Ecolab Inc. is a global leader in water, hygiene, and infection prevention solutions and services, operating in more than 170 countries. The company provides a wide range of products and services, including water treatment, cleaning, and sanitizing solutions, primarily through its three main segments: Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences, along with an additional segment for Pest Elimination and other services . Ecolab's business model is heavily reliant on recurring sales, with over 90% of sales coming from consumable products, ensuring a stable and predictable revenue stream .
- Global Industrial - Offers water treatment and process applications, including sub-segments such as Water, Food & Beverage, and Paper, contributing significantly to the company's operations.
- Water - Provides solutions for water treatment and management.
- Food & Beverage - Delivers cleaning and sanitizing solutions for food and beverage processing.
- Paper - Supplies process applications for the paper industry.
- Global Institutional & Specialty - Focuses on cleaning and sanitizing products for industries such as foodservice and hospitality, supporting operational efficiency and safety.
- Global Healthcare & Life Sciences - Provides specialized cleaning and sanitizing products tailored for healthcare and pharmaceutical industries, ensuring compliance and safety.
- Other (including Pest Elimination) - Includes Pest Elimination services and other offerings, addressing pest control and additional service needs.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Christophe Beck ExecutiveBoard | Chairman and CEO | None | Joined Ecolab in 2007; became CEO in January 2021 and Chairman in May 2022. Known for global marketing, sales, and management expertise. | View Report → |
Angela M. Busch Executive | EVP – Corporate Strategy & Business Dev. | None | EVP since August 2018. Leads corporate strategy and business development initiatives. | |
Darrell R. Brown Executive | President and COO | None | Joined Ecolab in 2002; became President and COO in October 2022. Known for leadership in global industrial and energy services divisions. | |
Gail Peterson Executive | EVP – Global Marketing & Communications | None | EVP since April 2022. Leads global marketing and communications strategies. | |
Gergely Sved Executive | EVP and President – Global Healthcare | None | EVP since April 2022. Focuses on healthcare and life sciences operations. | |
Jennifer J. Bradway Executive | SVP and Corporate Controller | None | Corporate Controller since January 2022. Previously held senior finance roles within Ecolab. | |
Larry L. Berger Executive | EVP and Chief Technical Officer | None | Chief Technical Officer since January 2019. Focuses on innovation and technical strategy. | |
Machiel Duijser Executive | EVP and Chief Supply Chain Officer | None | Chief Supply Chain Officer since February 2020. Oversees global supply chain operations. | |
Scott D. Kirkland Executive | Chief Financial Officer | None | CFO of Ecolab as of October 31, 2024. No additional details provided in the documents. | |
Arthur J. Higgins Board | Independent Director | Operating Advisor at ADIA; Director at Zimmer Biomet | Board member since 2010. Former CEO of Bayer HealthCare and Enzon Pharmaceuticals. | |
David W. MacLennan Board | Lead Independent Director | Director at Caterpillar Inc. | Board member since 2015. Former CEO and Chairman of Cargill, Inc. | |
Eric M. Green Board | Independent Director | Chairman, President, and CEO of West Pharmaceutical Services; Trustee at Bethel University | Board member since December 2022. Nearly 30 years of experience in life sciences and pharmaceutical industries. | |
Lionel L. Nowell III Board | Independent Director | Lead Independent Director at Bank of America; Director at Textron Inc. | Board member since 2018. Former CFO at PepsiCo and RJR Nabisco. | |
Michael Larson Board | Independent Director | CIO of Cascade Investment; Director at Republic Services, FEMSA, and others | Board member since 2012. Chief Investment Officer for Bill Gates and the Gates Foundation Trust. | |
Shari L. Ballard Board | Independent Director | CEO of Minnesota United FC | Board member since 2018. Former senior executive at Best Buy Co., Inc. | |
Suzanne M. Vautrinot Board | Independent Director | Director at CSX, Wells Fargo, and Parsons Corp. | Board member since 2014. Retired U.S. Air Force Major General with expertise in cybersecurity and technology. | |
Tracy B. McKibben Board | Independent Director | Founder/CEO of MAC Energy Advisors; Director at Huntington Ingalls, others | Board member since 2015. Former U.S. National Security Council Director and energy sector expert. | |
Victoria J. Reich Board | Independent Director | Director at H&R Block and Ingredion Inc. | Board member since 2009. Extensive financial expertise and governance experience. |
- With raw material tailwinds expected to taper and raw costs stabilizing by Q4, how do you plan to sustain gross margin expansion and manage SG&A operating leverage without the benefit of favorable raw material costs?
- Despite mentioning a rich M&A pipeline and a strong balance sheet, you've not engaged in significant acquisitions lately; can you clarify your acquisition strategy and how you intend to leverage M&A to drive growth, particularly in your focus areas of water, digital, and life sciences?
- The Industrial segment has shown gradual improvement, but with underlying challenges such as impacts from mining and slower growth in areas like Food & Beverage and Paper, what specific steps are you taking to accelerate growth and achieve your ambitious margin targets in this segment?
- Considering the high-tech business within your Water segment is growing around 30% and is highly profitable, how sustainable is this level of growth, and what potential risks could impact its future performance?
- With the One Ecolab initiative aiming to capitalize on a $55 billion cross-sell opportunity, what are the key challenges you anticipate in executing this strategy, and how confident are you in realizing the projected revenue and margin improvements without incurring significant additional investments?
Research analysts who have asked questions during ECOLAB earnings calls.
Ashish Sabadra
RBC Capital Markets
4 questions for ECL
David Begleiter
Deutsche Bank
4 questions for ECL
Jason Haas
Wells Fargo
4 questions for ECL
Jeffrey Zekauskas
JPMorgan Chase & Co.
4 questions for ECL
John Ezekiel Roberts
Mizuho Securities
4 questions for ECL
John McNulty
BMO Capital Markets
4 questions for ECL
Kevin McCarthy
Vertical Research Partners
4 questions for ECL
Patrick Cunningham
Citigroup
4 questions for ECL
Shlomo Rosenbaum
Stifel, Nicolaus & Company, Incorporated
4 questions for ECL
Vincent Andrews
Morgan Stanley
4 questions for ECL
Christopher Parkinson
Wolfe Research
3 questions for ECL
Laurence Alexander
Jefferies
3 questions for ECL
Manav Patnaik
Barclays
3 questions for ECL
Scott Schneeberger
Oppenheimer & Co. Inc.
3 questions for ECL
Andres Castanos-Mollor
Berenberg
2 questions for ECL
Andrew J. Wittmann
Robert W. Baird & Co.
2 questions for ECL
Josh Spector
UBS Group
2 questions for ECL
Joshua Spector
UBS
2 questions for ECL
Michael Harrison
Seaport Research Partners
2 questions for ECL
Mike Harrison
Seaport Research Partners
2 questions for ECL
Steve Byrne
Bank of America
2 questions for ECL
Timothy Mulrooney
William Blair & Company
2 questions for ECL
Andre Castanos Muller
Warner
1 question for ECL
Benjamin Luke McFadden
William Blair & Company L.L.C.
1 question for ECL
Charles Neivert
Piper Sandler
1 question for ECL
Chris Parkinson
Wolfe Research, LLC
1 question for ECL
Daniel Rizzo
Jefferies
1 question for ECL
John Ronan Kennedy
Barclays
1 question for ECL
Justin Hauke
Robert W. Baird & Co.
1 question for ECL
Matthew Deyoe
Bank of America
1 question for ECL
Pavel Molchanov
Raymond James
1 question for ECL
Tim Mulrooney
William Blair & Company
1 question for ECL
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Unspecified immaterial acquisition (Global Pest Elimination, May 2024) | 2024 | Acquisition completed in May 2024 with preliminary purchase accounting subject to final adjustments for intangibles, taxes, and working capital; the transaction is immaterial with tax deductible goodwill and no further financial specifics provided. |
Unspecified immaterial acquisition (Global Pest Elimination, September 2024) | 2024 | Completed in September 2024, this acquisition is also immaterial, with preliminary purchase accounting and tax deductible goodwill set within the Global Pest Elimination reporting segment, pending final valuation adjustments. |
Chemlink Laboratories LLC | 2023 | Acquired in May 2023, Chemlink Laboratories LLC, a U.S.-based producer of small format cleaning solutions, was integrated into the Global Institutional & Specialty segment with a total transaction value of $107.6 million, including $40.5 million in tax deductible goodwill and detailed purchase price allocation for tangible and intangible assets. |
Unspecified immaterial acquisitions (Global Institutional & Specialty, Q2 2023) | 2023 | Two immaterial acquisitions in Q2 2023 were made and assigned to the Global Institutional & Specialty segment, with preliminary purchase accounting and tax deductible goodwill, as the final valuation of intangible assets and related balances is still in progress. |
Recent press releases and 8-K filings for ECL.
- Ecolab entered into an underwriting agreement to issue $500 million aggregate principal amount of 5.000% Notes due 2035 under its January 12, 2015 indenture, with Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC as bookrunners.
- The Notes bear interest at 5.000% per annum, payable semi-annually on March 1 and September 1, mature on September 1, 2035, are redeemable at the company’s option prior to June 1, 2035 at specified redemption prices, and must be repurchased at 101% of principal upon certain change-of-control events.
- The offering was priced at 99.960% of par, implying a 5.005% yield to maturity, with settlement on August 27, 2025 (T+7), a make-whole call at Treasury + 15 bps and a par call on or after June 1, 2035.
- Net proceeds are designated for general corporate purposes, including partial funding of the acquisition of Ovivo Inc.’s Electronics business and repayment of commercial paper or other indebtedness.
- Ecolab Inc. will acquire Ovivo Inc.’s Electronics division for $1.8 billion, more than doubling its high-tech water business for semiconductor manufacturing and data centers.
- Ovivo Electronics, which employs over 900 people, generates $500 million in annual revenue from ultra-pure water technologies critical to advanced chip production.
- The deal, expected to close in early 2026, is projected to be immediately accretive to sales growth and neutral to adjusted EPS in the first year, excluding about $45 million in non-cash amortization.
- Ecolab expects its net debt-to-adjusted EBITDA ratio to stay near 2x post-transaction and is targeting 20% operating income margins by 2027, reinforcing its leadership in microelectronics and AI water solutions.
- Ecolab delivered 3% organic sales growth in Q2, with 85% of its portfolio growing 4% and double-digit operating income growth, reflecting the resilience of its core businesses.
- Value pricing increased 2% in Q1 and Q2, and the U.S. trade surcharge supports pricing expected to rise to ~3% in Q3 and Q4.
- Growth engines outperformed: Pest Elimination organic sales +6% (OI margins ~20%); Global Hi Tech sales +30% (OI margins >20%); Ecolab Digital sales +30% to a €380 million annualized run rate; Life Sciences grew mid-single digits.
- Full-year 2025 operating income margin is expected at 18%, targeting 20% by 2027, and adjusted EPS growth of 12–15% for 2025–2026.
- CFO projects ~90% free cash flow conversion (Q2 FCF +17% YoY), ended Q2 with $1.9 billion cash and net leverage of 1.7×, supporting dividends, disciplined M&A and share buybacks.
- Debt issuance announcement: Ecolab Inc. has completed the offering of $500 million aggregate principal amount of its 4.300% Notes due 2028, as detailed in the 8-K filing.
- Key terms: The Notes bear interest at 4.300% per annum, with semi-annual payments starting December 15, 2025, and mature on June 15, 2028, with an option for early redemption.
- Underwriting and registration: The offering was executed under an underwriting agreement with Barclays Capital Inc., BofA Securities, and Santander US Capital Markets, and supported by an automatic shelf registration statement on Form S-3.
- Legal framework: The transaction is governed by the Base Indenture from January 12, 2015, supplemented by the Thirteenth Supplemental Indenture dated June 5, 2025, ensuring compliance with all related legal and contractual stipulations.
- Ecolab outlined its growth strategy with a focus on margin improvement, targeting a 20% operating margin by 2027 and noting an improvement to 18% in 2025, reflecting strong operational performance in challenging conditions.
- The company emphasized its integration of digital technology across its businesses, including remote monitoring and automated systems in hotels and restaurants to optimize water quality, labor efficiency, and guest satisfaction.
- New investment areas were highlighted, particularly in high-tech solutions for data centers, semiconductor fabs, life sciences, and digital offerings, all aimed at capturing emerging market opportunities and driving further shareholder value.
- Earnings Performance: Reported diluted EPS of $1.41 and adjusted EPS of $1.50 (+12%) with total sales of $3.7 billion (down 2%) and organic sales up 3% .
- Operating & Financial Strength: Strong quarterly performance with 12% EPS growth and a 190-basis-point improvement in operating income margin, supported by a healthy balance sheet, robust free cash flow, and ongoing share buybacks .
- Forward Guidance: Full‐year adjusted EPS expected to be in the range of $7.42–$7.62 and Q2 EPS guidance between $1.84–$1.94, driven by value pricing and productivity improvements .
- Digital & Segment Growth: Accelerating digital investments with digital sales growing 12% to $80 million (annualized to $320 million) and solid performance across segments including Life Sciences, Institutional & Specialty, Pest Elimination, and Water .
- Supply Chain Strategy: Resilient approach with over 90% of production local and the implementation of a new 5% domestic trade surcharge to mitigate global tariff impacts .
- Media Contacts: For further information, contact Andrew Hedberg (651-250-2185) and Nigel Glennie (651-250-2576) .
- Ecolab entered into a fourth amended and restated multicurrency credit agreement on March 24, 2025, establishing a $2.0 billion unsecured 5-year revolving credit facility with maturity extended to March 2030.
- The new facility, which replaces the prior agreement maturing in April 2026, includes a $100 million letter of credit subfacility and a $75 million swing line loan, and will be used for general corporate purposes, including share repurchases, debt repayment, and acquisitions.
- The report provides unaudited supplemental reportable segment information and a detailed non-GAAP reconciliation for Q4 2024, highlighting key operational metrics.
- It presents quarterly and full-year data across segments including Global Water, Global Institutional & Specialty, Global Life Sciences, and Global Pest Elimination, with emphasis on fixed currency adjustments and foreign currency translation effects.
- The disclosure also notes structural changes in segment reporting, such as the integration of the healthcare operating segment into Global Institutional & Specialty, to enhance period-to-period comparability.
- CEO Christophe Beck highlights a strategic focus on innovation and operational efficiency, detailing plans to achieve a 20% operating margin by 2027 with strong pricing power and sustained growth in both institutional and industrial segments.
- Management emphasizes disciplined raw material cost management and investment in emerging technologies, such as digital solutions and cooling systems for data centers, positioning the company for long-term competitive advantage.