Christophe Beck, Ecolab’s chairman and chief executive officer, said, “The Ecolab team executed very well to deliver another strong quarter of double-digit earnings growth. Our Institutional & Specialty and Global Water segments delivered solid growth, outperforming end-market trends as we benefited from share gains supported by the One Ecolab growth strategy, breakthrough innovation, and strong value pricing. Our growth engines, which include Life Sciences, Pest Elimination, Global High-Tech and Ecolab Digital, collectively grew sales double digits, with very strong operating income growth. All of this, combined with SG&A leverage enabled by our digital capabilities, drove continued robust operating income margin expansion.

“In the second half of the year, we expect to continue to deliver 12-15% earnings growth. While the macroeconomic environment remains unpredictable, we are confident in our growth drivers and our ability to execute. Our focus remains on driving further share gains, value pricing, and fueling our growth engines, which are accretive to our growth and margin profile. Ecolab’s fundamentals are strong, and we remain very well positioned to deliver exceptional value for customers and superior returns for shareholders in 2025 and beyond.”

Ecolab delivered another strong quarter of double-digit EPS growth, consistent with expectations. This superior performance was fueled by continued value pricing, volume growth, and productivity improvements.

• Reported sales $4.0 billion, +1%, including a 2% unfavorable impact from the sale of the global surgical solutions business.
• Organic sales +3%, led by continued strong growth in the Institutional & Specialty, Pest Elimination, and Life Sciences segments. As expected, Water delivered solid gains as accelerating growth in Food & Beverage and double-digit growth in Global High-Tech more than offset soft end-market trends in Paper and Basic Industries.
• Reported operating income margin 17.6%. Organic operating income margin 18.3%, +170 bps as value pricing and improved productivity more than offset growth-oriented investments in the business.
• Reported diluted EPS $1.84, +8%. Adjusted diluted EPS, excluding special gains and charges and discrete tax items were $1.89, +13%.

OUTLOOK

• 2025: Continue to expect 2025 adjusted diluted EPS in the $7.42 to $7.62 range, +12% to 15%. The company expects to overcome the unpredictable operating environment through strong new business wins, value and surcharge pricing, and improved productivity.
• 3Q 2025: Expect third quarter 2025 adjusted diluted EPS in the $2.02 to $2.12 range, +10% to 16%.

Second Quarter 2025 Consolidated Results

Ecolab’s second quarter reported sales increased 1%, including a 2% unfavorable impact from the sale of the global surgical solutions business. Organic sales increased 3% when compared to the prior year. Ecolab Digital sales grew 29% to $95 million, with growth accelerating across both software and enabling hardware subscriptions.

Second quarter 2025 reported operating income increased 8% including the impact of special gains and charges, which were a net charge primarily related to One Ecolab. Organic operating income increased 14%, as value pricing and improved productivity more than offset growth-oriented investments in the business.

Reported other income in the second quarter of 2025 was stable. Reported net interest expense decreased $16 million reflecting lower interest expense due to lower interest rates and higher cash balances.

The reported income tax rate for the second quarter of 2025 was 19.9% compared with the reported rate of 16.2% in the second quarter of 2024. Excluding special gains and charges and discrete tax items, the adjusted tax rate for the second quarter of 2025 was 20.8% compared with the adjusted tax rate of 19.5% in the second quarter of 2024. The higher adjusted tax rate reflected changes in geographic income mix.

Reported net income increased 7% versus the prior year. Excluding the impact of special gains and charges and discrete tax items, adjusted net income increased 12% versus the prior year.

Reported diluted earnings per share increased 8% versus the prior year. Adjusted diluted earnings per share increased 13% when compared against the second quarter of 2024.

Currency translation had a $0.01 favorable impact on earnings per share in the second quarter of 2025.

Ecolab repurchased approximately 150,000 shares of its common stock during the second quarter of 2025.

Second Quarter 2025 Segment Review

Fixed currency and organic sales both increased 2%, reflecting accelerating Food & Beverage sales growth and continued solid growth in Light & Heavy, which was partially offset by lower Paper sales. Light & Heavy’s growth was led by continued double-digit growth in Global High-Tech and solid gains in Manufacturing and Downstream, which more than offset slightly lower sales in Basic Industries. Good new business gains in Food & Beverage, which leveraged our One Ecolab growth strategy, helped to accelerate sales growth. Lower Paper sales reflected good new business wins that were offset by softer customer production rates. Organic operating income increased 6% as value pricing and improved productivity overcame impacts from unfavorable mix and higher supply chain costs.

Fixed currency sales declined 2% due to the sale of the global surgical solutions business last year. As expected, organic sales grew 4%. Within Institutional, mid-single digit growth in sales to hospitality customers was partially offset by modestly lower sales to hospitals. Specialty delivered strong underlying sales growth, which was partially offset by an unfavorable impact from previously disclosed non-strategic, low margin business exits. Both the Institutional and Specialty businesses drove strong new business wins and continued value pricing, significantly outperforming end market trends. Organic operating income increased 16%, as strong sales growth, lower supply chain costs, and improved productivity overcame investments in the business.

Fixed currency sales increased 7%, reflecting 6% organic growth and a 1% benefit from attractive, targeted acquisitions in North America. Improved organic sales growth was led by good gains in food & beverage, restaurants, healthcare, and food retail, which continue to benefit from our One Ecolab growth strategy. Organic operating income increased slightly as strong sales growth was largely offset by growth-oriented investments as the business shifts to pest intelligence, and the comparison to very strong 20% growth last year. As expected, organic operating income margin expanded sequentially to nearly 20%.

Fixed currency and organic sales growth both remained solid at 4% as double-digit growth in bioprocessing and pharmaceutical & personal care more than offset softer industrial water purification sales, which was constrained by production limitations. Organic operating income increased 105%, driven by lower supply chain costs, solid sales growth, and comparisons to softer performance last year. We expect Life Sciences’ organic operating income margin to be in the mid-teens in the second half of this year as we continue to invest in breakthrough innovation, global capabilities, and capacity to capitalize on this high-growth, high-margin opportunity.

Second quarter of 2025 corporate segment includes:

• amortization expense of $27 million related to the Nalco merger intangible assets and $22 million related to Purolite acquisition intangible assets
• special gains and charges were a net charge of $27 million, primarily related to One Ecolab

Special gains and charges for the second quarter of 2024 impacting operating expense were a net charge of $13 million primarily related to restructuring and professional service fees associated with the sale of our global surgical solutions business.

Business Outlook

2025

Secular growth trends in water, hygiene, infection prevention, and digital technologies continue to fuel resilient, long-term demand for Ecolab’s innovative technologies and services. Strong momentum in Ecolab’s growth engines, which include Life Sciences, Pest Elimination, Global High-Tech and Ecolab Digital, is expected to continue. Ecolab’s investments in these areas position the company well to capture these attractive long-term growth opportunities.

In the near-term, the global operating environment remains unpredictable, characterized by constantly evolving end-market demand and impacts from geopolitics and evolving international trade policy. Importantly, with these current macroeconomic assumptions, Ecolab’s expectations for 2025 earnings remain unchanged. The company has made proactive and strategically consistent adjustments to its delivery path, overcoming the unpredictable operating environment. Ecolab expects to outperform its end markets by converting strong new business wins, which leverage the company’s One Ecolab growth strategy and its record innovation pipeline. The company is also well prepared to manage through the dynamic international trade environment given the strength of Ecolab’s world class supply chain, its ‘local for local’ production model, and its recently implemented trade surcharge.

As a result, Ecolab continues to expect full year 2025 adjusted diluted earnings per share in the $7.42 to $7.62 range, rising 12% to 15% compared with adjusted diluted earnings per share of $6.65 in 2024.

Consistent with prior expectations, the company currently anticipates quantifiable special charges in 2025 to be approximately $0.25 to $0.30 per share, principally related to restructuring charges. Other than the special gains and charges noted above, other such amounts are not currently quantifiable.

2025 – Third Quarter

Ecolab expects third quarter 2025 adjusted diluted earnings per share in the $2.02 to $2.12 range, rising 10% to 16% compared with adjusted diluted earnings per share of $1.83 a year ago.

The company currently expects quantifiable special charges in the third quarter of 2025 to be $0.06 per share, principally related to restructuring charges. Other than the special gains and charges noted above, other such amounts are not currently quantifiable.