Energy Recovery, Inc.

Good day, ladies and gentlemen, and welcome to Energy Recovery's second quarter 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. 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. 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, August 5, 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. Our hosts for today's call are Alex Buehler, Interim 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. Buehler.

Thank you, Operator. Good afternoon, 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. Prior to opening the line for questions and answers, I'd like to highlight a few important takeaways from that letter. We are focused on bringing our CEO search to a close and have been impressed with the breadth and the quality of the candidate pool. The combination of energy recovery's long-term tailwinds, technology leadership, and platform strength have allowed us to attract accomplished leaders who are ready to lead our next chapter of growth. We look forward to updating you further as this search progresses. As interim CEO, I'm focused on ensuring the successful execution of our business initiatives and continuity with our customers and employees during this search process. In addition to my past career across water, energy, and infrastructure services, I have also had the privilege of serving on Energy Recovery's board for over a decade. With this background, I am ensuring that we keep pace on growth, innovation, manufacturing transformation, and capital discipline. Moving now to our outlook, we sit in attractive end markets with durable structural growth in the high stable digits. While the war has temporarily impacted us and clouded our visibility, we are confident in our long-term pipeline and a return to growth as these headwinds pass. Lastly, we've demonstrated our discipline in operating costs this year, and that practice will continue. In addition to a steady pace of improvements in overhead efficiency, our ongoing manufacturing transformations will provide significant cost improvement when our new facility in Saudi Arabia achieves planned run rate production. With that, we will now move to the question and answer portion of our conference call. Operator, please open the line for questions.

Thank you. We will now be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. Confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question is from Ryan Finkst with B. Reilly Securities. Please proceed with your question.