Why is ERII down?
Down 6.4% on Nov 5, a down day for the market: the S&P 500 fell 4%, 86% of stocks fell, and specialty machinery stocks a median 6.0%.
- Its Nov 4 results:
ERII's Quality Score fell 3 points on Tue, Nov 10, to -2. Buying slipped from its highest in 20 days (3 chart checks stopped).
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Down 6.4% on Nov 5, a down day for the market: the S&P 500 fell 4%, 86% of stocks fell, and specialty machinery stocks a median 6.0%.
| Since its 2023 high | Down 76% |
| Latest filing | 8-K, Nov 4 |
After its last 4 reports it closed -15.5% on average, higher 0 of 4 times.
Poorfor quality, not price, 2 of 14 chart checks firingWhat the Quality Score means
ERII is #12 of 14 by Quality Score.
| Rank | Stock | Quality Score |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| Open for its score | ||
| Open for its score | ||
| Open for its score | ||
| 12 |
Expected to report Wed Feb 24, after the close (in 106 days).
What an earnings report is: every 3 months, a company tells everyone how much it sold and earned. We read the figures, the outlook, and how the stock moved after.
Sales of $11.2M, 65% less than a year ago; a loss of $0.12 a share, from a profit of $0.07.
“Gross margin of 37.5%, as compared to gross margin of 64.2% in Q3’2025 primarily due to lower volume as well as product mix and indirect manufacturing costs, partially offset by channel mix.”
| Line | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| Desalination | $10.7M | $11.5M | $29.1M |
Each quarter's sales and their share of its total. Figures as filed (SEC filing, Nov 4)
No outlook figures read from this release.
“Operating expenses of $14.0 million, a decrease of 17.2%, as compared to Q3’2025, primarily due to lower employee compensation costs, including stock-based compensation expense, and lower consulting costs.”
From its results filing (SEC filing · Nov 4)
Sales grew 2.6% a year over 5 years, fiscal 2020 to 2025.
Its share count fell 0.9% a year over 5 years.
| Reported | Gap | Reaction | 5 days |
|---|---|---|---|
| Nov 4, 2026 | -8.9% | -6.4% | not yet |
| Aug 5, 2026 | -5.7% | -1.5% | -12.2% |
| May 6, 2026 | -4.1% | -18.8% | -28.4% |
Sales grew in five of the last seven years, to $135M in 2025. It made a profit in each of the eight years.
RSI 59.1, MACD above signal, above its 50-day, below its 200-day. Not scored.
One insider bought $99K across 1 filing, and 3 insiders sold $193K across 3 filings, in the last 6 months. The newest:
Officers and directors with a Form 4 in the last 12 months.
In ETFs: ERII is under 0.1% of VTI, the most of the 24 funds Breakaway covers, by their holdings as filed for Jun 30, 2026.
Energy Recovery Inc designs and manufactures energy-saving technologies. The firm uses its proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Using its proprietary technology, it offers energy recovery devices, including pressure exchangers, pumps, and turbochargers, mainly used for seawater desalination and wastewater treatment. Additionally, the company is involved in the development of emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications. The firm's reportable operating segments are: Water, which generates maximum revenue, and Emerging Technologies. Geographically, it generates maximum revenue from the Middle East, and the rest from other markets.
“As the water industry has evolved, we faced, and continue to face, increasing worldwide competition based on product offerings and service.”
ERII scores -2 today, which Breakaway calls Poor. It is #12 of 14 in Special Industry Machinery by Quality Score, with 2 of 14 chart checks firing. Down 6.4% on Nov 5, a down day for the market: the S&P 500 fell 4%, 86% of stocks fell, and specialty machinery stocks a median 6.0%. Breakaway does not say whether to buy any stock: the score does not know your situation, and it is not a recommendation to buy or sell anything. Please do your own research.
ERII scores -2 today, which Breakaway calls Poor (below zero). That is #12 of 14 in Special Industry Machinery by Quality Score. The score adds up the chart checks, the trend, the company's filed sales, its profits, the news, insider trades, and Congress trades. The section above lists the lines behind ERII's -2.
One insider bought $99K across 1 filing, and 3 insiders sold $193K across 3 filings, in the last 6 months. The newest is Rodney Clemente, SVP, Water, who sold $46K on Jul 28. Every filing, with the scored weight, for Pro members.
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Insider and Congress trades, the chart, and the financials, in one score.
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