Energy Recovery

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 25 Feb 2026, plus the 10-Q filed 5 Aug 2026 and 5 later 8-Ks.

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

• our business, results of operations, or financial condition.

  Could happen

  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.

  Read moreShow less

• wind down, which will have an adverse effect on our Emerging Technologies segment financial condition and results of operations.

  For the past decade, the global commercial and industrial refrigeration industry has been shifting away from HFC-based refrigerants to natural refrigerants, such as CO 2 -based refrigerants in response to the global HFC-based refrigerant phase-down and subsequent environmental regulations. We introduced the PX G1300 energy recovery device for use in CO 2 -based refrigeration systems in 2021. While interest in the PX G1300 had been positive, in February 2026, as a result of discussions with OEM and end user customers, we decided to wind down operations in the CO 2 business within our Emerging Technologies segment due to a fundamental change in the business’ outlook. We expect to substantially complete the wind down in the first quarter of 2026, and we will incur costs associated with the wind down which will have an adverse effect on our Emerging Technologies segment financial condition and results of operations.

  Read moreShow less

• tax reform policies, or changes in tax legislation or policies could materially impact our financial position and results of operations.

  Could happen

  Our future effective tax rates could be subject to volatility or adversely affected by changes in tax laws, regulations, accounting principles, or interpretations thereof. For example, on July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was enacted, which, among other things, allows domestic research and development expenditures to be expensed for tax years beginning on or after January 1, 2025, with retroactive elections for such expenditures paid or incurred in the two prior years, the restoration of 100% bonus depreciation for certain qualified property, modifications to international tax provisions, including provisions addressing the global intangible low-taxed income, foreign-derived intangible income, base erosion anti-abuse tax and controlled foreign corporation rules, and permanently extends certain expiring provisions of the Tax Act described below.

  Read moreShow less

• our business, results of operations, or financial condition.

  Could happen

  Any further unfavorable government policies on international trade, such as capital controls or tariffs, may affect the demand for our products and services, impact the competitive position of our products or prevent us from selling products in certain countries. If any new tariffs, legislation and/or regulations are implemented, or if existing trade agreements are renegotiated, such changes could have an adverse effect on our business, financial condition and results of operations.

  Read moreShow less