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Jun 30, 2024
Ecolab Q2 2024 Earnings Report
Ecolab demonstrated strong financial performance in Q2 2024, marked by sales growth, margin expansion, and increased earnings per share.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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