Ecolab(US:ECL)2025-03-28 20:30Financial Performance - Reported sales for Q4 2024 were $4.0 billion, an increase of 2% year-over-year, with organic sales growth of 4% driven by strong performance in Industrial and Healthcare & Life Sciences segments[2]. - Adjusted diluted EPS for Q4 2024 was $1.81, up 17% from the previous year, while reported diluted EPS increased 18% to $1.66[2][7]. - Full-year 2024 cash flow from operating activities reached $2.8 billion, with record free cash flow of $1.8 billion[2]. - For 2025, the company expects adjusted diluted EPS in the range of $7.42 to $7.62, representing a growth of 12% to 15% compared to 2024[1][20]. - The first quarter of 2025 is projected to have adjusted diluted EPS between $1.47 and $1.53, reflecting a 10% to 14% increase year-over-year[22]. - For Q4 2024, net sales increased by 2% to $4,005.2 million compared to Q4 2023, while annual net sales rose by 3% to $15,741.4 million[40]. - Operating income for Q4 2024 was $582.8 million, a slight decrease of 1% year-over-year, but annual operating income surged by 41% to $2,802.4 million[40]. - Net income attributable to Ecolab for Q4 2024 was $472.9 million, reflecting a 17% increase from Q4 2023, with annual net income rising by 54% to $2,112.4 million[40]. - Diluted earnings per share for Q4 2024 were $1.66, an 18% increase compared to $1.41 in Q4 2023, while annual diluted earnings per share increased by 54% to $7.37[40]. - For the full year 2024, consolidated reported GAAP net sales were $15,741.4 million, reflecting a 3% increase from $15,320.2 million in 2023[50]. - The diluted EPS attributable to Ecolab for the full year 2024 was $7.37, compared to $4.79 in 2023, marking a significant increase of 54%[52]. - Non-GAAP adjusted operating income for the full year 2024 was $2,618.8 million, a 23% increase from $2,126.2 million in 2023[51]. - The company reported a GAAP operating income margin of 17.8% for the full year 2024, compared to 13.0% in 2023, indicating improved operational efficiency[51]. Segment Performance - The Industrial segment reported sales of $2.066 billion, a 4% increase, with operating income rising 11% to $374.6 million[8]. - The Global Institutional & Specialty segment saw sales increase by 6% to $1.367 billion, with operating income up 18% to $288.4 million[10]. - The Healthcare & Life Sciences segment experienced a 23% decline in sales to $322.1 million, but organic sales grew by 3%[11][12]. - Global Industrial segment net sales increased by 4% to $2,066.5 million, while Global Healthcare & Life Sciences saw a significant decline of 23% to $322.1 million[43]. - Operating income for the Global Institutional & Specialty segment rose by 18% to $288.4 million, while the Global Healthcare & Life Sciences segment experienced a 14% decrease to $40.7 million[43]. - The Global Institutional & Specialty segment reported an 8% increase in net sales to $5,413.9 million, while the Global Healthcare & Life Sciences segment declined by 11% to $1,434.1 million[50]. Cash Flow and Financial Strength - Ecolab emphasizes the importance of free cash flow as a measure of performance, defined as net cash from operating activities minus capital expenditures[35]. - Cash provided by operating activities for the year ended December 31, 2024, was $2,813.9 million, an increase from $2,411.8 million in 2023, representing a growth of 16.7%[56]. - Free cash flow for Q4 2024 was $407.0 million, down from $589.9 million in Q4 2023, a decrease of 30.9%[56]. - The total assets of the company increased to $22,387.8 million in 2024 from $21,846.6 million in 2023, indicating a growth in financial strength[47]. Future Outlook and Risks - Ecolab anticipates a 3% unfavorable impact from currency translation on 2025 reported sales growth and a 4% impact on adjusted diluted EPS growth[19]. - Ecolab plans to modify its segment reporting effective Q1 2025, with the Global Industrial segment being renamed Global Water and including additional categories[24]. - The company anticipates disclosing further details regarding 2023 and 2024 sales and operating income in a Form 8-K prior to the Q1 2025 results[24]. - Ecolab's forward-looking statements highlight potential risks including macroeconomic conditions, supply chain challenges, and geopolitical instability[26][27]. Currency Impact - The company experienced a currency impact of $(45.9) million on net sales in Q4 2024, compared to $(43.6) million in Q4 2023[54].