Ecolab Q3 sales rise 13%, slightly miss estimates; adjusted EPS beats

Overview

• Water, hygiene and infection prevention firm's Q3 sales rose 13% but slightly missed analyst expectations

• Adjusted EPS for Q3 rose 5% and beat analyst estimates

• Company cites strong execution and growth in core businesses despite Middle East disruptions

Outlook

• Ecolab expects 2026 adjusted diluted EPS of $8.10 to $8.20, up 8% to 9%

• Company forecasts Q4 2026 adjusted diluted EPS of $2.13 to $2.23, up 2% to 7%

• Company anticipates Q4 2026 reported sales growth of 12% to 14%, organic sales up 6% to 7%

Result Drivers

• EXECUTION AND PRICING - Co said strong execution and accelerated pricing drove sales growth, with volume growth improving despite Middle East disruptions

• CORE BUSINESS GROWTH - Accelerating growth in Food & Beverage and Light Water, with Heavy Water and Paper returning to solid growth

• GROWTH ENGINES - Strong performance reported in Global High-Tech and Life Sciences, with acquisitions Ovivo Electronics and CoolIT contributing to organic sales growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Ecolab Inc. is $330.00, about 14.2% above its October 26 closing price of $288.89

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads

• Oct 27 - Pentair Q3 sales beat estimates on water solutions growth; reaffirms profit guidance

• Oct 27 - Hubbell Inc beats Q3 revenue on Electrical Solutions growth, raises FY outlook

• Oct 27 - Sherwin-Williams Q3 sales beat estimates on higher pricing

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)