Ecolab (NYSE:ECL) posted fourth-quarter results that came in just ahead of expectations, supported by improved margins and steady sales growth, while its profit outlook for 2026 largely matched Wall Street forecasts. Shares slipped 0.22% in premarket trading following the release.
Adjusted earnings per share totaled $2.08 for the quarter, topping the consensus estimate of $2.07 by a penny. Revenue reached $4.19 billion, in line with analyst projections. Sales increased 5% year over year, with organic sales up 3%, driven primarily by stronger performance in Food & Beverage, Pest Elimination, Life Sciences, Specialty, and Global High-Tech.
The company said these gains helped offset a combined 2% headwind from softer conditions in basic industries, paper, and reduced distributor inventories within its Institutional segment.
Operating income margin came in at 17.0%, while organic operating income margin expanded by 140 basis points to 18.5%. Reported diluted EPS was $1.98, representing a 19% increase, and adjusted diluted EPS rose 15% from the prior year.
Looking ahead to 2026, Ecolab expects adjusted EPS in a range of $8.43 to $8.63, compared with the analyst consensus of $8.48. The forecast includes an approximate $0.13 per-share impact from non-cash amortization related to the Ovivo Electronics acquisition. For the first quarter, the company anticipates adjusted EPS of $1.67 to $1.73, reflecting growth of 11% to 15%.
Chief Executive Christophe Beck said Ecolab delivered record sales, margins, and cash flow in 2025, with performance fueled by organic sales growth and margin expansion.
He added that inventory pressures in the Institutional segment are expected to largely normalize in the first quarter of 2026, while weakness in basic industries and paper should ease over the coming quarters.
For the full year, Ecolab projects reported sales growth of 7% to 9% in 2026, with organic sales rising 3% to 4% and operating income margin expanding by 100 to 150 basis points. The company also raised its expected annual productivity-related savings target to $325 million by 2027.