China Wastewater revenue in Q2 and continued to ship product subseque
Slide 2: Q2 results
Q2 results Total revenue of $28.1 million in Q2 2025 was in-line with our expectations and $0.9 million better than the second quarter of 2024. We began shipping MPD contracts in the quarter, which accounted for nearly $15 million of revenue. We were also very pleased to sign and ship over $2 millio
Slide 3: New product partnerships, NextGen PX and Wastewater
One milestone was to launch new product partnerships in the first half of 2025 as a means to accelerate our OEM channel growth strategy by enabling incremental PX sales and potentially unlocking new markets. We are pleased to announce that we recently executed three such strategic product partnershi
Slide 4: 2025 Water contracted projects and CO2 Business
Overall, our current 2025 Water contracted projects, including the revenue recognized in the first half of 2025, total roughly $107 million, or 71% of the mid-point of our guided range for the year. This compares to $107 million (74%) and $118 million (89%) for 2024 and 2023, respectively. Our contr
Slide 5: 2025 Outlook
2025 Outlook We are pleased with our execution towards our 2025 guidance in the face of tariff headwinds and look forward to delivering an even stronger second half. As discussed above, we are maintaining our guidance for all prior metrics and are unpausing our Wastewater guidance. Our Desalination
Slide 6: Financial Highlights
Financial Highlights Quarter-to-Date Year to Date Q2’2025 Q2’2024 vs. Q2’2024 2025 2024 2025 vs. 2024 (In millions, except net income (loss) per share, percentages and basis points) Revenue $28.1 $27.2 up 3% $36.1 $39.3 down 8% Gross margin 64.0% 64.6% down 60 bps 62.1% 62.9% down 80 bps Operating m
Slide 7: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This document includes certain non-GAAP financial measures, including adjusted operating margin, adjusted net income (loss), adjusted net income (loss) per share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of
Slide 8: Condensed Consolidated Balance Sheets
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, 2025 2024 (In thousands) ASSETS Cash, cash equivalents and investments $ 93,650 $ 99,851 Accounts receivable and contract assets 35,548 66,842 Inventories, net 32,660 24,906 Prepaid expenses and other asset
Slide 9: Condensed Consolidated Statements of Operations
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands, except per share data) Revenue $ 28,051 $ 27,199 $ 36,116 $ 39,289 Cost of revenue 10,097 9,633 13,704 14,588 Gross profit 17,954
Slide 10: Condensed Consolidated Statements of Cash Flows
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2025 2024 (In thousands) Cash flows from operating activities: Net loss $ (7,826) $ (8,902) Non-cash adjustments 5,642 7,586 Net cash provided by (used in) operating assets and liabilities 17,
Slide 11: Reconciliation of Non-GAAP Financial Measures
ENERGY RECOVERY, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) (Unaudited) This document includes certain non-GAAP financial information because we plan and manage our business using such information. The following table reconciles the GAAP financial information to the non-GAAP financial in