Energy Recovery (ERII) shares are skyrocketing in pre-market trading, surging 9.99% following two significant announcements that have bolstered investor confidence. The company's board has approved a new share repurchase program and reported strong second-quarter results for 2025.

The primary catalyst for the stock's dramatic rise appears to be the announcement of a new share buyback program. Energy Recovery's board has greenlit a one-year share repurchase plan of up to $25 million, set to commence this month. This move follows the successful completion of two buyback programs over the past year - a $50 million program announced in November and a $30 million repurchase unveiled in February. The consistent implementation of share repurchase programs signals the company's robust financial position and management's confidence in the stock's value.

Adding to the positive sentiment, Energy Recovery also released its Q2 2025 earnings report, revealing a strong performance for the quarter. While specific details were not provided, the company's characterization of the results as "strong" suggests that Energy Recovery has likely met or exceeded market expectations. This combination of a new buyback program and impressive quarterly results has evidently excited investors, driving the stock's nearly 10% pre-market surge on Thursday.