Energy Recovery, Inc. reported a total revenue of $134.99 million for the fiscal year ending December 31, 2025, a decrease of 6.9% from $144.95 million in 2024. The company's net income for the year was $22.96 million, slightly down from $23.05 million in the previous year. The decline in revenue was primarily attributed to a 13% drop in sales from the Megaproject (MPD) channel, which generated $82.89 million, compared to $95.40 million in 2024. This decrease was offset by a modest increase in revenue from the Original Equipment Manufacturer (OEM) channel, which rose to $31.94 million from $31.53 million, and a 12% increase in Aftermarket revenue, which reached $20.16 million.
In terms of operational changes, Energy Recovery announced the decision to wind down its CO2 retail grocery business within its Emerging Technologies segment, citing a fundamental change in the business outlook. This decision is expected to incur one-time costs between $4.5 million and $5.5 million, primarily related to severance and inventory impairment. The company anticipates completing this wind-down by the end of the first quarter of 2026. Additionally, Energy Recovery's employee headcount stood at 230 as of December 31, 2025, reflecting a reduction due to restructuring efforts aimed at lowering operating costs.
Geographically, the company continues to derive a significant portion of its revenue from international markets, with the Middle East accounting for approximately 50% of total revenue. The company reported a notable increase in shipments to the Middle East, which helped mitigate declines in other regions, particularly Africa and Asia. The company’s products are now utilized in over 43 million cubic meters of water production per day globally, underscoring its strong position in the desalination market.
Looking ahead, Energy Recovery expects to see increased demand for its products, particularly in the wastewater treatment sector, driven by expanding environmental regulations. The company believes that its proprietary pressure exchanger technology will continue to provide a competitive advantage, particularly as industries shift towards more sustainable practices. The management remains optimistic about future growth opportunities, particularly in markets not traditionally associated with desalination, such as the United States and China.
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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