Ecolab third-quarter sales rise 13% to $4.69 billion as organic growth hits 7%

Ecolab Inc. (ECL) said Tuesday in a regulatory filing that third-quarter reported net sales rose 13% to $4,694.8 million, and that organic sales growth accelerated to 7%.

Reported net income attributable to Ecolab decreased 6% to $551.3 million, and reported diluted earnings per share were $1.95, down 5% from a year earlier. Adjusted diluted earnings per share rose 5% to $2.18.

Here's how the company did:

• Reported diluted EPS: $1.95 vs. $2.05 a year earlier
• Adjusted diluted EPS: $2.18 vs. $2.07 a year earlier
• Net sales: $4,694.8 million vs. $4,165.0 million a year earlier
• Adjusted operating income: $893.4 million vs. $786.7 million a year earlier

Reported operating income rose 7% to $810.5 million. Adjusted operating income rose 14% to $893.4 million, and the company said the adjusted figures exclude special gains and charges.

Organic sales, which strip out currency and acquisitions, rose 7% to $4,452.3 million from $4,174.9 million.

Organic operating income grew 11% to $872.1 million. The organic operating income margin was 19.6%, up 70 basis points.

The reported operating income margin was 17.3%, down 100 basis points from a year earlier.

Growth was led by Global High-Tech, which grew 63% organically, and Life Sciences, which grew 17% organically. Reported sales growth also reflected the acquisitions of Ovivo Electronics and CoolIT.

The company said the two acquisitions are expected to add about two percentage points to annual organic sales growth one year after close. CoolIT acquisition-related amortization and financing costs reduced third-quarter adjusted EPS growth by an approximate 10 percentage points.

Chairman, president and chief executive officer Christophe Beck said, “Third quarter results marked an inflection point in Ecolab's performance.”

Global Water, which includes High-Tech, Food & Beverage, Light Water, Heavy Water and Paper, had fixed-currency sales of $2,479.6 million, up 20%. Organic sales rose 9%.

Global Institutional & Specialty sales rose 3% to $1,638.3 million. Organic operating income grew 8%.

Global Pest Elimination sales rose 9% to $363.5 million at fixed currency, with organic sales up 8%. Organic operating income rose 7%.

Global Life Sciences sales rose 17% to $215.8 million, and operating income rose 49% to $50.2 million.

Ecolab Digital sales rose 34% to $129 million, with growth in both enabling hardware subscriptions and software.

Corporate transformational acquisition amortization was $79.1 million, up from $50.0 million. Special gains and charges were a net charge of $82.9 million, primarily related to acquisition and integration costs.

Reported net interest expense rose $70 million, reflecting the financing of the Ovivo Electronics and CoolIT acquisitions. The reported income tax rate was 20.2%, compared with 17.8% a year earlier.

The company said currency translation was neutral to adjusted diluted EPS in the third quarter.

For the first nine months, net sales were $13,176.3 million, compared with $11,885.2 million a year earlier. Nine-month adjusted diluted EPS was $5.97, compared with $5.46.

For full-year 2026, the company expects adjusted diluted EPS of $8.10 to $8.20, rising 8% to 9% from last year. The range includes an approximate 6 percentage point short-term headwind from CoolIT acquisition-related amortization and financing costs.

For the fourth quarter, the company expects reported sales to rise 12% to 14%, with organic sales growth of 6% to 7%. Adjusted diluted EPS is expected at $2.13 to $2.23, rising 2% to 7% from $2.08 a year ago.

The company expects fourth-quarter adjusted operating income margin of about 19% and organic operating income margin of about 20%. It also anticipates an approximate 12 percentage point short-term headwind from CoolIT costs in the quarter.

The company expects quantifiable special charges of about $0.83 per share in 2026, principally restructuring and acquisition and integration costs. It expects about $0.26 per share in the fourth quarter. Other such amounts are not currently quantifiable.

Beck said, “We are entering 2027 with momentum and confidence in our ability to deliver another very strong year.”

The company expects 2027 organic sales to grow at the upper end of its 5% to 7% target, with an adjusted operating income margin of 20%. Its long-term adjusted EPS growth target is 12% to 15%.