NYSE$ECL

Ecolab Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Ecolab's second quarter results were driven by recovering markets, new business wins and new products, resulting in double-digit sales and earnings growth.

Ecolab reported strong second-quarter results, leveraging recovering markets with new business wins and new products to deliver double-digit sales and earnings growth. Reported sales from continuing operations increased by 18% versus last year, and adjusted diluted EPS from continuing operations were $1.22, an increase of 88% versus last year.

  • Strong second quarter results leveraged recovering markets with new business wins and new products to deliver double-digit sales and earnings growth.
  • Reported sales from continuing operations +18% versus last year.
  • Reported operating margins from continuing operations +710 bps.
  • Adjusted diluted EPS from continuing operations were $1.22, +88% versus last year; the strong increase reflects volume increases, accelerating pricing in excess of higher delivered product costs and lower bad debt expense which more than offset increased variable compensation and Texas freeze impacts.

Headline financials

Total Revenue

$3.16B

Previous: $2.69B+17.8%
EPS (adj)

$1.22

Previous: $0.65+87.7%
Capital Expenditures

-$246M

Previous: -$251M+2.0%
Free Cash Flow

$68M

Previous: -$2.28B+103.0%
Net Income

$314M

Previous: -$2.03B+115.4%
Operating Income

$448M

Previous: $192M+133.2%
Gross Profit

$1.32B

Previous: $1.05B+25.6%
Cash & Equivalents

$1.4B

Previous: $1.37B+2.4%
Total Assets

$18.5B

Previous: $18.1B+2.5%
Stock-Based Comp

$27.6M

Previous: $26.3M+4.9%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$3.16B

Q2 2021+17.8%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Ecolab · $1.28B total across 2 segments · Q2 2021

  • Global Institutional & Specialty
    $976M+37.8%
  • Global Pest Elimination
    $306M+26.4%

Forward guidance

Ecolab expects the U.S. recovery to continue, Europe to reopen as forecasted, the rest of the world to follow soon after, and a continued higher cost environment.

Tailwinds

  • U.S. recovery to continue
  • Europe to reopen as forecasted
  • The rest of the world to follow soon after
  • Strong pricing actions in 2021 that remain ahead of input costs
  • New business and innovation pipelines are at record levels

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.3%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+10.9%

Q4 2022

Best reaction

-12.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-3.1%-3.1%
Q4 2025+4.0%+3.8%-4.3%
Q3 2025-4.1%-8.3%-1.7%
Q2 2025+0.4%+2.9%+1.8%
Q1 2025+3.3%+6.8%+10.6%
Q4 2024+6.2%+7.6%+2.1%
Q3 2024-1.5%-4.6%-3.4%
Q2 2024-6.9%-4.3%+0.9%
Q1 2024+1.5%+2.6%+3.2%
Q4 2023+6.9%+1.7%-1.4%
Q3 2023+5.1%+9.8%+20.5%
Q2 2023+1.0%-0.3%+0.4%
Q1 2023+2.7%+2.9%+0.2%
Q4 2022+10.9%+9.8%+7.4%
Q3 2022-12.6%-14.2%-3.3%
Q2 2022-1.3%+1.5%+5.0%
Q1 2022-2.9%-3.6%-6.5%
Q4 2021-0.1%-2.3%-6.1%
Q3 2021-0.2%+0.3%+4.4%
Q2 2021-0.0%+0.8%+1.8%
Q1 2021-2.1%-1.2%-4.7%
Q4 2020-5.0%-5.4%-4.7%
Q3 2020-6.5%-7.4%+10.0%
Q2 2020-8.1%-11.8%-6.8%
Q1 2020+5.4%+1.3%+12.7%
Q4 2019+1.4%+0.1%-23.0%
Q3 2019+1.1%-0.3%-2.4%
Q2 2019+0.6%-0.3%+3.2%
Q1 2019-1.1%+0.3%-0.6%
Q4 2018+1.1%+2.2%+7.5%
Q3 2018+4.5%+5.5%+8.1%
Q2 2018+2.8%+4.5%+6.7%
Q1 2018-0.4%+0.4%-1.5%
Q4 2017-1.2%-0.5%+2.0%
Q3 2017+0.3%+0.4%+3.8%
Q2 2017+0.9%+0.9%+1.2%
Q1 2017-2.8%-2.2%+3.5%
Q4 2016-0.7%+1.3%+0.2%
Q3 2016-1.9%-3.1%+3.8%
Q2 2016+2.3%+3.4%+3.7%
Q1 2016+0.9%
Q4 2015-5.5%
Q3 2015-0.3%
Q2 2015+6.4%
Q1 2015-1.4%
Q4 2014+3.8%
Q3 2014-2.2%
Q2 2014-1.5%
Q1 2014-0.9%
Q4 2013+0.5%
Q3 2013+3.0%
Q2 2013+0.0%
Q1 2013+1.2%
Q4 2012+6.2%
Q3 2012+0.1%
Q2 2012-3.6%
Q1 2012+1.0%
Q4 2011-4.2%
Q3 2011-4.6%
Q2 2011-3.5%
Q1 2011+2.5%
Q4 2010+2.4%
Q3 2010+0.3%
Q2 2010-0.7%
Q1 2009-1.7%
Q1 2010+1.2%
Q4 2007+0.5%
Q4 2009+0.5%
Q3 2009+2.2%
Q3 2008+2.2%
Q2 2009+0.0%
Q2 2008+0.0%
Q4 2008+0.0%

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