Energy Recovery Q2 Revenue Plunges 57% on Iran War Disruption, Misses Estimates
ERII is trading near its 52-week low of $7.83 (12% above the low).
Summary
Energy Recovery's Q2 revenue collapsed 57% to $12M, far below the $19.52M consensus, as the war in Iran halted megaproject sales. The company swung to a net loss of $3.20M and negative adjusted EBITDA of $2.60M. Gross margin improved to 74.7% from 64.0% due to channel mix and lower indirect costs, but couldn't offset the volume decline. Operating expenses fell 10% from reduced compensation and consulting, partially offset by restructuring charges. This follows a Q1 already marred by CO2 business wind-down charges and a CEO transition; the Iran-driven revenue shock deepens the operational crisis. No guidance was provided, leaving the near-term outlook highly uncertain.
At the time of this announcement, ERII was trading at $8.77 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $456.7M. The 52-week trading range was $7.83 to $18.32. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.