Ecolab Organic Sales Growth Accelerates to 7%

The Tip Desk · October 30, 2026 · 4 min read

Reported sales reached $4.69 billion in the third quarter as organic growth picked up from 5% and adjusted diluted EPS rose 5% to $2.18.

Ecolab (ECL) reported third-quarter net sales of $4.69 billion, up 13% from a year earlier, as organic sales growth accelerated to 7% after 5% in the second quarter and 4% in the first.

The water, hygiene and infection-prevention company said volume growth improved to 2% despite ongoing Middle East disruptions, while pricing accelerated to 5%. Chairman, president and chief executive officer Christophe Beck said third-quarter results marked an inflection point, with accelerating sales growth, margin expansion and double-digit adjusted operating income growth.

Reported operating income was $810.5 million. Adjusted operating income rose 14% after 10% growth in the prior quarter. Organic operating income growth accelerated to 11%. Organic operating income margin expanded 70 basis points to 19.6%. Reported operating income margin was 17.3%.

Reported diluted earnings per share were $1.95, down 5% from $2.05 a year earlier. Adjusted diluted earnings per share were $2.18, up 5%, including an approximate 10% headwind from CoolIT acquisition-related amortization and financing costs. Adjusted EPS growth slowed from 11% in the second quarter. Reported net income attributable to Ecolab was $551.3 million. Adjusted net income increased 4%. Currency translation was neutral to adjusted diluted EPS.

Global Water, which includes Heavy Water, Light Water, High-Tech, Food & Beverage and Paper, posted 9% organic sales growth. Fixed-currency sales in the segment grew 20%, including an 11% benefit from the acquisitions of Ovivo Electronics and CoolIT. Global High-Tech organic sales growth accelerated to 63% from 29% in the second quarter, which the company said reflected growth across microelectronics and data centers. Food & Beverage organic growth accelerated to 8%. Light Water, Heavy Water and Paper all grew. Global Water organic operating income growth accelerated to 9%.

Global Institutional & Specialty organic sales grew 3% and organic operating income grew 8%, with an organic operating income margin of 24.7%. The company said Institutional offset a mid-single-digit decline in North American restaurant foot traffic with pricing and new business, while Specialty sales grew mid-single digits. Global Pest Elimination organic sales growth accelerated to 8%, and organic operating income grew 7%.

Global Life Sciences organic sales grew 17%, versus 15% in the second quarter. Organic operating income increased 49% and the organic operating income margin was 23.3%. Ecolab Digital sales increased 34% to $129 million.

Reported gross margin was 44.1%. Adjusted gross margin declined 70 basis points due to M&A; excluding that impact, the company said organic gross margin was stable as accelerating pricing offset rising commodity costs. Reported net interest expense increased $70 million, reflecting financing of the Ovivo Electronics and CoolIT acquisitions. The reported income tax rate was 20.2%. Corporate special gains and charges were a net charge of $83 million, primarily related to acquisition and integration costs.

Ecolab now expects full-year 2026 adjusted diluted EPS in the $8.10 to $8.20 range, or 8% to 9% growth, versus the prior raised outlook of $8.05 to $8.25. The company said the range reflects strong underlying performance and an approximate 6 percentage point short-term headwind from CoolIT-related amortization and financing costs. It currently anticipates quantifiable special charges in 2026 of approximately $0.83 a share.

For the fourth quarter, Ecolab expects adjusted diluted EPS in the $2.13 to $2.23 range, or 2% to 7% growth. Reported sales are expected to increase 12% to 14%, with organic sales growth in the 6% to 7% range. Adjusted operating income margin is expected at approximately 19% and organic operating income margin at approximately 20%. Quantifiable special charges in the fourth quarter are expected at approximately $0.26 a share.

Beck said the company expects organic sales to grow at the upper end of its 5% to 7% target in 2027 and adjusted operating income margin to reach 20%, with adjusted EPS growth expected to accelerate in the second half of the year as it laps M&A transaction impacts. Ovivo Electronics and CoolIT, one year after close, are expected to contribute approximately 2 percentage points to Ecolab’s annual organic sales growth.