10-QPeriod: Q1 FY2026

ECOLAB INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:ECL

Summary

Ecolab Inc. (ECL) reported a strong first quarter for 2026, with net sales increasing by 10% year-over-year to $4.07 billion. 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 million, 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.

Financial Highlights

53 data points
Beta

Revenue

$4.07B

43.6% Gross Margin

Net Income

$432.60M

10.6% Net Margin

EPS (Diluted)

$1.52

Total Assets

$25.04B

Cash & Equivalents

$519.80M

Free Cash Flow

$97.40M

Financial Statements
Beta
Revenue$4.07B
Cost of Revenue$2.30B
Gross Profit$1.77B
SG&A Expenses$1.10B
Operating Income$622.00M
Interest Expense$77.30M
Net Income$432.60M
EPS (Basic)$1.53
EPS (Diluted)$1.52
Shares Outstanding (Basic)282.00M
Shares Outstanding (Diluted)283.70M

Key Highlights

  • 1Net sales increased 10% to $4.07 billion, with organic sales up 4% year-over-year.
  • 2Operating income grew 12% to $622 million, and net income attributable to Ecolab increased 7% to $432.6 million.
  • 3Diluted EPS rose 8% to $1.52.
  • 4Announced agreement to acquire CoolIT Systems for $4.75 billion, expected to close in Q3 2026.
  • 5Global Water segment saw organic sales growth of 2%, driven by strong performance in High-Tech and Food & Beverage.
  • 6Global Life Sciences segment reported strong organic sales growth of 11%.
  • 7The company implemented an energy surcharge in Q2 2026 to offset rising commodity and logistics costs.

Frequently Asked Questions

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.

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.

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.

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.