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Ecolab Stock Down in Pre-Market Post Q2 Earnings Miss, Margins Expand
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Key Takeaways
ECL reported Q2 adjusted EPS of $1.89, up 12.5% year over year but missing estimates by $0.01.
Revenues rose 0.9% to $4.03 billion, topping estimates, with organic sales up 2.8% on segmental growth.
Gross margin expanded 100 bps to 44.8%, and operating margin rose 147 bps to 18.3% in the quarter.
Ecolab Inc. (ECL - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.89, up 12.5% year over year. However, the bottom line missed the Zacks Consensus Estimate by a penny.
GAAP EPS for the quarter was $1.84, up 7.6% year over year.
ECL’s Revenue Details
Revenues grossed $4.03 billion in the reported quarter, up 0.9% year over year. The metric topped the Zacks Consensus Estimate by 0.4%.
Ecolab’s organic sales were $3.88 billion, up 2.8% from the prior-year period’s level.
The year-over-year uptick in the second quarter of 2025 organic sales was driven by continued strong growth in the Institutional & Specialty, Pest Elimination and Life Sciences segments.
Shares of this company lost nearly 2.9% in today’s pre-market trading.
Ecolab’s Segmental Analysis
The Global Water segment’s fixed currency sales of $1.91 billion reflect 2.4% reported growth year over year. Organic sales were $1.89 billion, up 1.7% year over year, reflecting accelerating Food & Beverage sales growth and continued solid growth in Light & Heavy, which was partially offset by lower Paper sales.
The Global Institutional & Specialty arm’s fixed currency sales of $1.51 billion reflect a decline of 2.4% on a reported basis year over year. This resulted from the sale of the global surgical solutions business last year. Organic sales were $1.51 billion, up 3.5% year over year.
The Global Pest Elimination segment’s fixed currency sales of $311.3 million improved 7.3% year over year on a reported basis. Organic sales were $308.1 million, up 6.2% year over year. Improved organic sales growth was led by good gains in food & beverage, restaurants, healthcare and food retail, which continue to benefit from the One Ecolab growth strategy.
The Global Life Sciences arm’s fixed currency sales and organic sales were $176.7 million each, reflecting growth of 4.1% year over year, both on a reported and organic basis. Per management, year-over-year fixed currency sales and organic sales reflected double-digit growth in bioprocessing and pharmaceutical & personal care, which offset softer industrial water purification sales that were constrained by production limitations.
In the quarter under review, Ecolab’s gross profit improved 3.3% year over year to $1.80 billion. The gross margin expanded 100 basis points (bps) to 44.8%.
Selling, general and administrative expenses declined 0.7% to $1.07 billion year over year.
Adjusted operating profit totaled $734.7 million, increasing 9.8% from the prior-year quarter’s level. Adjusted operating margin in the quarter also expanded 147 bps to 18.3%.
Ecolab’s Financial Position
Ecolab exited second-quarter 2025 with cash and cash equivalents of $1.92 billion compared with $1.16 million at the end of the first quarter. Total debt at the end of second-quarter 2025 was $8.21 billion compared with $7.61 billion at the first-quarter end.
Meanwhile, Ecolab has a consistent dividend-paying history, with a five-year annualized dividend growth of 6.86%.
ECL’s Guidance
Ecolab has provided its adjusted EPS outlook for the third quarter of 2025 and reiterated its outlook for the full year.
The company expects its adjusted EPS for the third quarter to be in the range of $2.02 to $2.12, up 10-16% from the year-ago period. The Zacks Consensus Estimate is currently pegged at $2.09.
For 2025, Ecolab expects its adjusted EPS in the range of $7.42-$7.62 (reflecting an uptick of 12-15% from the comparable 2024 period). The Zacks Consensus Estimate is currently pegged at $7.50 per share.
Our Take on Ecolab
Ecolab exited the second quarter of 2025 with better-than-expected revenues. The company registered a robust year-over-year uptick in its top and bottom lines, along with solid performances across the majority of its segments. The expansion of both margins bodes well for the stock.
Per management, Institutional & Specialty and Global Water segments delivered solid growth, outperforming end-market trends as ECL benefited from share gains supported by the One Ecolab growth strategy, breakthrough innovation and strong value pricing. The company’s growth engines (which include Life Sciences, Pest Elimination, Global High-Tech and Ecolab Digital) collectively grew sales in double digits. This looked promising for the stock.
However, the lower-than-expected earnings and the decline in Ecolab’s Global Institutional & Specialty arm’s reported revenues, reflecting the sale of the global surgical solutions business, were disappointing.
ECL’s Zacks Rank and Key Picks
Ecolab currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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Ecolab Stock Down in Pre-Market Post Q2 Earnings Miss, Margins Expand
Key Takeaways
Ecolab Inc. (ECL - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.89, up 12.5% year over year. However, the bottom line missed the Zacks Consensus Estimate by a penny.
GAAP EPS for the quarter was $1.84, up 7.6% year over year.
ECL’s Revenue Details
Revenues grossed $4.03 billion in the reported quarter, up 0.9% year over year. The metric topped the Zacks Consensus Estimate by 0.4%.
Ecolab’s organic sales were $3.88 billion, up 2.8% from the prior-year period’s level.
The year-over-year uptick in the second quarter of 2025 organic sales was driven by continued strong growth in the Institutional & Specialty, Pest Elimination and Life Sciences segments.
Shares of this company lost nearly 2.9% in today’s pre-market trading.
Ecolab’s Segmental Analysis
The Global Water segment’s fixed currency sales of $1.91 billion reflect 2.4% reported growth year over year. Organic sales were $1.89 billion, up 1.7% year over year, reflecting accelerating Food & Beverage sales growth and continued solid growth in Light & Heavy, which was partially offset by lower Paper sales.
The Global Institutional & Specialty arm’s fixed currency sales of $1.51 billion reflect a decline of 2.4% on a reported basis year over year. This resulted from the sale of the global surgical solutions business last year. Organic sales were $1.51 billion, up 3.5% year over year.
The Global Pest Elimination segment’s fixed currency sales of $311.3 million improved 7.3% year over year on a reported basis. Organic sales were $308.1 million, up 6.2% year over year. Improved organic sales growth was led by good gains in food & beverage, restaurants, healthcare and food retail, which continue to benefit from the One Ecolab growth strategy.
The Global Life Sciences arm’s fixed currency sales and organic sales were $176.7 million each, reflecting growth of 4.1% year over year, both on a reported and organic basis. Per management, year-over-year fixed currency sales and organic sales reflected double-digit growth in bioprocessing and pharmaceutical & personal care, which offset softer industrial water purification sales that were constrained by production limitations.
Ecolab Inc. Price, Consensus and EPS Surprise
Ecolab Inc. price-consensus-eps-surprise-chart | Ecolab Inc. Quote
ECL’s Margin Analysis
In the quarter under review, Ecolab’s gross profit improved 3.3% year over year to $1.80 billion. The gross margin expanded 100 basis points (bps) to 44.8%.
Selling, general and administrative expenses declined 0.7% to $1.07 billion year over year.
Adjusted operating profit totaled $734.7 million, increasing 9.8% from the prior-year quarter’s level. Adjusted operating margin in the quarter also expanded 147 bps to 18.3%.
Ecolab’s Financial Position
Ecolab exited second-quarter 2025 with cash and cash equivalents of $1.92 billion compared with $1.16 million at the end of the first quarter. Total debt at the end of second-quarter 2025 was $8.21 billion compared with $7.61 billion at the first-quarter end.
Meanwhile, Ecolab has a consistent dividend-paying history, with a five-year annualized dividend growth of 6.86%.
ECL’s Guidance
Ecolab has provided its adjusted EPS outlook for the third quarter of 2025 and reiterated its outlook for the full year.
The company expects its adjusted EPS for the third quarter to be in the range of $2.02 to $2.12, up 10-16% from the year-ago period. The Zacks Consensus Estimate is currently pegged at $2.09.
For 2025, Ecolab expects its adjusted EPS in the range of $7.42-$7.62 (reflecting an uptick of 12-15% from the comparable 2024 period). The Zacks Consensus Estimate is currently pegged at $7.50 per share.
Our Take on Ecolab
Ecolab exited the second quarter of 2025 with better-than-expected revenues. The company registered a robust year-over-year uptick in its top and bottom lines, along with solid performances across the majority of its segments. The expansion of both margins bodes well for the stock.
Per management, Institutional & Specialty and Global Water segments delivered solid growth, outperforming end-market trends as ECL benefited from share gains supported by the One Ecolab growth strategy, breakthrough innovation and strong value pricing. The company’s growth engines (which include Life Sciences, Pest Elimination, Global High-Tech and Ecolab Digital) collectively grew sales in double digits. This looked promising for the stock.
However, the lower-than-expected earnings and the decline in Ecolab’s Global Institutional & Specialty arm’s reported revenues, reflecting the sale of the global surgical solutions business, were disappointing.
ECL’s Zacks Rank and Key Picks
Ecolab currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.