ERII News & Events

In a letter to shareholders, Energy Recovery announced that it has made the decision to wind down our CO2 retail grocery business effective immediately. "As discussions with customers have evolved in the last several months, it has become increasingly evident that scaled adoption would require significant time, investment, and risk. We believe this investment no longer meets our capital allocation criteria and thus acted quickly in an effort to maximize shareholder value. We expect to generate $7M of annual run-rate savings from the wind down, or 10c in adjusted EPS."

Equity indices traded notably higher for the second consecutive session on Wednesday as Technology - both hardware AND infrastructure software - continued to reclaim the leadership mantle from the "heavy asset" group preferred by investors fretting over AI disruption this month.  In turn, Industrials and Staples underperformed today as traders booked profits and rotated back into Growth, with Real Estate also weighed down by an uptick in Treasury yields.   Post earnings afterhours action in the largest semiconductor play - Nvidiaup over 3% initially and then down marginally - and the largest U.S. Software/Application name - Salesforcedown 5% - suggests that today's risk-on rotation could be brief.  Indeed, the opening hour of the evening session is seeing Nasdaq 100 and Dow Industrials futures contracts down 0.2% and S&P e-minis off by a decimal.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Sezzleup 15.7%Nutanixup 14.9%Marriott Vacations Worldwideup 12.1%NPK Internationalup 8.3%Chime Financialup 8.3%IonQup 7.0%Sterling Infrastructureup 6.8%DOWN AFTER EARNINGS -PROCEPT BioRoboticsdown 27.1%Array Technologiesdown 22.8%C3.aidown 22.5%Energy Recoverydown 20.2%GoodRxdown 11.0%Trade Deskdown 16.2%Universal Health Servicesdown 6.0%Synopsysdown 4.9%HEICOdown 4.9%Salesforcedown 4.6%Zoom Communicationsdown 3.8%Snowflakedown 2.3%Nvidiadown 0.2%

Reports Q4 revenue $66.9M, consensus $82.59M. Reports Q4 gross margin of 67.2%, a decrease of 300 bps, as compared to Q4'2024, due primarily to costs related to product mix and tariffs.