ECOLAB INC. has recently released its 10-Q report. Ecolab provides water, hygiene, and infection prevention products and services in the United States and abroad, organized into four reportable segments: Global Water, Global Institutional & Specialty, Global Pest Elimination, and Global Life Sciences. Its businesses serve industrial, foodservice, healthcare, hospitality, pest control, and pharmaceutical customers, with products sold under brands including Ecolab, Kay, Purolite, and Bioquell.
In Item 2, management said second-quarter 2026 reported net sales rose 10% to $4.415 billion from $4.025 billion a year earlier, while organic sales increased 5% to $4.282 billion. By segment, organic sales rose 4% in Global Water to $2.099 billion, 4% in Global Institutional & Specialty to $1.617 billion, 7% in Global Pest Elimination to $345.2 million, and 15% in Global Life Sciences to $221.0 million.
Reported operating income increased 7% to $757.9 million, and adjusted operating income rose 10% to $809.0 million. Reported diluted EPS increased 3% to $1.90, while adjusted diluted EPS increased 11% to $2.09. Net income attributable to Ecolab rose 2% to $534.9 million.
Gross margin slipped to 44.1% from 44.8% a year earlier, while SG&A fell to 25.9% of sales from 26.5%. Ecolab said organic gross margin improved to 44.9% from 44.8% as pricing gains outpaced higher commodity costs.
Special gains and charges totaled $57.7 million in the quarter, or $0.18 per diluted share, versus $27.1 million, or $0.07 per share, a year earlier. For the first six months, special gains and charges were $115.4 million, or $0.34 per share, compared with $61.4 million, or $0.16 per share.
The company said its One Ecolab initiative is expected to generate $325 million in annualized cost savings in continuing operations by 2027, with total restructuring costs of $328 million and special charges of $97 million by the end of 2027. It said the program has already delivered $180 million of cumulative cost savings.
Interest expense, net increased to $73.1 million from $63.2 million in the quarter, and to $145.8 million from $121.5 million for the first half. Ecolab said the higher interest burden reflected debt used to fund the CoolIT Systems acquisition and higher interest expense tied to the Ovivo Electronics acquisition, partly offset by lower interest rates.
The reported tax rate rose to 22.3% from 19.9% in the quarter, and to 22.1% from 20.1% in the first six months. Adjusted tax rate was 21.0% in both periods, compared with 20.8% a year earlier. Today the company's shares have moved -0.25% to a price of $284.75. For the full picture, make sure to review ECOLAB INC.'s 10-Q report.
