Energy Recovery secures $28 million Gulf desalination deals

  • Stock Market News
Energy Recovery secures $28 million Gulf desalination deals
Credit: © Reuters.

SAN LEANDRO, Calif. - Energy Recovery , Inc. (NASDAQ: ERII ) has secured contracts worth over $28 million to provide its latest PX Pressure Exchanger energy recovery devices, the PX Q400, for major desalination projects in the Gulf region. These facilities are expected to produce nearly 1.5 million cubic meters of water daily for municipal use in an area that faces significant water scarcity.

The company's Senior Vice President of Water, Rodney Clemente, highlighted the PX Q400 as the new benchmark for energy recovery devices in seawater reverse osmosis desalination, touting its high capacity, efficiency, and low life cycle costs. These attributes are said to result from reduced maintenance and operational expenses.

Energy Recovery anticipates shipping all orders by the fourth quarter of 2024. Once operational, the installed PX Q400 units are projected to prevent over 600,000 metric tons of carbon emissions annually, an impact likened to removing approximately 130,000 passenger cars from the road each year.

The company, a recognized global leader in energy efficiency technology, has been providing solutions that enhance operational efficiency and environmental sustainability for over three decades. With its headquarters in the San Francisco Bay Area, Energy Recovery operates manufacturing, research, and development facilities in California and Texas, serving customers worldwide.

This announcement is based on a press release statement.

InvestingPro Insights

As Energy Recovery, Inc. (NASDAQ:ERII) continues to expand its impact in the water-scarce regions of the Gulf with its latest PX Pressure Exchanger contracts, the company's financial health and market performance offer additional insights. With a market capitalization of approximately $896.37 million, Energy Recovery stands as a significant player in the energy efficiency technology sector.

One of the notable strengths of Energy Recovery is its impressive gross profit margins, which have reached 68.29% over the last twelve months as of Q3 2023. This figure underscores the company's ability to maintain cost-effective operations while scaling up its technological offerings. Moreover, the firm holds more cash than debt on its balance sheet, providing a solid financial foundation that supports its ambitious projects and future growth initiatives.

Despite the recent market volatility, with the stock taking a notable hit over the last six months, resulting in a 42.14% drop, analysts remain optimistic, predicting that the company will be profitable this year. This sentiment is reinforced by the company's profitability over the last twelve months, indicating a resilient business model even in the face of economic headwinds.

Investors looking for more in-depth analysis and additional InvestingPro Tips can explore the complete set of 13 tips available on InvestingPro. These insights could provide valuable context for making informed decisions, especially considering Energy Recovery's strategic moves in the desalination space. For those interested in a comprehensive InvestingPro subscription, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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