Energy Recovery(ERII) - 2024 Q4 - Annual Results

Revenue and Income - Revenue for Q4 2024 was $67.1 million, representing a 17% increase compared to Q4 2023, with full-year revenue at $144.9 million, up 13% year-over-year[4] - Net income for Q4 2024 was $23.5 million, a 19% increase from Q4 2023, with net income per share rising to $0.41, up $0.07[4] - Adjusted net income for Q4 2024 was $28.3 million, a 29% increase compared to Q4 2023, with adjusted net income per share at $0.50, up $0.11[5] - Net income for 2024 increased to $23,050,000 from $21,504,000 in 2023, representing an increase of 7.2%[19] Gross Margin and Operating Performance - Gross margin improved to 70.2%, an increase of 110 basis points from Q4 2023, primarily due to benefits from manufacturing transformation[6] - Adjusted EBITDA for Q4 2024 was $31.3 million, reflecting strong operational performance[5] - Adjusted EBITDA for Q4 2024 was $31,300,000, compared to $23,900,000 in Q4 2023, indicating strong operational performance[25] - Operating income for the year 2024 was $19,724,000, compared to $19,050,000 in 2023, reflecting a positive trend[21] Cash Flow and Investments - Cash provided by operations for Q4 2024 was $9.0 million, down from $13.8 million in Q4 2023[4] - Free cash flow for 2024 was $19,200,000, down from $23,500,000 in 2023[25] - Cash and investments totaled $99.9 million as of December 31, 2024, down from $122.4 million in 2023[6] - The total cash, cash equivalents, and restricted cash at the end of 2024 was $29,757,000, a decrease from $68,225,000 in 2023[19] Operating Expenses and Costs - Operating expenses increased by 13.9% to $21.5 million in Q4 2024, primarily due to $2.5 million in restructuring costs[6] - Stock-based compensation expense for 2024 totaled $10,322,000, an increase from $8,038,000 in 2023[23] - Capital expenditures for 2024 were $1,298,000, down from $2,567,000 in 2023, showing a reduction in investment[19] Future Outlook - The company anticipates continued growth in 2025, driven by increased demand for its energy efficiency technologies[7] - The Megaproject segment revenue grew by 12% year-over-year, totaling $46,475,000 in Q4 2024 compared to $41,382,000 in Q4 2023[20] - The company repurchased common stock amounting to $50,384,000 in 2024, indicating a commitment to returning value to shareholders[19]