Energy Recovery, Inc. (ERII) SEC Filings & Earnings Calls

Geopolitical disruption in Iran severely impacting revenue and operations.

“due primarily to lower revenue due to the war in Iran.” · word for word

Restructuring charges incurred in Q2 2026, indicating cost pressures.

“restructuring charges incurred in Q2’2026.” · word for word

Middle East Conflict Disruption

“The 2026 conflict in Iran and escalating tensions in the Middle East... could have additional adverse effects on macroeconomic conditions that may have a direct adverse impact on our business and/or our supply chain, business partners or customers in the broader region.” · word for word

Saudi Arabia Manufacturing Facility Execution Risk

“The facility is currently under development and is expected to begin operations in 2027. ... Any delays, cost overruns, construction deficiencies, supply chain disruptions, labor shortages, or difficulties in commissioning equipment could postpone the facility’s operational readiness, increase our costs, and delay anticipated benefits.” · word for word

Revenue Concentration and Project Dependency

“Our Water segment revenues largely depend on the construction of new large-scale desalination plants and the retrofit of existing desalination plants, and as a result, our operating results have historically experienced, and may continue to experience, significant variability due to volatility in capital spending, availability of project financing, project t” · word for word

Leadership transition risk: interim CEO may lack long-term strategic vision; permanent successor search introduces uncertainty.

“Mr. Alex Buehler ... to serve as the Company’s Interim President and Chief Executive Officer to serve in these positions until a permanent successor is appointed by the Board”

Simultaneous departure of CEO and CFO creates leadership vacuum and execution risk.

“CEO retiring, CFO resigned, interim CFO appointed.”

Geopolitical Risk in Middle East

“the 2026 conflict in Iran and escalating tensions in the Middle East” · word for word

Revenue Concentration on Large Projects

“Our Water segment revenues largely depend on the construction of new large-scale desalination plants” · word for word

Project Financing Risk

“The inability of our customers to secure credit or financing for these projects, may result in the postponement or cancellation of these projects.” · word for word

Equity dilution from increased share authorization

“The amendment and restatement of the 2020 Plan authorizes the issuance of an additional 5,000,000 shares.” · word for word

Desalination project dependency

“Our Water segment revenues largely depend on the construction of new large-scale desalination plants and the retrofit of existing desalination plants, and as a result, our operating results have historically experienced, and may continue to experience, significant variability due to volatility in capital spending, availability of project financing, project t” · word for word

Supplier concentration

“We rely on a limited number of suppliers for vessel housings, stainless steel ports, and alumina powder for our portfolio of energy recovery devices and stainless steel castings and components for our hydraulic turbochargers and pumps.” · word for word

Tariff exposure

“These recent tariffs and the subsequent retaliatory tariffs could increase the cost of goods for our products or reduce our ability to sell products globally, particularly for our Wastewater business in China, which may adversely affect our operating results and financial condition.” · word for word

CO2 business wind-down costs

“We have decided to wind down operations of our CO2 retail grocery business, and we expect to incur costs associated with the wind down, which will have an adverse effect on our Emerging Technologies segment financial condition and results of operations.” · word for word

Wind down of CO2 retail grocery business indicates strategic failure in that segment.

“Recent discussions with original equipment manufacturers and end user customers have made it increasingly evident that scaled adoption would require significant time, investment, and risk.” · word for word

Gross margin pressure from product mix and tariffs.

“Gross margin of 67.2%, a decrease of 300 bps, as compared to Q4’2024, due primarily to costs related to product mix and tariffs.” · word for word

Customer Concentration

“Customer A accounted for 26% of revenue in Q3 2025, and multiple customers accounted for 10% or more in prior periods.”

Tariff Exposure

“The decrease in gross profit and gross margin for the three months ended September 30, 2025 , as compared to the prior year, was due primarily to costs related to product mix and tariffs.” · word for word

Geopolitical Risk

“A significant portion of revenue comes from the Middle East and Africa, which are regions subject to geopolitical instability.”

Revenue decline due to timing of contracted projects; uncertainty about future revenue recognition.

“due to timing of revenue from contracted projects” · word for word

Gross margin pressure from tariffs and product mix; potential for continued margin compression.

“due primarily to costs related to product mix and tariffs” · word for word