Ecolab(US:ECL)2025-10-28 12:10Financial Performance - Reported sales for the third quarter were $4.2 billion, an increase of 4%, with organic sales growth of 3% driven by a value price increase from 2% to 3% and 1% volume growth[3]. - Reported diluted EPS was $2.05, a decrease of 21%, while adjusted diluted EPS was $2.07, reflecting a 13% increase compared to the previous year[3]. - The 2025 adjusted diluted EPS outlook has been refined to a range of $7.48 to $7.58, representing a growth of 12% to 14% compared to 2024[3][22]. - Ecolab reported net sales of $4.165 billion for Q3 2025, a 4% increase compared to $3.999 billion in Q3 2024[41]. - The company's operating income decreased by 27% to $760.2 million in Q3 2025 from $1.044 billion in Q3 2024[41]. - Net income attributable to Ecolab was $585 million in Q3 2025, down 21% from $736.5 million in Q3 2024[41]. - Diluted earnings per share fell to $2.05 in Q3 2025, a 21% decrease from $2.58 in Q3 2024[41]. - Ecolab's total special (gains) and charges for Q3 2025 amounted to $26.2 million, compared to a negative $332.6 million in Q3 2024[41]. - The company experienced a 48% reduction in provision for income taxes, totaling $128 million in Q3 2025 compared to $246.5 million in Q3 2024[41]. - Adjusted diluted earnings per share for Q3 2025 were reported at $2.07, compared to $1.83 in Q3 2024, reflecting a growth of 13.1%[58]. Segment Performance - The Global Water segment reported sales of $1.95 billion, a 3% increase, with organic sales growth of 2% driven by strong Food & Beverage sales[13]. - The Global Institutional & Specialty segment achieved organic sales growth of 4%, with reported sales of $1.54 billion, reflecting a 1% increase[15]. - The Global Pest Elimination segment reported sales of $322.6 million, a 7% increase, with organic growth of 6% driven by gains in food & beverage and healthcare[16]. - Operating income for the Global Life Sciences segment increased by 18% to $28.1 million in Q3 2025, up from $23.9 million in Q3 2024[44]. - Global Institutional & Specialty segment's net sales decreased by 1% to $1,544.8 million in Q3 2025 from $1,525.7 million in Q3 2024[44]. - Global Water segment reported net sales of $1,953.5 million for Q3 2025, a decrease of 1.2% from Q3 2024[56]. - The Global Pest Elimination segment achieved net sales of $322.6 million in Q3 2025, a 6.9% increase compared to $301.7 million in Q3 2024[56]. - Operating income for the Global Institutional & Specialty segment was $365.0 million in Q3 2025, up from $327.6 million in Q3 2024, representing an increase of 11.4%[56]. - The Global Life Sciences segment reported operating income of $28.1 million in Q3 2025, up from $23.9 million in Q3 2024, an increase of 17.6%[56]. Cash Flow and Expenses - Ecolab's free cash flow is defined as net cash provided by operating activities less cash outlays for capital expenditures, indicating the company's ability to generate cash[35][36]. - The cost of sales for the company was $2.299 billion in Q3 2025, a 2% increase from $2.261 billion in Q3 2024[41]. - Ecolab's service and lease sales increased to $902.4 million in Q3 2025, up from $842.5 million in Q3 2024, reflecting a growth of 7%[41]. - The total operating income at fixed currency rates for Q3 2025 was $722.8 million, down from $1,019.2 million in Q3 2024, indicating a decline of 29.1%[56]. Company Overview - The company operates in over 170 countries and has annual sales of approximately $16 billion, employing around 48,000 associates[25]. - Total assets as of September 30, 2025, were $23,897.6 million, an increase from $22,101.6 million as of September 30, 2024[49]. - Total liabilities as of September 30, 2025, were $14,143.7 million, an increase from $13,526.1 million as of September 30, 2024[49]. Market Conditions and Outlook - Ecolab's confidence in its earnings growth trajectory remains strong despite unpredictable global operating conditions[21]. - The company expects fourth quarter 2025 adjusted diluted EPS in the range of $2.02 to $2.12, representing a growth of 12% to 17% compared to the previous year[23]. - The company experienced a currency impact of $173.1 million on net sales in Q3 2025, compared to $111.8 million in Q3 2024[56]. - Special charges for Q3 2025 amounted to $24.6 million, while in Q3 2024, the company recorded special charges of $(331.7) million[56].