Energy Recovery stock falls 4.49 percent after Seaport downgrade
Published on 09/24/2026 at 05:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Energy Recovery stock fell 4.49 percent to USD 6.80 on Nasdaq on September 23, 2026, leaving the shares USD 0.02 above the 52-week low of USD 6.78. Investing.com reported on September 14, 2026, that Seaport Global Securities cut its rating from Buy to Neutral.
Q2 revenue fell 57 percent
Energy Recovery reported Q2 2026 revenue of USD 12.0 million, down 57 percent from Q2 2025. The company attributed the decline to project execution delays linked to conflict, financing, procurement, and logistics challenges in the Middle East, according to its earnings call transcript published by The Globe and Mail.
The pressure was concentrated in desalination. Revenue from that business fell to USD 11.5 million from USD 25.5 million, while megaproject revenue dropped to USD 2.7 million from USD 14.8 million. The figures show why project timing matters more than the companys long-term pipeline for near-term results.
Cash flow offered a counterpoint
Energy Recovery posted a GAAP net loss of USD 3.2 million in Q2 2026, compared with net income of USD 2.1 million in Q2 2025. GAAP diluted loss per share was USD 0.06, versus earnings of USD 0.04 per share a year earlier.
Operating cash flow provided a counterpoint, rising to USD 16.3 million from USD 4.1 million in the prior-year quarter. Gross margin also reached 74.7 percent, while operating margin was negative 49.0 percent, reflecting the effect of lower volumes and restructuring charges.
Analyst view meets yearly low
Seaport cited Middle East disruption, withdrawn desalination guidance, and the need for greater clarity on the companys forward plan in its September 2026 rating change. Energy Recovery also faces a leadership transition, with an interim chief executive overseeing the business while project visibility remains tied to customer financing and delivery schedules.
At USD 6.80 on September 23, 2026, Energy Recovery had a market capitalization of USD 350.5 million. The 52-week range was USD 6.78 to USD 18.32, placing the stock 62.88 percent below its yearly high and only 0.29 percent above its yearly low.
Energy Recovery stock data
- Company: Energy Recovery, Inc.
- Ticker: ERII
- Trading venue: Nasdaq
- Price as of September 23, 2026: USD 6.80
- Market capitalization: USD 350.5 million as of September 23, 2026
- 52-week range: USD 6.78-18.32 as of September 23, 2026
- Sector / Industry: Producer Manufacturing / Industrial Machinery
