ECL · Ecolab Inc.

Ecolab's first quarter 2026 results demonstrated continued momentum, with reported sales rising 10% to $4.07 billion and organic sales accelerating to 4% growth. The growth was broad-based, led by Life Sciences (organic +11%, driven by bioprocessing which more than doubled sales), Global High-Tech (organic +25% within the Water segment), and Pest Elimination (+7%). Institutional & Specialty improved to 4% organic growth, with Specialty growing high-single digits. Reported operating income increased 12% to $622 million, while adjusted operating income rose 15% to $680 million, with adjusted margin expanding 70 bps to 16.7%. The margin expansion was driven by strong pricing and productivity, partially offset by higher commodity costs and growth investments. Reported diluted EPS was $1.52, up 8%, and adjusted diluted EPS of $1.70 increased 13% year-over-year. Management highlighted that the company responded quickly to rising global energy costs by implementing a global energy surcharge, which is expected to progressively build through Q2. For the full year 2026, Ecolab maintained its adjusted EPS guidance of $8.43-$8.63 (12-15% growth), excluding the pending CoolIT Systems acquisition. The company expects organic sales growth to accelerate to 6-7% in the second half, with adjusted operating income margin expanding to approximately 19%. Q2 2026 adjusted EPS is guided at $2.02-$2.12, reflecting a short transition period as the energy surcharge benefits ramp. The company also repurchased approximately 1.3 million shares in Q1.