Energy Recovery Business Summary

Energy Recovery, Inc. (ERII) generates revenue primarily through the sale of its proprietary Pressure Exchanger (PX) technology and high-performance pumps, supplemented by recurring aftermarket services including parts, repairs, and field commissioning. The company operates through two primary business segments: Water, which serves the seawater reverse osmosis (SWRO) desalination and wastewater treatment markets, and Emerging Technologies, which focuses on commercial and industrial CO2 refrigeration systems. As a dominant niche leader, Energy Recovery holds a majority market share in the global desalination energy recovery device (ERD) sector. Its primary direct competitors include Flowserve, Danfoss, and Sulzer, though the company maintains a competitive edge through the superior efficiency and reliability of its isobaric pressure exchanger platform relative to traditional centrifugal systems. Founded in 1992 by inventor Leif J. Hauge, the company is currently led by President and CEO David Moon, who brings over 25 years of HVAC and refrigeration expertise, including his previous role as President of Carrier Commercial Refrigeration. The technical roadmap is overseen by CTO Ram Ramanan, appointed in early 2025, whose pedigree includes senior leadership roles at Bloom Energy and Rondo Energy. The executive team is rounded out by CFO Michael Mancini and SVP of Water Rodney Clemente, a 25-year company veteran. The board is chaired by Pamela Tondreau and includes long-time investor Arve Hanstveit. Notable institutional backing is provided by BlackRock and Vanguard, while significant insider ownership is maintained by Ole Peter Lorentzen, who holds approximately 41% of the company's outstanding shares.