Energy Recovery makes pressure exchanger devices that capture and recycle pressure energy in industrial fluid processes, primarily in seawater reverse osmosis (SWRO) desalination plants. The core product, the PX Pressure Exchanger, captures high-pressure energy from brine waste streams and transfers it back into the feed water, reducing energy consumption by up to 60% compared to systems without energy recovery. Energy Recovery sells capital equipment — primarily PX units — to large desalination project developers (megaprojects), OEM customers building smaller systems, and aftermarket customers seeking spare parts and repairs. The Middle East and North Africa account for the majority of water segment revenue. Because the megaproject channel dominates, revenue is lumpy quarter-to-quarter depending on when large shipments occur. The PX is designed for a 25+ year lifespan with no scheduled maintenance, so the upfront capital sale is the primary revenue event. Energy Recovery manufactures proprietary alumina ceramic components in-house in California, which management considers a key barrier to replication. The company is growing in two directions: expanding in the core SWRO desalination market by developing next-generation higher-capacity PX units, and applying its pressure exchanger platform to industrial wastewater treatment, with early traction in China. Energy Recovery recently wound down its CO2 refrigeration business after concluding the outlook had fundamentally changed.