Ecolab Inc.
ECL · NYSE
Dec 2026
Next quarter
Expected to report Feb 9, 2027 — estimated from last year’s reporting date.
Consensus is $2.19 EPS for Dec 2026 across 8 estimates, ranging $2.18 to $2.21.
ECL Sep 2026
- 0.00%
- $2.18
- $2.18
- —
- $4.69B
Reported results
- $4.69B
- 44.08%
- $810.50M
- 17.26%
- $551.30M
- $1.95
Highlights
- Organic growth accelerated: Q3 net sales were $4.695 billion, up 13% year over year; organic sales growth accelerated to 7%, with volume up 2% and pricing up 5% despite Middle East disruption.
- Adjusted EPS met expectations: Adjusted diluted EPS of $2.18 matched consensus, rose 5% from $2.07 a year ago and increased from $2.09 in Q2; reported EPS was $1.95, down 5% year over year.
- Underlying operating leverage improved: Organic operating income grew 11% to $872 million and organic operating margin expanded 70 basis points to 19.6%; adjusted operating income rose 14% to $893 million.
- Global High-Tech surged: Organic sales grew 63%, while Life Sciences grew 17%; Ecolab Digital sales increased 34% to $129 million.
- Core businesses broadened the advance: Food & Beverage organic growth accelerated to 8%, Light Water reached 5%, and Heavy Water and Paper returned to growth. Institutional & Specialty grew 3% despite mid-single-digit declines in North American restaurant foot traffic.
- Acquisitions added scale and near-term cost: Ovivo Electronics and CoolIT contributed to Global Water’s 20% fixed-currency sales growth, alongside 9% organic growth; their amortization and financing costs were an estimated 10% headwind to adjusted EPS growth.
- Gross margin held organically: Organic gross margin was 44.9%, versus 44.8% a year ago, as pricing offset higher commodity costs; adjusted gross margin was 44.1%, down 70 basis points, reflecting M&A effects.
- Outlook points to continued growth: Ecolab expects 2026 adjusted EPS of $8.10-$8.20, up 8%-9%, and Q4 adjusted EPS of $2.13-$2.23, up 2%-7%; management sees 2027 organic sales growth at the upper end of its 5%-7% target and adjusted operating margin reaching 20%.
Analysis
Ecolab’s third quarter showed the sales and operating acceleration management had flagged as an inflection point. Revenue of $4.695 billion rose 13% year over year from $4.165 billion and about 6% sequentially from $4.42 billion in Q2. Organic growth accelerated to 7%, driven by 5% pricing and 2% volume. Adjusted diluted EPS of $2.18 met consensus, increased 5% from $2.07 a year ago and rose from $2.09 in Q2. Reported EPS was $1.95, down 5% year over year, reflecting special charges and higher acquisition-related costs.
The defining feature was the combination of broader core-business improvement and exceptional growth in newer platforms. Organic operating income grew 11%, with organic operating margin expanding 70 basis points to 19.6%; organic gross margin was essentially stable at 44.9% despite higher commodities. Global High-Tech grew 63% organically and Life Sciences 17%, while Food & Beverage accelerated and Heavy Water and Paper returned to growth. Ovivo and CoolIT helped lift reported sales but also brought higher amortization and financing costs: net interest expense rose to $124.8 million from $55.3 million, and management estimated a 10% headwind to adjusted EPS growth. Ecolab maintained its 2026 adjusted EPS outlook of $8.10-$8.20 and sees further growth and margin progress in 2027.
Operating acceleration
- Sales mix: Reported sales increased 13% to $4.695 billion, while organic sales grew 7%. Volume growth reached 2% and pricing accelerated to 5%; management said Middle East disruptions weighed on growth.
- Operating leverage: Organic operating income rose 11% to $872.1 million and organic operating margin expanded to 19.6% from 18.9%. Adjusted operating income increased 14% to $893.4 million, with sales growth and productivity more than offsetting investment and commodity costs.
- Margin quality: Organic gross margin was 44.9%, up from 44.8% a year ago, as pricing offset higher commodities. Adjusted gross margin was 44.1%, down 70 basis points, which the company attributed to M&A effects. Reported operating income increased 7% to $810.5 million, including special charges.
High-Tech and acquisitions
- Global High-Tech: Organic sales rose 63%, reflecting growth in both microelectronics and data-center cooling. Management cautioned that this pace is not a steady-state expectation, as equipment deliveries can make quarterly growth uneven.
- Acquisition contribution: Ovivo Electronics and CoolIT helped Global Water fixed-currency sales rise 20%, with acquisitions contributing 11 percentage points and organic growth contributing 9%. Ecolab expects the two acquisitions together to add about 2 percentage points to annual organic sales growth one year after close.
- Growth platform: Management said CoolIT is expected to more than double 2026 sales versus its pre-acquisition level, while Ovivo is expected to grow at a mid-teens rate. The company is adding capacity and integrating the businesses; cross-selling opportunities are still ahead, not a driver of this quarter’s growth.
Core portfolio
- Global Water: Organic growth accelerated across the portfolio: Food & Beverage grew 8% and Light Water 5%; Heavy Water and Paper returned to growth. Global Water organic operating income grew 9%.
- Institutional & Specialty: Organic sales grew 3%, as pricing, new business and Specialty share gains offset softer market conditions. North American restaurant foot traffic declined at a mid-single-digit rate. The segment’s organic operating income rose 8%, and Ecolab plans to expand North American sales capacity and integrate service across customer segments.
- Other growth engines: Life Sciences organic sales increased 17%, supported by share gains in bioprocessing, personal care and purification; organic operating income rose 49%, partly against a prior-year plant-maintenance comparison. Pest Elimination grew 8% organically, while Ecolab Digital sales rose 34% to $129 million.
Earnings and acquisition costs
- Adjusted versus reported: Adjusted diluted EPS of $2.18 grew 5% year over year, while reported diluted EPS of $1.95 declined 5%. Adjusted net income rose 4% to $615.4 million; reported net income fell 6% to $551.3 million.
- Financing and amortization: Net interest expense increased to $124.8 million from $55.3 million, reflecting acquisition financing. Corporate expense included $79.1 million of acquired-intangible amortization, including $20 million related to CoolIT and $10 million related to Ovivo Electronics.
- Special items: The quarter included $82.9 million of net special charges, primarily acquisition and integration costs, compared with $26.5 million a year earlier. Management estimated CoolIT-related amortization and financing costs reduced adjusted EPS growth by about 10%.
Guidance and 2027
- 2026 outlook: Ecolab kept its adjusted EPS range at $8.10-$8.20, growth of 8%-9%. The outlook includes an estimated 6-percentage-point headwind to adjusted EPS growth from CoolIT-related amortization and financing costs.
- Fourth quarter: The company expects reported sales growth of 12%-14%, organic sales growth of 6%-7%, adjusted operating margin of about 19% and organic operating margin of about 20%. Adjusted EPS is forecast at $2.13-$2.23, up 2%-7%, including an estimated 12-percentage-point headwind from CoolIT costs.
- 2027 expectations: Management expects organic sales growth at the upper end of its 5%-7% target and adjusted operating margin to reach 20%. It expects adjusted EPS growth to accelerate in the second half as acquisition impacts are lapped, with a stated path to meet or exceed the long-term 12%-15% adjusted EPS growth target.
