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Dec 31, 2022
Ecolab Q4 2022 Earnings Report
Ecolab delivered a strong fourth quarter operating performance, with sales and operating income increasing and adjusted EPS decreasing slightly.
Key Takeaways
Ecolab reported a 9% increase in sales to $3.7 billion in the fourth quarter of 2022. Reported diluted EPS was $0.93, while adjusted diluted EPS was $1.27. The company expects further performance improvement through 2023, anticipating double-digit growth in adjusted operating income.
Reported sales increased by 9% compared to the previous year, reaching $3.7 billion.
Reported operating income rose by 3%, with adjusted fixed currency operating income growth accelerating to 14%.
Reported diluted EPS was $0.93, while adjusted diluted EPS, excluding special gains and charges and discrete tax items, was $1.27, a decrease of 1%. Currency translation had a $0.10 per share unfavorable impact on EPS.
Cash flow from operating activities for the fourth quarter was $859 million, resulting in a 97% free cash flow conversion for the full year 2022.
Revenue by Segment
Forward Guidance
Ecolab anticipates performance to improve throughout 2023, driven by strong sales growth, easing inflation, and productivity improvements, expecting double-digit growth in adjusted operating income.
Positive Outlook
- Strong sales growth
- Easing delivered product cost inflation
- Improved productivity
- Additional pricing actions
- New business wins and innovation
Challenges Ahead
- Challenging macro environment
- High delivered product costs
- Easing demand
- Higher interest expense
- Unfavorable currency translation impacts
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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