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Ecolab (ECL) Up 2.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Ecolab (ECL - Free Report) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ecolab due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Ecolab Q1 Earnings In-Line, Revenues Up Y/Y, Gross Margin Down
Ecolab has reported fourth-quarter 2025 adjusted earnings per share of $2.08, up 14.9% year over year. The bottom line surpassed the Zacks Consensus Estimate by 0.8%.
GAAP earnings per share for the quarter was $1.98, up 19.3% year over year.
Full-year adjusted earnings per share was $7.53, reflecting a 13.2% increase from the year-ago period. The metric topped the Zacks Consensus Estimate by a penny.
ECL’s Revenue Details
Revenues grossed $4.19 billion in the reported quarter, up 4.8% year over year. The metric topped the Zacks Consensus Estimate by 0.1%.
Ecolab’s organic sales were $4 billion, up 2.9% from the prior-year period.
Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.
Full-year revenues were $16.08 billion, reflecting a 2.2% improvement from the year-ago period on a reported basis (up 3% on an organic basis). The metric lagged the Zacks Consensus Estimate by 0.2%.
Ecolab’s Segmental Analysis
The Global Water segment’s fixed currency sales of $2.02 billion marked 2.5% year-over-year growth. Organic sales were $2 billion, up 2.2% year over year. The segment’s underlying sales grew mid-single digits, excluding Basic Industries and Paper. Light & Heavy’s progress was led by strength in Global High-Tech, improved growth in downstream and solid gains in manufacturing, which offset softer sales in Basic Industries. Robust new business gains in Food & Beverage, which leveraged the One Ecolab growth strategy, drove a further acceleration in sales growth. Lower Paper sales reflected new business wins that were offset by soft customer production rates.
The Global Institutional & Specialty arm’s fixed currency sales were $1.49 billion, a year-over-year uptick of 2.8% on a reported basis. Organic sales were also $1.49 billion, up 2.7% year over year. Institutional unit’s underlying performance reflected good growth with hospitality customers and modestly higher sales to hospitals. Specialty unit delivered continued strong sales growth, driven by robust new business wins and continued value pricing.
The Global Pest Elimination segment’s fixed currency sales of $307.2 million improved 6.7% year over year on a reported basis. Organic sales were $306.8 million, up 6.6% year over year. Strong organic sales growth was led by robust gains in food & beverage, restaurants 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 $191.4 million each, reflecting year-over-year growth of 6.5% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by continued double-digit growth in bioprocessing and strong growth in pharmaceutical & personal care despite ongoing capacity constraints within Life Sciences’ industrial water purification business.
ECL’s Q4 Margin Analysis
In the quarter under review, Ecolab’s gross profit improved 6.4% year over year to $1.85 billion. The gross margin expanded 69 basis points (bps) to 44%.
Selling, general and administrative expenses increased 1% year over year to $1.06 billion.
Adjusted operating profit totaled $786.6 million, increasing 14.6% from the prior-year quarter. The adjusted operating margin in the quarter expanded 162 bps to 18.7%.
Ecolab’s Financial Position
The company exited fourth-quarter 2025 with cash and cash equivalents of $646.2 million compared with $1.96 billion at the end of the third quarter. Total debt at the end of fourth-quarter 2025 was $8.24 billion compared with $8.07 billion at third-quarter end.
Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.09%.
ECL’s Guidance for Q1 & 2026
Ecolab has provided its outlook for the first quarter and has initiated the full-year 2026 guidance.
The company expects adjusted earnings per share of $1.67-$1.73 for the first quarter, suggesting an 11%-15% rally from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $1.69.
Including the acquisition of Ovivo Electronics, ECL expects reported sales to increase 7%-9% and organic sales to rise 3%-4% in 2026.
For 2026, Ecolab expects adjusted earnings per share of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2024 period’s reported number). The Zacks Consensus Estimate for adjusted earnings per share is pegged at $8.44.
Ecolab has reported first-quarter 2026 adjusted earnings per share of $1.70, up 13.3% year over year. The metric was in line with the Zacks Consensus Estimate.
GAAP earnings per share for the quarter was $1.52, up 7.8% year over year.
ECL’s Revenue Details
Revenues grossed $4.07 billion in the reported quarter, up 10% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.
Ecolab’s organic sales were $3.96 billion, up 3.5% from the prior-year period.
Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.
Ecolab’s Segmental Analysis
The Global Water segment’s fixed currency sales of $2.04 billion marked 7.1% year-over-year growth, driven by a 5% benefit from the Ovivo Electronics acquisition and organic sales growth. Organic sales were $1.94 billion, up 2.1% year over year.
The segment’s performance was driven by more than 20% organic growth in Global High-Tech, reflecting robust growth across both microelectronics and data centers. Food & Beverage continued to grow mid-single digits, driven by attractive new business wins from the One Ecolab growth strategy. Light Water delivered steady performance, driven by solid gains in transportation. These, driven by good new business wins, stabilized the headwind from softer sales in Heavy Water and Paper.
The Global Institutional & Specialty arm’s fixed currency and organic sales were $1.51 billion, a year-over-year uptick of 3.6% both on a reported and organic basis. Institutional unit’s improved performance was driven by good growth with hospitality customers. Specialty unit’s sales grew high-single digits, with accelerated growth driven by robust new business wins and continued value pricing.
The Global Pest Elimination segment’s fixed currency sales of $310.1 million improved 7.9% year over year on a reported basis. This reflected strong organic growth and a 1% benefit from attractive, targeted acquisitions in North America. Organic sales were $308.5 million, up 7.3% year over year. Strong organic sales growth was led by robust gains in restaurants, food retail, food & beverage and healthcare, which continue to benefit from the One Ecolab growth strategy.
The Global Life Sciences arm’s fixed currency sales and organic sales were $200.9 million each, reflecting year-over-year growth of 10.7% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by bioprocessing, which more than doubled its sales during the quarter. This, along with robust growth in pharmaceutical & personal care, overcame temporary capacity constraints within Life Sciences’ industrial water purification business.
ECL’s Margin Analysis
In the quarter under review, Ecolab’s gross profit improved 8.3% year over year to $1.77 billion. However, the gross margin contracted 69 basis points (bps) to 43.6%.
Selling, general and administrative expenses increased 4.9% year over year to $1.10 billion.
Adjusted operating profit totaled $668.4 million, increasing 14.3% from the prior-year quarter. The adjusted operating margin in the quarter expanded 61 bps to 16.4%.
Ecolab’s Financial Position
The company exited first-quarter 2026 with cash and cash equivalents of $519.8 million compared with $646.2 million at the end of fourth-quarter 2025. Total debt at the end of first-quarter 2026 was $8.49 billion compared with $8.24 billion at the end of the fourth quarter of 2025.
Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.75%.
ECL’s Guidance
Ecolab has provided its outlook for the second quarter of 2026 and has revised the 2026 guidance.
The company expects adjusted earnings per share of $2.02 to $2.12 for the second quarter, suggesting an 7%-12% increase from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $2.13.
Including the acquisition of Ovivo Electronics, ECL now expects reported sales to increase 9%-11% and organic sales to rise 6%-7% compared with the prior outlook of 7%-9% and 3%-4% uptick, respectively, in 2026.
For 2026, Ecolab continues to expect adjusted earnings per share of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2025 period’s reported number). The Zacks Consensus Estimate for adjusted earnings per share is pegged at $8.45.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Ecolab has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ecolab has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Ecolab (ECL) Up 2.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Ecolab (ECL - Free Report) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ecolab due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Ecolab Q1 Earnings In-Line, Revenues Up Y/Y, Gross Margin Down
Ecolab has reported first-quarter 2026 adjusted earnings per share of $1.70, up 13.3% year over year. The metric was in line with the Zacks Consensus Estimate.
GAAP earnings per share for the quarter was $1.52, up 7.8% year over year.
ECL’s Revenue Details
Revenues grossed $4.07 billion in the reported quarter, up 10% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.
Ecolab’s organic sales were $3.96 billion, up 3.5% from the prior-year period.
Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.
Ecolab’s Segmental Analysis
The Global Water segment’s fixed currency sales of $2.04 billion marked 7.1% year-over-year growth, driven by a 5% benefit from the Ovivo Electronics acquisition and organic sales growth. Organic sales were $1.94 billion, up 2.1% year over year.
The segment’s performance was driven by more than 20% organic growth in Global High-Tech, reflecting robust growth across both microelectronics and data centers. Food & Beverage continued to grow mid-single digits, driven by attractive new business wins from the One Ecolab growth strategy. Light Water delivered steady performance, driven by solid gains in transportation. These, driven by good new business wins, stabilized the headwind from softer sales in Heavy Water and Paper.
The Global Institutional & Specialty arm’s fixed currency and organic sales were $1.51 billion, a year-over-year uptick of 3.6% both on a reported and organic basis. Institutional unit’s improved performance was driven by good growth with hospitality customers. Specialty unit’s sales grew high-single digits, with accelerated growth driven by robust new business wins and continued value pricing.
The Global Pest Elimination segment’s fixed currency sales of $310.1 million improved 7.9% year over year on a reported basis. This reflected strong organic growth and a 1% benefit from attractive, targeted acquisitions in North America. Organic sales were $308.5 million, up 7.3% year over year. Strong organic sales growth was led by robust gains in restaurants, food retail, food & beverage and healthcare, which continue to benefit from the One Ecolab growth strategy.
The Global Life Sciences arm’s fixed currency sales and organic sales were $200.9 million each, reflecting year-over-year growth of 10.7% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by bioprocessing, which more than doubled its sales during the quarter. This, along with robust growth in pharmaceutical & personal care, overcame temporary capacity constraints within Life Sciences’ industrial water purification business.
ECL’s Margin Analysis
In the quarter under review, Ecolab’s gross profit improved 8.3% year over year to $1.77 billion. However, the gross margin contracted 69 basis points (bps) to 43.6%.
Selling, general and administrative expenses increased 4.9% year over year to $1.10 billion.
Adjusted operating profit totaled $668.4 million, increasing 14.3% from the prior-year quarter. The adjusted operating margin in the quarter expanded 61 bps to 16.4%.
Ecolab’s Financial Position
The company exited first-quarter 2026 with cash and cash equivalents of $519.8 million compared with $646.2 million at the end of fourth-quarter 2025. Total debt at the end of first-quarter 2026 was $8.49 billion compared with $8.24 billion at the end of the fourth quarter of 2025.
Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.75%.
ECL’s Guidance
Ecolab has provided its outlook for the second quarter of 2026 and has revised the 2026 guidance.
The company expects adjusted earnings per share of $2.02 to $2.12 for the second quarter, suggesting an 7%-12% increase from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $2.13.
Including the acquisition of Ovivo Electronics, ECL now expects reported sales to increase 9%-11% and organic sales to rise 6%-7% compared with the prior outlook of 7%-9% and 3%-4% uptick, respectively, in 2026.
For 2026, Ecolab continues to expect adjusted earnings per share of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2025 period’s reported number). The Zacks Consensus Estimate for adjusted earnings per share is pegged at $8.45.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Ecolab has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ecolab has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.