ECOLAB (ECL)·Q4 2025 Earnings Summary
Ecolab Delivers Record Q4: Adjusted EPS +15%, Guides Strong 2026
February 10, 2026 · by Fintool AI Agent
Ecolab (NYSE: ECL) delivered a record fourth quarter with adjusted diluted EPS of $2.08, up 15% year-over-year and slightly ahead of consensus. Revenue of $4.2 billion grew 5% on a reported basis and 3% organically, with accelerating growth across most business segments.
Management guided 2026 adjusted EPS of $8.43-$8.63 (+12-15%), signaling confidence in continued momentum from the "One Ecolab" growth strategy and $325 million in annualized productivity savings by 2027.
Did Ecolab Beat Earnings?
Yes — Ecolab beat on both revenue and EPS.
This marks Ecolab's eighth consecutive quarter of beating or meeting EPS estimates. The company delivered double-digit adjusted EPS growth driven by accelerating organic sales and robust operating income margin expansion.
Ask Fintool AI AgentWhat Did Management Guide?
Ecolab provided strong guidance for 2026, projecting continued double-digit EPS growth:
The 2026 guidance includes approximately $0.13 per share impact from non-cash amortization related to the Ovivo Electronics acquisition.
CEO Christophe Beck stated:
"2025 was a record year for Ecolab with record sales, operating income margin, EPS, and free cash flows. We finished the year with very strong momentum, delivering adjusted diluted EPS growth of 15% in the fourth quarter."
How Did the Segments Perform?
Global Pest Elimination: +7% Organic Sales, +46% Operating Income
The standout performer, driven by One Ecolab enterprise selling strategy gains in food & beverage, restaurants, and food retail. Operating income margin expanded 560 basis points to 20.4%.
Global Life Sciences: +7% Organic Sales
Accelerating growth led by continued double-digit bioprocessing gains and strong pharmaceutical & personal care performance. Mid-teens operating margin reflects investments in breakthrough innovation and global capabilities.
Global Institutional & Specialty: +3% Organic Sales, +16% Operating Income
Underlying growth was consistent with prior quarters, excluding a short-term distributor inventory impact. Specialty continued strong performance with robust new business wins. Operating margin expanded 270 bps to 22.4%.
Global Water: +2% Organic Sales
Mid-single-digit underlying growth excluding basic industries and Paper headwinds. Global High-Tech delivered continued strong double-digit growth in data center cooling and microelectronics water solutions.
Ask Fintool AI AgentWhat Changed From Last Quarter?
Key developments this quarter:
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Expanded One Ecolab Initiative: Annualized savings target increased from $225M to $325M by 2027. Total restructuring costs now expected at $334M ($261M after tax).
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Ovivo Electronics Acquisition Completed: Acquired the ultrapure water business, doubling the size of Global High-Tech segment. Creating end-to-end water circularity offering for microelectronics customers.
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Gross Margin Expansion: Reported gross margin improved 70 bps to 44.0%, driven by strong value pricing.
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Accelerating Growth Engines: Life Sciences, Pest Elimination, Global High-Tech, and Ecolab Digital all showing strong momentum. Ecolab Digital sales grew 24% to $99 million.
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Distributor Inventory Headwind: Short-term impact from lower Institutional distributor inventories expected to normalize in Q1 2026.
Margins and Profitability Trends
Management remains confident in expanding organic operating income margins beyond 20%.
Capital Allocation & Cash Flow
Ecolab delivered record free cash flow in 2025:
The company repurchased approximately 1.5 million shares during Q4 2025.
How Did the Stock React?
ECL shares closed at $288.16 on February 10, 2026, down 0.75% on the day. The stock traded near its 52-week high of $291.08 heading into results.*
The muted reaction likely reflects that the beat was modest and the guidance, while strong, was largely in line with expectations. The stock is up approximately 30% over the trailing twelve months, suggesting much of the operational improvement was already priced in.
*Values retrieved from market data
Forward Catalysts
Near-term (Q1-Q2 2026):
- Distributor inventory normalization in Institutional
- Ovivo Electronics integration progress
- Basic industries and Paper headwinds expected to ease
Long-term:
- AI/data center infrastructure water demand continues as secular tailwind
- One Ecolab productivity savings ramping to $325M annually
- Life Sciences capacity expansion unlocking growth opportunities
- Target: 20%+ organic operating income margin
Key Management Quotes
CEO Christophe Beck on growth outlook:
"Looking ahead, I am very confident in our ability to deliver continued strong performance in 2026. We are driving better-than-expected savings from our One Ecolab productivity initiatives."
On AI infrastructure opportunity:
"The impact of increasing water demand, which is being amplified by the rapid build-out of artificial intelligence infrastructure, continues to be a critical issue for our customers, and one that Ecolab is uniquely positioned to help them solve."
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