Ecolab (ECL) investor relations material

Executive summary

• Achieved double-digit adjusted EPS growth of 13% year-over-year, with reported diluted EPS at $1.52 and adjusted diluted EPS at $1.70, and organic sales up 4% driven by strong pricing and volume growth.

• Reported sales increased 10% to $4.1 billion, led by Life Sciences, Global High-Tech, Institutional, and Specialty segments.

• Operating income margin expanded, with adjusted operating income margin up 70 bps to 16.7%, supported by disciplined execution and growth in High-Tech, Life Sciences, Pest Elimination, and Digital.

• Core portfolio performed well, with Institutional and Specialty segments gaining share and Food & Beverage growing mid-single digits.

• Underperforming segments like paper and heavy water stabilized, shifting the portfolio toward higher margin, higher growth markets.

Financial highlights

• Reported sales: $4,066.1M (+10% year-over-year); organic sales: $3,957.3M (+4%).

• Adjusted diluted EPS grew 13% year-over-year to $1.70; reported EPS at $1.52.

• Adjusted operating income: $679.7M (+15%); reported operating income: $622.0M (+12%).

• Adjusted operating income margin: 16.7% (+70 bps); adjusted gross margin: 43.8%.

• SG&A as % of sales improved by 130 bps to 27.1%, driving strong leverage year-over-year.

Outlook and guidance

• Maintains 2026 adjusted diluted EPS outlook of $8.43–$8.63 (+12%–15% year-over-year), excluding pending CoolIT Systems acquisition.

• Organic sales growth expected to accelerate to 6%–7% in the second half of 2026, stabilizing gross margin.

• Adjusted operating income margin projected to expand to ~19% in 2026.

• Q2 2026 adjusted diluted EPS expected at $2.02–$2.12 (+7%–12% year-over-year).

• CoolIT acquisition expected to reduce quarterly EPS by ~$0.20 in the second half, but underlying EPS growth remains on track.