• NVIDIA for industrial energy efficiency
• Intel for desalination energy savings
• Qualcomm for industrial fluid energy recovery

• PX Pressure Exchanger®: A device that recovers up to 98% of the otherwise wasted energy from the brine stream of seawater reverse osmosis (SWRO) desalination plants.
• Turbochargers and High-Pressure Pumps: Complementary energy recovery devices and pumps used in large-scale desalination systems to optimize efficiency and performance.
• PX G1300™ and PX Q Series: Energy recovery devices specifically designed for transcritical CO2 industrial refrigeration systems to improve efficiency and reduce energy consumption.

Energy Recovery (symbol: ERII) primarily sells its products to other companies, operating on a business-to-business (B2B) model. Its energy recovery devices, such as the Pressure Exchanger, are critical components integrated into large industrial systems.

According to its recent SEC filings (e.g., 2023 10-K), no single customer accounted for 10% or more of its total consolidated revenues. This indicates that the company has a diversified customer base within its target industries, and no individual publicly traded company consistently meets a "major" threshold for specific disclosure. Instead, its major customers fall into the following categories:

• Engineering, Procurement, and Construction (EPC) Contractors: These are global firms responsible for designing, building, and procuring equipment for large-scale industrial projects, particularly water desalination plants. They integrate Energy Recovery's products into the overall plant design and construction.

• Original Equipment Manufacturers (OEMs): Companies that produce and sell larger industrial systems, such as industrial refrigeration units, CO2 compression systems, or specialized desalination modules. They incorporate Energy Recovery's energy recovery devices as key components within their offerings.

• Large Industrial End-Users and Utilities: Energy Recovery sometimes sells directly to large utility providers (like major water utilities) or substantial industrial operators in sectors such as oil & gas or industrial refrigeration, especially for new installations or upgrades. Historically, the Saline Water Conversion Corporation (SWCC) of Saudi Arabia, a government-owned entity (not publicly traded), has been a significant end-user customer for desalination projects, though its percentage of ERII's total revenue fluctuates and may not consistently exceed the 10% disclosure threshold.

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David Moon was appointed President and Chief Executive Officer of Energy Recovery in January 2024, after serving as interim President and CEO since October 2023. He brings over 25 years of leadership experience in commercial and industrial technology development, manufacturing, and marketing. Prior to his current role, Mr. Moon served as President of Carrier Commercial Refrigeration (CCR) from 2020 to 2021. He also advised Ares Management LLC on the acquisition of CoolSys and subsequently joined its Board. From 2006 to 2017, he was the President and Chief Operating Officer of Heatcraft Worldwide Refrigeration, a division of Lennox International, Inc. Earlier in his career, he held various management positions at Allied Signal, Inc., Case Corporation, and Tenneco Oil Company.

Michael Mancini was appointed Chief Financial Officer of Energy Recovery, effective August 5, 2024. He is an experienced CFO and business strategist with extensive capital markets expertise. Before joining Energy Recovery, Mr. Mancini served as CFO for four years at Astranis Space Technologies Corp. He also held the role of CFO and Executive Vice President of Strategy for Aerion Supersonic, where he established the finance and accounting organization and led significant partnership and financing strategy efforts. His background includes experience as a private equity and hedge fund investor, focusing on both growth-stage and value-based investment strategies.

Ram Ramanan was appointed Chief Technology Officer in 2025. He previously served as the Executive Vice President of Engineering for Rondo Energy and held multiple leadership roles at Bloom Energy.

William W. Yeung serves as the Chief Legal Officer. He has 20 years of experience in securities laws, corporate governance and compliance, corporate strategy, SEC reporting and regulatory compliance, mergers and acquisitions, and general contracts. His previous roles include General Counsel of SharesPost, Inc. and Senior Legal Executive for Thomas Weisel Partners Group Inc. and Socialuons Inc.

Matt Hostetler was appointed Chief Human Resources Officer in 2024. He brings over 20 years of experience in global human resources leadership across various industries, including OEM, biotechnology, and consumer products. Prior to Energy Recovery, he served as Chief People Officer of Sientra from 2022 to 2024.

Energy Recovery (ERII) primarily focuses on energy efficiency technology solutions across several key industries, with their main products including Pressure Exchangers (PX), hydraulic turbochargers, and high-pressure pumps. These technologies are applied in desalination, wastewater treatment, and CO2 refrigeration systems.

Addressable Markets:

• Seawater Reverse Osmosis (SWRO) Desalination: The global desalination market is projected to be over $25 billion in 2025. The market was estimated at $13.8 billion globally in 2019 and has been compounding at approximately 13-14% per year since then. Energy Recovery's PX Pressure Exchanger is a flagship product in this industry, where the company holds a majority market share.
• Wastewater Treatment: The global wastewater recovery system market was valued at USD 44.5 billion in 2024 and is estimated to reach USD 107.3 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.2% from 2025 to 2034. The U.S. wastewater recovery system market alone was valued at USD 15.1 billion in 2024.
• CO2 Refrigeration: The global subcritical CO2 refrigeration system market is projected to grow from USD 3.8 billion in 2025 to USD 8.2 billion by 2035, at a CAGR of 8.0%. Energy Recovery's PX G1300 is specifically designed for CO2-based refrigeration systems.

Expected Drivers of Future Revenue Growth for Energy Recovery (ERII)

Energy Recovery (NASDAQ: ERII) is poised for future revenue growth over the next 2-3 years, driven by its established core business and strategic expansion into new and emerging markets. The key drivers include:

1. Sustained Growth in the Desalination Market: Energy Recovery's core desalination business continues to demonstrate durable growth and maintains a strong market position. The global desalination equipment market is projected to grow at a compound annual growth rate (CAGR) of 10.6%, providing a solid foundation for ERII's primary revenue stream. The recent expansion of the design life of their PX® Pressure Exchanger® devices to 30 years further reinforces the reliability and attractiveness of their offerings in this sector.
2. Expansion in the Industrial and Municipal Wastewater Treatment Sector: The company is actively growing its presence in the wastewater treatment market, particularly targeting municipal and industrial plants in regions like India and China. This segment has shown significant traction, doubling its revenue for three consecutive years, with a target of $13-16 million in revenue for 2025. Energy Recovery has already generated revenue from 16 diverse industry verticals within wastewater and has a pipeline of potential projects, with 12 industries each exceeding $1 million in potential revenue. Their Ultra PX™ device is specifically designed to meet the increasing demand for energy-efficient solutions in industrial wastewater treatment, especially for Ultra High-Pressure Reverse Osmosis (UHPRO) applications.
3. Penetration of the CO2 Refrigeration Market with the PX G1300: Energy Recovery's PX G1300 product represents a significant growth opportunity in the commercial CO2 refrigeration market. This technology offers substantial energy savings, ranging from 15-30% in supermarket installations, and enhances cooling capacity and system stability. While the rollout in this sector is anticipated to be more gradual than initially projected due to customer adoption curves, the shift towards climate-friendly CO2 refrigerants, especially in Europe and the commencing transition in the United States, positions the PX G1300 as a vital energy-saving solution.

Share Repurchases

• Energy Recovery authorized a new share repurchase program of up to $25 million in August 2025, following previous authorizations.
• In February 2025, a $30 million share repurchase program was approved, which was nearing completion as of August 2025.
• A $50 million share repurchase program authorized in November 2024 was completed in Q4 2024, resulting in the repurchase of 3.2 million shares at an average price of $15.39 per share.

Share Issuance

• Share issuances are primarily related to equity from employee incentive plans.
• Stock-based compensation, which contributes to share issuance, was $10.32 million in 2024, $8.04 million in 2023, and $6.51 million in 2022.
• The number of shares outstanding decreased from 58.3 million as of September 30, 2024, to 52,979,801 as of September 30, 2025, indicating that share repurchases have offset or exceeded new issuances.

Capital Expenditures

• Capital expenditures were approximately $1.17 million in 2024, $2.48 million in 2023, and $3.13 million in 2022.
• Expected capital expenditures are $5 million for 2025 and $5 million for 2026.
• The company consistently generates free cash flow exceeding its capital expenditure and growth capital needs.