Core Insights - Ecolab reported $4.03 billion in revenue for Q2 2025, a 1% year-over-year increase, with an EPS of $1.89 compared to $1.68 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $4.01 billion by 0.42%, while the EPS fell short of the consensus estimate of $1.90 by 0.53% [1] Financial Performance Metrics - Global Pest Elimination sales were $311.3 million, slightly above the estimated $309.06 million [4] - Global Water sales were $1.91 billion, below the estimated $1.92 billion, reflecting a 2.4% decrease year-over-year [4] - Global Life Sciences sales were $176.7 million, below the estimated $179.14 million [4] - Global Institutional & Specialty sales reached $1.51 billion, slightly below the estimated $1.53 billion, but showed a 10.1% year-over-year increase [4] - Operating Income for Global Life Sciences was $34.8 million, exceeding the estimate of $27.2 million [4] - Operating Income for Global Pest Elimination was $61.2 million, slightly above the estimated $60.41 million [4] - Corporate Operating Income was reported at -$75 million, worse than the estimated -$48.9 million [4] Stock Performance - Ecolab's shares returned +0.2% over the past month, underperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Ecolab (ECL) came out with quarterly earnings of $1.89 per share, missing the Zacks Consensus Estimate of $1.9 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non- recurring items. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have chan ...

Exhibit 99.1 News Release Investor Contact: Media Contact: Andrew Hedberg (651) 250-2185 Nigel Glennie (651) 250-2576 Andrew Pearson (651) 250-3654 ECOLAB DELIVERS ANOTHER STRONG QUARTER OF DOUBLE-DIGIT EPS GROWTH REPORTED DILUTED EPS $1.84; ADJUSTED DILUTED EPS $1.89, +13% MAINTAINS 2025 ADJUSTED DILUTED EPS OUTLOOK: $7.42 - $7.62, +12% - 15% SECOND QUARTER HIGHLIGHTS OUTLOOK | | | | Second Quarter Ended June 30 | | | | | --- | --- | --- | --- | --- | --- | --- | | | Reported | | | Adjusted | | | | (unaudi ...

Core Viewpoint - Ecolab, Inc. is set to report its second-quarter 2025 results, with expectations of revenue growth and improved earnings per share compared to the previous year [1][11]. Group 1: Business Segments Performance - Ecolab's Global Water segment, previously known as Global Industrial, saw sales growth in Q1 2025 due to organic growth and the acquisition of Barclay Water Management, particularly in Light & Heavy and Food & Beverage sectors [2][3]. - The Global Hi-Tech Water segment experienced strong sales growth driven by innovations in microelectronics production and data center cooling solutions, which are expected to continue boosting performance [4]. - The Global Pest Elimination segment benefited from acquisitions in North America and growth in food & beverage, restaurants, and hospitality sectors, with expectations for continued sales increases in Q2 2025 [5][6]. - The Global Institutional & Specialty segment is integrating its units and reported strong sales growth in its Specialty business, although it faced challenges due to the sale of its surgical solutions business [7][10]. - The Global Life Sciences segment recorded new business wins, leveraging industry trends and investments in innovation, which are expected to drive revenue growth [9]. Group 2: Financial Estimates and Market Performance - The Zacks Consensus Estimate for Ecolab's total revenues in Q2 2025 is $4.01 billion, reflecting a 0.6% increase from the prior year, while the EPS estimate is $1.90, indicating a 13.1% improvement [11]. - Ecolab's shares have gained 12.8% over the past three months, outperforming the Chemical - Specialty sector and the Basic Materials sector, but underperforming the S&P 500 [14]. - Ecolab's forward 12-month price-to-earnings (P/E) ratio is 33.3X, which is a premium compared to the industry average of 23.4X, indicating higher valuation expectations relative to growth [18][19]. Group 3: Strategic Developments - Ecolab launched the AI-powered program Ecolab RushReady to enhance restaurant operations and profitability, indicating a focus on leveraging technology for business growth [22]. - The introduction of 3D TRASAR Technology for Direct-to-Chip Liquid Cooling aims to improve data center operations by monitoring coolant health, showcasing Ecolab's commitment to innovation and resource efficiency [23]. - Overall, Ecolab's core business strength, earnings potential, and global opportunities position it favorably for future growth, although current valuations suggest limited room for new investments [24][25].

Core Insights - Ecolab (ECL) is expected to report quarterly earnings of $1.90 per share, reflecting a 13.1% increase year-over-year, with revenues forecasted at $4.01 billion, a 0.6% increase compared to the previous year [1] - Analysts have maintained the consensus EPS estimate over the last 30 days, indicating a reevaluation of initial estimates [1][2] - The average estimates for key metrics show significant year-over-year growth in various segments, indicating positive trends in the company's performance [3][4][5] Earnings Estimates - The consensus EPS estimate for Ecolab is $1.90, up 13.1% from the same quarter last year [1] - Revenue estimates stand at $4.01 billion, marking a 0.6% increase year-over-year [1] Key Metrics Projections - Analysts project 'Sales- Global Institutional & Specialty (Fixed Currency rates)' to be $1.53 billion, reflecting an 11.6% increase year-over-year [3] - 'Sales- Global Institutional & Specialty (Public Currency rates)' is expected to reach $1.55 billion, indicating a 13.8% year-over-year change [3] - 'Operating Income- Global Institutional & Specialty (Fixed Currency rates)' is anticipated to be $360.94 million, up from $320.70 million in the same quarter last year [4] - 'Operating Income- Global Institutional & Specialty (Public Currency rates)' is projected at $368.90 million, compared to $318.30 million in the same quarter of the previous year [5] Market Performance - Over the past month, Ecolab shares have returned +0.8%, while the Zacks S&P 500 composite has seen a +5.7% change [5] - Ecolab currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Core Insights - Ecolab has launched an innovative cleaning solution called Ecolab ReadyDose, aimed at food service establishments to enhance kitchen hygiene with pre-dosed concentrated cleaning formulas [1][2] - The product was introduced at the SIGEP and Restaurant Asia exhibition in Singapore, targeting the Southeast Asian foodservice market [1][2] Company Developments - ReadyDose combines Ecolab's food safety expertise with a user-friendly design, reducing product waste and improving staff compliance [2] - The launch addresses challenges such as labor constraints and rising operational costs while promoting sustainability [2][4] - Ecolab's market capitalization stands at $76.23 billion, with a strong performance in earnings surprises over the last four quarters [5] Product Features - ReadyDose includes a range of tablet-based cleaning products for various applications, including surface cleaners, presoak solutions, and specialty beverage cleaners [8][9][10] - The product line is designed to minimize packaging waste and conserve resources, supporting sustainability efforts [9] Industry Context - The global commercial cleaning products market was valued at $121.29 billion in 2023, with a projected CAGR of 7.91% from 2024 to 2030, driven by the demand for cleanliness in commercial spaces [12]

Core Insights - Ecolab Inc. launched the 3D TRASAR Technology for Direct-to-Chip Liquid Cooling, enhancing data center cooling solutions and optimizing performance while saving water and energy [1][2][5] Company Developments - The new technology positions Ecolab to cover the entire data center cooling landscape, leveraging AI to improve efficiency and reduce resource demand [2][6] - Ecolab's market capitalization stands at $75.71 billion, with a return on equity of 22.5%, outperforming the industry average of 11.6% [4] - Following the product launch, Ecolab's shares increased by nearly 0.7%, reflecting positive market sentiment [3][10] Industry Prospects - The global data center cooling market is projected to grow from $12.7 billion in 2023 to $29.6 billion by 2030, with a CAGR of 12.8%, driven by the need for efficient cooling systems [7] - Ecolab's management anticipates that the new cooling technology will unlock growth opportunities for high-tech companies by addressing water and performance demands [6][5]

Ecolab (ECL) FY Conference Summary Company Overview - Ecolab is a leading provider of chemical-based solutions for institutional and industrial end markets, with a strong focus on water-related services and technologies [2][10][11] - The company has been in business for over 102 years and has a strong balance sheet, positioning itself well for growth [5][6] Financial Performance - Ecolab's stock has been on an upward trajectory since late 2022, attributed to successful navigation through product cost inflation and strong customer relationships [2][3] - The company aims for a long-term target of 20% operating income margin by 2027, with an expected margin of 18% in 2025, reflecting a 150 basis points improvement from the previous year [14][15] - Financial targets include 5% to 7% top-line growth and 12% to 15% earnings per share growth [17] Market Position and Opportunities - Ecolab serves over 1 million customers in 172 countries across 40 different industries, with 90% of sales being recurring [12][13] - The company is positioned as a leader in a fragmented global market, with no direct competitors offering the same breadth of services [20] - Ecolab's market opportunity is estimated at EUR 152 billion, with a penetration opportunity of EUR 55 billion [32] Growth Strategies - Ecolab is focusing on several key growth areas, including: - **Global High-Tech Business**: Targeting data centers and microelectronics manufacturers, with a market opportunity exceeding EUR 5 billion [32][33] - **Life Sciences**: A growing segment with a current business of CHF 300 million and a 30% margin, focusing on safe drug production [39][40] - **Ecolab Digital**: Transitioning to a subscription model for digital services, with an annualized sales figure of EUR 320 million and a growth rate of 12% [42][43] Technological Innovations - Ecolab has invested significantly in R&D, with 3,000 employees dedicated to developing breakthrough technologies [8][21] - Innovations include: - Water-free cooling technologies for data centers, reducing energy consumption [22][36] - Advanced water recycling systems for semiconductor manufacturing [37] - Digital monitoring systems for hotels and restaurants, enhancing operational efficiency and guest satisfaction [54][55] Environmental and Social Impact - Ecolab's ambition by 2030 is to protect 2 billion people from infection and provide enough water for 1 billion people [7][44] - The company emphasizes sustainability, aiming for net-zero water usage and reducing environmental impact through its services [11][19] Customer Relationships and Value Proposition - Ecolab's value proposition focuses on helping customers improve operational efficiency while reducing costs and environmental impact [21][27] - The company has a strong emphasis on customer satisfaction, with digital solutions enhancing service delivery and operational performance [55][59] Conclusion - Ecolab is well-positioned for future growth, leveraging its technological innovations, strong market presence, and commitment to sustainability to drive financial performance and customer satisfaction [45][46]

Core Viewpoint - Ecolab's shares have increased by approximately 4.5% since the last earnings report, but this performance is below that of the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Recent estimates for Ecolab have trended downward over the past month [2] - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Group 2: VGM Scores - Ecolab currently holds a Growth Score of B, but has a low Momentum Score of D and a Value Score of F, placing it in the fifth quintile for value investment strategy [3] - The overall aggregate VGM Score for Ecolab is D, which is relevant for investors not focused on a single strategy [3] Group 3: Industry Performance - Ecolab is part of the Zacks Chemical - Specialty industry, where Element Solutions has seen a gain of 5.1% over the past month [5] - Element Solutions reported revenues of $593.7 million for the last quarter, reflecting a year-over-year increase of 3.3% [5] - For the current quarter, Element Solutions is expected to report earnings of $0.33 per share, which represents an 8.3% decrease from the same quarter last year [6]

Part I [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2025 show a slight decrease in net sales to **$3.70 billion**, while operating income increased to **$555.3 million**, and cash flow from operations decreased to **$369.4 million** due to working capital changes [Consolidated Statements of Income](index=2&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 vs Q1 2024 Income Statement Highlights | Metric | Q1 2025 (millions) | Q1 2024 (millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,695.0 | $3,751.9 | -1.5% | | Operating Income | $555.3 | $517.9 | +7.2% | | Net Income Attributable to Ecolab | $402.5 | $412.1 | -2.3% | | Diluted EPS | $1.41 | $1.43 | -1.4% | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Summary | Metric | March 31, 2025 (millions) | December 31, 2024 (millions) | | :--- | :--- | :--- | | Total Current Assets | $6,081.1 | $6,025.7 | | Total Assets | $22,366.4 | $22,387.8 | | Total Current Liabilities | $4,609.2 | $4,792.8 | | Total Liabilities | $13,462.7 | $13,598.6 | | Total Equity | $8,903.7 | $8,789.2 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 vs Q1 2024 Cash Flow Highlights | Activity | Q1 2025 (millions) | Q1 2024 (millions) | | :--- | :--- | :--- | | Cash provided by operating activities | $369.4 | $649.4 | | Cash used for investing activities | ($224.0) | ($201.0) | | Cash used for financing activities | ($241.6) | ($889.3) | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company announced the 'One Ecolab' initiative in July 2024, a restructuring plan to enhance growth and margin expansion by leveraging digital technologies and global centers of excellence. The company anticipates restructuring costs of **$175 million** and special charges of **$50 million** by the end of 2027[20](index=20&type=chunk) - In Q1 2025, the company recorded **$39.4 million** in restructuring charges and **$4.8 million** in special charges under the One Ecolab initiative. Cumulative charges under this initiative are **$121.2 million** for restructuring and **$28.5 million** for special charges[21](index=21&type=chunk) - Effective January 1, 2025, the company realigned its reportable segments. The former Global Industrial segment is now Global Water. The former healthcare operating segment was moved into the Institutional operating segment, and Global Life Sciences was elevated to a standalone reportable segment[48](index=48&type=chunk)[106](index=106&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In Q1 2025, reported net sales decreased **2%** to **$3.7 billion**, while organic sales grew **3%** and operating income rose **7%** to **$555.3 million**, driven by the 'One Ecolab' initiative [Overview of the First Quarter](index=31&type=section&id=Overview%20of%20the%20First%20Quarter) Q1 2025 Performance Summary | Metric | Q1 2025 Result | YoY Change | | :--- | :--- | :--- | | Reported Net Sales | $3.70 billion | -2% | | Organic Sales | - | +3% | | Reported Operating Income | $555.3 million | +7% | | Organic Operating Income | - | +17% | | Reported Diluted EPS | $1.41 | -1% | | Adjusted Diluted EPS | $1.50 | +12% | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 Sales Change Components | Component | Percentage Change | | :--- | :--- | | Volume | 1% | | Pricing | 2% | | **Organic sales change** | **3%** | | Acquisitions and divestitures | (2)% | | **Fixed currency sales change** | **1%** | | Foreign currency translation | (2)% | | **Reported GAAP net sales change** | **(2)%** | - Adjusted gross margin increased to **44.4%** in Q1 2025 from **43.3%** in Q1 2024, reflecting strong value pricing[147](index=147&type=chunk) - The 'One Ecolab' initiative, announced in July 2024, is expected to incur **$175 million** in restructuring costs and **$50 million** in special charges by the end of 2027, with anticipated annualized cost savings of **$140 million**[150](index=150&type=chunk)[152](index=152&type=chunk) Q1 2025 vs Q1 2024 Operating Income Reconciliation | (millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Reported GAAP operating income | $555.3 | $517.9 | 7% | | Special (gains) and charges | 34.3 | 29.8 | - | | **Non-GAAP organic operating income** | **$579.3** | **$496.6** | **17%** | [Segment Performance](index=37&type=section&id=Segment%20Performance) Q1 2025 Organic Sales and Operating Income Change by Segment | Segment | Organic Sales Change | Organic Operating Income Change | | :--- | :--- | :--- | | Global Water | +2% | +5% | | Global Institutional & Specialty | +4% | +27% | | Global Pest Elimination | +5% | -1% | | Global Life Sciences | +5% | +31% | - **Global Water:** Organic sales grew **2%**, driven by strong double-digit growth in high tech (data centers, microelectronics) and solid growth in manufacturing[179](index=179&type=chunk)[180](index=180&type=chunk) - **Global Institutional & Specialty:** Organic sales increased **4%**, with strong growth in the legacy Institutional business. Organic operating margin expanded by **3.9 percentage points** due to strong pricing and lower supply chain costs[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) - **Global Pest Elimination:** Organic sales rose **5%**, but organic operating margin decreased by **1.1 percentage points** as investments in the business outweighed the positive impact of pricing and volume[188](index=188&type=chunk)[189](index=189&type=chunk) [Financial Position, Cash Flows and Liquidity](index=42&type=section&id=Financial%20Position,%20Cash%20Flows%20and%20Liquidity) - The company's net debt to EBITDA ratio remained stable at **1.7** as of March 31, 2025[196](index=196&type=chunk)[197](index=197&type=chunk) - Cash from operating activities decreased by **$280 million** YoY to **$369.4 million**, primarily due to unfavorable changes in working capital and timing of compensation payments[198](index=198&type=chunk) - In March 2025, the company amended and restated its **$2.0 billion** revolving credit facility, extending the maturity to March 2030. No borrowings were outstanding under this facility as of March 31, 2025[207](index=207&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company uses derivative instruments like foreign currency forward contracts and interest rate swaps to manage market risks, not for speculative purposes - Ecolab uses foreign currency forward contracts, interest rate swap agreements, and foreign currency debt to manage market risks[230](index=230&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of March 31, 2025, with no material changes to internal controls, while continuing an ERP system upgrade - The CEO and CFO concluded that disclosure controls and procedures are effective as of March 31, 2025[231](index=231&type=chunk) - The company is in the process of a multi-year ERP system upgrade, which is expected to improve the efficiency of financial and transactional processes[233](index=233&type=chunk) Part II [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, including the TPC Group plant explosion and a vehicle accident, believing claims are without merit and potential losses are covered by insurance - Ecolab's subsidiary, Nalco, is a defendant in multi-district litigation following a 2019 explosion at a TPC Group plant. Ecolab believes the claims are without merit and intends to defend them vigorously[119](index=119&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) - The company was named in a lawsuit in June 2024 following a vehicle collision involving an employee that resulted in fatalities and injuries. The company believes any potential loss should be covered by insurance subject to its deductible[125](index=125&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **580,712** shares at an average price of **$239.08**, with **8,200,873** shares remaining for repurchase under the current authorization Q1 2025 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 428,123 | $233.58 | | Feb 2025 | 20,026 | $264.52 | | Mar 2025 | 132,563 | $253.03 | | **Total Q1 2025** | **580,712** | **$239.08** | - As of March 31, 2025, **8,200,873** shares remained authorized for repurchase under the company's plan[238](index=238&type=chunk)