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Sep 30, 2023
Energy Recovery Q3 2023 Earnings Report
Achieved 22% Year-on-Year Quarterly Revenue Growth, Beating Guidance
Key Takeaways
Energy Recovery reported strong Q3 2023 results, exceeding the upper end of revenue guidance with $37.0 million in revenue, driven by increased megaproject revenues. The company's gross margin was 69.9%, and net income reached $9.7 million.
Revenue of $37.0 million, exceeding the upper end of guidance due to an increase in megaproject revenues.
Gross margin of 69.9%, higher than estimates due to a change in product mix and increased sales of PX®.
Operating expenses of $16.7 million, in line with prior quarters.
Net income of $9.7 million and adjusted EBITDA of $12.0 million.
Revenue by Geographic Location
Forward Guidance
The company is well-positioned to deliver on full year water guidance. Desalination revenue may grow in 2024, and wastewater revenue may potentially double in 2024. A path to 2026 water revenue targets exist.
Positive Outlook
- Company is well positioned to deliver on full year water guidance
- Desalination revenue may grow in 2024
- Wastewater revenue may potentially double in 2024
- A path to 2026 water revenue targets exist.
Challenges Ahead
- Risks relating to the future demand for our products
- Risks relating to performance by our customers and third-party partners
- Risks relating to the timing of revenue
- Risks and uncertainties of the Company’s business
- Risks discussed under “Risk Factors” in the Company’s Form 10-K
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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