Ecolab (ECL) Q4 2025 earnings summary

Executive summary

• Achieved record sales, operating income margin, EPS, and free cash flow in 2025, with strong momentum entering 2026.

• Q4 adjusted diluted EPS grew 15% year-over-year, with reported diluted EPS at $1.98 and adjusted diluted EPS at $2.08.

• Organic sales grew 3% in Q4, with value pricing and positive volume growth across most businesses.

• Growth engines, including Ovivo, now represent 20% of the portfolio and are growing double digits.

• Strong performance in Food & Beverage, Pest Elimination, Life Sciences, and Global High Tech, with robust digital growth.

Financial highlights

• Q4 2025 reported sales: $4.2 billion (+5% year-over-year); organic sales up 3%.

• Q4 reported operating income: $712 million (+22%); organic operating income up 12%.

• Adjusted operating income margin expanded 150 bps to 18.5%; reported operating income margin reached 17.0%.

• Full-year 2025 adjusted diluted EPS: $7.53 (+13% year-over-year).

• Cash from operations for the year was $2,952.6 million, up from $2,813.9 million last year.

Outlook and guidance

• 2026 adjusted diluted EPS expected at $8.43–$8.63 (+12% to 15%), including a $0.13 per share impact from Ovivo Electronics amortization.

• 2026 reported sales expected to rise 7%–9%; organic sales up 3%–4%.

• Q1 2026 adjusted diluted EPS guidance: $1.67–$1.73 (+11% to 15%).

• Operating income margin anticipated to expand 100–150 bps to over 19%, driving 14%–16% OI growth.

• Special charges in 2026 expected at $0.55–$0.60 per share, mainly for restructuring and Ovivo acquisition costs.