Energy Recovery is projected to report Q3 2026 revenue of $16.15 million and an EPS of -$0.04, with the current stock price of $6.96 trading below the average analyst target of $8.00.
Investors are primarily focused on the commercialization progress of the PX G1300 pressure exchanger in the CO2 refrigeration market as a key diversification milestone.
The company is currently navigating significant headwinds in its core desalination business, with revenue expected to drop nearly 50% year-over-year due to geopolitical disruptions and project delays in the Middle East.
Management's commentary on the Q4 recovery timeline and the 2027 contract backlog will be critical for restoring investor confidence.