Q1 2026 Energy Recovery Inc Earnings Call

May 6, 2026

Operator 2: Good day, ladies and gentlemen, and welcome to Energy Recovery's Q1 2026 Earnings Call. During today's call, Energy Recovery may make projections and other forward-looking statements under the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the company. These statements may discuss our business, economic and market outlook, growth expectations, new products and their performance, cost structure and business strategy. Forward-looking statements are based on information currently available to the company and on management's beliefs, assumptions, estimates, and projections. Forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors. We refer you to documents the company files from time to time with the SEC, specifically the company's annual Form 10-K and quarterly Form 10-Q.

Operator: Good day, ladies and gentlemen, and welcome to Energy Recovery's Q1 2026 Earnings Call. During today's call, Energy Recovery may make projections and other forward-looking statements under the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the company. These statements may discuss our business, economic and market outlook, growth expectations, new products and their performance, cost structure and business strategy. Forward-looking statements are based on information currently available to the company and on management's beliefs, assumptions, estimates, and projections. Forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors. We refer you to documents the company files from time to time with the SEC, specifically the company's annual Form 10-K and quarterly Form 10-Q.

Speaker #2: These statements may discuss our business, economic, and market outlook, growth expectations, new products and their performance, cost structure and business strategy. Forward-looking statements are based on important information currently available to the company and on management's beliefs, assumptions, estimates, and projections.

Speaker #2: Forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties and other factors. We refer you to documents the company files from time to time with the SEC, specifically the company's annual form 10-K and quarterly form 10-Q.

Speaker #2: These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. All statements made during this call are made only as of today, May 6, 2026, and the company expressly disclaims any intent or obligation to update any forward-looking statements made during this call to reflect subsequent events or circumstances unless otherwise required by law.

Operator 2: These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. All statements made during this call are made only as of today, 6 May 2026. The company expressly disclaims any intent or obligation to update any forward-looking statements made during this call to reflect subsequent events or circumstances unless otherwise required by law. Our hosts for today's call are David Moon, President and Chief Executive Officer of Energy Recovery, and Aidan Ryan, Interim Chief Financial Officer. I would now like to turn the call over to Mr. Moon.

Operator: These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. All statements made during this call are made only as of today, 6 May 2026. The company expressly disclaims any intent or obligation to update any forward-looking statements made during this call to reflect subsequent events or circumstances unless otherwise required by law. Our hosts for today's call are David Moon, President and Chief Executive Officer of Energy Recovery, and Aidan Ryan, Interim Chief Financial Officer. I would now like to turn the call over to Mr. Moon.

Speaker #2: Our hosts for today's call are David Moon, President and Chief Executive Officer of Energy Recovery, and Aidan Ryan, Interim Chief Financial Officer. I would now like to turn the call over to Mr. Moon.

Speaker #2: Thank you, Operator, and good day, everyone. Earlier today, we released a letter to shareholders on the investor relations section of our website. That reviews business and financial performance during the quarter.

David Moon: Thank you, operator, and good day, everyone. Earlier today, we released the letter to shareholders on the investor relations section of our website that reviews business and financial performance during the quarter. Prior to opening the line for questions and answers, I'd like to highlight a few important takeaways from that letter. First is our new product, the PX Q650. We launched the product in March, have already received our first commercial order, and are working with multiple large customers to design it into large desalination plants. It's off to a strong start, and we're excited about the commercial momentum that we've achieved in such a short time. Second, two leadership updates. I've informed the board of my intention to retire and a search for my successor is underway. Until that person is named, I'm fully engaged in my role.

Speaker #2: Prior to opening the line for questions and answers, I'd like to highlight a few important takeaways from that letter. First is our new product, the PXQ650.

Speaker #2: We launched the product in March, have already received our first commercial order, and are working with multiple large customers to design it into large desalination plants.

Speaker #2: It's off to a strong start, and we're excited about the commercial momentum that we've achieved in such a short time. Second, two leadership updates.

Speaker #2: I've informed the board of my intention to retire and a search for my successor is underway. Until that person is named, I'm fully engaged in my role.

Speaker #2: Behind me is a strong bench of talent here at ERI. That will ensure a smooth transition. We're also announcing that Mike Mancini has resigned as CFO.

David Moon: Behind me is a strong bench of talent here at ERI that will ensure a smooth transition. We're also announcing that Mike Mancini has resigned as CFO. Aidan Ryan, who joined in 2024, will take over as interim CFO and ensure business as usual from a finance and shareholder standpoint. Third is the war in Iran. As we talked about in our letter, we have meaningful exposure to the Middle East, and we know the conflict will impact us. As such, our original financial guidance for 2026 is no longer reliable, and we're temporarily withdrawing guidance until we have better visibility on the evolving conflict. We've seen these situations in the past. While timing is a key factor, we know the demand is there, and we are building inventory to serve customers when they are ready. Our strategic direction will not change during this uncertain time.

Speaker #2: Aidan Ryan who joined in 2024 will take over as interim CFO and ensure business as usual from a finance and shareholder standpoint. Third is the award in Iran.

Speaker #2: As we talked about in our letter, we have meaningful exposure to the Middle East, and we know the conflict will impact us. As such, our original financial guidance for 2026 is no longer reliable and we're temporarily withdrawing guidance until we have better visibility on the evolving conflict.

Speaker #2: We've seen these situations in the past, and while timing is a key factor, we know the demand is there and we are building inventory to serve customers when they are ready.

Speaker #2: Our strategic direction will not change during this uncertain time. We remain focused on product innovation, cost discipline, manufacturing transformation, and the growth of our wastewater business.

David Moon: We remain focused on product innovation, cost discipline, manufacturing transformation, and the growth of our wastewater business. With that, we will now move to the question-and-answer portion of our conference call. Operator, please open the line for questions.

Speaker #2: With that, we will now move to the question and answer portion of our conference call. Operator, please open the line for questions.

Speaker #3: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator 2: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment, please, while we poll for a question. Our first question comes from the line of Ryan Connors with Northcoast Research. Please proceed with your question.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment, please, while we poll for a question. Our first question comes from the line of Ryan Connors with Northcoast Research. Please proceed with your question.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Speaker #3: One moment, please, while we pull for a question. Our first question comes from the line of Ryan Connors with North Coast. Please proceed with your question.

Speaker #4: Thank you. Good afternoon.

Ryan Connors: Thank you. Good afternoon.

Speaker #2: Hey, Ryan.

David Moon: Hey, Ryan.

Speaker #4: So hi, David and congratulations on the retirement decision and Aidan, congratulations on the elevation. Actually, a quick question on that. Will the search lean internal or external, or is that just sort of everything's on the table in terms of your replacement, David?

Ryan Connors: Hi, David, and congratulations on the retirement decision.

David Moon: Thanks

Ryan Connors: Aidan, congratulations on the elevation. Actually, quick question on that. Will the search lean internal or external, or is that just sort of everything's on the table in terms of your replacement, David?

David Moon: Ryan, everything's on the table.

Speaker #2: Ryan, everything's on the table.

David Moon: Ryan, everything's on the table.

Ryan Connors: Mm-hmm. Okay. Then in terms of, you know, just unpacking the Middle East situation a little bit, I think we've got two different types of issues, right? One is a short-term delay. A project gets pushed out six, nine months. I think everyone's, that's totally, that's not a big deal even from a modeling standpoint. There's this sort of concern that the nature of this conflict and some of the images that were out there that people are seeing and potential investors in the region are seeing could kind of just sort of deflate confidence in the region for a little longer period and kind of just take away some of the growth economically and tourism and whatnot that underpins some of the project activity.

Speaker #4: Okay. And then in terms of just unpacking the Middle East situation a little bit, I think we've got two different types of issues, right?

Speaker #4: One is a short-term delay, a project gets pushed out six, nine months. I think everyone's that's totally that's not a big deal even from a modeling standpoint, but there's this sort of concern that the nature of this conflict and some of the images that were out there that people are seeing and potential investors in the region are seeing could kind of just sort of deflate confidence in the region for a little longer period and kind of just take away some of the growth economically and tourism and whatnot that underpins some of the project activity.

Speaker #4: I mean, I know you don't have a crystal ball either, but I'd love to get your take on that issue and whether the delays are likely to be the first sort or more of the second sort, which would be a little more concerning.

Ryan Connors: I mean, I know you don't have a crystal ball either, but what's I'd love to get your take on that issue and whether the delays are likely to be the first sort or more of the second sort, which would be a little more concerning.

Speaker #2: Yeah. So I think, Ryan, obviously it's still early days. But what we're hearing both internally and as we talk externally to other that are in the industry is that the project delays will be just that.

David Moon: Yeah, you know, I think Ryan, obviously it's still early days, but what we're hearing both internally and as we talk externally to others that are in the industry is that, you know, the project delays will be just that. There are likely to be some delays as we move from 2026 into 2027. That the fundamentals that are driving desalination and wastewater, but primarily desalination in the Middle East is water scarcity and water security, right? Populations continue to grow. Those aren't going away. While we may see some projects delay, you know, we still feel good about the long-term fundamentals of desalination.

Speaker #2: They're likely to be some delays as we move from '26 into '27. But fundamentals that are driving desalination and wastewater but primarily desalination in the Middle East is water scarcity and water security, right?

Speaker #2: And so populations continue to grow, those aren't going away. And so while we may see some projects delay, we still feel good about the long-term fundamentals of desalinization.

Speaker #4: Yep. Yeah. Yeah. We'll have to just keep track of it, I guess, as it plays out. Now. One of my questions.

Ryan Connors: Yep. Yeah. Yeah, we'll have to just keep track of it, I guess, as it plays out.

David Moon: And we're not-

David Moon: And we're not---- Ryan, we're not hearing anything that would tell us otherwise at this point.

Ryan Connors: One of my que-

Speaker #2: And Ryan, we're not hearing anything that would tell us otherwise at this point.

David Moon: Ryan, we're not hearing anything that would tell us otherwise at this point.

Speaker #4: Sure. One of my questions, David, you answered to some extent, which is I was going to ask how you're managing inventory and production schedules given that kind of uncertainty, but you did mention just there at the end of your prepared remarks that you're building inventory to be ready to serve customers.

Ryan Connors: Sure. One of my questions, David, you answered to some extent, which is I was gonna ask how you're managing inventory and production schedules given that kind of uncertainty. You did mention just there at the end of your prepared remarks that, you know, you're building inventory to be ready to serve customers. My question is twofold there. One is, you know, what gives you confidence to be building that inventory when things, you know, could push further right or not on a certain project? B, given the good news on the PX Q650 gaining traction, how do you know which inventory to build?

Speaker #4: So I guess that was my question as twofold there. One is what gives you confidence to be building that inventory when things could push further right or not on a certain project?

Speaker #4: And B, given the good news on the 650 gaining traction, how do you know which inventory to build? Because if some of these things are delayed a year or so, might you actually have the opportunity to try to spec in some of the 650s in place of what was supposed to go in, or is that just not feasible?

Ryan Connors: If some of these things are delayed, you know, a year or so, might you actually have the opportunity to try to spec in some of the Six Fiftys in place of what was supposed to go in, or is that just not not feasible?

Speaker #2: Yeah. I think the answer to that is yes, but we already know projects that are on the board over the next, well, sort of the 24 months that are Q400 spec and frankly are so far along in the design phase.

David Moon: Yeah, I think the answer to that is yes, we already know projects that are on the board over the next 12, sort of the 24 months that are Q400 spec, and frankly are so far along in the design phases, it's unlikely that those projects will change product. You know, given where we're at today, we've got a pretty good crystal ball of sort of the Q650 transition time. That's sort of number 1. Number 2 is that, you know, we saw the Q300, Q400 transition sort of take sort of 2-plus years to play out to get it to where, you know, the Q400 is our primary product today.

Speaker #2: It's unlikely that those projects will change product. And so we've got a pretty good given where we're at today, we've got a pretty good crust to ball of sort of the Q650 transition time.

Speaker #2: And so that's sort of number one. Number two is that we saw the Q300, Q400 transition sort of two-plus years to play out to get it to where the Q400 is our primary product today.

Speaker #2: And so we think it's going to take even with sort of this early momentum around the 650, we think it's going to a couple take a couple of years for the 650 to become our primary product.

David Moon: You know, we think it's going to take, even with sort of this early momentum around the Six Fifty, we think it's gonna take a couple of years for the Six Fifty to become our primary product. That's, you know, that's probably 2028 before we see that. You know, we feel pretty good about how many Q400s we need to be building over the next couple years and how many Six Fiftys that we should be building as well.

Speaker #2: And that's probably 2028 before we see that. So we feel pretty good about how many Q400s we need to be building over the next couple of years, and how many 650s that we should be building as well.

Speaker #4: Yep. Okay. And then my last one, and then I'll pass it on, is just obviously the delays are focused on the Middle East and the conflict.

Ryan Connors: Yep. Okay. My last one, then I'll pass it on. It's just obviously the, you know, the delays are focused on the Middle East and the conflict, but the conflict itself has led energy prices higher. Obviously, desal is very energy intensive no matter where on the globe people are doing it. Now, the PX device is gonna lower that energy footprint, but still, versus a few months ago, any project's gonna look a little more expensive. Is there any sign that there's, you know, any kinds of delays outside of the Middle East just given the higher energy cost spike?

Speaker #4: But the conflict itself has led energy prices higher obviously desalinizes very energy-intensive no matter where on the globe people are doing it. Now, the PX device is going to lower that energy footprint, but still versus a few months ago, any project's going to look a little more expensive.

Speaker #4: So is there any sign that there's any kinds of delays outside of the Middle East just given the higher energy cost spike?

Speaker #2: Yeah. That's a really good question. So the answer is no. Not to this point. We have seen a few delays in some wastewater projects.

David Moon: Yeah, that's a really good question. The answer is, no, not to this point. We have seen a few delays in some wastewater projects because of the cost, input cost of materials. But they've been small projects and pretty small scale. Nothing really at this point that would say desal projects in general globally are being impacted, even given sort of the high energy price at this point, are being impacted by the war. Now, TBD, right? If it continues. So far, the answer is no.

Speaker #2: Because of the cost, input cost of materials, and so but there have been small projects and pretty small scale. So nothing really at this point that would say desal projects in general globally are being impacted even given sort of the high energy price at this point are being impacted by the war.

Speaker #2: Now, TBD, right? If it continues. But so far, the answer is no.

Speaker #4: Understood. Very clear. Thanks for your time.

Ryan Connors: Understood. Very clear. Thanks for your time.

Speaker #2: Thank you, Ryan.

David Moon: Thank you, Ryan.

Speaker #4: Thank you. Our next question comes from the line of Ryan Finks with B-Riley Securities. Please proceed with your question.

Operator 2: Thank you. Our next question comes from the line of Ryan Pfingst with B. Riley Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Ryan Pfingst with B. Riley Securities. Please proceed with your question.

Ryan Pfingst: Hey, David. Thanks for taking my questions.

Speaker #5: Hey, David. Thanks for taking my questions.

Speaker #2: Sure, bud.

David Moon: Hi, Ryan. Sure bud.

Speaker #5: Hey. And maybe just to follow up to the last one, on the flip side, with the Middle East uncertainty, are there other geographic regions where you're particularly enthusiastic about project development on the mega project side?

Ryan Pfingst: Hey. Maybe just a follow-up to the last one. On the flip side, you know, with the Middle East uncertainty, are there other geographic regions where you're particularly enthusiastic about project development on the mega project side?

Speaker #2: Yeah. I think if you think about sort of the next two years, we're excited about China. And some of the desal activity that looks to be ramping up there.

David Moon: Yeah. I think if you think about sort of the next 2 years, we're excited about China, and some of the desal activity that looks to be ramping up there. I would say South America, which would be the sort of second area where we see some activity that's starting to pick up there. I think those are the sort of the 2 general areas. The third, I would say, is a wild card, would be Texas. You know, there's been a lot of talk about desal projects for the last 2 years. Should some of those projects really start to prove out and start to happen, that could be some really nice business for us. I would say those are sort of the 3 areas that we're watching pretty closely.

Speaker #2: And I would say South America, which would be the sort of second area where we see some activity that's starting to pick up there.

Speaker #2: So I think those are sort of the two general areas. The third, I would say, is the wild card would be Texas. There's been a lot of talk about desal projects.

Speaker #2: For the last couple of years, should some of those projects really start to prove out and start to happen, that could be some really nice business for us.

Speaker #2: And so I would say those are sort of the three areas that we're watching pretty closely.

Speaker #5: Got it. And then has there been any change or update to how you're thinking about your manufacturing footprint expansion globally just given the recent geopolitical events?

Ryan Pfingst: Got it. Then has there been any change or update to how you're thinking about your manufacturing footprint expansion globally, just given the recent geopolitical events?

Speaker #2: No. I think the strategic reasons for us looking in the Middle East are still the same regardless of conflicts, right? So first and foremost, it's our biggest base of business and looks like it will be over the next 5 to 10 years.

David Moon: No, I think, you know, the strategic reasons for us looking in the Middle East are still the same regardless of conflicts, right? First and foremost, it's our biggest base of business and looks like it will be over the next 5 to 10 years. That's sort of reason number 1, right? Reason number 2 is we've got customers there that are really, really pulling us for local content as it relates to building PXs on the ground. That's not going away in the near term. I think the third thing is that, you know, the sort of the icing on the cake would be the low cost benefits that we get by moving a manufacturing facility to the Middle East.

Speaker #2: And so that's sort of reason number one, right? Reason number two is we've got customers there that are really, really pulling us for local content as it relates to building PXs on the ground.

Speaker #2: And so we're really and so that's not going away. In the near term. And then I think the third thing is that the sort of the sort of the icing on the cake would be the low-cost benefits that we get by moving a manufacturing facility to the Middle East.

Speaker #2: And so, look, we continue to be full speed ahead in our planning. It's still our target by Q1 to be able to start manufacturing Q400s, assembling Q400s overseas.

David Moon: Look, we continue to be full speed ahead in our planning. You know, it's still our target by Q1 to be able to start manufacturing Q400s, assembling Q400s overseas. We continue to push down that path.

Speaker #2: And so, we continue to push down that path.

Speaker #5: Appreciate that. And then maybe just one more on wastewater the prior 2026 outlook, was 10 to 15 million in revenue. Is that still how you're thinking about wastewater revenue for this year or to reconsider that on hold as well?

Ryan Pfingst: Appreciate that. Maybe just one more on wastewater. The prior 2026 outlook was $10 to 15 million in revenue. Is that still how you're thinking about wastewater revenue for this year, or to reconsider that on hold as well?

Speaker #3: So we are pausing hey, Ryan. This is Hayden. We are pausing our guidance on both desalination and wastewater so we're not going to comment specifically, but there's a lot of good things going on in wastewater.

Aidan Ryan: Hey, hey, Ryan, this is Aidan. We are pausing our guidance on both desalination and wastewater. We're not gonna comment specifically, but there's a lot of good things going on in wastewater. We also have some challenges, like David mentioned. We look to update that when we update our overall guidance, hopefully here in Q2 or Q3.

Speaker #3: We also have some challenges like David mentioned. And we look to update that when we update our overall guidance, hopefully here in Q2 or Q3.

Speaker #5: Got it. Appreciate it, guys. I'll turn it back.

Ryan Pfingst: Got it. Appreciate it, guys. I'll turn it back.

Speaker #2: Thank you.

David Moon: Thank you.

Speaker #4: Thank you. Our next question comes from the line of Larry Solo with CJS Securities. Please proceed with your question.

Operator 2: Thank you. Our next question comes from the line of Larry Solow with CJS Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Larry Solow with CJS Securities. Please proceed with your question.

Speaker #6: Yes, hi. It's Pete Lucas on for Larry. You covered a lot in your previous—hi, you covered a lot in your previous answers. I guess just one for me.

Peter Lucas: Yes. Hi, it's Peter Lucas, on for Larry. You covered a lot.

Pete Lucas: Yes. Hi, it's Peter Lucas, on for Larry. You covered a lot.

David Moon: Hey, Pete.

Peter Lucas: Hi. You covered a lot in your previous answers. I guess just one from me. Given the short-term uncertainty, how do you think about cost-cutting as a lever to pull to maintain, you know, free cash flow? How should we think about that as an option for you?

David Moon: Hey, Pete.

Pete Lucas: Hi. You covered a lot in your previous answers. I guess just one from me. Given the short-term uncertainty, how do you think about cost-cutting as a lever to pull to maintain, you know, free cash flow? How should we think about that as an option for you?

Speaker #6: Given the short-term uncertainty, how do you think about cost-cutting as a lever to pull to maintain free cash flow and how should we think about that as an option for you?

Speaker #3: Yeah. Some of those things are definitely part of the existing plans as we highlighted in the shareholder letter focus is on maintaining cost discipline.

Aidan Ryan: Yeah, some of those things are definitely part of the existing plans. As we highlighted in the shareholder letter, focus is on maintaining cost discipline. We've talked about reducing manufacturing costs domestically with lean Kaizen programs. David just talked about the manufacturing footprint strategy. That is part of our plans to reduce cost, and we're always focused on that.

Speaker #3: So we've talked about reducing manufacturing costs domestically with lean and Kaizen programs David just talked about the manufacturing footprint strategy that is part of our plans to reduce cost.

Speaker #3: And we're always focused on that.

Speaker #2: Yeah. I would say the other thing, Pete, is that we did a major reduction in forest last year. We did a reduction in forest to start the beginning of this year.

David Moon: Yeah, I would say the other thing, Pete, is that, you know, we did a major reduction in force last year. We did a reduction in force to start the beginning of this year. You know, as we think about further cost-cutting in SG&A, other than the belt-tightening and continuing to sort of trim around the edges, there's not a lot of big one-time opportunities left. I think we've done a pretty good job of reducing there where we had the opportunity. I think where we see opportunities going forward is really, you know, productivity gains at the factory and sort of continuing to get smarter where we work in our SG&A to the extent that there are opportunities. Sort of no big-time opportunities left.

Speaker #2: And so as we think about further cost-cutting and SG&A, other than the belt tightening, and continuing to sort of trim around the edges, there's not a lot of big one-time opportunities left.

Speaker #2: I think we've done a pretty good job of reducing there where we had the opportunity. So I think where we see opportunities going forward is really productivity gains in the factory and sort of continuing to get smarter where we work in our SG&A to the extent that there are opportunities.

Speaker #2: But sort of no big-time opportunities left.

Speaker #6: Very helpful. That's it for me. Thanks.

Peter Lucas: Very helpful. That's it for me. Thanks.

Pete Lucas: Very helpful. That's it for me. Thanks.

Speaker #2: Thank you.

David Moon: Thank you.

Speaker #4: Thank you. And we have reached the end of the question-and-answer session. I would like to turn the floor back over to CEO David Moon for closing remarks.

Operator 2: Thank you. We have reached the end of the question and answer session. I would like to turn the floor back over to CEO David Moon for closing remarks.

Operator: Thank you. We have reached the end of the question and answer session. I would like to turn the floor back over to CEO David Moon for closing remarks.

Speaker #2: Thank you, Operator. So I just wanted just to repeat what I had said in my opening remarks. Our strategic direction will not change during this uncertain time.

David Moon: Thank you, operator. I just want to repeat what I had said in my opening remarks. You know, our strategic direction will not change during this uncertain time. We will remain focused on product innovation. I think we've proven that with the PX Q650. We've got more products on the drawing board as we move forward. Cost discipline, our manufacturing transformation efforts both here and overseas, and then the growth of our wastewater business are all things that we'll remain focused on as we move throughout the year. Thank you, operator.

Speaker #2: We will remain focused on product innovation, I think we've proven that with the Q650. We've got more products on the drawing board as we move forward.

Speaker #2: Cost discipline our manufacturing transformation efforts both here and overseas. And then the growth of our wastewater business are all things that will remain focused on as we move throughout the year.

Speaker #2: Thank you, Operator.

Speaker #4: Thank you. And this concludes today's conference. And you may disconnect your line at this time. We thank you for your participation.

Operator 2: Thank you. This concludes today's conference, and you may disconnect your line at this time. We thank you for your participation.

Operator: Thank you. This concludes today's conference, and you may disconnect your line at this time. We thank you for your participation.

David Moon: Goodbye.

Operator: Goodbye.