ECL
MaterialsEcolab
Price Chart
Market Data
Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.5B | $6.1B | $5.9B | $6.1B | $6.8B | $11.8B | $13.3B | $14.3B | $13.5B | $13.2B | $13.8B | $14.7B | $14.9B | $11.8B | $12.7B | $14.2B | $15.3B | $15.7B | $16.1B | +2.2% |
| Gross Profit | $2.8B | $3.0B | $2.9B | $3.1B | $3.3B | $5.4B | $6.0B | $6.6B | $6.3B | $6.3B | $6.4B | $6.0B | $6.2B | $4.9B | $5.1B | $5.4B | $6.2B | $6.8B | $7.2B | +4.5% |
| Gross Margin | 50.8% | 48.8% | 49.5% | 50.5% | 48.9% | 45.2% | 45.4% | 46.2% | 46.7% | 47.5% | 46.5% | 41.2% | 41.5% | 41.4% | 40.2% | 37.8% | 40.2% | 43.5% | 44.5% | +1.0pp |
| Operating Income | $669.0M | $712.8M | $681.3M | $806.8M | $753.8M | $1.3B | $1.6B | $2.0B | $1.6B | $1.9B | $2.0B | $1.9B | $2.0B | $1.4B | $1.6B | $1.6B | $2.0B | $2.8B | $2.7B | -2.3% |
| Operating Margin | 12.2% | 11.6% | 11.5% | 13.2% | 11.1% | 10.9% | 11.8% | 13.7% | 11.5% | 14.6% | 14.6% | 13.3% | 13.5% | 11.8% | 12.6% | 11.0% | 13.0% | 17.8% | 17.0% | -0.8pp |
| Net Income | $427.2M | $448.1M | $417.3M | $530.3M | $463.3M | $701.3M | $973.6M | $1.2B | $1.0B | $1.2B | $1.5B | $1.4B | $1.6B | -$1.2B | $1.1B | $1.1B | $1.4B | $2.1B | $2.1B | -1.7% |
| Net Margin | 7.8% | 7.3% | 7.1% | 8.7% | 6.8% | 5.9% | 7.3% | 8.6% | 7.5% | 9.5% | 11.0% | 9.8% | 10.6% | -10.1% | 8.9% | 7.7% | 9.0% | 13.4% | 12.9% | -0.5pp |
| Free Cash Flow | $491.1M | $426.5M | $442.5M | $689.9M | — | — | — | — | $1.2B | $1.2B | $1.3B | $1.4B | $1.6B | $1.4B | $1.4B | $1.1B | $1.6B | $1.8B | $1.9B | +4.7% |
| FCF Margin | 9.0% | 6.9% | 7.5% | 11.3% | — | — | — | — | 9.1% | 9.4% | 9.4% | 9.8% | 10.9% | 11.6% | 11.1% | 7.6% | 10.7% | 11.6% | 11.8% | +0.3pp |
| EPS (Diluted) | $1.70 | $1.80 | $1.74 | $2.23 | $1.91 | $2.35 | $3.16 | $3.93 | $3.32 | $4.14 | $5.13 | $4.88 | $5.33 | $-4.15 | $3.91 | $3.81 | $4.79 | $7.37 | $7.28 | -1.2% |
1. THE BIG PICTURE
Ecolab is no longer just selling cleaning chemicals; it is selling operational efficiency and sustainability through a "One Ecolab" model that integrates AI and remote monitoring into its service contracts. While revenue growth is modest at 2.2%, Ecolab is aggressively expanding margins, turning a record year of sales into a 19% jump in net income (8-K).
2. WHERE THE RISKS HIT HARDEST
- Digital Strategy vs. Operational Risk: The Integrated Value Proposition—specifically the 3D TRASAR and "Pest Intelligence" platforms—is threatened by AI Integration Risks. Any failure to keep pace with competitors or a cybersecurity breach could undermine the "data-driven insights" that justify Ecolab's premium pricing (10-K Item 1, Risks).
- Global Scale vs. Geopolitical Volatility: Ecolab’s Global Scale (presence in 170 countries) is threatened by Geopolitical Volatility because 47% of sales are international. This makes earnings highly sensitive to currency devaluations in markets like Argentina and Turkey, which can reduce sales when translated into U.S. dollars (Risks).
- Service Model vs. International Complexity: The Service Model, which relies on a large direct field force, is threatened by International Operational Risks. The higher cost of operating in diverse foreign jurisdictions and a reliance on third-party distributors structurally lowers international profitability compared to U.S. operations (10-K Item 1).
3. WHAT THE NUMBERS SAY TOGETHER
Ecolab's financial profile reveals a business becoming significantly more efficient even as its top-line growth remains middle-of-the-pack. While it ranks 3rd of 6 in revenue growth (+2.2%), it maintains the 2nd highest operating margin (19.3%) and net margin (14.2%) among its peers (XBRL). This margin expansion is fueled by the "One Ecolab" productivity initiative, which management recently upgraded to target $325 million in annualized savings by 2027 (8-K). The 5% sales growth in the most recent quarter suggests an acceleration from the TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter average, likely driven by high-performing segments like Pest Elimination and Life Sciences, which both grew at 7% (8-K).
4. IS IT WORTH IT AT THIS PRICE?
At 29.3x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Ecolab is the most expensive stock in its peer group, trading at a 19% premium to the peer median of 24.5x. At this multiple, the market is pricing in approximately 6.5% long-term growth (CAPM analysis). This valuation appears to be a bet on management’s ability to deliver on its 12% to 15% EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth guidance for 2026, supported by a 1.0% buyback yield (XBRL, 8-K). However, the sensitivity analysis suggests that if growth were to slow to a base rate of 5.0%, the justified multiple would drop to 20.5x (CAPM analysis). The premium is currently sustained by Ecolab's superior operating margins compared to rivals like Sherwin-Williams (19.3% vs 5.5%), though its $6.1 billion in net debt remains a notable burden (XBRL).
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if the $325 million productivity savings target is missed or delayed, as this is the primary engine for the guided double-digit EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth (8-K).
- Constructive if the Global High-Tech water business shows accelerated growth following the Ovivo Electronics acquisition, proving the "end-to-end water circularity" model can scale (8-K).
- Cautious if interest rate risk on the $1.5 billion in floating-rate debt significantly reduces cash available for the capital investments required to maintain the 3D TRASAR platform (Risks).
6. BOTTOM LINE
Structural Advantage: High switching costs created by the "One Ecolab" integration of proprietary chemistry, 3D TRASAR remote monitoring, and a massive on-site service force.
Bottom Line: Ecolab is a high-quality margin expansion story, but its current price leaves no room for error in its ambitious digital and productivity transitions.
1. Top 5 Material Risks
- Global Economic and Geopolitical Volatility: Ecolab’s results are sensitive to worldwide economic factors, including trade policies, tariffs, and geopolitical instability in regions like Europe, the Middle East, China, and Russia. Economic upheaval in countries such as Argentina and Turkey can weaken local currencies against the U.S. dollar, reducing sales and earnings when translated into U.S. dollars.
- Market-Specific Demand Cycles: Ecolab’s performance depends on the vitality of key end-markets, including foodservice, hospitality, travel, and healthcare. Economic downturns in these sectors can lead customers to reduce or discontinue purchases of cleaning, sanitizing, and water treatment products, negatively impacting financial results.
- International Operational Risks: With approximately 47% of 2025 net sales generated outside the U.S., Ecolab faces risks including exchange controls, currency devaluations, export quotas, and potential expropriation or nationalization of assets.
- Artificial Intelligence (AI) Integration: The increasing use of AI in products and operations introduces risks of operational disruption, erroneous decision-making, and cybersecurity vulnerabilities. Failure to keep pace with competitors’ AI advancements or the inability to realize anticipated benefits from AI investments could weaken market position and increase operational costs.
- Information Technology and Cybersecurity: Ecolab relies on complex IT systems and infrastructure. Cyber-attacks, data breaches, or system failures—heightened by the ongoing ERP system upgrade and the integration of acquired businesses—could result in third-party claims, reputational damage, and the compromise of intellectual property or sensitive customer data.
2. Company-Specific Risks
- Acquisition Integration: Ecolab’s long-term strategy involves acquiring complementary businesses. Failure to successfully integrate these entities or realize expected synergies could lead to the impairment of goodwill, of which Ecolab held $9.2 billion as of December 31, 2025.
- Raw Material Cost Fluctuations: Ecolab is susceptible to volatility in the cost and availability of raw materials. Disruptions in economic activity or severe weather events, such as those impacting the U.S. Gulf Coast, can limit the ability to obtain raw materials at favorable prices.
- Sustainability Commitments: Public goals regarding Scope 1, 2, and 3 greenhouse gas emissions require capital investment and technology development that may not currently exist. Failure to meet these objectives or evolving stakeholder expectations could result in reputational, financial, and legal impacts.
- Upstream Energy Separation Indemnities: Under agreements related to the 2020 split-off of the Upstream Energy business, Ecolab may be required to provide indemnification to ChampionX. There is no assurance that these indemnity rights will be sufficient or that ChampionX will be able to satisfy its own obligations.
3. Regulatory/Legal Risks
- Compliance with Anti-Corruption Laws: Ecolab must comply with the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Misconduct by employees or representatives, particularly in recently acquired operations, could lead to disruptive investigations and significant fines.
- Environmental and Product Regulation: Ecolab is subject to stringent and evolving environmental laws, including climate change standards. Compliance costs are uncertain due to the potential for contamination clean-up liabilities and the complexity of product registration requirements.
- Tax Law Changes: The enactment of the One Big Beautiful Bill Act (OBBBA) and the OECD’s Pillar Two global minimum tax regime increase the complexity of tax compliance. Future adjustments by the IRS or other taxing authorities, or changes in the valuation allowance for deferred tax assets, could materially affect financial results.
4. Financial Impact Map
Global Economic/Geopolitical Volatility → Consolidated Results of Operations → Reduced sales and earnings from foreign operations due to currency translation and weakened economic activity. Market-Specific Demand Cycles → Cash Flows → Reduced volume of purchases by customers in key end-markets during economic downturns. Artificial Intelligence (AI) Integration → Operational Costs → Resource-intensive development and deployment may increase expenses without guaranteed financial benefits. Information Technology and Cybersecurity → Net Income → Potential for third-party claims, regulatory costs, and business disruption expenses. Indebtedness → Interest Expense → A one percentage point increase in the average interest rate on floating-rate debt would increase annual interest expense by approximately $15 million.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
| 14A | Mar 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Ecolab to acquire CoolIT Systems for $4.75 billion to expand data center cooling
- ▸Acquiring CoolIT Systems for $4.75 billion
- ▸Focus on direct-to-chip liquid cooling for data centers
- ▸Closed-loop technology replaces traditional evaporative air cooling
- ▸Positioning as end-to-end provider for global data center expansion
- ▸Addresses projected 56% global water deficit by 2030
Ecolab to Acquire CoolIT for $4.75B, Targets 20%+ Operating Margins by 2027
- ▸Acquiring CoolIT Systems for $4.75B in cash from KKR
- ▸Transaction expected to close in Q3 2026
- ▸Q1 adjusted EPS guidance $1.69–$1.71, +13% to 14% YoY
- ▸Reiterated FY26 adjusted EPS growth target of 12% to 15%
- ▸Targeting >20% operating income margin by 2027
Ecolab to Acquire CoolIT Systems for $4.75 Billion to Expand Data Center Cooling
- ▸Ecolab to acquire CoolIT Systems for $4.75 billion
- ▸KKR realizes 15x return on original equity investment
- ▸CoolIT liquid cooling reduces data center energy use by 30-40%
- ▸Transaction includes cash payouts for all 650 CoolIT employees
- ▸CoolIT technology deployed in over 300 global data centers
Ecolab projects 20% annual data center revenue growth following $4.75B CoolIT acquisition
- ▸Data center business revenue growth projected at 20% annually
- ▸Acquired CoolIT Systems from KKR for $4.75 billion
- ▸Liquid cooling adoption expected to rise from current 5% market share
- ▸CoolIT acquisition represents Ecolab's largest deal in over a decade
- ▸Strategy combines water-treatment services with direct-to-chip cooling technologies
Ecolab projects 20% annual data center revenue growth post-CoolIT acquisition
- ▸Acquired CoolIT Systems from KKR for $4.75 billion
- ▸Data center business revenue growth projected at 20% annually
- ▸Demand for cooling services expected to persist beyond AI infrastructure buildout
- ▸CoolIT acquisition expands global water solutions and data center footprint
Ecolab to Acquire CoolIT Systems to Expand AI Data Center Liquid Cooling Portfolio
- ▸Acquiring CoolIT Systems to enter AI data center liquid cooling market
- ▸CoolIT Systems projected to generate $550M in sales over next 12 months
- ▸Deal adds direct-to-chip cooling and coolant distribution units to Ecolab portfolio
- ▸Strategy focuses on recurring 'Cooling-as-a-Service' revenue model
- ▸Integration combines thermal management hardware with Ecolab water and chemistry expertise
Ecolab to Acquire CoolIT Systems for $4.75 Billion in All-Cash AI Infrastructure Deal
- ▸Acquiring CoolIT Systems for $4.75 billion in all-cash transaction
- ▸Transaction expected to close in third quarter of 2026
- ▸CoolIT provides specialized cooling technology for high-performance AI data centers
- ▸KKR acquired CoolIT in May 2023 for $270 million
- ▸Deal marks Ecolab's strategic expansion into AI infrastructure and data center cooling
Ecolab to Acquire CoolIT Systems from KKR for $4.75 Billion
- ▸Acquisition price $4.75 billion
- ▸Target: CoolIT Systems, a leader in data center liquid cooling
- ▸Seller: KKR & Co. Inc.
- ▸Strategic focus on surging data center cooling demand
Ecolab to acquire CoolIT Systems for $4.75 billion in all-cash deal
- ▸Acquisition price $4.75 billion in all-cash transaction
- ▸Target CoolIT Systems specializes in liquid cooling for data centers
- ▸Strategic expansion into AI-driven data center infrastructure market
- ▸Shift from air to liquid cooling drives demand for target technology
- ▸Deal bolsters water services portfolio for high-performance computing operators
Ecolab to acquire CoolIT Systems for $4.75 billion in all-cash deal
- ▸Acquisition price $4.75 billion in all-cash transaction
- ▸CoolIT Systems specializes in liquid cooling for data centers
- ▸Strategic expansion into AI-driven data center infrastructure market
- ▸Shift from air to liquid cooling drives demand for cooling solutions
- ▸Bolsters Ecolab's existing water and cooling services portfolio