Financial Data and Key Metrics Changes - Ecolab achieved record-breaking sales, margins, earnings per share, and free cash flow in 2025, with a 15% adjusted EPS growth in Q4 [4][5] - Organic sales grew by 3%, driven by 3% value pricing and positive volume growth, with underlying organic operating income growth of 12% [5][7] - The organic operating income margin expanded by 140 basis points to 18.5%, resulting in a full-year operating income margin of 18%, up 150 basis points from the previous year [7][20] Business Line Data and Key Metrics Changes - Food & Beverage sales accelerated to 5%, while Pest Elimination and Life Sciences both grew by 7% [5][6] - Institutional sales growth remained consistent, excluding the impact from lower distributor inventories, with strong double-digit growth in Global High-Tech and Ecolab Digital [6][7] - The overall underlying volume growth reached 2%, with expectations for volume growth to normalize in Q1 2026 [6][7] Market Data and Key Metrics Changes - The Global High-Tech segment is expected to grow strong double digits, driven by AI demand and the need for ultra-pure water in semiconductor manufacturing [15][34] - The water business grew 2% organically in Q4, with a 5% growth rate when excluding pulp and paper, which are currently in a down cycle [52][54] - The paper and basic industries are expected to recover, contributing positively to overall growth in 2026 [80] Company Strategy and Development Direction - Ecolab's priorities for 2026 include rapidly growing total value delivered to customers, accelerating the One Ecolab Growth Initiative, and fueling growth engines [9][10] - The company anticipates 3%-4% organic sales growth in 2026, with total reported sales expected to grow in the upper single digits [9][20] - Ecolab is focusing on leveraging technology and AI to enhance operational efficiency and customer value, aiming for a significant increase in cost savings through the One Ecolab initiative [14][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong performance in 2026, with expectations for reported sales growth of 7%-9% and organic growth accelerating throughout the year [20] - The management highlighted the importance of new business wins and maintaining strong customer relationships as key drivers for growth [57][59] - There is optimism regarding the recovery of the paper and basic industries, with expectations for improved performance as the year progresses [80] Other Important Information - Ecolab's digital business has grown to $400 million in annual sales, with expectations for continued growth driven by innovative digital solutions [18][75] - The company has raised its savings target from the One Ecolab initiative to $325 million by 2027, reflecting the success of the program [14][71] Q&A Session Summary Question: Can you elaborate on the volume cadence as you move through the year? - Management indicated that volume growth is expected to improve, with 85% of businesses performing well and a normalization of distributor inventory anticipated [24][28] Question: What are the growth opportunities in the Global High-Tech segment post-Ovivo acquisition? - The Global High-Tech segment is projected to grow strong double digits, with significant opportunities in semiconductor manufacturing and data centers [30][34] Question: Can you provide insights on the drivers for margin expansion? - Margin expansion is expected to be driven by gross margins and SG&A leverage, with a focus on value-based pricing and higher-margin business mix [37][39] Question: How is the company addressing the challenges in the basic industries and paper? - Management noted that while there are challenges, new business and innovation are strong, and there is optimism for recovery in these sectors [80] Question: What is the outlook for the One Ecolab cost savings initiative? - The savings target has been raised to $325 million, with ongoing efforts to leverage technology and improve operational efficiency [71][72]

Ecolab (NYSE:ECL) Q4 2025 Earnings call February 10, 2026 01:00 PM ET Speaker2At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. At this time, it is now my pleasure to introduce your host, Andy Hedberg, Vice President of Investor Relations. Andy, you may now begin.Speake ...