Ecolab(ECL) - 2024 Q4 - Annual Report

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$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].