Ecolab delivered a robust second quarter, posting accelerated organic sales growth, double-digit earnings gains and higher full-year guidance, as stronger pricing and productivity more than offset rising commodity costs and disruptions in the Middle East.
The company reported sales of $4.4 billion, up 10%, while organic sales growth accelerated to 5%. Growth across Ecolab's core businesses strengthened, led by Food & Beverage, Institutional and Light Water, while its strategic growth engines continued to deliver strong double-digit gains, driven by Global High-Tech and Life Sciences.
Reported operating income margin was 17.2%, while organic operating income margin improved 40 basis points to 18.8%. Reported gross margin stood at 44.1%. Adjusted gross margin declined 60 basis points, reflecting the impact of the Ovivo Electronics acquisition, although organic gross margin remained stable as pricing gains offset higher commodity costs.
Reflecting continued momentum, Ecolab raised its full-year outlook. The company now expects 2026 adjusted diluted EPS of $8.05 to $8.25, representing growth of 7% to 10% and an increase from its previous guidance of $8.03 to $8.23.
For the third quarter of 2026, Ecolab expects adjusted diluted EPS of $2.13 to $2.23, up 3% to 8%. The outlook includes the short-term impact of non-cash amortization and financing costs related to the CoolIT acquisition.
Christophe Beck, Ecolab’s chairman, president and chief executive officer, said, “We delivered another quarter of double-digit EPS growth, driven by strong execution across the company which produced accelerating organic sales growth, a stable organic gross margin excluding the impact from Ovivo Electronics, and strong productivity.
"Reported volume grew 1%, despite a nearly 1% headwind from customer operations disrupted by the conflict in the Middle East, while underlying volume growth strengthened. Pricing improved to 4%, reflecting the early benefits of our energy surcharge implementation, which helped to mitigate the impact of rising commodity costs.
"This strong performance demonstrates the durability of our growth model and the power of our global team to deliver for our customers no matter what."
