10-QPeriod: Q3 FY2025

ECOLAB INC. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:ECL

Summary

Ecolab Inc. reported a net sales increase of 4% to $4,165.0 million for the third quarter of 2025, reaching $11,885.2 million for the first nine months, a 1% increase year-over-year. While reported operating income saw a significant decrease of 27% in the third quarter due to a large gain on the sale of its global surgical solutions business in the prior year, adjusted operating income showed a healthy 10% increase. Net income attributable to Ecolab decreased by 21% to $585.0 million in the third quarter, but adjusted net income saw a 13% increase. Diluted EPS also reflected this trend, with reported EPS down 21% but adjusted diluted EPS up 13%. The company continues to invest in growth initiatives, as evidenced by increased SG&A expenses relative to sales in the third quarter. The "One Ecolab" initiative is progressing, with expanded restructuring plans anticipated to yield significant cost savings. Ecolab also announced its agreement to acquire Ovivo Electronics for approximately $1.8 billion, signaling a strategic move into the semiconductor manufacturing water technology sector. The company maintains a strong balance sheet with increased cash and cash equivalents, and its leverage ratios remain stable.

Financial Highlights

55 data points
Beta

Revenue

$4.17B

44.8% Gross Margin

Net Income

$585.00M

14.0% Net Margin

EPS (Diluted)

$2.05

Total Assets

$23.90B

Cash & Equivalents

$1.96B

Free Cash Flow

$529.70M

Financial Statements
Beta
Revenue$4.17B
Cost of Revenue$2.30B
Gross Profit$1.87B
SG&A Expenses$1.08B
Operating Income$760.20M
Interest Expense$74.60M
Net Income$585.00M
EPS (Basic)$2.06
EPS (Diluted)$2.05
Shares Outstanding (Basic)283.50M
Shares Outstanding (Diluted)285.40M

Key Highlights

  • 1Net sales increased 4% to $4,165.0 million in Q3 2025 compared to Q3 2024.
  • 2Reported operating income decreased 27% in Q3 2025 due to a prior-year gain on sale, but adjusted operating income increased 10%.
  • 3Adjusted diluted EPS increased 13% to $2.07 in Q3 2025, demonstrating underlying operational improvement.
  • 4The company announced a significant acquisition agreement to purchase Ovivo Electronics for approximately $1.8 billion, strengthening its position in high-growth markets.
  • 5Cash and cash equivalents increased to $1,955.8 million as of September 30, 2025, providing strong liquidity.
  • 6The "One Ecolab" initiative is advancing, with expanded restructuring plans and anticipated cost savings contributing to future margin expansion.
  • 7Organic sales growth was positive across all reporting segments, indicating broad-based demand for Ecolab's solutions.

Frequently Asked Questions

The decrease in reported operating income and net income is primarily due to a large gain on the sale of Ecolab's global surgical solutions business recorded in the third quarter of 2024. When excluding this and other special charges and discrete tax items, the company's adjusted operating income and adjusted net income showed significant increases, indicating strong underlying business performance.

The pending acquisition of Ovivo Electronics for approximately $1.8 billion is a strategic move to expand Ecolab's presence in the high-growth semiconductor manufacturing market. Ovivo Electronics is a leading provider of ultra-pure water technologies, aligning with Ecolab's expertise in water treatment and purification.

The "One Ecolab" initiative is progressing with expanded restructuring plans aimed at leveraging digital technologies. The company anticipates restructuring costs of $240 million and special charges of $60 million by the end of 2027, which are expected to yield annualized cost savings of $225 million in continuing operations by 2027. The initiative has already delivered $79 million in cumulative cost savings.

Ecolab maintains a strong liquidity position, with cash and cash equivalents increasing to $1,955.8 million as of September 30, 2025. The company expects to fund its foreseeable cash requirements for the next twelve months through operating activities and available credit facilities, indicating a positive liquidity outlook.