Ecolab targets 18% operating income margin by 2025, projects 12-15% adjusted EPS growth.

Ecolab has outlined a path to achieve an 18% operating income margin by 2025 and targets 12-15% adjusted EPS growth. The company attributes its double-digit earnings growth to a "relentless focus on execution and delivering exceptional value to customers" and organic sales growth. Ecolab is expanding its digital capabilities and implementing value pricing to drive growth.

Title: Ecolab's Q2 2025 Results: Strong Revenue, Moderate EPS, and a Path to Higher Margins

Ecolab Inc. (NYSE: ECL), a global leader in water, hygiene, and infection prevention solutions, reported its financial results for the second quarter of fiscal 2025 on July 29, 2025. The company delivered GAAP revenue of $4.03 billion, while adjusted diluted earnings per share (EPS) increased by 13% to $1.89, just below the $1.90 consensus. Operating income and operating margin also moved higher.

Revenue grew 1% in the second quarter of 2025, reaching $4.025.2 million (GAAP) and modestly exceeded market expectations. Operating margin improved to 17.6% in Q2 2025, with standout performance driven by growth in digital solutions and margin expansion in high-value segments.

The company's adjusted EPS of $1.89 was slightly below the $1.90 forecast, but revenue matched expectations at $4.02 billion. Operating income increased 8%, supported by improved margins and productivity gains. The reported operating income margin of 17.6% reflected an improvement of 1.1 percentage points from Q2 2024.

Ecolab's strong performance was driven by growth in key business areas. The Global Water segment saw sales of $1.91 billion and operating income of $306 million, up 2% and 6% from the same period last year. The Global Institutional & Specialty segment reported sales of $1.51 billion (GAAP), a decrease mainly due to prior-year divestitures, but achieved a 9% increase in operating income to $359 million. The Pest Elimination segment benefited from targeted acquisitions and ongoing investment in digital pest monitoring solutions.

Ecolab Digital, which comprises cloud software and industrial monitoring hardware such as 3D TRASAR systems for water quality, reported 29% sales growth to $95 million. The company highlighted digital as a multi-billion dollar opportunity in the years ahead.

Looking ahead, Ecolab remains optimistic about its future, targeting 12-15% adjusted EPS growth for 2025 and 2026. The company plans to strengthen pricing strategies and continue investing in its growth engines. It aims to achieve a 20% operating income margin by 2027.

[1] https://www.nasdaq.com/articles/ecolab-posts-13-percent-eps-gain-q2
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-ecolab-q2-2025-sees-strong-sales-but-eps-miss-93CH-4158238