Finanzas de Energy Recovery Inc (ERII)ERIIEnergy Recovery Inc

Energy Recovery, Inc. (ERII) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Desalination, accounting for 91.8% of total sales, equivalent to $8.91M. Other significant revenue streams include Wastewater and Emerging Technologies. Understanding this composition is critical for investors evaluating how ERII navigates market cycles within the Industrial Machinery & Equipment industry.

Evaluating the bottom line, Energy Recovery, Inc. maintains a gross margin of 74.67%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at -41.92%, while the net margin is -26.66%. These profitability ratios, combined with a Return on Equity (ROE) of 8.58%, provide a clear picture of how effectively ERII converts its operational activities into shareholder value.

In the context of the broader market, ERII competes directly with industry leaders such as MEC and NNDM. With a market capitalization of $340.98M, it holds a significant position in the sector. When comparing efficiency, ERII's gross margin of 74.67% stands against MEC's 8.96% and NNDM's 45.90%. Such benchmarking helps identify whether Energy Recovery, Inc. is trading at a premium or discount relative to its financial performance.

The gross margin for Q2 2026 is reported at 74.67%, indicating strong profitability potential, but the net income has been negative in the last two quarters, with a net income of -3.2 million USD in Q2 2026. The forward P/E ratio is 21.2314, suggesting the stock is relatively expensive compared to its earnings potential.