Energy Recovery Soars 12.56% on Earnings Surprise

Energy Recovery's stock surged 12.56% in pre-market trading on August 7, 2025, driven by a series of positive financial results and strategic moves.

Energy Recovery reported a strong second quarter for 2025, with earnings per share of $0.07, significantly surpassing the forecasted -$0.01. This marked an 800% surprise, with revenue also exceeding expectations. The company's revenue reached $28.1 million, a 3% increase from the previous year, driven by the timing of revenue from contracted projects.

Energy Recovery's net income for Q2 2025 surged to $2.1 million, a significant rise from a loss of $0.6 million in Q2 2024. The company successfully reduced its operating expenses by 15.8% year-over-year to $16.5 million, contributing to an increase in income from operations by 173.2% year-over-year. The company's income from operations witnessed a dramatic increase of 173.2%, reaching $1.5 million. Furthermore, the net income significantly improved to $2.1 million from a loss of $0.6 million in the prior-year quarter. Energy Recovery also reported an adjusted EBITDA of $4.4 million.

Energy Recovery's strong financial performance and strategic initiatives, such as the completion of a $50 million share repurchase program and the announcement of a $30 million share repurchase program, have positioned the company for continued growth and investor confidence.