Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

62f42f4c6534e82b09c9897a9328cd8853ee435dabed94498dc0df0a7679836d

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

a3303abc36eb8a9bc414e87652041c90a60f9862be05967ef192bd2e46eb0987

United States

- Global Industrial

- Global Institutional & Specialty

- Global Healthcare & Life Sciences

- Global Pest Elimination

- Corporate

Europe

Asia Pacific

Latin America

Greater China

India, Middle East and Africa

Canada

Total Revenue

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1eb017c86d33bbb4c3359109d8d660baa1dd2d1c948101dba97e2e77fdc495d3

3810ba93c0958f3f7e8d75b5d0e4c2d0d0406d1a975aa1a4e8777d3d3e59219b

226f061c2a6571e7f3b6987b97aec0187ddac79ea5e26dcb661d7075220e6350

Net sales [USD, millions]

Cost of sales (including special charges (a)) [USD, millions]

Selling, general and administrative expenses [USD, millions]

Special (gains) and charges [USD, millions]

Operating income [USD, millions]

91ea1d7888b00e6a8980eeb5e97ac43437c2630ba9e09bc6cd553249cb5a7b78

Ecolab’s spike in cash and cash equivalents in Q3 2024 was primarily driven by **strong cash flow from operating activities**, which increased significantly, alongside a **debt repayment of $630 million** and the strategic decision to refrain from new long-term debt issuances. Additionally, even though **capital expenditures increased**, the robust operating cash flows, combined with having **no outstanding commercial paper**, helped preserve and boost overall cash levels.  **[0001558370-24-013805_ecl-20241029xex99d2.htm:6]** **[0001558370-24-014051_ecl-20240930x10q.htm:52]** 

Why did Cash and cash equivalents spike in Q3 2024?

The significant drop in cash and cash equivalents in Q1 2024 was driven primarily by **substantial cash outflows from financing activities**, notably the **repayment of $629.6 million in long-term debt**, **dividends paid of $175.2 million**, and **share repurchases of $196.4 million**. These financing outflows, along with the negative effect of significant **capital expenditures** in investing activities, outweighed the cash generated from operating activities, leading to the overall decline in cash balances.  **[0001558370-24-006535_ecl-20240331x10q.htm:4]** 

What drove the significant drop in Cash and cash equivalents in Q1 2024?

In Q1 2024, **Short-term debt** plunged primarily because **Ecolab repaid $628.6 million of its current maturities of long-term debt**, reducing the balance from **$630.4 million** at the end of Q4 2023 to **$11.3 million** by the end of Q1 2024.  **[0001558370-24-006535_ecl-20240331x10q.htm:9]** **[0001558370-24-006197_ecl-20240430xex99d2.htm:8]** 

Why did Short-term debt plunge in Q1 2024?

The **total assets** increase in Q3 2024 was attributed to several factors: an **increase in cash and cash equivalents** by **$341.6 million**, modest growth in **accounts receivable** reflecting higher sales activity, a rise in **inventories** indicating higher stock levels, and an expansion in **operating lease assets** due to new or expanded lease agreements. At the same time, the decrease in **goodwill** and **other intangible assets** also contributed to the net change in total assets.  **[0001558370-24-014051_ecl-20240930x10q.htm:3]** 

What factors contributed to the Total assets increase in Q3 2024?

54e43519305286c6baf4e4a89ebee0b22d3ef77a0efeb73d7d1298370a878393

In Q3 2024, the high operating income was driven primarily by a **special gain of $364.0 million** from the sale of Ecolab’s global surgical solutions business.  **[0001558370-24-013805_ecl-20241029xex99d1.htm:10]**  Additionally, **organic operating income increased by 22%** (reaching $720.5 million) fueled by solid sales growth and lower delivered product costs, while margin expansion—bolstered by effective value pricing and stable SG&A expenses—also played a key role.  **[0001558370-24-014051_ecl-20240930x10q.htm:35]** **[0001558370-24-013805_ecl-20241029xex99d1.htm:1]** **[0001558370-24-013805_ecl-20241029xex99d2.htm:5]** 

What drove Operating income so high in Q3 2024?

The surge in **EPS** for Q3 2024 was driven by several key factors. **Net income** increased by **82%** (from **$404.0 million** to **$736.5 million**) due to strong operational performance, while a **net gain of $332 million** from the sale of its global surgical solutions business significantly boosted earnings.  **[0001558370-24-014051_ecl-20240930x10q.htm:22]** **[0001558370-24-014051_ecl-20240930x10q.htm:42]**  In addition, **operating income** improved by **85%** (rising to **$1,044.8 million**), aided by lower delivered product costs that supported margin expansion.  **[0001558370-24-013805_ecl-20241029xex99d2.htm:2]** **[0001558370-24-014051_ecl-20240930x10q.htm:1]** **[0001558370-24-013805_ecl-20241029xex99d1.htm:1]**  The impact was further enhanced by the repurchase of approximately **1.9 million shares**, which reduced the share count, and although the tax rate increased to **25.0%**, special charges and tax adjustments helped mitigate the effect.  **[0001558370-24-013805_ecl-20241029xex99d1.htm:0]** **[0001558370-24-013805_ecl-20241029xex99d1.htm:1]** 

Why did the EPS surge in Q3 2024?

The significant negative Special (gains) and charges in Q3 2024 primarily resulted from the **$364.0 million gain** on the sale of Ecolab’s Global Surgical Solutions Business, a one-time benefit that overwhelmed the usual expense items. This gain was partly offset by costs such as the **$24.4 million** expense related to the One Ecolab initiative, alongside lower restructuring, acquisition, and other charges. Collectively, these factors led to the net figure of **($332.6) million** in Q3 2024.  **[0001558370-24-013805_ecl-20241029xex99d1.htm:10]** **[0001558370-24-014051_ecl-20240930x10q.htm:37]** **[0001558370-24-014051_ecl-20240930x10q.htm:10]** 

What caused Special (gains) and charges to turn significantly negative in Q3 2024?

Ecolab’s Q3 2024 income taxes provision jumped primarily due to **discrete tax items** and the impact of **special (gains) and charges**. In Q3 2024, the net tax expense from discrete items increased significantly from **$3.5 million** in Q3 2023 to **$15.8 million** in Q3 2024, and the tax rate impact from special items shifted from **0.1%** in Q3 2023 to **(2.9%)** in Q3 2024. Additionally, adjustments including higher tax benefits from share-based compensation contributed to the overall increase in the provision for income taxes.  **[0001558370-24-014051_ecl-20240930x10q.htm:41]** **[0001558370-24-014051_ecl-20240930x10q.htm:23]** 

Why did the income taxes provision jump in Q3 2024?

8078acea42e8905332811048b163285b16d5476ca6d3263c91a8dfba83b8c3b3

a0a78eaacf519a152a631da2fb2b426796982a81b37884c8719856ebbb10f53a

Net income including noncontrolling interest [USD, millions]

Depreciation [USD, millions]

Amortization [USD, millions]

Share-based compensation expense [USD, millions]

Pension and postretirement plan contributions [USD, millions]

Pension and postretirement plan expense (income), net [USD, millions]

Restructuring charges, net of cash paid [USD, millions]

Other, net [Operating Activities] [USD, millions]

Cash provided by operating activities [USD, millions]

Capital expenditures [USD, millions]

Property and other assets sold [USD, millions]

Other, net [Investing Activities] [USD, millions]

Cash provided by (used for) investing activities [USD, millions]

Net issuances of commercial paper and notes payable [USD, millions]

Long-term debt repayments [USD, millions]

Reacquired shares [USD, millions]

Dividends paid [USD, millions]

Exercise of employee stock options [USD, millions]

Other, net [Financing Activities] [USD, millions]

Cash used for financing activities [USD, millions]

Effect of exchange rate changes on cash and cash equivalents [USD, millions]

Increase (decrease) in cash and cash equivalents [USD, millions]

Deferred income taxes [USD, millions]

Accounts receivable [USD, millions]

Inventories [USD, millions]

Other assets [USD, millions]

Accounts payable [USD, millions]

Other liabilities [USD, millions]

Cash and cash equivalents, beginning of period [USD, millions]

Cash and cash equivalents, end of period [USD, millions]

92c523f455bc843d704a060f5b6a4e85fc8fb68c92b1e5452fe3aaab0029683e

Ecolab Inc (ECL)

Financials