ECOLAB First Quarter 2025 Supplemental 1 Cautionary statement Forward-Looking Information This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding macroeconomic conditions and our financial and business performance and prospects, including sales, earnings, special (gains) and charges, raw material costs, margins, pricing, currency translation, ...

Ecolab (ECL) came out with quarterly earnings of $1.50 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items. Ecolab, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $3.7 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.07%. This compares to year-ago revenues of $3.75 billion. The company has topped consensus revenue estimates just once o ...

Core Viewpoint - Ecolab, Inc. is set to report its first-quarter 2025 results, with expectations of mixed performance across its segments, influenced by both growth opportunities and challenges in the current macroeconomic environment [1][9]. Global Industrial Segment - The Global Industrial segment, which includes Water, Food & Beverage, and Paper units, experienced sales growth in Q4 2024, particularly in the Water business, which is expected to positively impact overall industrial performance in the midterm [2][3]. - The Zacks Consensus Estimate for Q1 2025 revenues in the Global Industrial segment is $1.92 billion, reflecting a 4.1% increase from the previous year [4]. Global Institutional & Specialty Segment - The Global Institutional & Specialty segment showed strong growth in the last reported quarter, driven by new business and customer penetration, with expectations of continued revenue growth in Q1 2025 [5]. - The Zacks Consensus Estimate for Q1 2025 revenues in this segment is $1.37 billion, indicating a 7.9% increase from the prior year [6]. Other Contributing Factors - Ecolab's Life Sciences unit and Global Pest Elimination segment are also expected to contribute positively to revenues, with good new business wins and ongoing digital initiatives [7]. - However, the exit from non-strategic low-margin businesses in the Global Healthcare & Life Sciences segment may negatively impact performance [8]. Overall Revenue and EPS Estimates - The total revenue estimate for Q1 2025 is $3.70 billion, which represents a 1.4% decline from the previous year [9]. - The consensus estimate for EPS is $1.51, suggesting a 12.7% improvement from the prior-year period [10]. Share Price Performance - Over the past three months, Ecolab's shares have decreased by 3.6%, outperforming the Chemical - Specialty sector's decline of 6.6% and the S&P 500's decline of 10.9% [13]. - Comparatively, peers like Hawkins, Inc. and Givaudan SA have outperformed Ecolab, while Balchem Corporation has underperformed [17]. Valuation Metrics - Ecolab's forward 12-month price-to-earnings (P/E) ratio is 30.4X, which is higher than the industry average of 22.1X, indicating a premium valuation [18]. - The company trades at a premium compared to Hawkins but at a discount to peers like Balchem and Givaudan [19]. Long-Term Investment Outlook - Ecolab is making significant strides in its Global Water business and has engaged in partnerships to enhance water safety and efficiency, which are expected to bolster long-term growth [20]. - The Global Institutional & Specialty and Global Pest Elimination segments are aligning with long-term growth objectives, raising optimism about their profitability prospects [21]. Final Assessment - Ecolab demonstrates strong core business strength and growth potential, making it a suitable hold for existing investors [22]. - However, for new investors, the current valuation suggests limited growth potential compared to industry peers, advising caution before adding to positions [23].

The average prediction of analysts places 'Sales- Global Institutional & Specialty (Fixed Currency rates)' at $1.37 billion. The estimate points to a change of +7.9% from the year-ago quarter. Analysts expect 'Sales- Global Industrial (Fixed Currency rates)' to come in at $1.92 billion. The estimate indicates a year-over-year change of +4.1%. Analysts on Wall Street project that Ecolab (ECL) will announce quarterly earnings of $1.51 per share in its forthcoming report, representing an increase of 12.7% year ...

Ecolab, Inc. (ECL) recently announced a 5% trade surcharge on all its solutions and services in the United States, effective May 1, 2025. The move is aimed at offsetting rising costs tied to raw materials, transportation, and labor, while allowing the company to maintain its high service standards and continued innovation.This strategic pricing adjustment highlights Ecolab’s proactive approach in navigating inflationary pressures while supporting sustainable growth.Likely Trend of ECL Stock Following the Ne ...

Exhibit 99.1 News Release Investor Contact: Media Contact: Andrew Hedberg (651) 250-2185 Nigel Glennie (651) 250-2576 Cairn Clark (651) 250-2291 ECOLAB DELIVERS STRONG FOURTH QUARTER AND RECORD 2024 PERFORMANCE REPORTED DILUTED EPS $1.66; ADJUSTED DILUTED EPS $1.81, +17% 2025 ADJUSTED DILUTED EPS OUTLOOK: $7.42 - $7.62, +12% - 15% FOURTH QUARTER HIGHLIGHTS OUTLOOK | | | | Fourth Quarter Ended December 31 | | | | | --- | --- | --- | --- | --- | --- | --- | | | Reported | | Adjusted | | | | | (unaudited) | Pu ...

Environmental and Sustainability Initiatives - The company invested approximately $56 million in environmental, health, and safety projects worldwide in 2024, with a budget of $60 million for 2025[85]. - The company has capital expenditures for environmental projects of $46 million in 2023 and $35 million in 2022[85]. - In 2023, the company invested $63 million in capital and $5.7 million in operating environmental program expenses, resulting in a reduction of total energy consumption by almost 5.7 billion BTUs and emissions by 700 metric tons CO2e[92]. - The company aims to reduce absolute Scope 1 and 2 emissions by 50% from 2018 levels and Scope 3 emissions by 25% from 2022 levels by 2030[91]. - The company has set a goal to help customers reduce GHG emissions by 6.0 million metric tons by 2030 and conserve over 300 billion gallons of water annually[93]. - The company has committed to achieving net zero operational GHG emissions by 2050, with a near-term target for Science Based Targets initiative (SBTi) validation[91]. - The company has established a target to move to 100% renewable energy by 2030[91]. - The company recognizes climate change as both a risk and an opportunity, aligning its strategies with TCFD recommendations[87]. - The company continues to monitor and evaluate climate change regulations, including California's 2023 GHG emissions reporting regulations[86]. - The company has met all REACH registration requirements, which are essential for managing chemical safety risks in the European Union[76]. Financial Performance - The company's net sales for 2024 were $15,741.4 million, an increase from $15,320.2 million in 2023, representing a growth of 2.8%[361]. - Operating income for 2024 was $2,802.4 million, up from $1,992.3 million in 2023, reflecting a significant increase of 40.6%[361]. - Net income attributable to Ecolab for 2024 was $2,112.4 million, compared to $1,372.3 million in 2023, marking a year-over-year increase of 54%[361]. - The total comprehensive income attributable to Ecolab for 2024 was $1,980.8 million, an increase from $1,248.5 million in 2023[364]. - The cost of sales for 2024 was $8,899.7 million, a decrease from $9,154.9 million in 2023, indicating a reduction of 2.8%[361]. - Earnings per share attributable to Ecolab for 2024 were $7.43 (basic) and $7.37 (diluted), compared to $4.82 (basic) and $4.79 (diluted) in 2023, representing increases of 54% and 54% respectively[361]. - Net income for 2024 increased to $2,131.9 million, up from $1,393.0 million in 2023, representing a growth of 53%[369]. - Total assets rose to $22,387.8 million in 2024, compared to $21,846.6 million in 2023, reflecting an increase of 2.5%[366]. - Cash provided by operating activities reached $2,813.9 million, an increase from $2,411.8 million in 2023, marking a growth of 16.7%[369]. - Total liabilities decreased to $13,598.6 million in 2024 from $13,774.4 million in 2023, a reduction of 1.3%[366]. - The company declared cash dividends of $670.7 million in 2024, compared to $615.7 million in 2023, an increase of 8.9%[371]. - Capital expenditures for 2024 were $994.5 million, up from $774.8 million in 2023, indicating a rise of 28.3%[369]. - The company’s retained earnings increased to $11,517.1 million in 2024 from $10,075.4 million in 2023, a growth of 14.3%[371]. - The total equity of the company rose to $8,789.2 million in 2024, compared to $8,072.2 million in 2023, reflecting an increase of 8.9%[366]. - The company reported a gain of $381.7 million from the sale of its global surgical solutions business[369]. - The company’s cash and cash equivalents at the end of the period increased to $1,256.8 million from $919.5 million in 2023, a growth of 36.7%[369]. Regulatory and Compliance Issues - The company is subject to various regulatory requirements in the United States, European Union, and Australia for its medical devices and pharmaceutical products[89]. - The company has not experienced material difficulties in complying with pesticide regulations, maintaining several hundred product registrations with the EPA[78]. - Compliance with evolving environmental laws and regulations could increase operating costs and expose the company to financial liabilities[138]. - The company faces risks related to compliance with evolving international trade policies and tariffs, which could increase costs and reduce sales[121]. - The company is currently evaluating the impact of new accounting standards, including ASU 2024-03 and ASU 2023-09, on its financial statements[425]. Operational Challenges and Strategic Initiatives - The ongoing geopolitical conflicts and macroeconomic conditions have resulted in demand uncertainty and increased operational challenges[114]. - The company is making supply chain investments to secure supply and add new capacity in its Life Sciences business[134]. - The implementation of ERP system upgrades is expected to improve efficiency in financial and transactional processes over the next several years[134]. - The company has limited its Russian operations to essential services due to geopolitical tensions, which may heighten various operational risks[120]. - The use of AI technologies is increasing, but it presents competitive, legal, and operational risks that could adversely impact the business[130]. - Economic downturns in key markets such as foodservice and hospitality have negatively affected demand for the company's products and services[116]. - The company is undertaking restructuring programs, including the One Ecolab initiative, to enhance operational efficiency[134]. Debt and Financial Liabilities - The company has approximately $7.6 billion in outstanding indebtedness as of December 31, 2024, with $1.5 billion in floating rate debt[154]. - A one percentage point increase in the average interest rate on floating rate debt would increase future interest expense by approximately $15 million per year[154]. - The company may incur significant tax liabilities if the separation and split-off of its Upstream Energy business is determined to be taxable[151]. - Changes in tax laws, including the implementation of a 15% global minimum taxation regime starting in 2024, could increase tax compliance burdens and costs[152]. Restructuring and Special Charges - In 2024, the Company recorded special charges totaling $188.9 million, compared to $111.4 million in 2023 and $140.5 million in 2022[427]. - The One Ecolab initiative is expected to incur restructuring costs of $175 million ($136 million after tax) and special charges of $50 million ($39 million after tax) by the end of 2027[428]. - The Company recorded restructuring charges of $76.5 million ($59.0 million after tax) in 2024 related to the One Ecolab initiative[430]. - The net restructuring liability related to the One Ecolab initiative was $54.9 million as of December 31, 2024[431]. - The Combined Program incurred total pre-tax charges of $195 million ($150 million after tax), with restructuring activities completed by the end of 2024[433]. - The Company recorded non-restructuring special charges of $23.7 million ($17.9 million after tax) in 2024, primarily related to professional services[430]. Goodwill and Intangible Assets - As of December 31, 2024, the company reported goodwill of $7.9 billion, which includes goodwill from the Nalco and Purolite transactions[156]. - The carrying amount of goodwill as of December 31, 2024, was $7.91 billion, a decrease from $8.15 billion in 2023, primarily due to a divestiture of businesses[393]. - The company's intangible assets subject to amortization had a weighted-average useful life of 15 years as of December 31, 2024[395]. - Amortization expense related to other intangible assets was $301 million in 2024, down from $307 million in 2023, indicating a decrease of approximately 2%[398].

Additional risks and uncertainties are set forth under Item 1A of our most recent Form 10-K, and our other public filings with the Securities and Exchange Commission ("SEC"), and include the impact of economic factors such as the worldwide economy, interest rates, foreign currency risk, reduced sales and earnings in our international operations resulting from the weakening of local currencies versus the U.S. dollar, demand uncertainty, supply chain challenges and inflation; the vitality of the markets we se ...

Financial Data and Key Metrics Changes - Ecolab Inc. achieved record sales, earnings, margins, and free cash flow in 2024, with organic sales growth of 4% in Q4 driven by consistent volume growth and value pricing [8][9] - The organic operating income margin increased by 150 basis points in Q4, reaching 16.8% for the full year, up 290 basis points from 2023 [10][11] - The company aims to reach a 20% operating income margin by 2027, with confidence in achieving an 18% margin in 2025 [11][29] Business Line Data and Key Metrics Changes - The U.S. market, which constitutes over half of Ecolab's sales, saw mid-single-digit organic sales growth, while international sales grew low single digits [9][10] - The global high-tech business, including data centers and microelectronics, reached over $300 million in sales, with expectations for strong growth and operating income margins above 20% [14][15] Market Data and Key Metrics Changes - The U.S. remains the most profitable region for Ecolab, with expectations for further strengthening in 2025 [9][10] - The company anticipates a 3% unfavorable impact from currency translation on reported sales growth and a 4% impact on adjusted EPS growth in 2025 [12] Company Strategy and Development Direction - Ecolab's strategy focuses on capturing market share through the OneEcosystem initiative and accelerating growth in new areas such as data centers, microelectronics, and life sciences [12][13] - The company plans to invest in digital capabilities and high-tech businesses, with CapEx expected to be around 7% of sales in 2025 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued solid organic sales growth and 12-15% earnings growth in 2025, despite macroeconomic challenges [11][12] - The company is well-positioned to deliver innovative solutions that enhance operational performance while reducing resource usage, which is increasingly relevant in the current macro landscape [21] Other Important Information - Ecolab's board declared a 14% increase in the quarterly cash dividend, and the company repurchased $1 billion of its stock in 2024 [20] - The company is focused on enhancing shareholder returns while maintaining a healthy balance sheet [19][20] Q&A Session Summary Question: Confidence in reaching 20% operating income margin by 2027 - Management is confident in reaching the 20% target by 2027, with a steady trajectory and focus on top-line momentum, value pricing, and productivity driven by technology [29][30] Question: Size and integration of digital sales with OneEcolab initiative - Digital sales will be reported in 2025, with expectations of a few hundred million in revenue, closely intertwined with the OneEcolab initiative [35][39] Question: Volume growth expectations for 2025 - Volume growth is expected to be around 2%, with overall organic growth projected to exceed 4% due to improved pricing strategies [47][49] Question: Delivered product costs in 2025 - Delivered product costs are expected to normalize to low single-digit inflation, with efforts to offset costs through supply chain efficiencies [55][56] Question: Margin differential between U.S. and international businesses - The U.S. business has higher margins compared to international operations, but both are improving, with a common goal of achieving 20% operating income margins globally [136][137]

Ecolab exceeded fourth-quarter expectations with strong earnings driven by organic growth and strategic innovation.Ecolab (ECL 7.51%), a leader in water, hygiene, and energy technologies, recently unveiled its financial results for the fourth quarter of 2024 on February 11, 2025. The company reported an adjusted EPS of $1.81, exceeding Wall Street's forecasts of $1.80, and total revenue hit $4.0 billion, slightly above the anticipated $3.985 billion. The quarter was marked by robust organic growth and impro ...