Ecolab 8-K
PositiveEarningsGuidance raisedRestructuringImpairment / charge
Pricing and productivity offset higher commodity costs and Middle East disruptions, supporting raised FY2026 adjusted EPS guidance.
Filed 2026-07-28 08:01 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 adjusted EPS guidance. Sales grew 10% and adjusted diluted EPS rose 11%, as stronger organic growth, pricing and productivity offset higher commodity costs and Middle East customer disruptions. Ecolab raised its FY2026 adjusted EPS range; the outlook includes short-term CoolIT acquisition amortization and financing costs.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net sales, GAAP | $4.42B | $4.03B | +10% |
| Organic sales, non-GAAP | $4.28B | $4.09B | +5% |
| Operating income, GAAP | $758M | $710M | +7% |
| Operating income, adjusted non-GAAP | $809M | $737M | +10% |
| Net income attributable to Ecolab, GAAP | $535M | $524M | +2% |
| Net income attributable to Ecolab, adjusted non-GAAP | $590M | $540M | +9% |
| Diluted EPS, GAAP | $1.90 | $1.84 | +3% |
| Diluted EPS, adjusted non-GAAP | $2.09 | $1.89 | +11% |
- Organic operating income margin was 18.8%, up 40 bp; reported operating income margin was 17.2%, down 40 bp. Pricing improved to 4% and volume grew 1%, despite a nearly 1% headwind from Middle East disruptions; productivity also helped offset rising commodity costs. Adjusted gross margin fell 60 bp, mainly from the Ovivo Electronics acquisition.
- Cash was $5.14B at 6/30/2026, vs $1.92B a year earlier; total debt was $13.2B, vs $8.21B. Ecolab repurchased approximately 1.2M shares; diluted weighted-average shares declined 1% Y/Y.
- Expected quantifiable special charges: $0.75–$0.80 per share for FY2026, including approximately $0.28 per share in Q3, principally for restructuring and acquisition and integration costs.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Reported sales growth | H2 2026 | 12%–14% | — | — |
| Organic sales growth | H2 2026 | 6%–7% | — | — |
| Adjusted operating income margin, non-GAAP | H2 2026 | ≈19% | — | — |
| Organic operating income margin, non-GAAP | H2 2026 | ≈20% | — | — |
| Adjusted tax rate, non-GAAP | FY2026 | 20.5%–21.5% | — | — |
| Adjusted diluted EPS, non-GAAP | Q3 2026 | $2.13–$2.23; +3%–8% Y/Y | — | — |
| Adjusted diluted EPS, non-GAAP | FY2026 | $8.05–$8.25; +7%–10% Y/Y | $8.03–$8.23 | Raised |
Investor Takeaways
- Watch whether H2 pricing and volume growth deliver the guided organic sales growth and operating margins amid commodity costs and Middle East disruptions.
- Ecolab expects its Global High-Tech platform, now approaching $1.5B in annualized sales, to reach $4B in sales by 2030 at 25% operating income margins.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3