[Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the second quarter and six months ended June 30, 2025, including statements of income, comprehensive income, balance sheets, cash flows, and equity, along with detailed notes explaining the basis of presentation and significant accounting policies [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a year-over-year increase in net sales, operating income, and net income for the second quarter and first six months of 2025, with total assets and liabilities increasing and cash flow from operations decreasing Financial Performance | Financial Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $4,025.2 M | $3,985.8 M | $7,720.2 M | $7,737.7 M | | **Operating Income** | $710.1 M | $656.9 M | $1,265.4 M | $1,174.8 M | | **Net Income Attributable to Ecolab** | $524.2 M | $490.9 M | $926.7 M | $903.0 M | | **Diluted EPS** | $1.84 | $1.71 | $3.25 | $3.14 | Balance Sheet Summary | Balance Sheet Item | June 30, 2025 (Millions USD) | Dec 31, 2024 (Millions USD) | | :--- | :--- | :--- | | **Total Assets** | $23,736.0 M | $22,387.8 M | | **Total Liabilities** | $14,385.4 M | $13,598.6 M | | **Total Equity** | $9,350.6 M | $8,789.2 M | Cash Flow Summary | Cash Flow Activity (Six Months Ended June 30) | 2025 (Millions USD) | 2024 (Millions USD) | | :--- | :--- | :--- | | **Cash provided by operating activities** | $1,071.2 M | $1,260.5 M | | **Cash used for investing activities** | ($448.4 M) | ($445.4 M) | | **Cash provided by (used for) financing activities** | $55.7 M | ($1,335.7 M) | | **Increase (decrease) in cash** | $664.1 M | ($529.5 M) | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting events and policies, including 'One Ecolab' restructuring charges, segment reporting changes, revenue disaggregation, debt, hedging, and litigation matters - The 'One Ecolab' initiative, announced in July 2024, is a restructuring plan to leverage digital technologies and realign work into global centers of excellence. The company anticipates total restructuring costs of **$175 million** and special charges of **$50 million** by the end of 2027[21](index=21&type=chunk) Special (Gains) and Charges | Special (Gains) and Charges (Six Months Ended June 30) | 2025 (Millions USD) | 2024 (Millions USD) | | :--- | :--- | :--- | | One Ecolab | $73.2 M | - | | Other restructuring | ($12.0 M) | $27.3 M | | Sale of global surgical solutions business | $2.4 M | $13.3 M | | Acquisition and integration activities | $8.8 M | $4.8 M | | **Total Special (Gains) and Charges** | **$61.4 M** | **$42.7 M** | - Effective January 1, 2025, the company renamed its Global Industrial segment to Global Water and elevated Global Life Sciences to a standalone reportable segment, moving the former healthcare operating segment into Institutional[58](index=58&type=chunk)[114](index=114&type=chunk) - In June 2025, the company issued **$500 million** in three-year fixed-rate notes with a **4.30%** coupon, subsequently repaying **€575 million ($674 million)** on its 2015 senior notes in July 2025[47](index=47&type=chunk)[50](index=50&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, highlighting a 1% net sales increase (3% organic) and an 8% diluted EPS rise, driven by strong pricing and productivity gains despite strategic investments and divestitures [Overview of the Second Quarter](index=30&type=section&id=Overview%20of%20the%20Second%20Quarter) Ecolab reported a 1% net sales increase to **$4.0 billion** in Q2 2025, with 3% organic growth and an 8% rise in diluted EPS to **$1.84**, driven by strong segment performance and a 14% increase in organic operating income Q2 2025 Performance Overview | Metric (Q2 2025 vs Q2 2024) | Reported Change | Organic Change | | :--- | :--- | :--- | | **Net Sales** | +1% | +3% | | **Operating Income** | +8% | +14% | | **Net Income Attributable to Ecolab** | +7% | N/A | | **Diluted EPS** | +8% | N/A | | **Adjusted Diluted EPS** | N/A | +13% | [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q2 2025 organic sales grew 3% (1% volume, 2% pricing), with reported gross margin improving to **44.8%** from **43.8%** due to strong value pricing, supporting operating income growth despite business investments Sales Change Components | Sales Change Components (Q2 2025) | Percentage | | :--- | :--- | | Volume | 1% | | Pricing | 2% | | **Organic Sales Change** | **3%** | | Acquisitions and divestitures | (2)% | | **Fixed Currency Sales Change** | **1%** | | Foreign currency translation | 0% | | **Reported GAAP Net Sales Change** | **1%** | - Adjusted gross margin increased to **44.8%** in Q2 2025 from **43.8%** in Q2 2024, primarily due to strong value pricing[154](index=154&type=chunk) - The reported tax rate for Q2 2025 was **19.9%**, up from **16.2%** in Q2 2024, mainly due to the impact of discrete tax items and special charges in the prior year[175](index=175&type=chunk) [Segment Performance](index=36&type=section&id=Segment%20Performance) Global Water achieved 2% organic sales growth, Global Institutional & Specialty grew 4% organically, Global Pest Elimination increased 6%, and Global Life Sciences grew 4% with significantly improved margins Segment Performance Overview | Segment (Q2 2025 vs Q2 2024) | Organic Sales Change | Organic Operating Income Change | | :--- | :--- | :--- | | **Global Water** | +2% | +6% | | **Global Institutional & Specialty** | +4% | +16% | | **Global Pest Elimination** | +6% | +1% | | **Global Life Sciences** | +4% | +105% | - Global Institutional & Specialty's organic operating income margin expanded by **2.6 percentage points** due to strong pricing, lower supply chain costs, and productivity improvements[199](index=199&type=chunk) - Global Pest Elimination's organic operating income margin decreased by **1.0 percentage point** as strategic investments more than offset positive pricing impacts[204](index=204&type=chunk) [Financial Position, Cash Flow and Liquidity](index=42&type=section&id=Financial%20Position,%20Cash%20Flow%20and%20Liquidity) As of June 30, 2025, total assets were **$23.7 billion** and total debt **$8.2 billion**, with operating cash flow decreasing to **$1.1 billion** due to working capital timing, while maintaining strong liquidity - Cash provided by operating activities decreased by **$189 million** in the first six months of 2025 compared to 2024, primarily driven by a **$200 million** unfavorable change in working capital, specifically the timing of accounts payable[215](index=215&type=chunk) Debt and Liquidity Metrics | Metric | June 30, 2025 (Millions USD) | Dec 31, 2024 (Millions USD) | | :--- | :--- | :--- | | **Total Debt** | $8,210.7 M | $7,564.9 M | | **Cash** | $1,920.9 M | $1,256.8 M | | **Net Debt** | $6,289.8 M | $6,308.1 M | | **Net Debt to EBITDA Ratio** | 1.6 | 1.7 | - In March 2025, the company amended and restated its **$2.0 billion** revolving credit facility, extending the maturity to March 2030, with no borrowings outstanding as of June 30, 2025[225](index=225&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 financial instruments, including foreign currency forward contracts and interest rate swaps, to manage foreign exchange and interest rate risks, not for speculation - Ecolab uses foreign currency forward contracts, interest rate swap agreements, and foreign currency debt to manage market risks, avoiding speculative derivative instruments[248](index=248&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, disclosure controls and procedures were effective, with an ongoing multi-year ERP system upgrade expected to impact internal control over financial reporting processes - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[249](index=249&type=chunk) - The company is undergoing a multi-year ERP system upgrade, which will affect processes related to internal control over financial reporting[251](index=251&type=chunk) [Part II - Other Information](index=47&type=section&id=Part%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference legal matters detailed in Note 16 of the financial statements, covering various lawsuits, claims, and environmental actions, including the TPC Group litigation - Information regarding legal proceedings is provided by reference to Note 16, 'Commitments and Contingencies,' in Part I, Item 1 of this report[254](index=254&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company states there are no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024, referring readers to that filing - The company refers to its Form 10-K for the fiscal year ended December 31, 2024, for a detailed discussion of risk factors, indicating no material changes during the quarter[255](index=255&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) This section summarizes common stock repurchases during Q2 2025, totaling **149,600** shares under the publicly announced plan Common Stock Repurchases | Period (2025) | Total Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | April | 137,600 | $244.41 | | May | 12,000 | $249.79 | | June | 0 | - | | **Total** | **149,600** | **$244.84** | - As of June 30, 2025, **8,051,273** shares remained available for repurchase under the company's board-authorized program[256](index=256&type=chunk)[257](index=257&type=chunk)

Group 1 - Ecolab Inc reported second-quarter adjusted earnings per share of $1.89, missing the analyst consensus estimate of $1.90, while quarterly sales reached $4.025 billion, exceeding the expected $4.016 billion [1] - The company's growth engines, including Life Sciences, Pest Elimination, Global High-Tech, and Ecolab Digital, collectively experienced double-digit sales growth and strong operating income growth, as stated by CEO Christophe Beck [1] - Ecolab reaffirmed its fiscal year 2025 adjusted EPS guidance in the range of $7.42 to $7.62, compared to the $7.50 analyst estimate, and provided third-quarter adjusted EPS guidance of $2.02 to $2.12, against the $2.06 consensus [2] Group 2 - Following the earnings announcement, Ecolab shares increased by 2.1%, trading at $264.70 [2] - Baird analyst Andrew Wittmann upgraded Ecolab from Neutral to Outperform and raised the price target from $273 to $300, while Citigroup analyst Patrick Cunningham maintained a Buy rating but lowered the price target from $320 to $315 [4]

Group 1 - The core viewpoint is a reiterated Sell rating on Ecolab Inc. due to soft demand in the heavy industrial market [1] - The company is experiencing low demand across the overall industrial market [1] - Management has effectively leveraged value pricing strategies to navigate the challenging market conditions [1]

Core Insights - Ecolab Inc. reported second-quarter 2025 adjusted earnings per share (EPS) of $1.89, reflecting a year-over-year increase of 12.5%, but missed the Zacks Consensus Estimate by $0.01 [1][9] - Revenues for the quarter reached $4.03 billion, up 0.9% year over year, exceeding the Zacks Consensus Estimate by 0.4% [2][9] - The company experienced strong organic sales growth of 2.8%, driven by segments such as Institutional & Specialty, Pest Elimination, and Life Sciences [2][13] Revenue Details - Ecolab's total revenues were $4.03 billion, marking a 0.9% increase year over year, and organic sales were $3.88 billion, up 2.8% [2][9] - The Global Water segment reported fixed currency sales of $1.91 billion, reflecting a 2.4% growth year over year, with organic sales at $1.89 billion, up 1.7% [3] - The Global Institutional & Specialty segment saw fixed currency sales decline by 2.4% to $1.51 billion, while organic sales increased by 3.5% [4] - The Global Pest Elimination segment's fixed currency sales improved by 7.3% to $311.3 million, with organic sales up 6.2% [5] - The Global Life Sciences segment reported fixed currency and organic sales of $176.7 million, both reflecting a growth of 4.1% year over year [6] Margin Analysis - Gross profit for the quarter improved by 3.3% year over year to $1.80 billion, with a gross margin expansion of 100 basis points to 44.8% [7][9] - Selling, general and administrative expenses decreased by 0.7% to $1.07 billion year over year [7] - Adjusted operating profit totaled $734.7 million, a 9.8% increase from the prior year, with an adjusted operating margin expansion of 147 basis points to 18.3% [7][9] Financial Position - Ecolab ended the second quarter of 2025 with cash and cash equivalents of $1.92 billion, up from $1.16 million at the end of the first quarter [10] - Total debt increased to $8.21 billion from $7.61 billion at the end of the first quarter [10] - The company has a consistent dividend-paying history, with a five-year annualized dividend growth of 6.86% [10] Guidance - Ecolab provided an adjusted EPS outlook for the third quarter of 2025, expecting a range of $2.02 to $2.12, which represents a year-over-year increase of 10-16% [11] - For the full year 2025, the adjusted EPS is expected to be in the range of $7.42 to $7.62, reflecting a 12-15% increase from 2024 [12] Overall Assessment - Ecolab's second-quarter results showed better-than-expected revenues and solid year-over-year growth in both top and bottom lines, with strong performances across most segments [13] - The company benefited from share gains and strong value pricing, particularly in the Institutional & Specialty and Global Water segments [14] - However, the decline in reported revenues for the Global Institutional & Specialty segment due to the sale of the global surgical solutions business was a point of concern [15]

Financial Data and Key Metrics Changes - Ecolab achieved double-digit earnings growth of 13% in Q2 2025, with organic sales growth of 3% driven by strong value pricing and core business momentum [6][14] - Operating income margin increased by 170 basis points, reaching a solid 18% for the full year 2025 target, with a long-term goal of 20% by 2027 [14][16] - The company expects adjusted EPS growth of 12% to 15% for the upcoming quarters in 2025 and into 2026 [15][24] Business Line Data and Key Metrics Changes - Institutional and Specialty business grew 4% in organic sales, while Global Water sales growth accelerated to 4% excluding Paper and Basic Industries [8][11] - Pest Elimination's organic sales growth accelerated to 6%, benefiting from the shift to a digital Pest Intelligence model [12][40] - Life Sciences experienced mid-single-digit growth, with strong double-digit growth in biopharma and core Pharma [12][104] Market Data and Key Metrics Changes - The remaining 85% of Ecolab's business grew organic sales by 4%, while Paper and Basic Industries, which represent only 15% of total sales, faced uneven demand [7][8] - Global Hi-Tech business grew over 30%, with operating income margins exceeding 20% [12][112] - Ecolab Digital achieved nearly 30% sales growth, reaching an annualized run rate of €380 million [12][113] Company Strategy and Development Direction - Ecolab's strategy focuses on value pricing, innovation, and enhancing operational performance to drive growth [9][16] - The company is investing in growth engines such as Life Sciences, Data Centers, and Pest Intelligence to fuel long-term momentum [24][26] - Ecolab aims to leverage its strong balance sheet and low leverage ratio of 1.7 to capitalize on both organic and inorganic growth opportunities [16][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained strong performance despite a complicated global environment [15][16] - The company anticipates continued operating income margin expansion due to growth in high-margin businesses and productivity improvements [14][16] - Management acknowledged the need for conservatism in guidance while continuing to invest in growth businesses [24][26] Other Important Information - Ecolab will host an Investor Day on September 4, 2025, to provide an in-depth review of the company's strategy [18] - The company is focused on maintaining a strong cash flow and balance sheet while exploring M&A opportunities [82][84] Q&A Session Summary Question: Why was there no increase in guidance despite strong Q2 results? - Management indicated a combination of conservatism and ongoing investments in growth businesses, maintaining a commitment to deliver 12% to 15% EPS growth [22][24] Question: What are the expectations for pricing in the second half? - Management expects pricing to strengthen closer to 3% in Q3 and Q4, supported by value delivery to customers [29][31] Question: Can you elaborate on the Pest Intelligence rollout? - Management highlighted the transition to Pest Intelligence, which will enhance service delivery and customer satisfaction, aiming for a 99% pest-free environment [36][40] Question: What are the trends in delivered product costs? - Management noted that commodity costs are expected to rise low to mid-single digits, but supply chain efficiencies are helping maintain favorable net delivered product costs [44][46] Question: How is the company positioned for inorganic growth? - Management expressed confidence in the M&A pipeline, focusing on water, high-tech, life sciences, and digital technology, while remaining disciplined in capital deployment [82][84]

Financial Data and Key Metrics Changes - Ecolab achieved double-digit earnings growth of 13% in the second quarter, with organic sales growth of 3% driven by strong value pricing and solid core business momentum [4][12]. - The operating income margin increased by 170 basis points, reaching a solid 18% for the full year 2025 target, with aspirations to reach 20% by 2027 [12][78]. Business Line Data and Key Metrics Changes - The remaining 85% of Ecolab's business grew organic sales by 4% and operating income by 18%, showcasing the strength of its diversified portfolio [5][12]. - The Pest Elimination segment saw organic sales growth accelerate to 6%, benefiting from the shift to a digital Pest Intelligence model [10][39]. - Life Sciences experienced mid-single-digit growth, with strong double-digit growth in biopharma and core Pharma, while Water Purification faced production limitations [10][104]. Market Data and Key Metrics Changes - Global Water sales growth accelerated to 4%, with operating income growing double digits, driven by strong performance in Food and Beverage [9][10]. - The Paper and Basic Industries segments, which represent 15% of total sales, faced uneven demand, impacting overall growth [4][5]. Company Strategy and Development Direction - Ecolab's strategy focuses on value pricing, innovation, and enhancing operational performance, with a commitment to delivering superior customer value [6][12]. - The company is investing in growth engines such as Life Sciences, Global Hi-Tech, and Ecolab Digital, which collectively represent nearly €3 billion in annual sales and are growing double digits [9][10]. - Ecolab aims to leverage its strong balance sheet and low leverage ratio of 1.7 to capitalize on both organic and inorganic growth opportunities [13][85]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering 12% to 15% adjusted EPS growth for the upcoming quarters, supported by strong business fundamentals and a diversified portfolio [12][25]. - The company acknowledges the complexities of the global operating environment but remains optimistic about future growth driven by macro trends in water, AI infrastructure, and productivity [23][25]. Other Important Information - Ecolab will host an Investor Day on September 4 in Minnesota to provide an in-depth review of its strategy and showcase breakthrough innovations [15]. - The company is focused on maintaining a disciplined approach to capital allocation, prioritizing dividends, business investments, and potential buybacks [81][85]. Q&A Session Summary Question: Expectations for Guidance Adjustments - Management indicated a combination of conservatism and ongoing investments in growth businesses, maintaining a commitment to deliver on promised growth targets [21][22]. Question: Pricing Trends and Expectations - Management expects pricing to strengthen closer to 3% in the third and fourth quarters, supported by value delivery to customers [28][31]. Question: Pest Elimination Business Transition - The transition to Pest Intelligence is significant and requires investment, but management is optimistic about long-term growth and customer satisfaction [34][39]. Question: Delivered Product Costs and Inflation - Management noted that commodity costs are expected to rise low to mid-single digits, but efficiencies from the supply chain are helping to maintain favorable margins [42][45]. Question: Water Business Capacity Constraints - Management confirmed capacity limitations in the Water business, particularly in Water Purification, but expressed confidence in the overall growth trajectory [61][66]. Question: Free Cash Flow Expectations - Management expects free cash flow conversion to be around 90% for the year, with strong earnings growth driving improvements in the second half [95][99]. Question: Life Sciences Margin Expectations - Management indicated that while margins may drop back towards mid-teens, strong growth in biopharma will continue to drive overall performance [102][104].

Financial Performance - Ecolab's reported diluted EPS was $1.84, with adjusted diluted EPS at $1.89, a 13% increase[7, 12] - The company anticipates full-year 2025 adjusted diluted earnings per share to be in the range of $7.42 to $7.62, representing a 12% to 15% increase compared to 2024[8, 15] - Ecolab projects third-quarter 2025 adjusted diluted earnings per share to be between $2.02 and $2.12, a 10% to 16% rise from the previous year[8, 15] - Reported sales increased by 1%, which includes an unfavorable impact of 2% from the sale of the global surgical solutions business[8] - Organic sales grew by 3%, driven by Institutional & Specialty and Water segments[8] - Reported operating income (OI) increased by 8%, with organic OI rising by 14%[8] - Organic operating income margin expanded by 170 bps to 18.3%, attributed to value pricing and improved productivity[8] Segment Performance - Global Water segment sales increased by 2%[16] - Global Institutional & Specialty segment sales increased by 4%[16] - Global Pest Elimination segment sales increased by 6%[16] - Global Life Sciences segment sales increased by 4%[16] Strategic Outlook - Ecolab expects to achieve a 20% operating income margin by 2027[7] - The company is focused on capitalizing on long-term growth opportunities, maximizing service effectiveness, and leveraging investments in digital technology[37] - Ecolab is well-prepared to manage the dynamic international trade environment through its world-class supply chain, 'local for local' production model, and recently implemented trade surcharge[15]

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]

Core Viewpoint - Ecolab reported quarterly earnings of $1.89 per share, slightly missing the Zacks Consensus Estimate of $1.90 per share, but showing an increase from $1.68 per share a year ago, indicating a -0.53% earnings surprise [1] Financial Performance - Ecolab's revenues for the quarter ended June 2025 were $4.03 billion, surpassing the Zacks Consensus Estimate by 0.42% and showing an increase from $3.99 billion year-over-year [2] - Over the last four quarters, Ecolab has exceeded consensus revenue estimates two times [2] Stock Performance - Ecolab shares have increased approximately 15.2% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] Future Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $2.09 on revenues of $4.11 billion, and for the current fiscal year, it is $7.50 on revenues of $15.98 billion [7] Industry Context - The Chemical - Specialty industry, to which Ecolab belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Reported diluted EPS was $1.84, an increase of 8%, while adjusted diluted EPS was $1.89, up 13% compared to the previous year[3] - Net sales for the second quarter were $4.0 billion, reflecting a 1% increase, with organic sales growing by 3%[3] - Operating income increased by 8% to $710.1 million, with an organic operating income increase of 14%[7] - Ecolab reported net sales of $4,025.2 million for Q2 2025, a 1% increase from $3,985.8 million in Q2 2024[44] - The company's operating income for Q2 2025 was $710.1 million, reflecting an 8% increase compared to $656.9 million in Q2 2024[44] - Net income attributable to Ecolab for Q2 2025 was $524.2 million, up 7% from $490.9 million in Q2 2024[44] - Diluted earnings per share increased by 8% to $1.84 in Q2 2025, compared to $1.71 in Q2 2024[44] - Non-GAAP adjusted operating income for the second quarter of 2025 was $737.2 million, an increase of 10% from $669.8 million in 2024[56] - Adjusted diluted earnings per share for Q2 2025 is projected at $1.89, compared to $1.68 in Q2 2024, reflecting a growth of 12.5%[61] Segment Performance - The Global Water segment reported sales of $1.91 billion, a 2% increase, with an organic operating income margin of 16.1%[12] - The Global Institutional & Specialty segment achieved organic sales growth of 4%, with operating income increasing by 16%[17] - The Global Life Sciences segment saw a 4% increase in sales, with operating income surging by 105%[19] - Global Water segment reported net sales of $1,908.5 million, a 2% increase from $1,863.2 million in the same quarter of 2024[47] - Global Life Sciences segment operating income surged by 105% to $34.8 million, compared to $17.0 million in the second quarter of 2024[47] - Global Pest Elimination segment net sales increased by 7% to $311.3 million, compared to $290.2 million in the second quarter of 2024[47] - Operating income for the Global Institutional & Specialty segment was $359.4 million in Q2 2025, compared to $329.5 million in Q2 2024, representing an increase of 9.1%[59] - The Global Pest Elimination segment achieved net sales of $311.3 million in Q2 2025, a 7.3% increase from $290.2 million in Q2 2024[59] Future Outlook - The company maintains its 2025 adjusted diluted EPS outlook in the range of $7.42 to $7.62, representing a growth of 12% to 15%[3] - Ecolab expects third quarter 2025 adjusted diluted EPS in the range of $2.02 to $2.12, reflecting a growth of 10% to 16% compared to the previous year[25] - The company anticipates continued growth in net sales and operating income for the remainder of 2025, driven by strategic market expansions and new product developments[59] Shareholder Actions - The company repurchased approximately 150,000 shares of its common stock during the second quarter[11] Financial Position - Total current assets increased to $7,075.8 million as of June 30, 2025, up from $6,025.7 million at the end of 2024[52] - Total liabilities rose to $14,385.4 million as of June 30, 2025, compared to $13,598.6 million at the end of 2024[52] - The company’s total assets reached $23,736.0 million as of June 30, 2025, up from $22,387.8 million at the end of 2024[52] Cost and Expenses - The cost of sales decreased by 1% to $2,222.8 million in Q2 2025 from $2,241.0 million in Q2 2024[44] - Interest expense decreased by 20% to $63.2 million in Q2 2025, down from $78.8 million in Q2 2024[44] - Special (gains) and charges for Q2 2025 totaled $24.6 million, compared to $12.2 million in Q2 2024[44] - Special gains and charges for Q2 2025 amounted to $26.7 million, compared to $12.8 million in Q2 2024, indicating a significant increase[59] Currency Impact - Currency impact contributed an additional $117.0 million to net sales in Q2 2025, compared to $114.5 million in Q2 2024[59]