Ecolab Q3 Earnings Beat Estimates, Sales Miss; Company Narrows 2026 Outlook

Ecolab Inc. (NYSE:ECL) reported mixed third-quarter results on Tuesday, with earnings topping estimates while sales fell short. The company also adjusted its fiscal 2026 outlook and issued guidance for the fourth quarter.

Ecolab reported adjusted earnings of $2.18 per share, beating the analyst consensus estimate of $2.17. However, sales of $4.695 billion missed the consensus estimate of $4.703 billion.

Cash and cash equivalents were $722.3 million as of Sept. 30.

2026 Outlook Narrowed, Q4 Guidance Issued

The company narrowed its full-year 2026 adjusted EPS guidance to a range of $8.10 to $8.20 from $8.03 to $8.23. The analyst estimate is $8.17.

Ecolab expects full-year adjusted EPS to rise 8% to 9%, including a 6-percentage-point headwind from CoolIT costs.

For the fourth quarter, it expects adjusted EPS of $2.13 to $2.23 against an analyst estimate of $2.19.

The company expects reported sales to rise 12% to 14% and organic sales to grow 6% to 7%. It projects an adjusted operating income margin of about 19%.

Q3 Growth Drivers

Ecolab said reported sales grew 13%, while organic sales, which exclude acquisitions and currency effects, grew 7%. Volume rose 2% and pricing rose 5%. Global High-Tech organic sales grew 63% and Life Sciences grew 17%. Ecolab Digital sales rose 34% to $129 million.

Margins And Costs

Adjusted operating income increased 14%, and the organic operating income margin was 19.6%, up 70 basis points (0.7 percentage points). Adjusted gross margin fell 70 basis points because of acquisitions. The company said organic gross margin was stable as higher pricing offset rising commodity costs.

Reported EPS was $1.95, and reported net income fell 6%. Net interest expense rose $70 million, reflecting borrowing to finance the Ovivo Electronics and CoolIT acquisitions. Ecolab said CoolIT-related amortization and financing costs reduced adjusted EPS growth by about 10 percentage points.

CEO Commentary

CEO Christophe Beck said, "Third quarter results marked an inflection point in Ecolab’s performance." He said volume growth held up despite disruptions in the Middle East and that pricing helped offset higher commodity costs.

Beck also addressed 2027. Ecolab expects organic sales growth at the upper end of its 5% to 7% target and an adjusted operating income margin of 20%, he said. He added that adjusted EPS growth should accelerate in the second half of that year.

ECL Stock Price Activity: Ecolab shares are trading higher by 0.02% at $288.94 during premarket trading on Tuesday, according to Benzinga Pro data.

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