Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Ecolab (ECL) Q1 2025 Earnings Call April 29, 2025 06:15 PM ET Speaker0 Greetings. Welcome to the Ecolab First Quarter twenty twenty five Earnings Release Conference Call. At this time, all participants are in listen only mode. A question and answer session will follow today's formal presentation. As a reminder, this conference is being recorded. At this time, it is now my pleasure to introduce your host, Andy Hedberg, Vice President, Investor Relations. Mr. Hedberg, you may now begin. Speaker1 Thank you, an ...

Ecolab, Inc. (NYSE:ECL) Q1 2025 Earnings Conference Call April 29, 2025 1:00 PM ET Company Participants Andy Hedberg - VP, IR Christophe Beck - Chairman & CEO Scott Kirkland - CFO Conference Call Participants Luke McFadden - William Blair Manav Patnaik - Barclays Ashish Sabadra - RBC Capital Markets John McNulty - BMO Capital Markets David Begleiter - Deutsche Bank Vincent Andrews - Morgan Stanley Patrick Cunningham - Citi Chris Parkinson - Wolfe Research Shlomo Rosenbaum - Stifel John Roberts - Mizuho Stev ...

Financial Data and Key Metrics Changes - The company reported a 3% growth in organic sales and a 12% increase in EPS, indicating strong performance despite soft end markets [4][5] - Operating income margin increased by 190 basis points, moving towards the goal of a 20% margin by 2027 [5][10] Business Line Data and Key Metrics Changes - Life Sciences segment grew organic sales in the mid-single digits and achieved over 30% organic operating income growth, with biopharma sales increasing by double digits [10][11] - Pest Elimination business is rapidly deploying digital solutions, with expectations for operating income margins to return closer to 20% in the second quarter [11][12] - Global Hi-Tech Water sales growth accelerated to nearly 30%, driven by innovations in water circularity for microelectronics [12][13] - Ecolab Digital reported a 12% sales growth, reaching $80 million in the first quarter, with expectations for continued acceleration [14] Market Data and Key Metrics Changes - Demand trends softened in heavy industrial markets, but the company outperformed these trends due to critical technologies and services [6][7] - The company anticipates organic sales growth in the second quarter to be similar to or slightly better than the first quarter [10] Company Strategy and Development Direction - The company is focused on generating new business and leveraging existing pipelines to outgrow markets [7][10] - Investments are being made in growth engines such as Life Sciences, Pest Intelligence, Global Hi-Tech, and Ecolab Digital, all showing strong long-term growth potential [10][15] - The company is implementing a 5% rate surcharge in the U.S. to mitigate the impact of tariffs and increased local supplier costs [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the global operating environment is becoming more complex, with softer demand and rapid changes in trade policies [5][6] - Despite challenges, the company maintains its earnings expectations for the year and is confident in its ability to navigate the environment [5][15] Other Important Information - The company has over $1 billion in cash and a net debt to adjusted EBITDA ratio of 1.8, positioning it well for growth opportunities [15] - The company is leveraging a local for local model, with over 90% of sales produced close to customers, enhancing its competitive advantage [8] Q&A Session Summary Question: Impact of trade war on domestically sourced materials - Management expressed confidence in their local sourcing strategy, which mitigates tariff impacts, but acknowledged some cost increases due to onshoring [20][22][24] Question: Update on demand environment - Management noted a dip in demand but indicated stabilization at lower levels, with a focus on generating new business [28][30] Question: Trends in Institutional and Specialty segment - The Institutional Division is growing at 5%, with expectations for continued margin improvement [35][36] Question: Growth of Ecolab One initiative - Management reported strong progress in focused accounts under the One Ecolab initiative, aiming to increase market penetration [39][41] Question: Success of previous surcharge - Management confirmed that the previous energy surcharge was successful and expressed confidence in the current surcharge's effectiveness [46][48] Question: Pest elimination growth expectations - Management anticipates growth in the Pest Elimination segment to return to high single digits by the second half of the year [66][68] Question: Trends in Life Sciences segment - Management noted improvements in the Life Sciences segment, with expectations for accelerated growth [104][106] Question: SG&A management - Management indicated effective control of SG&A expenses, with expectations for continued leverage [112][113] Question: Capital deployment strategy - Management confirmed no changes to capital allocation priorities, maintaining a focus on dividends and business investments [114][116]

ECOLAB First Quarter 2025 Supplemental 1 Cautionary statement Forward-Looking Information This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding macroeconomic conditions and our financial and business performance and prospects, including sales, earnings, special (gains) and charges, raw material costs, margins, pricing, currency translation, ...

Company Performance - Ecolab reported quarterly earnings of $1.50 per share, matching the Zacks Consensus Estimate, and showing an increase from $1.34 per share a year ago [1] - The company posted revenues of $3.7 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.07%, and down from $3.75 billion year-over-year [2] - Over the last four quarters, Ecolab has surpassed consensus EPS estimates three times and topped revenue estimates only once [2] Stock Outlook - Ecolab shares have increased approximately 2% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.90 for the coming quarter and $7.51 for the current fiscal year [7] - The current Zacks Rank for Ecolab is 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Chemical - Specialty industry, to which Ecolab belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

Exhibit 99.1 News Release Investor Contact: Media Contact: Andrew Hedberg (651) 250-2185 Nigel Glennie (651) 250-2576 Cairn Clark (651) 250-2291 ECOLAB DELIVERS CONTINUED DOUBLE-DIGIT EPS GROWTH REPORTED DILUTED EPS $1.41; ADJUSTED DILUTED EPS $1.50, +12% MAINTAINS 2025 ADJUSTED DILUTED EPS OUTLOOK: $7.42 - $7.62, +12% - 15% FIRST QUARTER HIGHLIGHTS OUTLOOK | | | | First Quarter Ended March 31 | | | | | --- | --- | --- | --- | --- | --- | --- | | | Reported | | Adjusted | | | | | (unaudited) | Public Curren ...

Core Viewpoint - Ecolab, Inc. is set to report its first-quarter 2025 results, with expectations of mixed performance across its segments, influenced by both growth opportunities and challenges in the current macroeconomic environment [1][9]. Global Industrial Segment - The Global Industrial segment, which includes Water, Food & Beverage, and Paper units, experienced sales growth in Q4 2024, particularly in the Water business, which is expected to positively impact overall industrial performance in the midterm [2][3]. - The Zacks Consensus Estimate for Q1 2025 revenues in the Global Industrial segment is $1.92 billion, reflecting a 4.1% increase from the previous year [4]. Global Institutional & Specialty Segment - The Global Institutional & Specialty segment showed strong growth in the last reported quarter, driven by new business and customer penetration, with expectations of continued revenue growth in Q1 2025 [5]. - The Zacks Consensus Estimate for Q1 2025 revenues in this segment is $1.37 billion, indicating a 7.9% increase from the prior year [6]. Other Contributing Factors - Ecolab's Life Sciences unit and Global Pest Elimination segment are also expected to contribute positively to revenues, with good new business wins and ongoing digital initiatives [7]. - However, the exit from non-strategic low-margin businesses in the Global Healthcare & Life Sciences segment may negatively impact performance [8]. Overall Revenue and EPS Estimates - The total revenue estimate for Q1 2025 is $3.70 billion, which represents a 1.4% decline from the previous year [9]. - The consensus estimate for EPS is $1.51, suggesting a 12.7% improvement from the prior-year period [10]. Share Price Performance - Over the past three months, Ecolab's shares have decreased by 3.6%, outperforming the Chemical - Specialty sector's decline of 6.6% and the S&P 500's decline of 10.9% [13]. - Comparatively, peers like Hawkins, Inc. and Givaudan SA have outperformed Ecolab, while Balchem Corporation has underperformed [17]. Valuation Metrics - Ecolab's forward 12-month price-to-earnings (P/E) ratio is 30.4X, which is higher than the industry average of 22.1X, indicating a premium valuation [18]. - The company trades at a premium compared to Hawkins but at a discount to peers like Balchem and Givaudan [19]. Long-Term Investment Outlook - Ecolab is making significant strides in its Global Water business and has engaged in partnerships to enhance water safety and efficiency, which are expected to bolster long-term growth [20]. - The Global Institutional & Specialty and Global Pest Elimination segments are aligning with long-term growth objectives, raising optimism about their profitability prospects [21]. Final Assessment - Ecolab demonstrates strong core business strength and growth potential, making it a suitable hold for existing investors [22]. - However, for new investors, the current valuation suggests limited growth potential compared to industry peers, advising caution before adding to positions [23].

The average prediction of analysts places 'Sales- Global Institutional & Specialty (Fixed Currency rates)' at $1.37 billion. The estimate points to a change of +7.9% from the year-ago quarter. Analysts expect 'Sales- Global Industrial (Fixed Currency rates)' to come in at $1.92 billion. The estimate indicates a year-over-year change of +4.1%. Analysts on Wall Street project that Ecolab (ECL) will announce quarterly earnings of $1.51 per share in its forthcoming report, representing an increase of 12.7% year ...

Ecolab, Inc. (ECL) recently announced a 5% trade surcharge on all its solutions and services in the United States, effective May 1, 2025. The move is aimed at offsetting rising costs tied to raw materials, transportation, and labor, while allowing the company to maintain its high service standards and continued innovation.This strategic pricing adjustment highlights Ecolab’s proactive approach in navigating inflationary pressures while supporting sustainable growth.Likely Trend of ECL Stock Following the Ne ...