Ecolab 8-K
EarningsNew guidanceRestructuringImpairment / charge
High-Tech and Life Sciences drive 7% organic sales growth Y/Y; CoolIT amortization and financing costs temper adjusted EPS growth.
Filed 2026-10-27 08:02 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with Q4 and FY2026 guidance. Ecolab reported 13% sales growth and 7% organic growth as volume and pricing strengthened, with growth in Global High-Tech and Life Sciences leading its growth engines. Management cited strong execution and productivity, while noting that CoolIT acquisition costs weighed on adjusted EPS; it expects the acquisitions of Ovivo Electronics and CoolIT to add about 2 percentage points to annual organic sales growth one year after close.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Net sales | $4.69B, +13% Y/Y | $13.2B, +11% Y/Y |
| Organic net sales, non-GAAP | $4.45B, +7% Y/Y | $12.7B, +5% Y/Y |
| Gross margin | 44.1%, vs 44.8% | 43.9%, vs 44.6% |
| Operating income | $811M, +7% Y/Y | $2.19B, +8% Y/Y |
| Adjusted operating income, non-GAAP | $893M, +14% Y/Y | $2.38B, +13% Y/Y |
| Net income attributable to Ecolab | $551M, -6% Y/Y | $1.52B, flat Y/Y |
| Adjusted net income attributable to Ecolab, non-GAAP | $615M, +4% Y/Y | $1.69B, +8% Y/Y |
| Diluted EPS attributable to Ecolab | $1.95, -5% Y/Y | $5.37, +1% Y/Y |
| Adjusted diluted EPS, non-GAAP | $2.18, +5% Y/Y | $5.97, +9% Y/Y |
| Operating cash flow | — | $1.94B, +4% Y/Y |
- Organic sales growth reflected 2% volume growth and 5% pricing. Global High-Tech grew 63% organically, Life Sciences 17%, and Global Water 9%; acquisitions contributed 6 percentage points to reported sales growth. Ecolab said Ovivo Electronics is expected to grow mid-teens this year and CoolIT to more than double sales versus pre-acquisition levels.
- Adjusted EPS growth included an approximately 10-percentage-point headwind from CoolIT-related amortization and financing costs. Adjusted operating income rose as sales growth and productivity offset higher commodity costs and growth investments.
- September 30 total debt was $13.2B, vs $8.07B a year earlier; cash was $722M, vs $1.96B. Net debt/adjusted EBITDA was 2.9, vs 1.6. Expected quantifiable special charges were $0.83 per share for FY2026, including approximately $0.26 per share in Q4, principally for restructuring and acquisition and integration costs.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Adjusted diluted EPS (non-GAAP) | Q3 2026 | $2.13–$2.23; +3%–8% Y/Y | $2.18 | in line |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Reported sales growth | Q4 2026 | +12% to 14% | — | — |
| Organic sales growth | Q4 2026 | +6% to 7% | — | — |
| Adjusted operating income margin, non-GAAP | Q4 2026 | ≈19% | — | — |
| Organic operating income margin, non-GAAP | Q4 2026 | ≈20% | — | — |
| Adjusted tax rate, non-GAAP | Q4 2026 | 20% to 21% | — | — |
| Adjusted diluted EPS, non-GAAP | Q4 2026 | $2.13 to $2.23; +2% to 7% Y/Y | — | — |
| Adjusted diluted EPS, non-GAAP | FY2026 | $8.10 to $8.20; +8% to 9% Y/Y | — | — |
| Organic sales growth, non-GAAP | FY2027 | Upper end of 5% to 7% target | — | — |
| Adjusted operating income margin, non-GAAP | FY2027 | 20% | — | — |
| Adjusted EPS growth, non-GAAP | FY2027 | Meet or exceed 12% to 15% long-term target | — | — |
| Organic sales growth, non-GAAP | Long-term target | 5% to 7% | — | — |
| Operating income margin | Long-term target | >20%; expand 100 to 150 bps per year | — | — |
| Adjusted EPS growth, non-GAAP | Long-term target | 12% to 15% | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Adjusted diluted EPS, non-GAAP | FY2026 | $8.05–$8.25; +7%–10% Y/Y | $8.10 to $8.20; +8% to 9% Y/Y | narrowed (raised low end, lowered high end) |
| Organic sales growth, non-GAAP | Long term | +5%–7% | 5% to 7% | reaffirmed |
| Operating income margin | Long term | >20%; +100–150 bp per year | >20%; expand 100 to 150 bps per year | reaffirmed |
| Adjusted EPS growth, non-GAAP | Long term | +12%–15% | 12% to 15% | reaffirmed |
Investor Takeaways
- Track Q4 organic sales growth against the 6% to 7% outlook, particularly continued growth in High-Tech across data centers and microelectronics and in Life Sciences.
- Watch whether Ovivo Electronics and CoolIT deliver the projected combined contribution of about 2 percentage points to annual organic sales growth one year after close.
- Ecolab’s FY2027 outlook points to a 20% adjusted operating income margin and adjusted EPS growth meeting or exceeding its 12% to 15% long-term target; subsequent results will show whether momentum supports those goals.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-27 14:38:02Z