Ecolab (ECL) Q2 2026 earnings summary

Executive summary

• Achieved 10% year-over-year reported sales growth to $4.42 billion in Q2 2026, with organic sales up 5%.

• Adjusted diluted EPS rose 11% to $2.09, driven by strong volume, improved pricing (up 4%), and productivity gains that offset rising commodity costs.

• Growth engines such as Global High-Tech and Life Sciences posted double-digit gains, while core businesses (Food & Beverage, Institutional, Light Water) accelerated.

• Recent acquisitions (Ovivo Electronics, CoolIT) contributed to growth and are expected to further strengthen performance.

• Portfolio continues shifting toward higher-growth, higher-margin businesses, with growth engines scaling rapidly.

Financial highlights

• Q2 2026 net sales: $4.42 billion (+10% YoY); organic sales: $4.28 billion (+5% YoY).

• Adjusted operating income: $809.0M (+10% YoY); reported operating income: $757.9M (+7% YoY).

• Adjusted net income: $589.6M (+9% YoY); reported net income: $534.9M (+2% YoY).

• Adjusted gross margin declined 60–70 bps due to acquisitions; organic gross margin stable at 44.9%.

• Cash from operations for the first half was $1.18B, with capital expenditures of $589M.

Outlook and guidance

• Raised 2026 adjusted diluted EPS outlook to $8.05–$8.25 (+7%–10% YoY), with Q3 2026 adjusted EPS expected at $2.13–$2.23 (+3%–8% YoY).

• Second half 2026 organic sales growth forecasted at 6%–7%, with adjusted operating income margin at ~19% and organic margin at ~20%.

• EPS growth expected to accelerate to 12%–15% beyond 2026; 20% operating income margin target reaffirmed for 2027.

• The One Ecolab initiative is projected to deliver $325 million in annualized cost savings by 2027.

• Special charges in 2026 expected at $0.75–$0.80 per share, mainly for restructuring and integration.