Ecolab raises organic sales growth as high-tech demand accelerates
The water and hygiene services provider reported adjusted diluted earnings per share of $2.09 for the second quarter.
Ecolab (ECL), the water and hygiene services provider, reported second-quarter adjusted diluted earnings per share of $2.09, an 11% increase from the prior year.
The company saw an acceleration in organic sales growth, which rose to 5% in the second quarter compared to 4% in the first quarter. This trajectory was supported by pricing, which improved to 4% during the period.
Growth was led by the Global High-Tech segment, where organic growth accelerated to 29%. The Life Sciences segment also saw an acceleration in organic growth to 15%, up from 11% in the first quarter.
Digital sales increased 27% to $121 million, surpassing the growth of more than 20% recorded in the first quarter. Reported volume grew 1% despite a nearly 1% headwind resulting from disruptions in the Middle East.
Organic operating income margin increased by 40 basis points to 18.8%. However, adjusted gross margin declined 60 basis points due to the acquisition of Ovivo Electronics, though organic gross margin remained stable. Reported net interest expense rose by $10 million due to new debt for acquisitions and lower cash balances.
Ecolab revised its full-year 2026 adjusted diluted EPS guidance to a range of $8.05 to $8.25. This represents a 7% to 10% increase, a decrease from the prior guidance of $8.43 to $8.63 provided in the first quarter.
The company expects total pricing to accelerate to a range of 5% to 6% in the second half of 2026. Ecolab also closed the acquisition of CoolIT Systems, and pre-acquisition sales for the business grew more than 100% in the first half of the year.