NYSE$ECL

Ecolab Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Ecolab demonstrated continued strong growth, with adjusted diluted EPS increasing by 19% and the full-year adjusted diluted EPS outlook raised.

Ecolab reported a 1% increase in sales to $4.0 billion, including a 2% headwind from the sale of the global surgical solutions business and a 1% headwind from currency exchange. Organic sales grew by 4%, driven by volume growth and value pricing. Adjusted diluted EPS increased by 19% to $1.83, and the company increased its full-year adjusted diluted EPS outlook to $6.60 - $6.70.

  • Reported sales increased by 1% to $4.0 billion, including headwinds from the sale of the global surgical solutions business and currency exchange.
  • Organic sales grew by 4%, with volume growth strengthening to 2% and value pricing in the targeted 2-3% range.
  • Reported operating income margin was 26.1%, while organic operating income margin increased by 260 bps to 17.9%.
  • Adjusted diluted EPS increased by 19% to $1.83, excluding special gains and charges and discrete tax items.

Headline financials

Total Revenue

$4B

Previous: $3.96B+1.0%
EPS (adj)

$1.83

Previous: $1.54+18.8%
Capital Expenditures

-$635M

Previous: -$512M-23.9%
Free Cash Flow

$102M

Previous: -$108M+194.0%
Net Income

$737M

Previous: $404M+82.3%
Operating Income

$1.04B

Previous: $566M+84.6%
Gross Profit

$1.74B

Previous: $1.63B+6.7%
Cash & Equivalents

$1.26B

Previous: $1B+25.9%
Total Assets

$22.1B

Previous: $21.9B+1.1%
Stock-Based Comp

$26.6M

Previous: $14.7M+81.0%

Revenue & EPS history

Ecolab · Revenue · Quarterly

$4B

Q3 2024+1%vs Q3 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 a robust conclusion to the year and expects to drive 12-15% growth in adjusted diluted earnings per share in 2025 and beyond.

Tailwinds

  • Continued solid sales growth driven by value pricing and new business gains.
  • Attractive organic operating income margin expansion.
  • Robust increases in gross margin.
  • Good underlying productivity improvement.
  • Stable macroeconomic demand.

Headwinds

  • Growth-oriented investments in the business to fuel Ecolab’s long-term performance.
  • Unfavorable $0.08 per share impact in the second half of 2024 from the sale of the global surgical solutions business.
  • Favorability from lower raw material costs has progressively eased through the third quarter of 2024.
  • Raw material costs are anticipated to be stable to slightly higher in the fourth quarter of 2024.
  • Quantifiable special charges in the fourth quarter of 2024 to be approximately $0.13 per share, principally related to restructuring charges.

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 Q3 2024

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro