Overview
Energy-saving tech firm's Q4 revenue declined $0.2 mln yr/yr, missing analyst expectations
Net income for Q4 rose 15% yr/yr, driven by lower operating expenses
Outlook
Company did not provide specific guidance for 2026
Result Drivers
REVENUE TIMING - Revenue decreased slightly due to timing of revenue from contracted projects
GROSS MARGIN DECLINE - Gross margin fell by 300 bps due to costs related to product mix and tariffs
OPERATING EXPENSES - Operating expenses dropped significantly due to lower employee, consulting, and restructuring costs
Company press release: ID:nBwccX0wja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $66.90 mln | $82.51 mln (4 Analysts) |
Q4 EPS | $0.50 | ||
Q4 Net Income | $26.90 mln | ||
Q4 Adjusted EBITDA | $33.60 mln | ||
Q4 Gross Margin | 67.20% | ||
Q4 EBIT Margin | 46.80% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Energy Recovery Inc is $18.20, about 13.3% above its February 24 closing price of $16.07
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)