ERII · CIK 0001421517
What Energy Recovery, Inc. told the SEC could break it.
Energy Recovery's disclosures are about concentration on several fronts. Its revenue leans on a few large buyers — two Water-segment customers were individually 14% and 12% of 2025 revenue — and its production is geographically concentrated, with all products made in two California facilities and 100% of its long-lived assets in the U.S. On the input side, a limited number of suppliers are single-source for certain critical raw materials (though it keeps redundant sources for many), and its global sales carry trade-policy risk: U.S. and retaliatory tariffs could raise its costs or curb sales, particularly for its Wastewater business in China.
4 self-disclosed vulnerabilities, pulled from its own filings — each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- two unnamed Water-segment customers >10% (14% and 12%) in 2025medium
In FY2025, two undisclosed Water-segment customers individually accounted for 14% (Customer A) and 12% (Customer B) of revenue.
“Customer A Water 14 % ** ** Customer B Water 12 % 13 % ** Customer C Water ** 11 % ** Customer D Water ** ** 13 %”
SEC filing →As of 2026
Geographic concentration
- all manufacturing and long-lived assets in the U.S. (two California facilities)medium
All products are manufactured in two California facilities and 100% of long-lived assets sit in the United States — single-region production concentration.
“All of the Company's long-lived assets were located in the United States at December 31, 2025 and 2024 .”
Regulatory & policy
- U.S./retaliatory tariffs, especially Wastewater business in Chinamedium
Tariffs and retaliatory tariffs could raise input costs or curb global sales, particularly for the Wastewater business in China.
“These recent tariffs and the subsequent retaliatory tariffs could increase the cost of goods for our products or reduce our ability to sell products globally, particularly for our Wastewater business in China, which may adversely affect our operating results and financial condition.”
Sole-source dependency
- single-source suppliers for certain critical raw materialsmedium
A limited number of suppliers are single-source for material consistency, though redundant qualified sources exist for many critical inputs.
“A limited number of these suppliers are single source to maintain material consistency and support new product development. However, although we may purchase from certain single source suppliers, we have qualified redundant source(s) to ensure consistent supply for many of our critical raw materials and manufactured components.”
SEC filing →As of 2026
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