0001104659-26-056737
SEC filingEcolab delivered strong double-digit revenue and operating income growth in Q1 2026, driven by pricing, volume, and acquisitions, with margin expansion tempered by investments and commodity costs.
Gross profit grew 8.3% to $1.8 billion, with gross margin of 43.6%. Pricing and volume benefits were partially offset by higher commodity costs and unfavorable mix. Operating income increased 12.0% to $622.0 million, and operating margin improved to 15.3%. Management noted that organic operating income margins increased 1.6 percentage points, as a 4.3 percentage point positive impact from value pricing, higher volumes, and lower supply chain costs was partially offset by a 2.9 percentage point impact from unfavorable mix and investments.
Net cash provided by operating activities was $445.9 million, up from $369.4 million in the prior year. Capital expenditures increased to $348.5 million, resulting in free cash flow of $97.4 million. The company continues to invest in growth while maintaining sufficient borrowing capacity to meet operating needs.
Ecolab remains focused on executing its growth strategy through pricing, innovation, and operational efficiency. The tax impact of special items and discrete tax events may continue to affect comparability of the reported tax rate. The company will evaluate its cash position in light of future developments.