Ecolab(US:ECL)2026-02-10 13:04Financial Performance - Reported sales for Q4 2025 were $4.2 billion, an increase of 5% year-over-year, with organic sales growth of 3%[3] - Adjusted diluted EPS for Q4 2025 was $2.08, reflecting a 15% increase compared to the previous year, while reported diluted EPS was $1.98, up 19%[3] - Ecolab's net income attributable to the company for Q4 2025 was $563.9 million, a 19% increase from the prior year[2] - Net sales for Q4 2025 reached $4,196.0 million, a 5% increase from $4,005.2 million in Q4 2024[50] - Total net sales for the twelve months ended December 31, 2025, were $16,081.2 million, up 2% from $15,741.4 million in 2024[50] - Operating income for Q4 2025 increased by 22% to $712 million, with an operating income margin of 17.0%[2] - Reported GAAP net sales for Q4 2025 reached $4,196.0 million, a 4.8% increase from $4,005.2 million in Q4 2024[57] - Non-GAAP adjusted net sales for the full year 2025 were $16,077.5 million, compared to $15,741.4 million in 2024, reflecting a growth of 2.1%[57] - Reported GAAP operating income for the full year 2025 was $2,737.6 million, a decrease from $2,802.4 million in 2024[62] Future Outlook - Ecolab expects adjusted diluted EPS for 2026 to be in the range of $8.43 to $8.63, representing a growth of 12% to 15%[3] - The company anticipates reported sales growth of 7% to 9% and organic sales growth of 3% to 4% in 2026, with organic growth expected to accelerate throughout the year[22] - Ecolab anticipates adjusted diluted earnings per share for Q1 2026 to be in the range of $1.67 to $1.73, representing an increase of 11% to 15% compared to $1.50 in the same quarter last year[25] - Ecolab's future outlook for 2025 includes an estimated earnings per share of $7.53, factoring in a $0.13 per share impact from non-cash amortization related to the Ovivo Electronics acquisition[24] Operational Efficiency - The company is targeting annualized savings from its One Ecolab productivity initiatives to increase from $225 million to $325 million by 2027[5] - The company is focusing on restructuring efforts and strategic sales to enhance operational efficiency and profitability[66] - Ecolab's Digital sales surged by 24% to $99 million in Q4 2025, driven by strong growth in software and hardware subscriptions[6] - The acquisition of Ovivo Electronics is expected to contribute approximately $0.13 per share in non-cash amortization, enhancing Ecolab's Global High-Tech business[3] - The company is focused on integrating AI technology and data-driven insights into its operations to enhance customer service and operational efficiency[27] Tax and Special Charges - The adjusted tax rate for Q4 2025 was 19.4%, up from 18.2% in Q4 2024, reflecting changes in geographic income mix[9] - The company expects special charges in Q1 2026 to be approximately $0.19 per share, primarily related to restructuring and acquisition costs associated with Ovivo Electronics[26] - Special charges for 2025 are expected to be $59.7 million in Q4, primarily related to One Ecolab[68] - Discrete tax expenses for Q4 2025 are projected at ($35.7) million, associated with deferred tax attributes and share-based compensation[69] Risks and Challenges - The company faces various risks, including economic factors, supply chain challenges, and geopolitical instability, which could impact future performance[31] Corporate Goals - The company aims to help protect 2 billion people from infections and provide drinking water for 1 billion people by 2030[27] - Ecolab's comprehensive approach spans multiple industries, including food, healthcare, and life sciences, contributing to a significant portion of global food production and power generation[27] Financial Metrics - Total assets as of December 31, 2025, were $24,696.3 million, an increase from $22,387.8 million in 2024[54] - Total liabilities as of December 31, 2025, were $14,891.8 million, compared to $13,598.6 million in 2024[54] - Cash and cash equivalents decreased to $646.2 million in 2025 from $1,256.8 million in 2024[54] - Reported GAAP gross profit for Q4 2025 was $1,847.6 million, resulting in a gross margin of 44.0%, up from 43.3% in Q4 2024[57] - Non-GAAP adjusted operating income for Q4 2025 was $787.2 million, with an operating income margin of 18.5%, compared to 17.0% in Q4 2024[57] - The reported GAAP tax rate for 2025 was 17.8%, compared to 17.1% in 2024, reflecting an increase in the effective tax burden[59]