Energy Recovery Reports its Fourth Quarter 2024 Financial Results
SAN LEANDRO, Calif. - February 26, 2025 - Energy Recovery, Inc. (Nasdaq:ERII) ("Energy Recovery" or the "Company") today announced its financial results for the fourth quarter and year ended December 31, 2024.
Fourth Quarter Highlights
•Revenue of $67.1 million, an increase of 17% as compared to Q4'2023 and resulting in full-year revenue at the midpoint of guidance.
•Gross margin of 70.2%, an increase of 110 bps, as compared to Q4'2023, due primarily to benefits from our manufacturing transformation.
•Operating expenses of $21.5 million, an increase of 13.9%, as compared to Q4'2023, due primarily to $2.5 million of restructuring costs related to our announced workforce reduction and executive transition costs.
•Income from operations of $25.6 million, an increase of 24.3%, as compared to Q4'2023, mainly due to higher revenue and higher gross margin.
•Net income of $23.5 million and adjusted EBITDA(1) of $31.3 million.
•Cash and investments of $99.9 million, which includes cash, cash equivalents, and short- and long-term investments.
In conjunction with these financial results, management has released a letter to shareholders reviewing business and financial updates from the fourth quarter and discussing our outlook for 2025. This letter is located under "Financial Info" in the "Investors" section on the Energy Recovery website (https://ir.energyrecovery.com/financial-information).
Financial Highlights
| Quarter-to-Date | Year to Date | |||||||||||||||||||||||||||||||||||||
|
Q4'2024
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Q4'2023
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vs. Q4'2023 | 2024 | 2023 | 2024 vs. 2023 | |||||||||||||||||||||||||||||||||
| (In millions, except net income per share, percentages and basis points) | ||||||||||||||||||||||||||||||||||||||
| Revenue | $67.1 | $57.2 | up 17% | $144.9 | $128.3 | up 13% | ||||||||||||||||||||||||||||||||
| Gross margin | 70.2% | 69.1% | up 110 bps | 66.9% | 67.8% | down 90 bps | ||||||||||||||||||||||||||||||||
| Operating margin | 38.2% | 36.0% | up 220 bps | 13.6% | 14.8% | down 120 bps | ||||||||||||||||||||||||||||||||
| Net income | $23.5 | $19.8 | up 19% | $23.1 | $21.5 | up 7% | ||||||||||||||||||||||||||||||||
| Net income per share | $0.41 | $0.34 | up $0.07 | $0.40 | $0.37 | up $0.03 | ||||||||||||||||||||||||||||||||
| Effective tax rate | 10.4% | 5.3% | ||||||||||||||||||||||||||||||||||||
| Cash provided by operations | $9.0 | $13.8 | $20.5 | $26.1 | ||||||||||||||||||||||||||||||||||
Non-GAAP Financial Highlights (1)
| Quarter-to-Date | Year to Date | |||||||||||||||||||||||||||||||||||||
|
Q4'2024
|
Q4'2023
|
vs. Q4'2023 | 2024 | 2023 | 2024 vs. 2023 | |||||||||||||||||||||||||||||||||
| (In millions, except adjusted net income per share, percentages and basis points) | ||||||||||||||||||||||||||||||||||||||
| Adjusted operating margin | 45.2% | 39.9% | up 530 bps | 26.2% | 21.1% | up 510 bps | ||||||||||||||||||||||||||||||||
| Adjusted net income | $28.3 | $22.0 | up 29% | $40.7 | $28.9 | up 41% | ||||||||||||||||||||||||||||||||
| Adjusted net income per share | $0.50 | $0.39 | up $0.11 | $0.71 | $0.51 | up $0.20 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $31.3 | $23.9 | $42.0 | $31.2 | ||||||||||||||||||||||||||||||||||
| Free cash flow | $8.9 | $12.4 | $19.2 | $23.5 | ||||||||||||||||||||||||||||||||||
(1)Refer to the sections "Use of Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively.
Attachments
Disclaimer
ERI - Energy Recovery Inc. published this content on February 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 26, 2025 at 21:14:50.411.
