Energy Recovery, Inc. reported a significant decline in financial performance for the second quarter of 2026, with total revenue of $11.996 million, a decrease of 57% compared to $28.051 million in the same period of 2025. For the first half of 2026, revenue was $21.702 million, down 40% from $36.116 million in the prior year. The company recorded a net loss of $3.198 million for the quarter, compared to a net income of $2.054 million in Q2 2025, resulting in a loss per share of $0.06, compared to earnings of $0.04 per share in the previous year.
The decline in revenue was attributed to lower shipments across various product lines, particularly in the Original Equipment Manufacturer (OEM) and Megaproject segments. OEM revenue fell by $3.179 million, primarily due to decreased shipments to Asia and Africa, while Megaproject revenue dropped by $12.096 million, reflecting lower shipments to Europe, the Middle East, and Asia. The company also faced challenges in its Aftermarket segment, which saw a revenue decrease of $0.780 million.
Operationally, Energy Recovery underwent significant changes, including the winding down of its CO2 retail grocery business, which led to a restructuring charge of approximately $2.4 million. This restructuring included severance and benefits for 23 terminated employees and resulted in an impairment charge of $1.7 million related to goodwill. The company also reported a decrease in total operating expenses to $14.841 million for the quarter, down from $16.480 million in Q2 2025, driven by lower employee compensation costs and consulting expenses.
As of June 30, 2026, Energy Recovery's cash and cash equivalents stood at $61.438 million, an increase from $48.076 million at the end of 2025. The company has also been active in share repurchase programs, having repurchased 15.9 million shares at an aggregate cost of $186.8 million. Looking ahead, Energy Recovery anticipates that existing cash balances and future cash inflows will meet liquidity needs for at least the next 12 months, although it may seek additional financing for future growth initiatives or acquisitions. The company remains focused on leveraging its pressure exchanger technology to unlock new commercial opportunities and drive sustainable operations for its customers.
About Energy Recovery, Inc.
Energy Recovery, Inc. specializes in designing and manufacturing energy efficiency solutions, primarily pressure exchangers and related devices, for water treatment, desalination, wastewater, and industrial refrigeration markets. Its core technology reduces energy consumption and environmental impact in processes like seawater desalination and CO2 refrigeration. The company serves global markets through direct sales, OEM partnerships, and aftermarket support, emphasizing innovation, durability, and sustainability.
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