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Dec 31, 2023
Energy Recovery Q4 2023 Earnings Report
Reported record full year and fourth quarter revenue.
Key Takeaways
Energy Recovery reported record annual and fourth-quarter revenue in 2023, marking the ninth consecutive year of revenue growth. The company's core desalination business remains healthy, and the wastewater business continues to grow rapidly. However, water revenue was below guidance due to a delayed shipment of a single project to be shipped in 2024.
Achieved record quarterly revenue of $57.2 million, a 35% year-on-year growth.
Gross margin was 69.1%, within Energy Recovery’s expectations.
Operating margin was 36.0%, up 150 bps.
Net income was $19.8 million, up 44%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company's focus in 2024 and beyond is rebuilding shareholder value and trust within the market. They remain committed to diversification into new markets, defending their position in desalination, and investing in new opportunities in CO2 and wastewater.
Positive Outlook
- Core desalination business is healthy.
- Wastewater business continues to grow rapidly.
- Making progress in CO2 refrigeration business.
- PX Q400 expected to achieve roughly 50% of sales in megaproject channel.
- Wastewater could reach up to 10% of Water revenue in just three years.
Challenges Ahead
- Shift of $8 million revenue associated with a single project that was pushed from the fourth quarter into 2024
- Risks relating to the future demand for our products
- Risks relating to performance by our customers and third-party partners
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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