Q1 2025 Energy Recovery Inc Earnings Call Transcript
Key Points
- Energy Recovery Inc (ERII) reported Q1 results in line with expectations regarding revenue and profitability.
- The desalination business remains strong and on track for the year, with a robust pipeline in the Middle East and North Africa.
- The company is making clear progress towards full commercialization of its CO2 business, with three OEMs integrating the PX into their designs.
- Energy Recovery Inc (ERII) has successfully mitigated most of the tariff impacts and is working on additional options to offset the rest.
- The collaboration with Hillphoenix is progressing well, with potential for multifaceted customer relationships in both retail and industrial spaces.
- Energy Recovery Inc (ERII) is directly affected by tariffs, which have increased in scope and magnitude.
- A mega project order worth $2 million was shipped but not recognized as revenue in Q1, impacting the quarter's financial results.
- The company faces challenges in offsetting lost revenue from China due to tariffs, with efforts to find alternative markets still in progress.
- There is uncertainty regarding the establishment of international production facilities, with potential quality concerns if manufacturing is moved.
- The wastewater segment faces challenges, with guidance held steady despite potential revenue impacts from the Chinese market.
Good day, ladies and gentlemen, and welcome to Energy Recovery's first quarter 2025 earnings call.
During today's call, Energy Recovery may make projections and other forward-looking statements under the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the company. These statements may discuss our business, economic and market outlook, growth expectations, new products and their performance, cost structure, and business strategy.
Forward-looking statements are based on information currently available to the company and on management's beliefs, assumptions, estimates, and projections. Forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors.
We refer you to documents the company files from time to time with the SEC, specifically the company's annual Form 10-K and quarterly Form 10-Q. These documents identify important factors that could cause actual results to differ materially from those contained in
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