Ecolab NYSE: ECL reported second-quarter 2026 adjusted earnings-per-share growth of 11%, supported by 5% organic sales growth, stable organic gross margin and productivity gains, Chairman and Chief Executive Officer Christophe Beck said on the company’s earnings call.
The company said pricing strengthened to 4% during the quarter as it implemented a global energy surcharge intended to offset higher commodity costs. Ecolab entered the period with limited surcharge pricing and expected the benefit to build during the quarter. Beck said the company now expects pricing in the 5% to 6% range during the second half as surcharge benefits are fully realized.
Volumes increased 1%, despite what Ecolab described as an approximately 1% headwind from customer operations disrupted by conflict in the Middle East. Excluding that impact, Beck said underlying volume growth accelerated from the first quarter.
Growth Engines Lead Portfolio Momentum
Ecolab said its Food and Beverage business accelerated to 7% growth, while Institutional & Specialty grew 4% and Light Water improved. The company attributed growth in part to new business from its One Ecolab Growth initiative, which combines capabilities across businesses to expand cross-selling opportunities.
Among its growth engines, Life Sciences grew 15%, driven by share gains in bioprocessing, pharmaceutical and personal-care markets, as well as improved purification performance. Beck said Life Sciences delivered a mid-20% operating-income margin in the second quarter, aided by strong sales and a spike in bioprocessing. He added that underlying margins should remain in the mid-20% range, although reported third-quarter margin is expected in the high teens as the company continues investing in capacity and capabilities.
The Life Sciences business has grown from less than $100 million in 2017 to nearly $1 billion currently, according to Beck. He said Ecolab has expanded production capacity across North America, Europe and Asia, including the opening of a major plant in China. The company continues to target a roughly 30% operating-income margin for the business at scale, while emphasizing continued investment ahead of growth.
Ecolab Digital grew 27% in the quarter, reflecting adoption of connected software and operational tools including DishIQ, AquaIQ, KitchenIQ and CIP IQ. Beck said the digital business is approaching a $500 million annual revenue run rate and has a potential $3 billion revenue opportunity from connecting customer locations and applications and generating subscription revenue from those offerings.
Pest Elimination grew 7%, supported by share gains and expansion of its Pest Intelligence platform. Ecolab said it has deployed nearly 800,000 connected devices and expects to exceed 1 million by year-end.
High-Tech Business Expands With CoolIT
Global High-Tech sales grew 29% as demand rose in microelectronics and data centers amid the buildout of artificial-intelligence infrastructure. Ecolab completed its acquisition of liquid-cooling provider CoolIT Systems on July 2. Beck said CoolIT’s year-to-date sales growth before the acquisition exceeded 100%.
Ecolab’s Global High-Tech platform is approaching $1.5 billion in annualized sales, consisting of roughly $500 million each from its legacy high-tech operations, CoolIT and Ovivo, Beck said. The company expects the combined Global High-Tech platform to grow more than 25% annually and reach $4 billion in sales by 2030, with a 25% operating-income margin. Those targets were raised from previous expectations for more than 20% growth and a 20% margin.
On a pro forma basis including Ovivo and CoolIT, Ecolab said company sales growth would have been about 7% in the second quarter, with the acquired businesses adding roughly two percentage points of growth. Beck said Ecolab plans to introduce an integrated cooling platform at the Supercomputing conference that combines CoolIT’s liquid-cooling technology with Ecolab’s 3D TRASAR digital capabilities.
The company will hold an investor day at the Supercomputing conference in Chicago on Nov. 17, when it expects to provide further detail on Global High-Tech’s outlook. Beck said Ecolab is still early in integrating CoolIT and continues to use a 30% long-term growth assumption for the acquired business.
Margins, Investment and Outlook
Ecolab expects organic sales growth of 6% to 7% in the second half, with adjusted operating-income margin of 19%. The company said that trajectory keeps it on track to achieve a 20% operating-income margin next year.
Chief Financial Officer Scott Kirkland said Ecolab expects commodity costs to remain at high-single-digit levels for the balance of 2026. He also noted that Ovivo reduced reported gross margin by about 60 basis points in the second quarter, while Ecolab’s organic gross margin excluding Ovivo was stable.
The company expects capital expenditures to remain around 7% of sales over the next several years as it invests ahead of growth in Global High-Tech and Life Sciences, Kirkland said. He added that Ecolab remains focused on increasing organic return on invested capital by at least 100 basis points annually and expects to return to pre-CoolIT acquisition organic ROIC levels by 2028.
Ecolab raised its full-year 2026 adjusted EPS outlook to a range of $8.05 to $8.25, representing growth of 7% to 10% from the prior year. The forecast includes the near-term effects of non-cash amortization and financing costs associated with the CoolIT acquisition. Beyond 2026, Beck said the company continues to expect adjusted EPS growth, including CoolIT, to accelerate to a 12% to 15% trajectory.
About Ecolab (NYSE:ECL)
Ecolab, Inc is a global provider of water, hygiene and infection prevention solutions and services. The company develops and supplies cleaning and sanitizing chemicals, dispensing equipment, water-treatment systems, pest elimination services and related technologies designed to help businesses maintain clean, safe and efficient operations. Its offerings span both products and onsite services, often paired with technical support and training.
Ecolab serves a broad range of end markets including hospitality and foodservice, food and beverage processing, healthcare, manufacturing and industrial operations, and energy and utilities.
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