Ecolab (ECL) Q4 2025 earnings summary

Executive summary

• Achieved record sales, margins, EPS, and free cash flow in 2025, with strong momentum entering 2026 and double-digit EPS growth; Q4 adjusted diluted EPS was $2.08, up 15% year-over-year.

• Organic sales grew 3% in Q4, with value pricing and positive volume growth across most businesses; growth engines now represent 20% of the portfolio, growing double digits.

• Strong performance in Food & Beverage, Pest Elimination, Life Sciences, and High-Tech, with robust growth in digital and innovation-driven solutions.

• Focused on rapidly growing total value delivered, accelerating the One Ecolab initiative, and fueling growth engines.

Financial highlights

• Q4 organic operating income grew 12%, with OI margin expanding 140–150 bps to 18.5%; reported operating income margin reached 17.0%.

• Q4 reported sales: $4.2 billion (+5% year-over-year); organic sales up 3%.

• Adjusted diluted EPS for Q4 was $2.08, up 15% year-over-year; full-year 2025 adjusted diluted EPS: $7.53 (+13%).

• Cash from operations for the year was $2,952.6 million, up from $2,813.9 million last year.

• CapEx expected to be around 7% of sales in 2026, supporting growth and innovation.

Outlook and guidance

• 2026 adjusted diluted EPS expected at $8.43–$8.63 (+12% to 15%), including Ovivo acquisition impact.

• 2026 reported sales growth expected at 7%-9% and organic sales growth at 3%-4%.

• OI margin expected to expand 100-150 bps to over 19% in 2026, driving 14%-16% OI growth and 12%-15% EPS growth.

• Q1 2026 adjusted diluted EPS guidance: $1.67–$1.73 (+11% to 15%).

• FX impact expected to be neutral for 2026; tax rate to rise to 20.5%-21.5%.