Ecolab (ECL) Q4 2025 earnings summary

Executive summary

• Achieved record sales, operating income margin, EPS, and free cash flow in 2025, with strong momentum entering 2026.

• Q4 adjusted diluted EPS grew 15% year-over-year, driven by accelerating sales and significant margin expansion.

• 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 with high margins.

• Strong performance in Food & Beverage, Pest Elimination, and Life Sciences, while Specialty and Global High-Tech maintained robust growth.

Financial highlights

• Organic operating income grew 12% in Q4, with margin expanding 140 bps to 18.5%.

• Full-year operating income margin reached 18%, up 150 bps year-over-year.

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

• Adjusted diluted EPS for the quarter was $2.08, up 15% year-over-year.

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

Outlook and guidance

• 2026 adjusted diluted EPS expected at $8.43–$8.63 (+12% to 15%), including a $0.13 per share impact from Ovivo Electronics amortization.

• 2026 reported sales expected to rise 7%–9%; organic sales up 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%.