Ecolab (NYSE:ECL) Issues Quarterly Earnings Results

Ecolab (NYSE:ECL) issued its quarterly earnings results on Tuesday. The basic materials company reported $2.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.07 by $0.01, FiscalAI reports. Ecolab had a return on equity of 22.55% and a net margin of 12.49%.The company had revenue of $4.19 billion for the quarter, compared to analyst estimates of $4.20 billion. During the same quarter last year, the company posted $1.81 EPS. The company’s revenue for the quarter was up 4.8% compared to the same quarter last year. Ecolab updated its FY 2026 guidance to 8.430-8.630 EPS and its Q1 2026 guidance to 1.670-1.730 EPS.

Here are the key takeaways from Ecolab’s conference call:

• Ecolab reported a record 2025 — record sales, margins, EPS, and free cash flow — and guided 2026 to 3%-4% organic sales (7%-9% reported), >19% OI margin (100–150 bps expansion) and 12%-15% EPS growth.
• The One Ecolab program has delivered over $100M of SG&A savings to date and management raised the savings target to $325M by 2027, which they expect will materially drive SG&A leverage and margin expansion.
• “Growth engines” — led by Global High‑Tech (now including Ovivo), Life Sciences, Pest Elimination and Ecolab Digital — are ~20% of the portfolio and expected to grow double‑digit in 2026, with new offerings like direct‑to‑chip cooling and CIP‑IQ highlighted as key drivers.
• Short‑term drags remain from weaker paper/basic industries and unexpectedly lower distributor inventories in Institutional, which management says weighed on recent volume but should largely normalize in Q1 2026.

Ecolab Trading Up 4.1%

Shares of ECL stock opened at $299.97 on Wednesday. The stock has a 50-day moving average of $271.71 and a 200-day moving average of $270.92. The company has a current ratio of 1.70, a quick ratio of 1.33 and a debt-to-equity ratio of 0.83. The stock has a market cap of $84.96 billion, a price-to-earnings ratio of 43.10, a PEG ratio of 2.49 and a beta of 0.99. Ecolab has a 1-year low of $221.62 and a 1-year high of $303.01.

Ecolab Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Tuesday, December 16th were paid a $0.73 dividend. The ex-dividend date of this dividend was Tuesday, December 16th. This is a positive change from Ecolab’s previous quarterly dividend of $0.65. This represents a $2.92 annualized dividend and a dividend yield of 1.0%. Ecolab’s payout ratio is currently 41.95%.

Analyst Ratings Changes

Several research analysts have commented on the company. Erste Group Bank downgraded Ecolab from a “buy” rating to a “hold” rating in a research note on Friday, January 23rd. Barclays raised their target price on shares of Ecolab from $275.00 to $300.00 and gave the company an “overweight” rating in a research report on Wednesday, October 29th. Robert W. Baird set a $307.00 price target on Ecolab in a research note on Wednesday, October 29th. Evercore raised Ecolab from an “in-line” rating to an “outperform” rating and raised their price objective for the company from $265.00 to $300.00 in a report on Monday, November 3rd. Finally, Mizuho set a $315.00 target price on Ecolab in a report on Wednesday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $297.33.

Insider Activity at Ecolab

In related news, EVP Boo Alexander A. De sold 1,422 shares of Ecolab stock in a transaction on Monday, November 24th. The shares were sold at an average price of $268.25, for a total transaction of $381,451.50. Following the completion of the transaction, the executive vice president owned 5,726 shares of the company’s stock, valued at $1,535,999.50. This trade represents a 19.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David Maclennan purchased 750 shares of the business’s stock in a transaction on Monday, December 8th. The shares were purchased at an average cost of $257.60 per share, for a total transaction of $193,200.00. Following the transaction, the director directly owned 23,035 shares of the company’s stock, valued at approximately $5,933,816. The trade was a 3.37% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Ecolab

Several institutional investors and hedge funds have recently made changes to their positions in the business. Wexford Capital LP bought a new stake in Ecolab in the third quarter worth approximately $25,000. JPL Wealth Management LLC acquired a new stake in shares of Ecolab during the 3rd quarter worth approximately $26,000. FSA Wealth Management LLC increased its stake in shares of Ecolab by 88.7% in the 3rd quarter. FSA Wealth Management LLC now owns 117 shares of the basic materials company’s stock valued at $32,000 after acquiring an additional 55 shares in the last quarter. Kelleher Financial Advisors bought a new stake in shares of Ecolab in the 3rd quarter valued at $77,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its position in shares of Ecolab by 23.3% during the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 370 shares of the basic materials company’s stock valued at $101,000 after acquiring an additional 70 shares during the period. Institutional investors own 74.91% of the company’s stock.

More Ecolab News

Here are the key news stories impacting Ecolab this week:

• Positive Sentiment: Q4 adjusted EPS of $2.08 topped estimates and management highlighted margin expansion and segment momentum — a key reason investors are buying the stock. Ecolab Shares Rise As Q4 Earnings, Revenue Edge Past Estimates
• Positive Sentiment: Company set FY‑2026 EPS guidance of $8.43–$8.63 and Q1 guidance of $1.67–$1.73, which is at/above Street views and implies 2026 profit growth — main driver of the stronger share move. Ecolab forecasts 2026 profit above estimates on strong demand
• Positive Sentiment: Management sounded upbeat on the earnings call, framing 2026 as a “profit push” with accelerating growth engines and confidence in volume recovery — supports upside to margins and EPS. Ecolab Earnings Call Signals Confident 2026 Profit Push
• Positive Sentiment: Company outlined 12–15% EPS growth targets for 2026 and said the Ovivo deal strengthens its portfolio — a strategic positive for medium‑term growth. Ecolab outlines 12%–15% EPS growth for 2026 as growth engines accelerate and Ovivo boosts portfolio
• Positive Sentiment: William Blair reaffirmed a Buy rating citing sustained earnings outperformance and margin improvement, which supports investor confidence. Ecolab: Sustained Earnings Outperformance and Margin Expansion Underpin Buy Rating Amid Anticipated Volume Recovery
• Neutral Sentiment: Revenue was essentially flat with consensus ($4.19B vs ~$4.20B) and organic growth was modest — a mixed result that tempers but does not negate the EPS/guidance positives. Ecolab Q4 earnings report and materials
• Negative Sentiment: Some investors sold in the pre‑market despite the beat, citing cautious sentiment about near‑term volumes in parts of the business — this drove an early dip before buyers stepped back in. ECL Stock Falls in Pre-Market Despite Q4 Earnings Beat, Margins Expand

About Ecolab

Ecolab, Inc is a global provider of water, hygiene and infection prevention solutions and services. The company develops and supplies cleaning and sanitizing chemicals, dispensing equipment, water-treatment systems, pest elimination services and related technologies designed to help businesses maintain clean, safe and efficient operations. Its offerings span both products and onsite services, often paired with technical support and training.

Ecolab serves a broad range of end markets including hospitality and foodservice, food and beverage processing, healthcare, manufacturing and industrial operations, and energy and utilities.