Download PDF

1. Company Snapshot

1.a. Company Description

Ecolab Inc.provides water, hygiene, and infection prevention solutions and services in the United States and internationally.The company operates through Global Industrial, Global Institutional & Specialty, and Global Healthcare & Life Sciences segments.


The Global Industrial segment offers water treatment and process applications, and cleaning and sanitizing solutions to manufacturing, food and beverage processing, transportation, chemical, metals and mining, power generation, pulp and paper, commercial laundry, petroleum, refining, and petrochemical industries.The Global Institutional & Specialty segment provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, government and education, and retail industries.Its Global Healthcare & Life Sciences segment offers specialized cleaning and sanitizing products to the healthcare, personal care, and pharmaceutical industries, such as infection prevention and surgical solutions, and end-to-end cleaning and contamination control solutions under the Ecolab, Microtek, and Anios brand names.


The company's Other segment offers pest elimination services to detect, eliminate, and prevent pests, such as rodents and insects in restaurants, food and beverage processors, educational and healthcare facilities, hotels, quick service restaurant and grocery operations, and other institutional and commercial customers.This segment also provides colloidal silica for binding and polishing applications in semiconductor, catalyst, and aerospace component manufacturing, as well as chemical industries; and products and services that manage wash process through custom designed programs, premium products, dispensing equipment, water and energy management, and reduction, as well as real time data management.It sells its products through field sales and corporate account personnel, distributors, and dealers.


The company was founded in 1923 and is headquartered in Saint Paul, Minnesota.

Show Full description

1.b. Last Insights on ECL

Ecolab Inc.'s recent performance was positively driven by strong Q4 results, with accelerating organic sales growth across most businesses and robust operating income margin expansion. The company's high-tech water solutions and digital platforms are expanding, supported by the Ovivo deal and R&D push. Ecolab's Q4 earnings beat, with reported diluted EPS of $1.98 and adjusted diluted EPS of $2.08, up 15%. The company raised its 2026 adjusted diluted EPS outlook to $8.43-$8.63, up 12%-15%. Institutional investors, such as Capital International Investors and Aster Capital Management DIFC Ltd, have increased their holdings.

1.c. Company Highlights

2. Ecolab Q1 2026: Solid EPS, Margin Growth, and Strategic Upside

Ecolab delivered a first‑quarter EPS of $1.70, matching consensus, and posted adjusted diluted earnings growth of 13% YoY. Revenue climbed 6.5% to $4.12 billion, with operating income margins expanding to 19.4% from 18.3% in Q4. The company’s P/E ratio sits at 35.75, reflecting market pricing of its high‑margin growth trajectory.

Publication Date: Apr -29

📋 Highlights
  • Adjusted EPS Growth: 13% growth in Q1 2026, aligning with guidance.
  • High-Growth Sectors: Global High-Tech (20%), Life Sciences (11%), and Pest Elimination (7%) drive acceleration.
  • Acquisition Impact: CoolIT and Ovivo acquisitions expected to add 2% high-margin sales growth by 2027.
  • Margin Expansion: CMD margin target reaffirmed at 20% by 2027, with 30% leverage goal for Life Sciences.
  • Cost Management: SG&A leverage declined 130 bps in Q1, on track for 100 bps full-year improvement.

Organic Growth Drivers

Organic sales grew 4%, powered by 3% value pricing and 1% volume lift. Life Sciences led with 11% growth, bioprocessing surging over 100%, while Global High‑Tech and digital added 20% and 11% respectively. These segments are now the primary contributors to the company’s top‑line momentum.

Margin Expansion

Operating income margins widened to 19.4% as disciplined execution under the One Ecolab program trimmed SG&A leverage by 130 bps. The Life Sciences unit is on track to reach 30% leverage, and the Pest Elimination business is transitioning to a Pest Intelligence model, bolstering high‑margin revenue streams.

Growth Engines

High‑tech growth accelerates: Ovivo’s microelectronics water treatment is shifting from 5% to 95% water recycling, a game‑changer for fabs, while CoolIT’s direct‑to‑chip cooling technology reduces data center water footprints to car‑wash levels. Both acquisitions are expected to add several percentage points of organic sales growth.

Acquisition Impact

CoolIT and Ovivo are slated to close in Q3, with the former adding ~$0.20 per share dilution. Management projects the combined entities to drive top‑line growth and margin expansion, supporting a 12–15% EPS growth outlook for 2026, excluding the acquisition’s short‑term impact.

Outlook & Guidance

Ecolab forecasts 6–7% organic sales growth in H2, stabilizing gross margins. The company expects to fully offset commodity cost impacts by Q3, with pricing accelerating and volumes rising. The 2027 CMD margin target of 20% operating margin underpins a bullish long‑term trajectory.

Valuation Snapshot

With a P/B ratio of 7.53, ROIC of 11.47%, and a free‑cash‑flow yield of 2.53%, Ecolab trades at a premium that reflects its high‑margin growth engine and strategic acquisitions. Dividend yield remains modest at 1.03%, offering a balance between reinvestment and shareholder return.

3. NewsRoom

Card image cap

Ecolab to Webcast Annual Meeting on May 7, 2026

Apr -29

Source: businesswire.com

Card image cap

Comerica Bank Trims Stock Position in Ecolab Inc. $ECL

Apr -29

Source: defenseworld.net

Card image cap

Concurrent Investment Advisors LLC Buys 2,533 Shares of Ecolab Inc. $ECL

Apr -29

Source: defenseworld.net

Card image cap

Ecolab Life Sciences Expands Global Bioprocessing Capabilities With New Advanced Development and Applications Center in Korea

Apr -29

Source: businesswire.com

Card image cap

Ecolab Inc (ECL) Q1 2026 Earnings Call Highlights: Strong Growth Amidst Challenges

Apr -29

Source: gurufocus.com

Card image cap

Ecolab Inc. (ECL) Q1 2026 Earnings Call Transcript

Apr -28

Source: seekingalpha.com

Card image cap

ECL Stock Up in Pre-Market Post In-Line Q1 Earnings, Gross Margin Down

Apr -28

Source: zacks.com

Card image cap

Here's What Key Metrics Tell Us About Ecolab (ECL) Q1 Earnings

Apr -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

Global Water

Expected Growth: 4.5%

Ecolab's growth is driven by increasing demand for water and energy conservation, and expanding presence in the healthcare and foodservice industries, leading to a forecasted growth rate of 4.5% CAGR.

Global Institutional & Specialty

Expected Growth: 5.2%

Growing demand for infection prevention products and services in healthcare, foodservice, and hospitality markets, driven by increasing concerns over public health and food safety, will drive growth for Ecolab’s water, hygiene and infection prevention products and services segment.

Global Healthcare & Life Sciences

Expected Growth: 6.3%

Increasing healthcare expenditure, rising incidence of hospital-acquired infections, and growing adoption of digital solutions drive Ecolab's growth in the water, hygiene, and infection prevention solutions segment.

Global Pest Elimination

Expected Growth: 4.5%

Ecolab's pest elimination segment is expected to grow driven by increasing demand for hygiene and sanitation services globally, particularly in the foodservice and hospitality sectors, as well as growing awareness of vector-borne diseases.

Unallocated Currency Impact

Expected Growth: 4.7%

Ecolab’s unallocated currency impact is driven by foreign exchange gains and losses not attributed to operating segments, resulting in a forecast CAGR of 4.7% due to increasing global trade and economic fluctuations.

7. Detailed Products

Water Treatment

Ecolab's water treatment solutions help to optimize water usage, reduce energy consumption, and minimize waste in industries such as manufacturing, mining, and oil and gas.

Institutional Cleaning

Ecolab's institutional cleaning solutions provide effective and sustainable cleaning products and services for industries such as hospitality, healthcare, and education.

Food Safety

Ecolab's food safety solutions provide comprehensive cleaning and sanitizing products and services to ensure food safety and quality in industries such as food processing, retail, and foodservice.

Pest Elimination

Ecolab's pest elimination solutions provide effective and sustainable pest control services to industries such as foodservice, hospitality, and healthcare.

Oil and Gas

Ecolab's oil and gas solutions provide specialized chemicals and services to optimize oil and gas production, transportation, and refining.

Paper and Textile

Ecolab's paper and textile solutions provide specialized chemicals and services to optimize paper and textile production, processing, and finishing.

Life Sciences

Ecolab's life sciences solutions provide specialized cleaning and sanitizing products and services to ensure compliance with regulatory requirements in industries such as pharmaceuticals and biotechnology.

8. Ecolab Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ecolab Inc. operates in a industry with moderate threat of substitutes. The company's products and services are moderately differentiated, and customers have some alternatives, but not many.

Bargaining Power Of Customers

Ecolab Inc. has a diverse customer base, and no single customer has significant bargaining power. The company's products and services are essential to its customers, giving it an upper hand in negotiations.

Bargaining Power Of Suppliers

Ecolab Inc. has a moderate level of bargaining power over its suppliers. The company relies on a few key suppliers for some of its raw materials, but it also has some alternative sources.

Threat Of New Entrants

The threat of new entrants in Ecolab Inc.'s industry is low due to high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in Ecolab Inc.'s industry is high due to the presence of several large competitors, high fixed costs, and a slow growth rate.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.80%
Debt Cost 5.12%
Equity Weight 49.20%
Equity Cost 9.39%
WACC 7.22%
Leverage 103.27%

11. Quality Control: Ecolab Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ecolab

A-Score: 5.2/10

Value: 1.2

Growth: 5.1

Quality: 6.2

Yield: 2.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
PPG

A-Score: 5.0/10

Value: 4.0

Growth: 2.8

Quality: 6.5

Yield: 5.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Sherwin-Williams

A-Score: 4.9/10

Value: 1.7

Growth: 6.4

Quality: 6.0

Yield: 2.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Air Products

A-Score: 4.4/10

Value: 4.8

Growth: 2.9

Quality: 2.1

Yield: 6.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
IFF

A-Score: 4.4/10

Value: 5.4

Growth: 2.3

Quality: 3.1

Yield: 6.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
DuPont

A-Score: 3.5/10

Value: 6.9

Growth: 3.7

Quality: 3.7

Yield: 4.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

255.59$

Current Price

255.59$

Potential

-0.00%

Expected Cash-Flows