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Sep 30, 2024
Ecolab Q3 2024 Earnings Report
Ecolab demonstrated continued strong growth, with adjusted diluted EPS increasing by 19% and the full-year adjusted diluted EPS outlook raised.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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