Behind-the-scenes powerhouse Ecolab has delivered another quarter of strong performance, posting double-digit earnings-per-share growth fueled by accelerating organic sales across most businesses and robust operating income margin expansion.
The company reported $4.2 billion in sales, up 5%, with organic sales up 3%, led by Food & Beverage, Pest Elimination, Life Sciences, and continued strength in Specialty and Global High-Tech. This momentum more than offset a 2% headwind from basic industries, Paper, and short-term distributor inventory reductions in Institutional.
Reported operating income margin came in at 17.0%, while organic operating income margin rose 140 basis points to 18.5%. Diluted EPS reached $1.98, up 19%, and adjusted diluted EPS was $2.08, up 15%.
Ecolab expects 2026 adjusted diluted EPS of $8.43 to $8.63, up 12% to 15%, factoring in a $0.13 per share non-cash amortization impact from its recent Ovivo Electronics acquisition. For Q1 2026, the company anticipates adjusted EPS of $1.67 to $1.73, up 11% to 15%.
Christophe Beck, Ecolab’s chairman and CEO, said, "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.
"This strong performance was fueled by accelerating organic sales growth across most businesses and significant operating income margin expansion. I’m incredibly proud of our team and all they achieved this year. They delivered unmatched customer value and brought breakthrough innovation to market while advancing our One Ecolab growth strategy. Underlying organic sales grew mid-single digits, excluding a combined 2% headwind from basic industries, Paper and an unexpected short-term impact from distributor inventory reductions in Institutional.
"Combined with strong new business wins and continued momentum across our growth engines, we expect volume growth to get back to 1% as we exit the first quarter, with growth accelerating further as the year progresses. Overall, our record performance in 2025 underscores the strength and resilience of both our portfolio and our people, and the power of our best-in-class customer value proposition.”
Beck added, "We are driving better-than-expected savings from our One Ecolab productivity initiatives and now anticipate annualized savings to increase from $225 million to $325 million by 2027. The recent acquisition of Ovivo Electronics ultrapure water business is off to a great start. This business further strengthens our Global High-Tech business, creating an end-to-end water circularity offering for microelectronics customers and doubles the size of one of our most significant growth engines.
"Including the acquisition of Ovivo Electronics, we expect reported sales to increase 7% to 9% and organic sales to increase 3% to 4% in 2026, with organic growth accelerating through the year. With this, along with 100 to 150 basis points of operating income margin expansion, we expect to deliver 14% to 16% growth in adjusted operating income, 12% to 15% growth in adjusted diluted EPS and continued strong returns for shareholders.”
Ecolab’s digital business also shined, with Ecolab Digital sales up 24% to $99 million, driven by double-digit growth across software and enabling hardware subscriptions.
For the fourth quarter, reported operating income rose 22%, including special gains and the Ovivo acquisition, while organic operating income increased 12%, partially offset by growth-oriented investments. Reported other income remained stable, and net interest expense rose $3 million due to debt used to fund the Ovivo acquisition.
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