Energy Recovery missed Q4 earnings estimates, lowered 2026 guidance, exited grocery CO2 business, and plans new product launch.

Energy Recovery (ERII) reported Q4 2025 earnings of $0.53 per share, missing estimates by $0.14, with revenue flat at $66.87 million, below the $82.59 million expected. The company updated 2026 full-year earnings guidance to $0.50–$0.70 per share, citing delays in major desalination projects, now expected in 2027, and a $15M–$25M buffer. It is exiting its CO2 retail grocery business, cutting 20 roles, and plans to launch a new high-flow product in late 2026, with overseas production starting in 2027. The wastewater business is seeing investment, with recent sales hires and $10M–$12M in historical revenue at mid-to-high 60% margins. The stock rose $0.05 to $16.12 on higher volume.