Part I [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2025 show a slight decrease in net sales to **$3.70 billion**, while operating income increased to **$555.3 million**, and cash flow from operations decreased to **$369.4 million** due to working capital changes [Consolidated Statements of Income](index=2&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 vs Q1 2024 Income Statement Highlights | Metric | Q1 2025 (millions) | Q1 2024 (millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,695.0 | $3,751.9 | -1.5% | | Operating Income | $555.3 | $517.9 | +7.2% | | Net Income Attributable to Ecolab | $402.5 | $412.1 | -2.3% | | Diluted EPS | $1.41 | $1.43 | -1.4% | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Summary | Metric | March 31, 2025 (millions) | December 31, 2024 (millions) | | :--- | :--- | :--- | | Total Current Assets | $6,081.1 | $6,025.7 | | Total Assets | $22,366.4 | $22,387.8 | | Total Current Liabilities | $4,609.2 | $4,792.8 | | Total Liabilities | $13,462.7 | $13,598.6 | | Total Equity | $8,903.7 | $8,789.2 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 vs Q1 2024 Cash Flow Highlights | Activity | Q1 2025 (millions) | Q1 2024 (millions) | | :--- | :--- | :--- | | Cash provided by operating activities | $369.4 | $649.4 | | Cash used for investing activities | ($224.0) | ($201.0) | | Cash used for financing activities | ($241.6) | ($889.3) | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company announced the 'One Ecolab' initiative in July 2024, a restructuring plan to enhance growth and margin expansion by leveraging digital technologies and global centers of excellence. The company anticipates restructuring costs of **$175 million** and special charges of **$50 million** by the end of 2027[20](index=20&type=chunk) - In Q1 2025, the company recorded **$39.4 million** in restructuring charges and **$4.8 million** in special charges under the One Ecolab initiative. Cumulative charges under this initiative are **$121.2 million** for restructuring and **$28.5 million** for special charges[21](index=21&type=chunk) - Effective January 1, 2025, the company realigned its reportable segments. The former Global Industrial segment is now Global Water. The former healthcare operating segment was moved into the Institutional operating segment, and Global Life Sciences was elevated to a standalone reportable segment[48](index=48&type=chunk)[106](index=106&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In Q1 2025, reported net sales decreased **2%** to **$3.7 billion**, while organic sales grew **3%** and operating income rose **7%** to **$555.3 million**, driven by the 'One Ecolab' initiative [Overview of the First Quarter](index=31&type=section&id=Overview%20of%20the%20First%20Quarter) Q1 2025 Performance Summary | Metric | Q1 2025 Result | YoY Change | | :--- | :--- | :--- | | Reported Net Sales | $3.70 billion | -2% | | Organic Sales | - | +3% | | Reported Operating Income | $555.3 million | +7% | | Organic Operating Income | - | +17% | | Reported Diluted EPS | $1.41 | -1% | | Adjusted Diluted EPS | $1.50 | +12% | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 Sales Change Components | Component | Percentage Change | | :--- | :--- | | Volume | 1% | | Pricing | 2% | | **Organic sales change** | **3%** | | Acquisitions and divestitures | (2)% | | **Fixed currency sales change** | **1%** | | Foreign currency translation | (2)% | | **Reported GAAP net sales change** | **(2)%** | - Adjusted gross margin increased to **44.4%** in Q1 2025 from **43.3%** in Q1 2024, reflecting strong value pricing[147](index=147&type=chunk) - The 'One Ecolab' initiative, announced in July 2024, is expected to incur **$175 million** in restructuring costs and **$50 million** in special charges by the end of 2027, with anticipated annualized cost savings of **$140 million**[150](index=150&type=chunk)[152](index=152&type=chunk) Q1 2025 vs Q1 2024 Operating Income Reconciliation | (millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Reported GAAP operating income | $555.3 | $517.9 | 7% | | Special (gains) and charges | 34.3 | 29.8 | - | | **Non-GAAP organic operating income** | **$579.3** | **$496.6** | **17%** | [Segment Performance](index=37&type=section&id=Segment%20Performance) Q1 2025 Organic Sales and Operating Income Change by Segment | Segment | Organic Sales Change | Organic Operating Income Change | | :--- | :--- | :--- | | Global Water | +2% | +5% | | Global Institutional & Specialty | +4% | +27% | | Global Pest Elimination | +5% | -1% | | Global Life Sciences | +5% | +31% | - **Global Water:** Organic sales grew **2%**, driven by strong double-digit growth in high tech (data centers, microelectronics) and solid growth in manufacturing[179](index=179&type=chunk)[180](index=180&type=chunk) - **Global Institutional & Specialty:** Organic sales increased **4%**, with strong growth in the legacy Institutional business. Organic operating margin expanded by **3.9 percentage points** due to strong pricing and lower supply chain costs[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) - **Global Pest Elimination:** Organic sales rose **5%**, but organic operating margin decreased by **1.1 percentage points** as investments in the business outweighed the positive impact of pricing and volume[188](index=188&type=chunk)[189](index=189&type=chunk) [Financial Position, Cash Flows and Liquidity](index=42&type=section&id=Financial%20Position,%20Cash%20Flows%20and%20Liquidity) - The company's net debt to EBITDA ratio remained stable at **1.7** as of March 31, 2025[196](index=196&type=chunk)[197](index=197&type=chunk) - Cash from operating activities decreased by **$280 million** YoY to **$369.4 million**, primarily due to unfavorable changes in working capital and timing of compensation payments[198](index=198&type=chunk) - In March 2025, the company amended and restated its **$2.0 billion** revolving credit facility, extending the maturity to March 2030. No borrowings were outstanding under this facility as of March 31, 2025[207](index=207&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 instruments like foreign currency forward contracts and interest rate swaps to manage market risks, not for speculative purposes - Ecolab uses foreign currency forward contracts, interest rate swap agreements, and foreign currency debt to manage market risks[230](index=230&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of March 31, 2025, with no material changes to internal controls, while continuing an ERP system upgrade - The CEO and CFO concluded that disclosure controls and procedures are effective as of March 31, 2025[231](index=231&type=chunk) - The company is in the process of a multi-year ERP system upgrade, which is expected to improve the efficiency of financial and transactional processes[233](index=233&type=chunk) Part II [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, including the TPC Group plant explosion and a vehicle accident, believing claims are without merit and potential losses are covered by insurance - Ecolab's subsidiary, Nalco, is a defendant in multi-district litigation following a 2019 explosion at a TPC Group plant. Ecolab believes the claims are without merit and intends to defend them vigorously[119](index=119&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) - The company was named in a lawsuit in June 2024 following a vehicle collision involving an employee that resulted in fatalities and injuries. The company believes any potential loss should be covered by insurance subject to its deductible[125](index=125&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) In Q1 2025, the company repurchased **580,712** shares at an average price of **$239.08**, with **8,200,873** shares remaining for repurchase under the current authorization Q1 2025 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 428,123 | $233.58 | | Feb 2025 | 20,026 | $264.52 | | Mar 2025 | 132,563 | $253.03 | | **Total Q1 2025** | **580,712** | **$239.08** | - As of March 31, 2025, **8,200,873** shares remained authorized for repurchase under the company's plan[238](index=238&type=chunk)

Financial Data and Key Metrics Changes - Ecolab reported record sales, earnings, margins, and free cash flow for FY 2024, indicating strong financial performance [22][26] - The company aims for long-term sales growth of 5-7%, operating income margin of 20%, and EPS growth of 12-15% [26][44] Business Line Data and Key Metrics Changes - Ecolab's organic operating income margin increased to 16.8%, up 290 basis points from the previous year [44] - The company achieved significant operational impacts, including conserving 226 billion gallons of water and avoiding 4.6 million metric tons of greenhouse gas emissions [29] Market Data and Key Metrics Changes - Ecolab's market opportunity is estimated at $152 billion, with $55 billion from existing customers, indicating substantial growth potential [44] - The company serves millions of customers across 40 industries, highlighting its extensive market reach [38] Company Strategy and Development Direction - Ecolab focuses on delivering innovative solutions that enhance operational performance and sustainability for customers [27][36] - The company is investing in growth engines such as water-related applications and life sciences, positioning itself as a leader in these sectors [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Ecolab's ability to navigate challenges such as tariffs, geopolitics, and currency movements, asserting that the company is well-positioned to lead in the industry [35][46] - The future outlook remains positive, with a commitment to delivering total value to customers and achieving high margins and double-digit EPS growth [44][46] Other Important Information - Ecolab's team of 48,000 employees is recognized for high engagement and diversity, contributing to the company's success [32][34] - The company has received multiple accolades for its ethical practices and corporate responsibility, reinforcing its reputation in the industry [34] Q&A Session Summary Question: How does the compensation committee use the compensation actually paid figures in its calculation of the CEO target total compensation award for the upcoming year? - The compensation committee positions the CEO's compensation components in the median range of a competitive market, adjusting for company size, performance, and other factors [17][18]

Financial Data and Key Metrics Changes - The company reported a 3% growth in organic sales and a 12% increase in EPS, indicating strong performance despite soft end markets [4][5] - Operating income margin increased by 190 basis points, moving towards the goal of a 20% margin by 2027 [5][10] Business Line Data and Key Metrics Changes - Life Sciences segment grew organic sales in the mid-single digits and achieved over 30% organic operating income growth, with biopharma sales increasing by double digits [10][11] - Pest Elimination business is rapidly deploying digital solutions, with expectations for operating income margins to return closer to 20% in the second quarter [11][12] - Global Hi-Tech Water sales growth accelerated to nearly 30%, driven by innovations in water circularity for microelectronics [12][13] - Ecolab Digital reported a 12% sales growth, reaching $80 million in the first quarter, with expectations for continued acceleration [14] Market Data and Key Metrics Changes - Demand trends softened in heavy industrial markets, but the company outperformed these trends due to critical technologies and services [6][7] - The company anticipates organic sales growth in the second quarter to be similar to or slightly better than the first quarter [10] Company Strategy and Development Direction - The company is focused on generating new business and leveraging existing pipelines to outgrow markets [7][10] - Investments are being made in growth engines such as Life Sciences, Pest Intelligence, Global Hi-Tech, and Ecolab Digital, all showing strong long-term growth potential [10][15] - The company is implementing a 5% rate surcharge in the U.S. to mitigate the impact of tariffs and increased local supplier costs [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the global operating environment is becoming more complex, with softer demand and rapid changes in trade policies [5][6] - Despite challenges, the company maintains its earnings expectations for the year and is confident in its ability to navigate the environment [5][15] Other Important Information - The company has over $1 billion in cash and a net debt to adjusted EBITDA ratio of 1.8, positioning it well for growth opportunities [15] - The company is leveraging a local for local model, with over 90% of sales produced close to customers, enhancing its competitive advantage [8] Q&A Session Summary Question: Impact of trade war on domestically sourced materials - Management expressed confidence in their local sourcing strategy, which mitigates tariff impacts, but acknowledged some cost increases due to onshoring [20][22][24] Question: Update on demand environment - Management noted a dip in demand but indicated stabilization at lower levels, with a focus on generating new business [28][30] Question: Trends in Institutional and Specialty segment - The Institutional Division is growing at 5%, with expectations for continued margin improvement [35][36] Question: Growth of Ecolab One initiative - Management reported strong progress in focused accounts under the One Ecolab initiative, aiming to increase market penetration [39][41] Question: Success of previous surcharge - Management confirmed that the previous energy surcharge was successful and expressed confidence in the current surcharge's effectiveness [46][48] Question: Pest elimination growth expectations - Management anticipates growth in the Pest Elimination segment to return to high single digits by the second half of the year [66][68] Question: Trends in Life Sciences segment - Management noted improvements in the Life Sciences segment, with expectations for accelerated growth [104][106] Question: SG&A management - Management indicated effective control of SG&A expenses, with expectations for continued leverage [112][113] Question: Capital deployment strategy - Management confirmed no changes to capital allocation priorities, maintaining a focus on dividends and business investments [114][116]

Ecolab, Inc. (NYSE:ECL) Q1 2025 Earnings Conference Call April 29, 2025 1:00 PM ET Company Participants Andy Hedberg - VP, IR Christophe Beck - Chairman & CEO Scott Kirkland - CFO Conference Call Participants Luke McFadden - William Blair Manav Patnaik - Barclays Ashish Sabadra - RBC Capital Markets John McNulty - BMO Capital Markets David Begleiter - Deutsche Bank Vincent Andrews - Morgan Stanley Patrick Cunningham - Citi Chris Parkinson - Wolfe Research Shlomo Rosenbaum - Stifel John Roberts - Mizuho Stev ...

Financial Performance - Reported diluted EPS was $1.41, while adjusted diluted EPS reached $1.50, a 12% increase[6,12] - Organic sales grew by 3%, driven by strong performance in Institutional & Specialty, Pest Elimination, and Life Sciences segments[7,11] - 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[7,16] - For the second quarter of 2025, adjusted diluted earnings per share are expected to be between $1.84 and $1.94, a 10% to 15% increase[7,16] Segment Performance - Global Water segment sales increased by 3% in Light & Heavy and 2% in Food & Beverage[19,25] - Global Institutional & Specialty segment sales grew by 4%, with 5% growth in the legacy Institutional business[13,31] - Global Pest Elimination and Life Sciences segments both experienced a 5% increase in sales[13,38,44] Margin Expansion - Reported operating income (OI) increased by 7%, while organic OI rose by 17%[7] - Organic OI margin expanded by 190 bps to 16%, driven by value pricing and improved productivity[7] - Adjusted gross margin improved to 44.4%, up from 43.3%[51,56] Strategic Outlook - The company expects to deliver continued 12-15% EPS growth in 2025 and beyond[6] - Secular growth trends in water, hygiene, and infection prevention are expected to fuel long-term demand[16] - Ecolab is making proactive adjustments to overcome the unpredictable operating environment through new business wins, value and surcharge pricing, and improved productivity[7,16]

Company Performance - Ecolab reported quarterly earnings of $1.50 per share, matching the Zacks Consensus Estimate, and showing an increase from $1.34 per share a year ago [1] - The company posted revenues of $3.7 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.07%, and down from $3.75 billion year-over-year [2] - Over the last four quarters, Ecolab has surpassed consensus EPS estimates three times and topped revenue estimates only once [2] Stock Outlook - Ecolab shares have increased approximately 2% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.90 for the coming quarter and $7.51 for the current fiscal year [7] - The current Zacks Rank for Ecolab is 3 (Hold), indicating expected performance in line with the market in the near future [6] 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] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

Exhibit 99.1 News Release Investor Contact: Media Contact: Andrew Hedberg (651) 250-2185 Nigel Glennie (651) 250-2576 Cairn Clark (651) 250-2291 ECOLAB DELIVERS CONTINUED DOUBLE-DIGIT EPS GROWTH REPORTED DILUTED EPS $1.41; ADJUSTED DILUTED EPS $1.50, +12% MAINTAINS 2025 ADJUSTED DILUTED EPS OUTLOOK: $7.42 - $7.62, +12% - 15% FIRST QUARTER HIGHLIGHTS OUTLOOK | | | | First Quarter Ended March 31 | | | | | --- | --- | --- | --- | --- | --- | --- | | | Reported | | Adjusted | | | | | (unaudited) | Public Curren ...

Core Viewpoint - Ecolab, Inc. is set to report its first-quarter 2025 results, with expectations of mixed performance across its segments, influenced by both growth opportunities and challenges in the current macroeconomic environment [1][9]. Global Industrial Segment - The Global Industrial segment, which includes Water, Food & Beverage, and Paper units, experienced sales growth in Q4 2024, particularly in the Water business, which is expected to positively impact overall industrial performance in the midterm [2][3]. - The Zacks Consensus Estimate for Q1 2025 revenues in the Global Industrial segment is $1.92 billion, reflecting a 4.1% increase from the previous year [4]. Global Institutional & Specialty Segment - The Global Institutional & Specialty segment showed strong growth in the last reported quarter, driven by new business and customer penetration, with expectations of continued revenue growth in Q1 2025 [5]. - The Zacks Consensus Estimate for Q1 2025 revenues in this segment is $1.37 billion, indicating a 7.9% increase from the prior year [6]. Other Contributing Factors - Ecolab's Life Sciences unit and Global Pest Elimination segment are also expected to contribute positively to revenues, with good new business wins and ongoing digital initiatives [7]. - However, the exit from non-strategic low-margin businesses in the Global Healthcare & Life Sciences segment may negatively impact performance [8]. Overall Revenue and EPS Estimates - The total revenue estimate for Q1 2025 is $3.70 billion, which represents a 1.4% decline from the previous year [9]. - The consensus estimate for EPS is $1.51, suggesting a 12.7% improvement from the prior-year period [10]. Share Price Performance - Over the past three months, Ecolab's shares have decreased by 3.6%, outperforming the Chemical - Specialty sector's decline of 6.6% and the S&P 500's decline of 10.9% [13]. - Comparatively, peers like Hawkins, Inc. and Givaudan SA have outperformed Ecolab, while Balchem Corporation has underperformed [17]. Valuation Metrics - Ecolab's forward 12-month price-to-earnings (P/E) ratio is 30.4X, which is higher than the industry average of 22.1X, indicating a premium valuation [18]. - The company trades at a premium compared to Hawkins but at a discount to peers like Balchem and Givaudan [19]. Long-Term Investment Outlook - Ecolab is making significant strides in its Global Water business and has engaged in partnerships to enhance water safety and efficiency, which are expected to bolster long-term growth [20]. - The Global Institutional & Specialty and Global Pest Elimination segments are aligning with long-term growth objectives, raising optimism about their profitability prospects [21]. Final Assessment - Ecolab demonstrates strong core business strength and growth potential, making it a suitable hold for existing investors [22]. - However, for new investors, the current valuation suggests limited growth potential compared to industry peers, advising caution before adding to positions [23].

Core Viewpoint - Analysts project Ecolab (ECL) will report quarterly earnings of $1.51 per share, a 12.7% increase year over year, with revenues expected to reach $3.7 billion, reflecting a 1.4% decline from the same quarter last year [1]. Earnings Estimates - There has been a 0.2% upward revision in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Sales- Global Healthcare and Life Sciences (Fixed Currency rates)' will be $254.92 million, down 33.4% year over year [5]. - 'Sales- Global Industrial (Public Currency rates)' is projected to reach $1.84 billion, showing a slight increase of 0.3% from the previous year [5]. - 'Sales- Global Institutional & Specialty (Public Currency rates)' is expected to be $1.29 billion, reflecting a year-over-year increase of 1.8% [6]. - 'Sales- Global Institutional & Specialty (Fixed Currency rates)' is estimated at $1.37 billion, indicating a 7.9% increase from the same quarter last year [6]. - 'Sales- Global Industrial (Fixed Currency rates)' is forecasted to be $1.92 billion, representing a 4.1% year-over-year increase [6]. Operating Income Estimates - 'Operating Income- Global Industrial (Fixed Currency rates)' is projected to be $302.98 million, up from $265 million in the same quarter last year [7]. - 'Operating Income- Global Institutional & Specialty (Fixed Currency rates)' is expected to reach $279.46 million, compared to $248 million reported in the same quarter last year [8]. - 'Operating Income- Global Healthcare and Life Sciences (Fixed Currency rates)' is estimated at $30.71 million, down from $37 million year over year [8]. - 'Operating Income- Global Institutional & Specialty (Public Currency rates)' is projected to be $283.10 million, compared to $247 million in the same quarter last year [9]. - 'Operating Income- Global Healthcare & Life Sciences (Public Currency rates)' is expected to be $32.69 million, down from $36.30 million year over year [9]. - The consensus estimate for 'Operating Income- Global Industrial (Public Currency rates)' stands at $300.55 million, compared to $265.40 million in the previous year [10]. Stock Performance - Ecolab shares have returned -5.7% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [11].