Ecolab has delivered another strong quarter of double-digit earnings growth, powered by accelerating demand across key businesses, aggressive pricing actions, and improving operational efficiency.

 

The company reported sales of $4.1 billion, up 10% year-on-year, with organic growth accelerating to 4%. Momentum was broad-based, led by Life Sciences, Global High-Tech, Institutional, and Specialty businesses, while Pest Elimination and Food & Beverage continued to post solid gains.

 

Profitability strengthened meaningfully. Reported operating income margin came in at 15.3%, while adjusted operating margin expanded 70 basis points to 16.7%, reflecting stronger pricing power and productivity gains that helped offset rising costs.

 

Earnings growth remained robust. Reported diluted EPS rose 8% to $1.52, while adjusted diluted EPS jumped 13% to $1.70—underscoring continued operating leverage despite inflationary pressures.

 

Chairman, President and CEO Christophe Beck struck an upbeat tone on performance and execution: "We delivered another strong quarter, with accelerated sales growth and double-digit earnings growth reflecting the strength of our growth engines and the improving performance of our core businesses. 

 

"That performance was driven by strong value pricing, accelerated volume growth and improved productivity, demonstrating the power of our technology- and service-led model and the way our teams execute every day to deliver for customers in a complex operating environment.”

 

Growth engines were a standout. Life Sciences surged 11%, driven by bioprocessing that more than doubled in sales. Pest Elimination rose 7% on new initiatives and expanded intelligence offerings. Ecolab Digital climbed 24% to $99 million, while Global High-Tech also posted over 20% growth—highlighting strong demand for connected, outcome-based solutions.

 

Core segments also strengthened, with Institutional and Specialty improving and Food & Beverage continuing to outperform market trends.

 

Beck also flagged rising external pressure from energy costs, driven by geopolitical disruption, prompting swift action across operations and supply chains, including a newly implemented global energy surcharge.

 

“As a result, commodity costs are expected to increase high-single digits starting in the second quarter, and we expect those costs to remain high through the end of the year,” he said, emphasizing that customer support remains the priority.

 

Looking ahead, Ecolab maintained its 2026 outlook, still expecting adjusted EPS of $8.43 to $8.63, representing 12% to 15% growth, excluding the pending CoolIT Systems acquisition. 

 

Second-quarter adjusted EPS is forecast at $2.02 to $2.12, with a temporary margin transition expected as pricing adjustments catch up with rising costs.

Beck pointed to strengthening second-half momentum, supported by pricing actions, productivity improvements, and strong new business wins.

 

“The pending acquisition of CoolIT is an important strategic step for Ecolab,” he added, highlighting its role in expanding the company’s Global High-Tech capabilities and strengthening its position in data center cooling technologies.

 

On the balance sheet, reported net income rose 7%, while adjusted net income increased 13%. Adjusted EPS climbed 13%, despite headwinds from higher interest expense and tax rates, partially offset by favorable currency effects.

Ecolab also returned capital to shareholders, repurchasing approximately 1.3 million shares during the quarter.