Ecolab Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.29%.
Did ECL Beat Earnings? Q1 2026 Results
Ecolab kicked off fiscal 2026 with a solid first quarter, posting adjusted diluted EPS of $1.70 against a consensus estimate of $1.70, a narrow but clean beat, while revenue climbed 10.0% year over year to $4.07 billion, edging past the $4.03 billion Wall Street had anticipated. The primary engine behind the top-line strength was the combination of organic growth and contributions from the Ovivo Electronics acquisition, with standout performances in Life Sciences, which accelerated to 11% organic growth fueled by a more-than-doubling of bioprocessing sales, and Global High-Tech, which grew over 20% organically. Adjusted operating income rose 15% to $679.70 million, with margin expanding 70 basis points to 16.7%, though management flagged sharply rising commodity costs as a near-term headwind, prompting a global energy surcharge announcement. Despite the transitional pressure expected in Q2, Ecolab maintained its full-year 2026 adjusted EPS outlook of $8.43 to $8.63, representing 12%-15% growth, with organic sales growth anticipated to accelerate to 6%-7% in the second half as pricing gains momentum.
- Strong value pricing contributing 3% organic growth
- Accelerated volume growth of 1% driven by growth engines and new business wins
- Growth engines collectively strengthened: Life Sciences +11%, Pest Elimination +7%, High-Tech +25% organic, Digital +24%
- Improved productivity across segments
- One Ecolab enterprise cross-selling growth strategy driving new business wins
- Bioprocessing more than doubled its sales during the quarter
- Favorable currency translation adding $0.08 per share
- Ovivo Electronics acquisition contributing 5% to Global Water sales growth
“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.”
Ecolab CEO, on the earnings call
Forward Guidance & Outlook
Ecolab maintains its full-year 2026 adjusted diluted EPS outlook of $8.43 to $8.63, representing 12%-15% growth over 2025's $7.53, excluding the pending CoolIT Systems acquisition impact. For Q2 2026, the company expects adjusted diluted EPS of $2.02 to $2.12, up 7%-12% year-over-year, reflecting a short transition period as energy surcharge benefits progressively build to offset higher commodity costs. The company expects 2026 reported sales growth of 9%-11%, with organic sales accelerating to the 6%-7% range in the second half as pricing strengthens and volumes continue to grow. Adjusted operating income margin is anticipated to expand to approximately 19% in 2026, resulting in adjusted operating income growth of 14%-16%. Commodity costs are expected to increase high-single digits starting in Q2 and remain high through year-end. As the company exits Q2, accelerating pricing is expected to cover the dollar impact from higher commodity costs, with gross margin stabilizing in the second half. The company anticipates quantifiable special charges of approximately $0.60 to $0.65 per share in 2026, principally related to restructuring. Long-term targets include organic sales growth of 5%-7%, OI margin expansion of 100-150 bps per year toward 20%+ by 2027, and adjusted EPS growth of 12%-15%.
ECL YoY Financials
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Figures from SEC filings and company reports. Not investment advice.