ECL earnings analysis
What we found in ECL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Ecolab's Q1 2026 results show strong revenue growth and an 8% increase in diluted EPS compared to Q1 2025. The company experienced notable performance across its segments with Global Water and Global Life Sciences leading growth. However, a slight decrease in gross margin reflects higher commodity costs and recent acquisitions despite continued pricing power.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Reported revenue increased 10% to $4.066 billion, up from $3.695 billion in Q1 2025.
- Impressive EPS Performance
- Diluted EPS rose 8% to $1.52 compared to $1.41 in Q1 2025.
- Segment Growth Underlines Performance
- Organic sales in Global Life Sciences surged 11% to $200.9 million.
- Operating Income Improvement
- Operating income increased 12% to $622 million, up from $555 million in the prior year.
- Strong Cash Flow Generation
- Cash provided by operating activities increased by $76.5 million to $445.9 million.
- Improved SG&A Efficiency
- SG&A expenses decreased to 27.1% of sales, down from 28.4% in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Higher Debt Levels
- Total debt increased to $8.5 billion from $8.2 billion, raising leverage concerns.
- Increased Commodity Costs
- Higher commodity costs adversely impacted gross margin, down to 43.6% from 44.2%.
- Geopolitical Risks
- Ongoing geopolitical issues affecting supply chain and commodity prices may pose continued risk.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.52
- Gross margin
- 43.6%
- Operating margin
- 15.3%
- Segment
- Global Water
- Segment
- Global Institutional & Specialty
- Segment
- Global Pest Elimination
- Segment
- Global Life Sciences
What they said about what is next.
Management expects ongoing strong operating cash flow and will monitor cost pressures closely.
The filing reads better than the one before it.
What came before.
- 10-K · February 23, 2026
- Ecolab presents a scale business with $16 billion in annual sales, 48,000 employees and operations in more than 170 countries, organized into four reportable segments (Global Water; Global Institutional & Specialty;…
- 10-Q · October 30, 2025
- Ecolab reported Q3 2025 net sales of $4,165.0 million, up 4% year-over-year (organic sales +3%), with reported gross margin expanding to 44.8% from 43.4% a year ago. Reported GAAP operating income and net income…
- 10-K · February 21, 2025
- Ecolab positions itself as a global sustainability leader with annual sales of $15.7 billion, ~48,000 employees and operations in more than 170 countries, organized into four reportable segments (Global Industrial;…
- 10-Q · May 2, 2024
- Ecolab reported first-quarter 2024 net sales of $3,751.9 million, up 5% year-over-year, with strong margin expansion driving operating income of $517.9 million (+47% YoY) and GAAP diluted EPS of $1.43 (+74% YoY).…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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