Why Energy Recovery (ERII) Stock Is Up Today

What Happened?

Shares of energy recovery device manufacturer Energy Recovery (NASDAQ:ERII) jumped 8.4% in the afternoon session after the company announced a new $25 million share repurchase program following strong second-quarter financial results. The buyback program, which allows a company to purchase its own stock from the market, was its third in the last year, bringing the total to $105 million. Management expressed confidence in its growth strategy and its ability to generate cash. This sentiment was further bolstered by the company's second-quarter earnings, where income from operations surged 173.2% compared to the prior year. Additionally, the company reiterated its full-year 2025 guidance and noted its core desalination business proved resilient.

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What Is The Market Telling Us

Energy Recovery’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Energy Recovery is down 0.7% since the beginning of the year, and at $14.79 per share, it is trading 25.8% below its 52-week high of $19.93 from November 2024. Investors who bought $1,000 worth of Energy Recovery’s shares 5 years ago would now be looking at an investment worth $1,863.

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