Energy Recovery (5E2) AI Stock Analysis

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Energy Recovery

(Frankfurt:5E2)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

PX Technology LeadershipA large, long-lived installed base demonstrates proven performance and deep adoption in desalination. This supports customer trust, repeat demand, aftermarket potential, and a durable competitive position as global water infrastructure investment expands.

Negative Factors

Revenue ContractionThe sharp TTM revenue decline raises concerns about the durability of current earnings and operating scale, even with high margins. A sustained contraction could reduce reinvestment capacity and weaken the company’s ability to convert its pipeline into consistent growth.

Energy Recovery (5E2) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 372.09M
Dividend Yield: ―
Average Volume (3M): 376
Price to Earnings (P/E): 73.3
Beta (1Y): 0.77
Revenue Growth: -30.06%
EPS Growth: -75.45%
Country: Germany
Employees: 230
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Pollution & Treatment Controls

Energy Recovery Business Overview & Revenue Model

Company Description

Energy Recovery, Inc. (ERII) is a global technology firm that engineers, manufactures, and distributes cutting-edge solutions predominantly for the seawater reverse osmosis (SWRO) desalination and industrial wastewater treatment industries. The compa...

Energy Recovery Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:3.49%|Next Earnings Date:Feb 24, 2027

Earnings Call SentimentPositive

The call was strongly optimistic overall, supported by the rebound in Megaproject contracting, a record approximately $525 million pipeline, at least $50 million of 2027 Megaproject revenue visibility, technology leadership, zero debt, cash and free cash flow generation, cost reductions, and shareholder returns. The main challenges were shipment-timing uncertainty that prevented guidance reinstatement, below-expectation wastewater quarterly performance, historical China concentration, and near-term aftermarket destocking.

Positive Updates

Megaproject Contracting Rebounds

Contracting and construction activity in the Middle East has resumed after work was paused earlier in the year. Energy Recovery signed over $30 million of new Megaproject contracts in the last 30 days, total backlog is over $60 million, and the company has line of sight to at least $50 million of Megaproject revenue in 2027.

Negative Updates

Earlier Middle East Project Interruption

Construction activity on multiple large Middle East plants had been paused earlier in the year, and management attributed the interruption to the situation in the Middle East, while stating that activity is now progressing again.

Company Guidance

For 2027, management said it has line of sight to at least $50 million of Megaproject revenue; the $17 million Q4 Megaproject backlog is a floor expectation for Q4, and management expects and hopes there may also be other contracting activity in the next few months. For wastewater, management is expecting a nice tick up in Q4, which should support the business into next year and beyond, and is focused on driving pipeline and growth in Q4 and subsequent years. Management has not restored annual or quarterly guidance because the timing of shipments remains difficult to predict, but said it may shift its position on guidance in the not-too-distant future as project evolution and velocity become more definitive and predictable. The company also expects an accelerated pace of new product innovation in 2027 and 2028, with its new facility in Dammam, Saudi Arabia starting manufacturing next year.

Energy Recovery Risk Analysis

Energy Recovery disclosed 2 risk factors in its most recent earnings report. Energy Recovery reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Energy Recovery Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:5E2 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLTO	79Outperform	$28.74B	29.18	32.22%	0.44%	6.40%	10.53%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CECO	54Neutral	$3.04B	-87.88	-2.56%	―	54.54%	-151.58%
CLWT	51Neutral	$8.60M	58.74	1.01%	―	-13.77%	-78.34%
LIQT	44Neutral	$9.92M	-0.36	-68.70%	―	-0.17%	37.55%
SCWO	44Neutral	$40.89M	-1.81	-401.94%	―	―	―

* Industrials Sector Average

Performance Comparison

DE:5E2 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:5E2	Energy Recovery	6.52	-5.79	-47.02%
CECO	Ceco Environmental Corp.	53.50	4.23	8.59%
CLWT	Euro Tech	1.21	0.10	9.01%
LIQT	Liqtech International	0.31	-1.94	-86.18%
SCWO	374Water Inc	2.28	-0.54	-19.15%
VLTO	Veralto Corporation	118.77	20.76	21.18%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Energy Recovery AI Stock Analysis