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ERII

Identity verified against SEC EDGAR filing 0001421517-26-000022; registered as Energy Recovery, Inc., CIK 0001421517.

Energy Recovery

Energy Recovery is mapped to the Wastewater as a resource-recovery platform theme as Energy-efficiency/energy-recovery devices for high-pressure water systems (PX Pressure Exchanger) used in desalination, water reuse and zero-liquid-discharge.. Medium and adjacent-growth. Energy Recovery's PX devices reduce energy use in reverse-osmosis reuse and ZLD; it reported expanding industrial wastewater/reuse wins in India (five new projects at 30,000 m3/day announced 29 Jun 2026; 50+ projects and 230,000+ m3/day capacity there) and contract awards of ~USD 7m (May 2025) and ~USD 31m (Sept 2025). Core revenue remains desalination-weighted, with reuse/wastewater a growth adjacency. Theme materiality is stated separately and, where not independently verified, is marked accordingly.

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Reviewed company research · researched 2026-07-22 · not an individual investment recommendation

Listing: public
Ticker: ERII
Exchange: Nasdaq
HQ: —
Currency: USD
SEC CIK: 0001421517

Investment case

How this company captures the theme economics

Competitive position

Medium and adjacent-growth. Energy Recovery's PX devices reduce energy use in reverse-osmosis reuse and ZLD; it reported expanding industrial wastewater/reuse wins in India (five new projects at 30,000 m3/day announced 29 Jun 2026; 50+ projects and 230,000+ m3/day capacity there) and contract awards of ~USD 7m (May 2025) and ~USD 31m (Sept 2025). Core revenue remains desalination-weighted, with reuse/wastewater a growth adjacency. Company-specific competitive positioning is assessed at the theme level and awaits deeper primary research.

Scarce assets

Scarce assets in this value chain include treatment economics: capex/opex of advanced treatment, nutrient recovery and reuse versus conventional disposal and freshwater supply., contamination and quality: pfas and micropollutants can block reuse and biosolids land application and raise treatment cost and liability., offtake markets: thin, immature demand and weak pricing for reclaimed water, recovered phosphorus and biogas..

Products, segments, and customers

Energy Recovery operates in Wastewater as a resource-recovery platform. Segment- and product-level detail is pending company-specific research.

Theme capture

Conditions

What must be true

Track reuse/wastewater bookings versus desalination and megaproject (e.g., CO2) revenue; quantify recurring content and margins in wastewater applications.
The exposure described for Energy Recovery must be confirmed as financially material in official filings.

Identifiable catalysts

Forthcoming quarterly and annual issuer filings
Theme-level catalysts detailed in the Wastewater as a resource-recovery platform brief

Theme materiality

1 mapped theme

Exposure statements are evidence-qualified. Materiality is only claimed where disclosure supports it.

Energy-efficiency/energy-recovery devices for high-pressure water systems (PX Pressure Exchanger) used in desalination, water reuse and zero-liquid-discharge.

Wastewater as a resource-recovery platform

Evidence: India wastewater/reuse project scale and technology role confirmed from Energy Recovery's IR press release (src-07); contract-award figures and 30-year design-life update surfaced via search of company releases. Wastewater/reuse share of total revenue not separately disclosed.
Materiality: estimated — Wastewater/reuse is a disclosed, growing application with quantified project wins, but it is not the majority of revenue and is not separately reported.

Financial evidence

Official SEC filing evidence

Reference period: FY2025.

Operating income$24 million
FY2025[1]
EBITDA$28 million
FY2025[1]
Diluted EPS$0.42
FY2025[1]
Operating cash flow$19 million
FY2025[1]
Free cash flow$17 million
FY2025[1]
Cash and equivalents$48 million
FY2025 year-end[1]

Limitation: Filing evidence establishes scale, profitability, cash generation, and leverage. Market-derived valuation is withheld until a licensed market-data feed is connected, and theme materiality is stated separately.

Risks

Material risks and break conditions

Material risks

Diversification dilution: no mapped company isolates wastewater resource recovery in disclosures, so theme returns are diluted by unrelated end-markets and hard to attribute.
Recovered-resource economics: reclaimed water, phosphorus/struvite and biogas frequently cannot compete on cost with conventional freshwater, fertilizer and natural gas, limiting offtake and pricing power.

Thesis-break conditions

Recovered materials remain structurally uneconomic: multi-year evidence that reclaimed water, recovered phosphorus and biogas cannot achieve positive project economics without subsidy, and offtake volumes/pricing stay negligible.
Contamination blocks reuse: PFAS/micropollutant limits or public-acceptance failures materially curtail potable/non-potable reuse and biosolids markets rather than expanding treatment demand.

Investability conclusion

Where the evidence lands

Identity and filing financials are established; theme materiality is stated per the mapped theme assessment. This is a filing-backed research profile with deeper company-specific research pending, and is not a personalized recommendation.

Next diligence

Track reuse/wastewater bookings versus desalination and megaproject (e.g., CO2) revenue; quantify recurring content and margins in wastewater applications.

Source ledger

Identity and evidence sources

Identity was verified against official issuer, filing, exchange, or regulator sources where available.

Energy Recovery, Inc. FY2025 Form 10-KSEC EDGAR · primary · published 2026-02-25 · accessed 2026-07-22