stockrowEnergy Recovery, Inc.
ERII Industrials Pollution & Treatment Controls
Energy Recovery, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $135.0 million, down 6.87% from fiscal 2024.
- Revenue
- −57.2%
- EPS
- −250.0%
- Free cash flow
- +284.7%
Quarter to June 2026, against a year earlier
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Energy Recovery, Inc. (ERII) Altman Z-score
Energy Recovery, Inc.'s Altman Z-score for fiscal 2025 is 19.75, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 19.75 | 2.14 |
| FY2024 | 17.61 | (3.62) |
| FY2023 | 21.23 | (2.70) |
| FY2022 | 23.93 | 1.19 |
| FY2021 | 22.73 | 6.79 |
| FY2020 | 15.94 | 8.69 |
| FY2019 | 7.25 | 2.88 |
| FY2018 | 4.37 | (0.51) |
| FY2017 | 4.88 | 0.24 |
| FY2016 | 4.64 | 1.78 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.71 | — | 0.85 | |
| Retained earnings / total assets | 0.56 | — | 0.78 | |
| EBIT / total assets | 0.10 | — | 0.34 | |
| Market value of equity / total liabilities | 28.66 | — | 17.20 | |
| Sales / total assets | 0.58 | — | 0.58 | |
| Altman Z-score | Safe zone | 19.75 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 15.70 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ADUR Aduro Clean Technologies Inc. compare | 22.4× |
| ERII Energy Recovery, Inc. | 19.7× |
| CECO CECO Environmental Corp. compare | 3.7× |
| FTEK Fuel Tech, Inc. compare | 1.3× |
| ARQ Arq, Inc. compare | 1.2× |
| PCT PureCycle Technologies, Inc. compare | −0.1× |
| CDZI Cadiz, Inc. compare | −5.0× |
| BCHT Birchtech Corp. compare | −7.4× |
| SCWO 374Water Inc. compare | −8.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets