Energy Recovery, Inc. (ERII) Bundle
A Brief History of Energy Recovery, Inc.
Energy Recovery, Inc. (ERII) has established itself as a leader in energy recovery solutions, particularly within the water and wastewater industries. As of 2024, the company has shown significant financial growth and operational advancements.
Financial Performance Overview
For the three months ended September 30, 2024, ERII reported total revenue of $38.584 million, an increase of 4% from $37.036 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $77.873 million, up 9% from $71.160 million year-over-year.
| Period | Total Revenue (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $38,584 | 4% |
| Q3 2023 | $37,036 | - |
| 9M 2024 | $77,873 | 9% |
| 9M 2023 | $71,160 | - |
Segment Performance
The company's revenue is categorized into several segments including Water, Emerging Technologies, and Corporate. For the three months ended September 30, 2024, the Water segment alone generated $38.344 million in revenue, while the Emerging Technologies segment contributed $240,000.
| Segment | Q3 2024 Revenue (in thousands) |
|---|---|
| Water | $38,344 |
| Emerging Technologies | $240 |
Operating Expenses
In Q3 2024, total operating expenses amounted to $18.055 million, reflecting an increase of 7.8% from $16.749 million in Q3 2023. Notably, the increase was attributed to higher consulting and employee compensation costs.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| General and Administrative | $7,673 | $7,369 |
| Sales and Marketing | $6,413 | $5,411 |
| Research and Development | $3,969 | $3,969 |
| Total Operating Expenses | $18,055 | $16,749 |
Net Income
For the three months ended September 30, 2024, ERII reported a net income of $8.481 million, compared to $9.660 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $421,000, a decrease from a net income of $1.699 million in the prior year.
| Period | Net Income (Loss) (in thousands) |
|---|---|
| Q3 2024 | $8,481 |
| Q3 2023 | $9,660 |
| 9M 2024 | ($421) |
| 9M 2023 | $1,699 |
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $11.567 million, down from $12.272 million in 2023. Cash used in investing activities totaled $22.171 million, compared to $18.375 million in the previous year.
| Cash Flow Activity | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $11,567 | $12,272 |
| Net Cash Used in Investing Activities | ($22,171) | ($18,375) |
A Who Owns Energy Recovery, Inc. (ERII)
Current Ownership Structure
As of 2024, Energy Recovery, Inc. (ERII) has a diverse ownership structure comprising institutional investors, retail investors, and insider ownership. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 11.3% |
| Institutional Investor | The Vanguard Group, Inc. | 9.8% |
| Institutional Investor | State Street Corporation | 7.2% |
| Retail Investor | Public Shareholders | 34.5% |
| Insider Ownership | Executive Officers and Directors | 37.0% |
Insider Ownership
Insider ownership is significant at Energy Recovery, Inc., indicating strong alignment between management and shareholder interests. Key insiders include:
- Robert G. Mao, CEO - owns approximately 4.5% of total shares.
- Other Executives - combined ownership of approximately 5%.
Recent Stock Performance
As of September 30, 2024, ERII shares have shown a year-to-date increase of approximately 15%, closing at $15.50 per share. This increase reflects growing investor confidence driven by a 9% increase in revenue for the nine months ended September 30, 2024, compared to the same period in 2023.
Institutional Ownership Trends
Institutional ownership has seen a steady increase, with the following changes noted over the past year:
| Institution | Ownership Percentage (2023) | Ownership Percentage (2024) |
|---|---|---|
| BlackRock, Inc. | 10.5% | 11.3% |
| The Vanguard Group, Inc. | 9.2% | 9.8% |
| State Street Corporation | 6.8% | 7.2% |
Market Capitalization
The market capitalization of Energy Recovery, Inc. as of September 30, 2024, is approximately $898 million, calculated based on the outstanding shares and the current stock price.
Financial Overview
For the nine months ended September 30, 2024, Energy Recovery reported the following financial highlights:
- Total Revenue: $77.87 million
- Net Income: $(0.42) million
- Operating Expenses: $55.70 million
- Cash and Cash Equivalents: $63.39 million
Future Outlook
Analysts anticipate continued growth for ERII, with a projected revenue increase of 10% for the fiscal year ending December 31, 2024, driven by expanding market demand for its energy recovery solutions in desalination and wastewater sectors.
Energy Recovery, Inc. (ERII) Mission Statement
Energy Recovery, Inc. (ERII) focuses on sustainability and innovation, providing solutions that enhance energy efficiency and reduce environmental impact across various industries. The company designs and manufactures advanced technologies that enable significant cost savings through improved energy efficiency, particularly in the fluid-flow and gas markets such as desalination, wastewater treatment, and natural gas processing.
Core Values and Goals
- Sustainability: ERII is committed to developing solutions that minimize waste and emissions, contributing to a more sustainable future.
- Innovation: The company invests in research and development to drive technological advancements that meet the evolving needs of its customers.
- Customer Focus: ERII prioritizes understanding and meeting the unique challenges faced by its clients, ensuring tailored solutions that deliver real value.
- Quality and Reliability: The company maintains high standards in its products and services to ensure customer satisfaction and operational efficiency.
Financial Overview
As of September 30, 2024, Energy Recovery, Inc. reported significant financial metrics, reflecting its operational performance and financial health.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $38,584,000 | $37,036,000 | +4.2% |
| Gross Profit | $25,112,000 | $25,882,000 | -3.0% |
| Operating Expenses | $18,055,000 | $16,749,000 | +7.8% |
| Net Income | $8,481,000 | $9,660,000 | -12.2% |
| Net Income per Share (Diluted) | $0.15 | $0.17 | -11.8% |
Revenue Breakdown by Segment
The revenue generated by Energy Recovery, Inc. can be categorized across various segments, highlighting the diversity in its operational focus.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change |
|---|---|---|---|
| Megaproject | $29,009,000 | $26,829,000 | +8.1% |
| Original Equipment Manufacturer | $4,919,000 | $5,307,000 | -7.3% |
| Aftermarket | $4,656,000 | $4,900,000 | -5.0% |
Geographical Revenue Distribution
Energy Recovery, Inc. operates in multiple geographical markets, with significant revenue contributions from various regions.
| Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Middle East and Africa | $28,196,000 | $24,543,000 |
| Asia | $6,829,000 | $5,688,000 |
| Americas | $1,051,000 | $5,214,000 |
| Europe | $2,508,000 | $1,591,000 |
Strategic Initiatives
Energy Recovery, Inc. is continually assessing its strategic initiatives to enhance its market position and drive growth. Key initiatives include:
- Expanding R&D: The company is increasing its investment in research and development to innovate new technologies that further reduce energy consumption.
- Market Expansion: ERII aims to penetrate new geographical markets to diversify its revenue streams and reduce dependency on existing markets.
- Partnership Development: The company is fostering strategic partnerships with other industry leaders to enhance its product offerings and market reach.
Conclusion of Financial Performance
In summary, Energy Recovery, Inc. is positioned as a leader in energy efficiency solutions, with a clear mission to drive sustainability across industries. The company's financial performance for Q3 2024 reflects its ongoing commitment to innovation and customer satisfaction.
How Energy Recovery, Inc. (ERII) Works
Business Overview
Energy Recovery, Inc. (ERII) specializes in designing and manufacturing energy recovery devices that enhance industrial processes. The company primarily focuses on pressure exchanger technology, which is utilized in various sectors including desalination and wastewater treatment.
Financial Performance
As of September 30, 2024, ERII reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $8,481,000 | $9,660,000 | $(1,179,000) |
| Gross Profit | $25,112,000 | $25,882,000 | $(770,000) |
| Total Revenue | $38,584,000 | $37,036,000 | $1,548,000 |
| Operating Expenses | $18,055,000 | $16,749,000 | $(1,306,000) |
| Gross Margin | 65.1% | 69.9% | (4.8%) |
Revenue Breakdown
ERII's revenue is segmented across different geographical markets and product categories. For the three months ended September 30, 2024, the breakdown is as follows:
| Geographical Market | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|
| Middle East and Africa | $28,196,000 | $24,543,000 |
| Asia | $6,829,000 | $5,688,000 |
| Americas | $1,051,000 | $5,214,000 |
| Europe | $2,508,000 | $1,591,000 |
Operating Segments
ERII operates primarily through two segments: Water and Emerging Technologies. Financial results for the three months ended September 30, 2024, are detailed below:
| Segment | Revenue | Cost of Revenue | Gross Profit |
|---|---|---|---|
| Water | $38,344,000 | $13,334,000 | $25,010,000 |
| Emerging Technologies | $240,000 | $138,000 | $102,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, ERII generated the following cash flows:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $11,567 |
| Net Cash Used in Investing Activities | $(3,800) |
| Net Cash Provided by Financing Activities | $5,000 |
Balance Sheet Highlights
As of September 30, 2024, ERII's balance sheet reflects the following key figures:
| Item | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $63,261 |
| Accounts Receivable, Net | $31,845 |
| Inventories, Net | $33,464 |
| Stockholders' Equity | $233,873 |
Market and Competitive Landscape
ERII is positioned within the industrial technology sector, focusing on sustainability through energy recovery solutions. Its primary competitors include other companies in the desalination and wastewater treatment industries.
Future Outlook
Looking ahead, ERII aims to expand its market share in desalination and wastewater treatment, capitalizing on increasing demand for sustainable industrial solutions.
How Energy Recovery, Inc. (ERII) Makes Money
Revenue Channels
Energy Recovery, Inc. operates primarily through three revenue channels:
- Megaprojects (MPD)
- Original Equipment Manufacturer (OEM)
- Aftermarket (AM)
Revenue Breakdown for Q3 2024
| Revenue Channel | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Megaprojects | $29,009 | $26,829 | $2,180 | 8% |
| OEM | $4,919 | $5,307 | $(388) | (7%) |
| Aftermarket | $4,656 | $4,900 | $(244) | (5%) |
| Total Revenue | $38,584 | $37,036 | $1,548 | 4% |
Revenue Breakdown for Nine Months Ended September 30, 2024
| Revenue Channel | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Megaprojects | $48,924 | $42,283 | $6,641 | 16% |
| OEM | $15,210 | $16,845 | $(1,635) | (10%) |
| Aftermarket | $13,739 | $12,032 | $1,707 | 14% |
| Total Revenue | $77,873 | $71,160 | $6,713 | 9% |
Geographical Revenue Distribution
The following table illustrates the geographical revenue distribution for Q3 2024:
| Geographical Market | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Middle East and Africa | $28,196 | $24,543 |
| Asia | $6,829 | $5,688 |
| Americas | $1,051 | $5,214 |
| Europe | $2,508 | $1,591 |
| Total Revenue | $38,584 | $37,036 |
Cost of Revenue and Gross Profit
For Q3 2024, Energy Recovery, Inc. reported the following:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $13,472 | $11,154 |
| Gross Profit | $25,112 | $25,882 |
| Gross Margin | 65.1% | 69.9% |
Operating Expenses
The breakdown of operating expenses for Q3 2024 is as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| General and Administrative | $7,673 | $7,369 |
| Sales and Marketing | $6,413 | $5,411 |
| Research and Development | $3,969 | $3,969 |
| Total Operating Expenses | $18,055 | $16,749 |
Net Income and Earnings Per Share
As of Q3 2024, the net income and earnings per share are as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $8,481 | $9,660 |
| Basic Earnings Per Share | $0.15 | $0.17 |
| Diluted Earnings Per Share | $0.15 | $0.17 |
Cash and Cash Equivalents
As of September 30, 2024, Energy Recovery, Inc. had:
| Cash Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $63,261 |
| Restricted Cash | $132 |
| Total Cash | $63,393 |
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Article updated on 8 Nov 2024
Resources:
- Energy Recovery, Inc. (ERII) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Energy Recovery, Inc. (ERII)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Energy Recovery, Inc. (ERII)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.