Ecolab Q2 sales slightly beat estimates, lifts 2026 adjusted EPS outlook

Overview

• US water and hygiene solutions provider's Q2 sales rose 10%, slightly beating analyst expectations

• Adjusted diluted EPS for Q2 increased 11%, beating analyst expectations

• Company raised 2026 adjusted EPS outlook, citing strong core business and improved pricing

Outlook

• Ecolab raises 2026 adjusted diluted EPS outlook to $8.05-$8.25, up 7%-10%

• Company expects 3Q 2026 adjusted diluted EPS of $2.13-$2.23, up 3%-8%

• Ecolab sees organic sales growth accelerating to 6%-7% in second half of 2026

Result Drivers

• PRICING GAINS - Improved pricing, including the implementation of an energy surcharge, helped offset rising commodity costs

• SEGMENT GROWTH - Accelerating growth in Food Beverage, Institutional, Light Water, and strong double-digit gains in Global High-Tech and Life Sciences drove results

• PRODUCTIVITY IMPROVEMENTS - Strong productivity gains contributed to margin stability despite higher input costs

Company press release: ID:nBwlhvv6a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Ecolab Inc is $325.00, about 19.8% above its July 27 closing price of $271.38

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• July 28 - Xylem raises annual profit forecast as AI growth lifts demand for water-treatment equipment

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)