Ecolab Inc. · NYSE:ECL
Ecolab — Q4 2024 Earnings Presentation
21 slides from Ecolab's earnings presentation, Feb 11, 2025
Slide 1: Fourth Quarter 2024 Supplemental
1 ECOLAB Fourth Quarter 2024 Supplemental
Slide 2: Cautionary statement
Cautionary statement Forward-Looking Information This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding macroeconomic conditions and
Slide 3: Strong 4Q performance and 2025 outlook
Strong 4Q performance and 2025 outlook 3 Solid organic sales growth Strong organic OI margin expansion, confidence in 20% margin target continues to strengthen Reported diluted EPS $1.66; Adjusted diluted EPS $1.81, +17% Confident 2025 will be another strong year for Ecolab ▪ Reported sales +2% ▪ Or
Slide 4: 4Q overview
4Q overview ▪ Solid growth with reported sales +2% and organic sales +4% o Volume +2%, continued growth driven by good new business and breakthrough innovation o Pricing +2%, supported by ongoing customer value delivery ▪ Industrial and Healthcare & Life Sciences organic growth accelerated o Industr
Slide 5: Expect strong 1Q and 2025 performance
Expect strong 1Q and 2025 performance 1Q 2025 ▪ Ecolab expects first quarter 2025 adjusted diluted earnings per share in the $1.47 to $1.53 range, rising 10% to 14% compared with adjusted diluted earnings per share of $1.34 a year ago. This range includes an estimated 4% unfavorable impact on adjust
Slide 6: 4Q 2024 sales growth detail
4Q 2024 sales growth detail 6 Fixed Rate Organic % Change % Change Global Industrial Consolidated Water 5% 4% Volume 2% Food & Beverage 3% 3% Pricing 2% Paper 3% 3% Organic 4% Total Global Industrial 4% 3% Acq./Div. -2% Fixed currency growth 2% Global Institutional & Specialty Currency impact 0% Ins
Slide 7: Water and Food & Beverage
7 Sales +4% Water Sales +3% Food & Beverage All sales figures are organic unless otherwise noted Global Industrial Segment Q1: Anticipate solid sales growth that overcomes continued soft industry demand. ▪ As expected, sales growth improved as pricing and new business gains overcame continued soft i
Slide 8: Paper
8 Sales +3% Paper All sales figures are organic unless otherwise noted Global Industrial Segment Q1: Expect continued modest growth driven by new business wins. ▪ Sales growth continued to improve as strong new business wins leveraged innovation and our global service expertise, which help our custo
Slide 9: Institutional and Specialty
9 Sales +6% Institutional Sales +6% Specialty All sales figures are organic unless otherwise noted Global Institutional & Specialty Segment Q1: Beginning in the first quarter, Ecolab’s healthcare business will be reported within the Institutional division. We expect good growth in Institutional sale
Slide 10: Healthcare and Life Sciences
10 Sales 1% Healthcare Sales +5% Life Sciences All sales figures are organic unless otherwise noted Global Healthcare & Life Sciences Segment Q1: Beginning in the first quarter, Ecolab’s healthcare business will be reported within the Institutional division. We expect relatively stable healthcare sa
Slide 11: Pest Elimination
11 Sales +7% Pest Elimination All sales figures are organic unless otherwise noted Global Pest Elimination Segment ▪ As expected, performance continues to converge within the segment’s long-term 6% to 8% organic growth objective as inflationary impacts have normalized. Robust sales growth was led by
Slide 12: Segment operating income performance
Segment operating income performance ▪ Organic operating income margin expanded 120 bps versus last year as solid sales growth and lower delivered product costs more than offset investments in the business. ▪ Organic operating income margin decreased 400 bps versus last year as strong sales growth w
Slide 13: Consolidated margin performance
Consolidated margin performance ▪ Gross margin expanded significantly, reflecting strong value pricing. ▪ As expected, sales productivity was partially offset by growth-oriented investments in the business. ▪ Operating margin expanded as solid sales growth more than offset growth-oriented investment
Slide 14: 4Q 2024 balance sheet / cash flow
4Q 2024 balance sheet / cash flow * EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is defined as the sum of net income including non-controlling interest, provision for income taxes, net interest expense, depreciation and amortization, and adjusted EBITDA further adds special (gains) and c
Slide 15: Non-GAAP financial measures
Non-GAAP financial measures 15 (millions, except percent and per share) Net sales Reported GAAP net sales $4,005.2 $3,938.4 $15,741.4 $15,320.2 Effect of foreign currency translation 45.9 43.6 131.6 55.3 Non-GAAP fixed currency sales 4,051.1 3,982.0 15,873.0 15,375.5 Effect of acquisitions and dives
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures 16 (millions, except percent and per share) Operating income Reported GAAP operating income $582.8 $590.0 $2,802.4 $1,992.3 Special (gains) and charges at public currency rates 105.4 34.5 (183.6) 133.9 Non-GAAP adjusted operating income 688.2 624.5 2,618.8 2,126.2 Effect
Slide 17: Non-GAAP financial measures
Non-GAAP financial measures 17 (millions, except percent and per share) Diluted EPS attributable to Ecolab Reported GAAP diluted EPS $1.66 $1.41 $7.37 $4.79 Special (gains) and charges, after tax 0.28 0.11 (0.44) 0.38 Discrete tax net expense (benefit) (0.13) 0.03 (0.28) 0.04 Non-GAAP adjusted dilut
Slide 18: Non-GAAP financial measures: EBITDA
Non-GAAP financial measures 18 EBITDA (trailing twelve months ended) Net income including non-controlling interest $2,131.9 $1,393.0 Provision for income taxes 439.3 362.5 Interest expense, net 282.5 296.7 Depreciation 634.9 616.7 Amortization 300.5 306.9 EBITDA $3,789.1 $2,975.8 Special (gains) and
Slide 19: Non-GAAP financial measures
Non-GAAP financial measures 19 (millions) Fixed Currency Impact of Acquisitions and Divestitures Organic Fixed Currency Impact of Acquisitions and Divestitures Organic Net Sales Global Industrial $2,066.5 ($25.0) $2,041.5 $1,985.1 ($3.0) $1,982.1 Global Institutional & Specialty 1,367.3 (0.1) 1,367.
Slide 20: Non-GAAP Financial Information
20 Non-GAAP Financial Information: This communication and certain of the accompanying tables include financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures include: • fixed currency sales •
Slide 21: Non-GAAP Financial Information (Continued)
21 Non-GAAP Financial Information (Continued): Our non-GAAP financial measures for adjusted cost of sales, adjusted gross margin, adjusted gross profit and adjusted operating income exclude the impact of special (gains) and charges and our non-GAAP financial measures for adjusted tax rate, adjusted