NYSE$ECL

Ecolab Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Ecolab demonstrated strong financial performance in Q2 2024, marked by sales growth, margin expansion, and increased earnings per share.

Ecolab reported a 3% increase in sales to $4.0 billion, with organic sales up 4%. The company's adjusted EPS grew by 35% to $1.68, driven by strong operating income margin expansion. Ecolab also raised its full-year adjusted EPS outlook to $6.50 - $6.70.

  • Reported sales reached $4.0 billion, a 3% increase year-over-year, with a 1% headwind from unfavorable foreign currency exchange.
  • Organic sales grew by 4%, with the Institutional & Specialty segment normalizing to a strong 7% growth.
  • Reported operating income margin was 16.5%, while organic operating income margin expanded by 360 bps to 17.0%.
  • Adjusted diluted EPS increased by 35% to $1.68, excluding special gains, charges, and discrete tax items.

Headline financials

Total Revenue

$3.99B

Previous: $3.85B+3.5%
EPS

$1.71

Previous: $1.24+37.9%
Reported GAAP operating income margin

16.5%

Previous: 12.6%+31.0%
Non-GAAP adjusted fixed currency operating income margin

16.7%

No prior period
Organic sales growth

3.0%

No prior period
Capital Expenditures

-$398M

Previous: -$346M-15.2%
Free Cash Flow

$92.5M

Previous: -$16M+678.1%
Net Income

$491M

Previous: $330M+48.9%
Operating Income

$657M

Previous: $485M+35.5%
Gross Profit

$1.74B

Previous: $1.52B+15.0%
Cash & Equivalents

$384M

Previous: $554M-30.7%
Total Assets

$21.5B

Previous: $21.5B+0.0%
Stock-Based Comp

$35.9M

Previous: $27.3M+31.5%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$3.99B

Q2 2024+3.5%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Ecolab · $1.31B total across 1 segment · Q3 2023

  • Global Institutional & Specialty
    $1.31B+12.9%

Forward guidance

Ecolab anticipates full-year 2024 adjusted diluted earnings per share to be in the range of $6.50 to $6.70, reflecting a 25% to 29% increase compared to 2023.

Tailwinds

  • Continued solid sales growth, driven by value pricing and new business gains.
  • Attractive organic operating income margin expansion, driven by robust increases in gross margin.
  • Good underlying productivity.
  • Quarterly adjusted diluted earnings per share growth to progressively normalize towards the company’s long-term 12-15% target as solid growth continues.
  • Impacts from delivered product costs are anticipated to normalize exiting 2024.

Headwinds

  • Unfavorable impact in the second half of 2024 from the sale of Ecolab’s global surgical solutions business, estimated to be $0.08 per share.
  • Soft but stable macroeconomic demand.
  • Favorability from delivered product costs that eases through the third quarter of 2024.
  • Impact of global inflation remains hard to predict.
  • Good underlying productivity is expected to be offset in the short-term by growth-oriented investments in the business to fuel Ecolab’s long-term performance.

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 2024

Historical avgQ2 2024

+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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