Energy Recovery Under Investigation for Investor Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
Source: Globenewswire
- Investigation Background: Johnson Fistel, PLLP is investigating Energy Recovery, Inc. (NASDAQ: ERII) on behalf of investors who suffered losses due to the company's decision to wind down its CO₂ retail grocery business under federal securities laws.
- Business Contraction: On February 25, 2026, Energy Recovery announced the cessation of its CO₂ retail grocery operations within its Emerging Technologies segment, citing that scaled adoption would require significant time and investment, which no longer met the company's capital allocation criteria.
- Financial Impact: The company disclosed expected one-time costs associated with the wind-down, including severance-related expenses, inventory reserves, goodwill impairment, and other non-cash charges, which are likely to negatively affect its financial health.
- Stock Price Volatility: Following these disclosures, Energy Recovery's stock price declined significantly, resulting in losses for investors, prompting Johnson Fistel to encourage affected investors to reach out to understand their rights.
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Analyst Views on ERII
Wall Street analysts forecast ERII stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 9.000
Low
16.00
Averages
19.50
High
23.00
Current: 9.000
Low
16.00
Averages
19.50
High
23.00
About ERII
Energy Recovery, Inc. designs and manufactures energy-saving technology for critical infrastructure. The Company's segments include Desalination, Wastewater and Emerging Technologies. The Desalination segment includes hydraulic turbochargers and pumps used in seawater desalination treatment facilities. The Wastewater segment includes hydraulic turbochargers and pumps used in wastewater treatment facilities. The Emerging Technologies segment sales and support of activities related to emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications. Its pressure exchanger products include Low-Pressure PX, High-Pressure PX, Ultra High-Pressure PX, PX Q Series, and PX PowerTrain. Its pump products include CPXP Axial Piston Pump, ATMP High-Pressure Pump, ATMP Booster Pump, HPXP High-Pressure Centrifugal Booster Pump, HP Pump, UHP Pump, and VPXP Pump. It serves brackish water osmosis (RO) systems, modular RO systems, and retrofits industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Recovery Under Investigation for Investor Losses
- Investigation Background: Johnson Fistel, PLLP is investigating Energy Recovery, Inc. (NASDAQ: ERII) on behalf of investors who suffered losses due to the company's decision to wind down its CO₂ retail grocery business under federal securities laws.
- Business Contraction: On February 25, 2026, Energy Recovery announced the cessation of its CO₂ retail grocery operations within its Emerging Technologies segment, citing that scaled adoption would require significant time and investment, which no longer met the company's capital allocation criteria.
- Financial Impact: The company disclosed expected one-time costs associated with the wind-down, including severance-related expenses, inventory reserves, goodwill impairment, and other non-cash charges, which are likely to negatively affect its financial health.
- Stock Price Volatility: Following these disclosures, Energy Recovery's stock price declined significantly, resulting in losses for investors, prompting Johnson Fistel to encourage affected investors to reach out to understand their rights.
See More
Energy Recovery Appoints New Interim President and CEO
- Executive Transition: Energy Recovery (ERII) has appointed board member Alex Buehler as interim President and CEO, effective immediately after David Moon's decision to retire early for personal reasons, demonstrating the company's agility in leadership changes.
- Background Experience: Buehler served as CFO of Energy Recovery from 2011 to 2014 and most recently was CEO of Integrated Water Services, bringing extensive industry experience that is expected to provide stable leadership and strategic direction for the company.
- Moon's Contributions: David Moon has been President and CEO of Energy Recovery since January 2024, previously holding executive roles at Carrier Commercial Refrigeration and Heatcraft Worldwide Refrigeration, contributing to the company's strategic development during his tenure.
- Market Reaction: This executive change may impact investor confidence in the company's future, particularly as Moon's leadership has seen progress in technology innovation and market expansion for Energy Recovery.
See More
Energy Recovery Q1 2026 Earnings Call Insights
- Product Launch: Energy Recovery launched the PX Q650 in March 2026, securing its first commercial order and collaborating with multiple large customers for integration into major desalination plants, indicating strong market demand and commercial momentum.
- Leadership Changes: CEO David Moon announced his retirement plans, initiating a search for his successor, while CFO Mike Mancini resigned, with Aiden Ryan stepping in as interim CFO to ensure continuity in financial and shareholder matters.
- Guidance Withdrawal: The company has withdrawn its 2026 financial guidance due to the impact of the Iran conflict, reflecting uncertainty and a cautious outlook on future market conditions.
- Unchanged Strategic Focus: Despite the uncertainties, management reiterated its commitment to product innovation, cost discipline, and growth in the wastewater sector, with plans to update financial guidance in Q2 or Q3, demonstrating confidence in long-term demand fundamentals.
See More
Energy Recovery to Announce Q1 Earnings on May 6th
- Earnings Announcement: Energy Recovery, Inc. (ERII) is set to release its Q1 2023 earnings on May 6th after market close, with a consensus EPS estimate of -$0.07, reflecting a 46.2% year-over-year improvement, indicating potential recovery in profitability.
- Revenue Expectations: The revenue estimate stands at $7.86 million, representing a 3.0% year-over-year decline, highlighting challenges the company faces in the current market environment, particularly amid project delays.
- Historical Performance: Over the past two years, ERII has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, suggesting a degree of stability and adaptability in its financial performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates experienced no upward revisions and two downward revisions, reflecting a cautious market outlook on the company's future performance.
See More
Energy Recovery Downgraded to Neutral Amid Project Risks
- Rating Downgrade Impact: Northcoast Research downgraded Energy Recovery (ERII) from Buy to Neutral, anticipating increased tactical risks from likely project delays in the Middle East, resulting in a 5.2% drop in stock price during Wednesday's trading.
- Pessimistic Financial Outlook: When ERII posted its Q4 earnings, it guided FY 2026 revenues below expectations due to project delays, particularly as the Iran war had not yet begun, prompting the analyst to lower 2026 and 2027 earnings estimates to reflect macroeconomic pressures.
- Middle East Economic Risks: The analyst highlighted that while water is a non-discretionary need, the timing of projects could be significantly affected by the Iran conflict, raising concerns about future demand growth amid expected substantial GDP declines in major desalinating nations.
- Stock Price Rebound Potential: Although ERII shares remain below pre-Q4 levels, they have rebounded from recent lows, and the analyst believes that the risk/reward appears balanced ahead of the company's Q1 earnings and guidance update.
See More
Energy Recovery, Inc. Shares Surge 7% Amid Optimism
- Stock Price Surge: Energy Recovery, Inc. (ERII) shares rose 7% to $10.12 in the last trading session, with trading volume significantly above average, reflecting market optimism about its future performance.
- Business Growth Drivers: The rally is primarily fueled by strong performance in its original equipment manufacturer business, particularly with increased shipments to the Americas, Asia, and Europe, indicating a recovery in market demand.
- Earnings Report Expectations: ERII is expected to report a quarterly loss of $0.09 per share, representing a year-over-year improvement of 30.8%, with revenues projected at $8.75 million, an 8.5% increase from the previous year, showcasing the company's resilience in challenging times.
- Earnings Estimate Revisions: The consensus EPS estimate for ERII has been revised 3.6% higher over the last 30 days, and such positive revisions are often correlated with stock price appreciation, suggesting investors should monitor its future performance closely.
See More
Energy Recovery Under Investigation for Investor Losses
- Investigation Background: Johnson Fistel, PLLP is investigating Energy Recovery, Inc. (NASDAQ: ERII) on behalf of investors who suffered losses due to the company's decision to wind down its CO₂ retail grocery business under federal securities laws.
- Business Contraction: On February 25, 2026, Energy Recovery announced the cessation of its CO₂ retail grocery operations within its Emerging Technologies segment, citing that scaled adoption would require significant time and investment, which no longer met the company's capital allocation criteria.
- Financial Impact: The company disclosed expected one-time costs associated with the wind-down, including severance-related expenses, inventory reserves, goodwill impairment, and other non-cash charges, which are likely to negatively affect its financial health.
- Stock Price Volatility: Following these disclosures, Energy Recovery's stock price declined significantly, resulting in losses for investors, prompting Johnson Fistel to encourage affected investors to reach out to understand their rights.
See More
Energy Recovery Appoints New Interim President and CEO
- Executive Transition: Energy Recovery (ERII) has appointed board member Alex Buehler as interim President and CEO, effective immediately after David Moon's decision to retire early for personal reasons, demonstrating the company's agility in leadership changes.
- Background Experience: Buehler served as CFO of Energy Recovery from 2011 to 2014 and most recently was CEO of Integrated Water Services, bringing extensive industry experience that is expected to provide stable leadership and strategic direction for the company.
- Moon's Contributions: David Moon has been President and CEO of Energy Recovery since January 2024, previously holding executive roles at Carrier Commercial Refrigeration and Heatcraft Worldwide Refrigeration, contributing to the company's strategic development during his tenure.
- Market Reaction: This executive change may impact investor confidence in the company's future, particularly as Moon's leadership has seen progress in technology innovation and market expansion for Energy Recovery.
See More
Energy Recovery Q1 2026 Earnings Call Insights
- Product Launch: Energy Recovery launched the PX Q650 in March 2026, securing its first commercial order and collaborating with multiple large customers for integration into major desalination plants, indicating strong market demand and commercial momentum.
- Leadership Changes: CEO David Moon announced his retirement plans, initiating a search for his successor, while CFO Mike Mancini resigned, with Aiden Ryan stepping in as interim CFO to ensure continuity in financial and shareholder matters.
- Guidance Withdrawal: The company has withdrawn its 2026 financial guidance due to the impact of the Iran conflict, reflecting uncertainty and a cautious outlook on future market conditions.
- Unchanged Strategic Focus: Despite the uncertainties, management reiterated its commitment to product innovation, cost discipline, and growth in the wastewater sector, with plans to update financial guidance in Q2 or Q3, demonstrating confidence in long-term demand fundamentals.
See More
Energy Recovery to Announce Q1 Earnings on May 6th
- Earnings Announcement: Energy Recovery, Inc. (ERII) is set to release its Q1 2023 earnings on May 6th after market close, with a consensus EPS estimate of -$0.07, reflecting a 46.2% year-over-year improvement, indicating potential recovery in profitability.
- Revenue Expectations: The revenue estimate stands at $7.86 million, representing a 3.0% year-over-year decline, highlighting challenges the company faces in the current market environment, particularly amid project delays.
- Historical Performance: Over the past two years, ERII has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, suggesting a degree of stability and adaptability in its financial performance.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates experienced no upward revisions and two downward revisions, reflecting a cautious market outlook on the company's future performance.
See More
Energy Recovery Downgraded to Neutral Amid Project Risks
- Rating Downgrade Impact: Northcoast Research downgraded Energy Recovery (ERII) from Buy to Neutral, anticipating increased tactical risks from likely project delays in the Middle East, resulting in a 5.2% drop in stock price during Wednesday's trading.
- Pessimistic Financial Outlook: When ERII posted its Q4 earnings, it guided FY 2026 revenues below expectations due to project delays, particularly as the Iran war had not yet begun, prompting the analyst to lower 2026 and 2027 earnings estimates to reflect macroeconomic pressures.
- Middle East Economic Risks: The analyst highlighted that while water is a non-discretionary need, the timing of projects could be significantly affected by the Iran conflict, raising concerns about future demand growth amid expected substantial GDP declines in major desalinating nations.
- Stock Price Rebound Potential: Although ERII shares remain below pre-Q4 levels, they have rebounded from recent lows, and the analyst believes that the risk/reward appears balanced ahead of the company's Q1 earnings and guidance update.
See More
Energy Recovery, Inc. Shares Surge 7% Amid Optimism
- Stock Price Surge: Energy Recovery, Inc. (ERII) shares rose 7% to $10.12 in the last trading session, with trading volume significantly above average, reflecting market optimism about its future performance.
- Business Growth Drivers: The rally is primarily fueled by strong performance in its original equipment manufacturer business, particularly with increased shipments to the Americas, Asia, and Europe, indicating a recovery in market demand.
- Earnings Report Expectations: ERII is expected to report a quarterly loss of $0.09 per share, representing a year-over-year improvement of 30.8%, with revenues projected at $8.75 million, an 8.5% increase from the previous year, showcasing the company's resilience in challenging times.
- Earnings Estimate Revisions: The consensus EPS estimate for ERII has been revised 3.6% higher over the last 30 days, and such positive revisions are often correlated with stock price appreciation, suggesting investors should monitor its future performance closely.
See More
