...May 7, 2025 This report does not constitute a rating action. Ecolab Inc.'s resilient operating performance offset macroeconomic softness. In the first quarter of 2025, Ecolab reported low double-digit earnings growth due to market share gains and value pricing. In 2024, Ecolab had modest earnings growth of 2.7%, mainly led by a robust performance in its Institutional & Specialty and Industrial segments. Higher value pricing, strong organic volume growth, and new business wins effectively countered the softness in end- market demand. We attribute the company's earnings margin expansion in 2024 of about 275- 300 basis points (bps) to strong productivity enhancements, efficient supply chain, and lower delivered product costs. Ecolab's divestment of its low-margin global surgical solutions business in August 2024 also contributed to margin improvement. However, margin expansion was partially offset by increased growth investments and higher claims expense in the pest elimination segment. We...
