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Dec 31, 2024
Energy Recovery Q4 2024 Earnings Report
Energy Recovery reported its financial results for the fourth quarter and year ended December 31, 2024.
Key Takeaways
Energy Recovery achieved a 17% increase in revenue to $67.1 million in Q4 2024, reaching the midpoint of its full-year guidance. The company also saw an improvement in gross margin to 70.2% and a 24.3% increase in income from operations, driven by higher revenue and gross margin.
Revenue increased by 17% to $67.1 million in Q4 2024 compared to Q4 2023.
Gross margin improved by 110 basis points to 70.2% in Q4 2024, primarily due to manufacturing transformation benefits.
Income from operations rose by 24.3% to $25.6 million in Q4 2024, driven by higher revenue and gross margin.
Net income for Q4 2024 was $23.5 million, with adjusted EBITDA reaching $31.3 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Management has released a letter to shareholders reviewing business and financial updates from the fourth quarter and discussing the outlook for 2025. This letter is located under “Financial Info” in the “Investors” section on the Energy Recovery website.
Positive Outlook
- Continued benefits from manufacturing transformation are expected to support gross margin.
- Focus on operational efficiency and cost management.
- Strong cash and investments position provides financial flexibility.
- Anticipated growth in key revenue segments.
- Commitment to delivering positive environmental impact through technology.
Challenges Ahead
- Restructuring costs related to workforce reduction and executive transition may impact short-term profitability.
- Potential risks and uncertainties related to future demand for products.
- Risks associated with performance by customers and third-party partners.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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