01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Ecolab Inc. (ECL) reported a strong first quarter for 2026, with net sales increasing by 10% year-over-year to $4.07 billiona.
This growth was driven by a 4% increase in organic sales, reflecting solid performance across all reportable segments, particularly in Global Life Sciences (11% organic sales growth) and Global Pest Elimination (7% organic sales growth). The company's operating income rose by 12% to $622 millionb, and net income attributable to Ecolab grew by 7% to $432.6 million, translating to diluted EPS of $1.52. The company also announced its agreement to acquire CoolIT Systems for $4.75 billion, a move that is expected to close in the third quarter of 2026 and represents a significant strategic expansion into data center liquid cooling solutions.
While the company faced increased interest expenses and higher commodity costs, these were partially offset by pricing actions, productivity gains, and favorable foreign currency translation. Ecolab also continues to manage its restructuring initiatives, "One Ecolab," which is on track to deliver significant annualized cost savings. Investors should note the increase in short-term debt primarily due to funding for recent acquisitions, and the company's ongoing commitment to returning capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Net sales increased 10% to $4.07 billion, with organic sales up 4% year-over-year.
- Operating income grew 12% to $622 million, and net income attributable to Ecolab increased 7% to $432.6 million.
- Diluted EPS rose 8% to $1.52.
- Announced agreement to acquire CoolIT Systems for $4.75 billion, expected to close in Q3 2026.
- Global Water segment saw organic sales growth of 2%, driven by strong performance in High-Tech and Food & Beverage.
- Global Life Sciences segment reported strong organic sales growth of 11%.
- The company implemented an energy surcharge in Q2 2026 to offset rising commodity and logistics costs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Ecolab Inc. kept $0.11.
- Revenue$4.07B100.0%
- Cost of revenue−$2.30B56.4%
- Gross profit$1.77B43.6%
- Operating costs−$1.15B28.3%
- Operating income$622.0M15.3%
- Interest, other & tax−$189.4M4.7%
- Net income$432.6M10.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.07B$3.69B | +10.0% |
| Cost of Revenue | $2.30B$2.06B | +11.4% |
| Gross Profit | $1.77B$1.63B | +8.3% |
| SG&A Expenses | $1.10B$1.05B | +5.0% |
| Operating Income | $622.00M$555.30M | +12.0% |
| Interest Expense | $77.30M$72.60M | +6.5% |
| Net Income | $432.60M$402.50M | +7.5% |
| EPS (Basic) | $1.53$1.42 | +7.7% |
| EPS (Diluted) | $1.52$1.41 | +7.8% |
| Shares Outstanding (Basic) | 282.00M283.40M | −0.5% |
| Shares Outstanding (Diluted) | 283.70M285.30M | −0.6% |
05—Questions
Frequently Asked Questions
What is Ecolab's financial performance in the first quarter of 2026?
Ecolab reported a 10% increase in net sales to $4.07 billion and a 12% increase in operating income to $622 million for the first quarter of 2026. Net income attributable to Ecolab grew 7% to $432.6 million, resulting in diluted EPS of $1.52. Organic sales increased by 4% year-over-year.
What are the key strategic developments or acquisitions mentioned?
Ecolab announced its agreement to acquire CoolIT Systems for $4.75 billion, a deal anticipated to close in the third quarter of 2026. This acquisition marks a strategic move into the data center liquid cooling market. Additionally, the acquisition of Ovivo Electronics, completed in late 2025, continues to be integrated, with purchase accounting adjustments noted in the filing.
How is Ecolab managing rising costs and inflationary pressures?
Ecolab is addressing rising commodity and logistics costs, exacerbated by geopolitical events, by implementing an energy surcharge in the second quarter of 2026. The company is also relying on value pricing, productivity gains, and cost-saving initiatives like the 'One Ecolab' program to offset these pressures and maintain margins. Underlying gross margin was stable, with value pricing offsetting higher commodity costs.
What is the company's outlook and debt position?
The company expects its operating cash flow to remain strong and believes it has sufficient borrowing capacity to meet foreseeable operating activities. Short-term debt increased primarily due to funding for recent acquisitions, and total debt was $8.5 billion as of March 31, 2026. The company reaffirmed its commitment to returning capital to shareholders through dividends and share repurchases.
06—Continue