Ecolab raises 2026 profit forecast after double-digit quarterly EPS growth

Investing.com -- Ecolab raised its full-year adjusted profit forecast on Tuesday after reporting double-digit earnings growth for the second quarter, as stronger pricing, productivity gains and accelerating organic sales helped offset higher commodity costs and disruptions linked to the Middle East conflict.

The water, hygiene and infection prevention company now expects 2026 adjusted diluted earnings per share of $8.05 to $8.25, up from its previous outlook of $8.03 to $8.23. It also forecast third-quarter adjusted EPS of $2.13 to $2.23, citing continued operational strength despite short-term amortization and financing costs tied to its CoolIT acquisition.

Second-quarter net sales rose 10% to $4.42 billion, while organic sales growth accelerated to 5%. Adjusted diluted earnings per share increased 11% to $2.09, while reported diluted EPS rose 3% to $1.90.

Chief Executive Christophe Beck said improved pricing, including the rollout of an energy surcharge, helped stabilize margins as the company dealt with rising input costs. He added that underlying volume growth strengthened despite customer disruptions in the Middle East.

Ecolab said its growth businesses continued to outperform, with Global High-Tech organic sales climbing 29% and Life Sciences growing 15%. The company said its recently completed acquisition of CoolIT strengthens its position in AI infrastructure, while Global High-Tech is expected to expand to $4 billion in annual sales by 2030.

Looking ahead, Ecolab expects reported sales to increase 12% to 14% in the second half of 2026, with organic sales growth accelerating to 6% to 7% as pricing strengthens and acquisitions contribute to growth.

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