Third Quarter 2026 Supplemental
October 27, 2026
1 1
Strong performance, accelerating growth trajectorySTRONG
PERFORMANCE
ACCELERATING
MOMENTUM
DURABLE MODEL
Accelerating growth Expanding margins
Strengthening core Scaling growth engines
Balanced portfolio Technology enabled
3
Broad-based sales and OI growth acceleration
Reported diluted EPS $1.95; adjusted diluted EPS $2.18, +5%
Strong execution drove broad-based acceleration, with reported sales growth of 13% and organic sales growth accelerating to 7%. Volume growth strengthened to 2% despite ongoing Middle East disruptions, while pricing accelerated to 5%.
Adjusted diluted EPS increased 5%, including an approximate 10 percentage point short-term headwind from CoolIT acquisition-related amortization and financing costs.
Reported sales +13%; organic sales growth accelerated to 7%
Growth engines collectively accelerated to deliver double-digit growth, led by 63% organic growth in Global High-Tech.
Core performance strengthened, driven by strong growth in Food & Beverage and Light Water. Paper and Heavy Water both returned to solid growth, driven by good new business wins and stabilizing end-market trends.
OI growth accelerated to a double-digit rate; expect adjusted OI margin to reach 20% in 2027
Reported OI +7%. Adjusted OI +14%. Organic OI growth accelerated to +11%.
Reported OI margin 17.3%. Organic OI margin 19.6%, +70 bps.
Remain confident in delivering a 20% adjusted OI margin in 2027.
Strong 2026 outlook, driven by accelerating organic sales growth
2026: Expect adjusted diluted EPS in the $8.10 to $8.20 range, +8% to 9%.
4Q 2026: Expect adjusted diluted EPS in the $2.13 to $2.23 range, +2% to 7%. Reported sales growth expected to be +12% to 14%. Organic sales growth expected to remain strong in the 6% to 7% range.
These ranges reflect strong underlying performance and a short-term headwind from CoolIT acquisition-related amortization and financing costs.
EPS
Reported sales +13%; organic sales accelerated to +7%
Volume accelerated to +2%, as strong new business wins overcame ongoing disruptions in the Middle East.
Pricing strengthened to +5%, reflecting strong pricing execution.
Broad-based organic sales growth acceleration
Water accelerated to +9%, driven by accelerating growth in Global High-Tech, Food & Beverage and Light Water.
Institutional & Specialty +3%, reflecting steady growth in Institutional and strong growth in Specialty.
Pest Elimination +8%, with growth fueled by the One Ecolab enterprise growth strategy and Ecolab's Pest Intelligence offering.
Life Sciences accelerated to +17%, led by continued strong share gains in bioprocessing.
Reported diluted EPS $1.95
Adjusted diluted EPS $2.18, +5%
Ecolab's operating performance accelerated, with strong execution driving broad-based strength across the business.
3Q adjusted EPS growth of 5% included an approximate 10 percentage point short-term headwind from CoolIT acquisition-related amortization and financing costs.
Long-term growth trends in water, hygiene, infection prevention, and digital technologies continue to fuel durable demand for Ecolab's innovative technologies and services. Strong momentum in Ecolab's growth engines, which include Global High-Tech, Life Sciences, Pest Elimination and Ecolab Digital, is expected to continue to strengthen Ecolab's overall performance.
In the near-term, the global operating environment remains complex, including constantly evolving geopolitics and international trade policy, which are resulting in rising commodity costs and customer disruptions in the Middle East. Importantly, the company is very well positioned to quickly mitigate the impact of these challenges. Over the past few years, Ecolab's team has demonstrated it can adjust quickly to deliver high performance in almost any environment, which is why even with these dynamic macroeconomic conditions, Ecolab's confidence in its performance trajectory remains strong.
Ecolab expects full year 2026 adjusted diluted earnings per share to be in the $8.10 to $8.20 range, rising 8% to 9% versus last year. This range reflects strong underlying performance and an approximate 6 percentage point short-term headwind from CoolIT acquisition-related amortization and financing costs.
With continued strong pricing, further volume growth, and the acquisitions of Ovivo Electronics and CoolIT Systems, Ecolab expects reported sales in the fourth quarter of 2026 to increase 12% to 14%. Organic sales growth in the fourth quarter of 2026 is expected to remain strong in the 6% to 7% range. The company anticipates adjusted operating income margin in the fourth quarter to be approximately 19% and an organic operating income margin to be approximately 20%.
4Q
Ecolab expects fourth quarter 2026 adjusted diluted earnings per share in the $2.13 to $2.23 range, rising 2% to 7% compared to last year. This range reflects strong underlying performance and an approximate 12 percentage point short-term headwind from CoolIT acquisition-related amortization and financing costs.
4Q 2026 Guidance | |
Reported sales growth | +12% to 14% |
Organic sales growth | +6% to 7% |
Adj. OI margin | 19% |
Organic OI margin | 20% |
Adj. tax rate | 20% to 21% |
Full-year Adj. EPS | $8.10 to $8.20; +8% to 9% |
Long-Term Targets
+5-7%
ORGANIC SALES GROWTH
>20%
OI MARGIN
+100-150 BPS PER YEAR
+12-15%
ADJUSTED EPS GROWTH
3Q 2026 sales growth detailFixed Rate
% Change
Organic
% Change
% Change
Global Water Consolidated
Food & Beverage | 8% | 8% | Volume | 2% | ||
Heavy Water | 4% | 4% | Pricing | 5% | ||
High-Tech | 293% | 63% | Organic | 7% | ||
Light Water | 5% | 5% | Acq./Div. | 6% | ||
Paper | 6% | 6% | Fixed currency growth | 13% | ||
Total Global Water | 20% | 9% | Currency impact | -% | ||
Total | 13% | |||||
Global Institutional & Specialty Institutional | 2% | 2% | ||||
Specialty | 5% | 5% | ||||
Total Global Institutional & Specialty | 3% | 3% | ||||
Global Pest Elimination | 9% | 8% | ||||
Global Life Sciences | 17% | 17% | ||||
Amounts in the tables above do not necessarily sum due to rounding
Global Water SegmentSales +8%
Food & Beverage
Organic sales growth accelerated, continuing to significantly outperform stable market trends.
Growth was strong and broad-based across all major end-markets, driven by robust new business wins and improved pricing.
We continue to benefit from our One Ecolab enterprise selling approach to customers, where we combine our industry-leading cleaning and sanitizing and water treatment capabilities to deliver significant customer value through improved food safety, lower operating costs and water usage optimization.
Q4: Anticipate continued strong sales growth as pricing and strong new business wins drive growth well above market trends.
Sales +4%
Heavy WaterSales growth improved, reflecting good growth in downstream and stable sales in basic industries.
Good growth in downstream was driven by strong performance in North America, which delivered improved pricing and new business wins, overcoming softer performance in the Middle East.
Sales in basic industries stabilized as continued good growth in power, driven by new business wins and strengthening industry demand to support rising power demand from AI, was offset by soft industry trends in primary metals.
The impact of increasing water demand continues to be a critical issue for our customers, a challenge Ecolab is uniquely positioned to help solve. Our innovative circular water solutions, digital technologies, and service expertise deliver leading business outcomes and improved operational performance, while significantly reducing water and energy consumption.
Q4: Expect continued solid growth as new business wins and pricing overcome soft industry trends.
Sales +63%
High-TechFixed currency sales increased 293%, reflecting the acquisition of Ovivo Electronics and CoolIT. Accelerated organic sales growth reflected robust and broad-based new business wins across data centers and microelectronics.
Data Centers: Accelerated and broad-based growth was driven by strong growth with hyperscaler and colocation customers around the world. Ecolab's cutting-edge, integrated cooling technologies improve performance and reliability, while reducing water and energy use. These mission-critical needs continue to expand rapidly as AI workloads drive unprecedented demand for liquid-cooled infrastructure.
Microelectronics: Continued robust growth was driven by strong new wins with leading semiconductor manufacturers. As next-generation semiconductor production becomes more water intensive and complex, Ecolab's solutions enable chipmakers to maximize production and quality through unique circular water management, ultrapure water technologies, and a global network of industry experts.
Q4: Expect continued very strong sales growth across both microelectronics and data centers.
Q4: Expect continued good growth, driven by new business wins and pricing.
Sales +5%
Light WaterImproved growth in Light Water was driven by good gains across manufacturing and institutional markets.
Ecolab is growing with new customers due to its industry-leading water management solutions, digital intelligence, and global service expertise to optimize operating costs and reduce water and energy use.
Global Water SegmentSales +6%
Paper
As expected, Paper's performance continued to strengthen, with solid growth reflecting good new business wins and stable customer production
rates.
Accelerating growth was driven by very strong performance in board, packaging and pulp.
While production rates remain muted, Ecolab's strong new business wins are driving improved growth for Paper. New business wins continue to be driven by innovation and our global service expertise, which help our customers improve their performance, optimize their costs and reduce their water consumption.
Q4: Expect continued strong sales growth as new business wins and pricing overcome stable market trends.
Sales +2%
InstitutionalInstitutional delivered steady performance as strong pricing and new business wins more than offset increasingly challenging industry trends, including a mid-single-digit decline in North America restaurant foot traffic.
Hospitality: Consistent performance reflected continued pricing and new business wins from our One Ecolab growth initiative, which together overcame industry trends that softened further. We continue to see good demand for Ecolab's innovative products, digital solutions and service expertise that help customers improve performance, optimize labor, and reduce total costs.
Hospitals: Sales grew modestly driven by improved pricing. Our new business efforts are focused on attractive long-term growth opportunities in infection prevention and instrument reprocessing to drive profitable long-term growth.
We remain focused on driving attractive long-term growth by capitalizing on One Ecolab growth opportunities and harnessing digital innovations like DishIQ, KitchenIQ, and AquaIQ. These efforts are delivering enhanced total customer value and generating attractive new business wins.
Q4: Expect solid growth as pricing and new business wins overcome soft industry trends.
Sales +5%
SpecialtySpecialty delivered strong sales growth as robust new business wins and continued pricing more than offset softening industry trends.
Quick Service: Growth continued to outperform softening industry foot traffic trends as demand across the quick service industry for our labor and cost optimization technologies continues to be strong. We are uniquely positioned to continue to drive further share gains with our ongoing product and digital innovation that delivers leading food safety outcomes, labor optimization and lower total operating costs.
Food Retail: Strong sales growth continues to outperform industry trends, driven by robust new business wins and value pricing. Our One Ecolab growth initiative and digital innovation continue to deliver expanding value for customers and attractive share gains for Ecolab. As a trusted food safety partner for retailers, we continue to expand our competitive differentiation by helping our customers protect their brand, improve their customer experience, and optimize operational performance.
Q4: Expect continued strong growth driven by further new business wins and pricing.
Sales +8% Pest Elimination
Accelerated organic growth was led by robust new business in food & beverage, food retail, and restaurants. This strong and broad-based performance continues to benefit from our One Ecolab enterprise selling approach.
To fuel continued strong long-term growth and market share gains, our focus is on rapidly rolling out our digital pest intelligence program to provide customers with enhanced service and value. This leading digital offering, along with our differentiated service expertise, is expanding the total value delivered to customers, extending our competitive advantages, and enhancing our long-term growth opportunities.
Q4: Expect continued strong growth, driven by new customer wins as we leverage One Ecolab and our investments in pest intelligence.
Sales +17% Life Sciences
Accelerated sales growth reflected very strong new business wins that leverage our innovation and investments in new capabilities and capacity.
Performance was driven by continued robust share gains in bioprocessing, personal care, and purification, along with favorable comparisons to last year's plant maintenance.
The long-term growth opportunities for the Life Sciences industry are very attractive. We continue to invest and innovate to further expand our global capabilities and technical expertise across contamination control and purification technologies including bioprocessing to capitalize on this long-term growth opportunity.
Q4: Expect strong growth driven by robust new business momentum and progressively improving industry trends.
($ millions - fixed currency, unaudited)
Global Water | 3Q 2026 | 3Q 2025 | Change |
Operating income | $445.2 | $357.9 | 24% |
Operating income margin | 18.0% | 17.4% | 60 bps |
Organic operating income | $391.3 | $357.9 | 9% |
Organic operating income margin | 17.5% | 17.4% | 10 bps |
Global Institutional & Specialty | 3Q 2026 | 3Q 2025 | Change |
Operating income | $404.9 | $376.3 | 8% |
Operating income margin | 24.7% | 23.6% | 110 bps |
Organic operating income | $404.9 | $376.3 | 8% |
Organic operating income margin | 24.7% | 23.6% | 110 bps |
Global Pest Elimination | 3Q 2026 | 3Q 2025 | Change |
Operating income | $73.9 | $69.5 | 6% |
Operating income margin | 20.3% | 20.9% | -60 bps |
Organic operating income | $74.5 | $69.5 | 7% |
Organic operating income margin | 20.8% | 20.9% | -10 bps |
Organic operating income growth accelerated to 9% as strong pricing and improved productivity more than offset growth-oriented investments in the business and higher commodity costs.
Organic operating income increased 7% as strong sales growth and improved productivity more than offset growth-oriented investments in the business, including pest intelligence.
Pest Elimination's organic operating income margin over the next few quarters is expected to be in the high-teens to 20% range. This reflects growth investments to accelerate deployment of Ecolab's differentiated pest intelligence platform, which positions the business well to meet or exceed its 22% operating income margin target.
Organic operating income growth accelerated to 8% as strong pricing and improved productivity more than offset higher commodity costs and growth-oriented investments in the business.
Global Life Sciences
3Q 2026
3Q 2025
Change
Operating income
$50.2
$33.8
49%
Operating income margin
23.3%
18.3%
500 bps
Organic operating income
$50.2
$33.8
49%
Organic operating income margin
23.3%
18.3%
500 bps
Organic operating income increased 49% as supply chain efficiencies and strong sales growth more than offset growth-oriented investments in the business and higher commodity costs.
Life Sciences' organic operating income margin in the fourth quarter is expected to remain on its high-teens mid-term trajectory, reflecting very strong underlying performance and continued investments in breakthrough innovation, global capabilities, and capacity to fuel this high-growth, high-margin business.
Consolidated margin performanceGross Margin
$ millions, unaudited | 3Q 2026 | 3Q 2025 | Change |
Gross profit | $2,069.3 | $1,865.6 | 11% |
Gross margin | 44.1% | 44.8% | -70 bps |
Adjusted gross profit | $2,070.8 | $1,865.9 | 11% |
Adjusted gross margin | 44.1% | 44.8% | -70 bps |
SG&A | $1,177.4 | $1,079.2 | 9% |
% of Sales | 25.1% | 25.9% | -80 bps |
Reported operating income | $810.5 | $760.2 | 7% |
Reported operating income margin | 17.3% | 18.3% | -100 bps |
Adjusted operating income | $893.4 | $786.7 | 14% |
Adjusted operating income margin | 19.0% | 18.9% | 10 bps |
Organic operating income | $872.1 | $787.3 | 11% |
Organic operating income margin | 19.6% | 18.9% | 70 bps |
As expected, gross margin declined due to the impact of recent acquisitions. Organic gross margin was stable as accelerating pricing offset higher commodity costs.
SG&A
SG&A to sales improved as good productivity gains and the favorable impact of recent acquisitions more than offset growth-oriented investments in the business.
Operating Margin
Organic operating income margin expanded as strong sales growth and improved productivity more than offset growth-oriented investments in the business and higher commodity costs.
Summary Balance Sheet
September 30 September 30
(millions, unaudited) | 2026 | 2025 | (millions, unaudited) | 2026 | 2025 | ||
Cash and cash eq. | $722.3 | $1,955.8 | Short-term debt | $1,276.7 | $16.2 | ||
Accounts receivable, net | 3,795.4 | 3,114.1 | Accounts payable | 2,339.5 | 1,868.4 | ||
Inventories | 1,764.8 | 1,534.9 | Other current liabilities | 2,763.6 | 2,303.6 | ||
Other current assets | 817.4 | 501.9 | Long-term debt | 11,915.3 | 8,052.7 | ||
PP&E, net | 4,595.4 | 4,062.6 | Pension/Postretirement | 530.9 | 597.8 | ||
Goodwill and intangibles | 17,786.1 | 11,248.5 | Other liabilities | 1,827.4 | 1,305.0 | ||
Other assets | 1,626.5 | 1,479.8 | Total equity | 10,454.5 | 9,753.9 | ||
Total assets | $31,107.9 | $23,897.6 | Total liab. and equity | $31,107.9 | $23,897.6 |
Selected Cash Flow items Selected Balance Sheet measures
Nine Months Ended
September 30 September 30
(millions, unaudited) | 2026 | 2025 | (unaudited) | 2026 | 2025 | ||
Cash from op. activities | $1,939.1 | $1,862.5 | Total Debt/Total Capital | 55.8 % | 45.3 % | ||
Depreciation | 545.4 | 493.8 | Net Debt/Total Capital | 54.4 % | 38.5 % | ||
Amortization | 273.9 | 226.5 | Net Debt/EBITDA* | 3.1 | 1.7 | ||
Capital expenditures | 902.0 | 716.2 | Net Debt/Adjusted EBITDA* | 2.9 | 1.6 |
* EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is defined as net income including non-controlling interest with the sum of provision for income taxes, net interest expense, depreciation and amortization added back. Adjusted EBITDA further adds back special (gains) and charges impacting EBITDA. The inputs to EBITDA reflect the trailing twelve months of activity for the period presented. See "Non-GAAP Financial Measures" section of this presentation for corresponding reconciliations.
Non-GAAP financial measuresThird Quarter Ended
September 30 | |||||||
(millions, except percent and per share) | 2026 | 2025 | |||||
Net sales | |||||||
Reported GAAP net sales | $4,694.8 | $4,165.0 | |||||
Effect of foreign currency translation | 2.4 | 9.9 | |||||
Non-GAAP fixed currency sales | 4,697.2 | 4,174.9 | |||||
Effect of acquisitions and divestitures | (244.9) | - | |||||
Non-GAAP organic sales | $4,452.3 | $4,174.9 | |||||
Gross profit | |||||||
Reported GAAP gross profit | $2,069.3 | $1,865.6 | |||||
Special (gains) and charges | 1.5 | 0.3 | |||||
Non-GAAP adjusted gross profit | 2,070.8 | 1,865.9 | |||||
Effect of foreign currency translation | 3.0 | 3.1 | |||||
Non-GAAP adjusted fixed currency gross profit | 2,073.8 | 1,869.0 | |||||
Effect of acquisition and divestitures | (76.8) | - | |||||
Non-GAAP organic gross profit | $1,997.0 | $1,869.0 | |||||
Gross margin | |||||||
Reported GAAP gross margin | 44.1 | % | 44.8 | % | |||
Non-GAAP adjusted gross margin | 44.1 | % | 44.8 | % | |||
Non-GAAP organic gross margin | 44.9 | % | 44.8 | % | |||
(millions, except percent and per share) | 2026 | 2025 | ||||
Operating income Reported GAAP operating income | $810.5 | $760.2 | ||||
Special (gains) and charges at public currency rates | 82.9 | 26.5 | ||||
Non-GAAP adjusted operating income | 893.4 | 786.7 | ||||
Effect of foreign currency translation | 2.1 | 0.6 | ||||
Non-GAAP adjusted fixed currency operating income | 895.5 | 787.3 | ||||
Effect of acquisitions and divestitures | (23.4) | - | ||||
Non-GAAP organic operating income | $872.1 | $787.3 | ||||
Operating income margin | ||||||
Reported GAAP operating income margin | 17.3 | % | 18.3 | % | ||
Non-GAAP adjusted operating income margin | 19.0 | % | 18.9 | % | ||
Non-GAAP organic operating income margin | 19.6 | % | 18.9 | % | ||
Net Income attributable to Ecolab | ||||||
Reported GAAP net income attributable to Ecolab | $551.3 | $585.0 | ||||
Special (gains) and charges, after tax | 65.2 | 22.0 | ||||
Discrete tax net expense (benefit) | (1.1) | (16.3) | ||||
Non-GAAP adjusted net income attributable to Ecolab | $615.4 | $590.7 | ||||
Diluted EPS attributable to Ecolab Reported GAAP diluted EPS | $1.95 | $2.05 | ||||
Special (gains) and charges, after tax | 0.23 | 0.08 | ||||
Discrete tax net expense (benefit) | - | (0.06) | ||||
Non-GAAP adjusted diluted EPS | $2.18 | $2.07 | ||||
Provision for Income Taxes Reported GAAP tax rate | 20.2 | % | 17.8 % | |||
Special gains and charges | 0.1 | - | ||||
Discrete tax items | 0.1 | 2.2 | ||||
Non-GAAP adjusted tax rate | 20.4 | % | 20.0 % | |||
Third Quarter Ended September 30
Non-GAAP financial measuresThird Quarter Ended
(millions) September 30
2026 | 2025 | |||
EBITDA (trailing twelve months ended) Net income including non-controlling interest | $2,098.3 | $2,004.2 | ||
Provision for income taxes | 508.2 | 417.7 | ||
Interest expense, net | 334.9 | 238.5 | ||
Depreciation | 724.2 | 655.0 | ||
Amortization | 351.2 | 300.8 | ||
EBITDA | $4,016.8 | $3,616.2 | ||
Special (gains) and charges impacting EBITDA | 266.4 | 193.3 | ||
Impact of Ovivo Electronics on EBITDA | 0.5 | - | ||
Adjusted EBITDA | $4,283.7 | $3,809.5 | ||
Third Quarter Ended September 30
2026 | 2025 | |||||||
(millions) | Fixed Currency | Impact of Acquisitions and Divestitures | Organic | Fixed Currency | Impact of Acquisitions and Divestitures | Organic | ||
Net Sales | ||||||||
Global Water | $2,479.6 | ($240.2) | $2,239.4 | $2,061.0 | $- | $2,061.0 | ||
Global Institutional & Specialty | 1,638.3 | - | 1,638.3 | 1,596.0 | - | 1,596.0 | ||
Global Pest Elimination | 363.5 | (4.7) | 358.8 | 332.7 | - | 332.7 | ||
Global Life Sciences | 215.8 | - | 215.8 | 185.2 | - | 185.2 | ||
Subtotal at fixed currency rates | 4,697.2 | (244.9) | 4,452.3 | 4,174.9 | - | 4,174.9 | ||
Currency impact | (2.4) | (9.9) | ||||||
Consolidated reported GAAP net sales | $4,694.8 | $4,165.0 | ||||||
Operating Income (loss)
Global Water | $445.2 | ($53.9) | $391.3 | $357.9 | $- | $357.9 | ||
Global Institutional & Specialty | 404.9 | - | 404.9 | 376.3 | - | 376.3 | ||
Global Pest Elimination | 73.9 | 0.6 | 74.5 | 69.5 | - | 69.5 | ||
Global Life Sciences | 50.2 | - | 50.2 | 33.8 | - | 33.8 | ||
Corporate | (78.7) | 29.9 | (48.8) | (50.2) | - | (50.2) | ||
Subtotal at fixed currency rates | 895.5 | (23.4) | 872.1 | 787.3 | - | 787.3 | ||
Special (gains) and charges at fixed currency rates | 83.2 | 24.6 | ||||||
Reported OI at fixed currency rates | 812.3 | 762.7 | ||||||
Currency impact | (1.8) | (2.5) | ||||||
Consolidated reported GAAP operating income | $810.5 | $760.2 |
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 may include:
fixed currency sales
organic sales
adjusted gross profit
adjusted gross margin
adjusted fixed currency gross profit
adjusted fixed currency gross margin
organic gross profit
organic gross margin
fixed currency operating income
fixed currency operating income margin
adjusted operating income
adjusted fixed currency operating income
adjusted fixed currency operating income margin
organic operating income
organic operating income margin
adjusted tax rate
adjusted net income attributable to Ecolab
adjusted diluted earnings per share
EBITDA
Adjusted EBITDA
We provide these measures as additional information regarding our operating results. We use these non-GAAP measures internally to evaluate our performance and in making financial and operational decisions, including with respect to incentive compensation. We believe that our presentation of these measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparison of results.
Non-GAAP financial information (cont.)Non-GAAP Financial Information (Continued):
Our non-GAAP financial measures for 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 net income attributable to Ecolab and adjusted diluted earnings per share further exclude the impact of discrete tax items. We include items within special (gains) and charges and discrete tax items that we believe can significantly affect the period-over-period assessment of operating results and not necessarily reflect costs and/or income associated with historical trends and future results. After tax special (gains) and charges are derived by applying the applicable local jurisdictional tax rate to the corresponding pre-tax special (gains) and charges.
EBITDA is defined as net income including non-controlling interest with the sum of provision for income taxes, net interest expense, depreciation and amortization added back. Adjusted EBITDA further adds back special (gains) and charges impacting EBITDA. EBITDA and adjusted EBITDA are used in our net debt to EBITDA and net debt to adjusted EBITDA ratios, which we view as important indicators of the operational and financial health of our organization.
We evaluate the performance of our international operations based on fixed currency rates of foreign exchange, which eliminate the translation impact of exchange rate fluctuations on our international results. Fixed currency amounts included in this presentation are based on translation into U.S. dollars at the fixed foreign currency exchange rates established by management at the beginning of 2026. We also provide our segment results based on public currency rates for informational purposes.
Our reportable segments do not include the impact of intangible asset amortization from the Nalco, Purolite, Ovivo Electronics and CoolIT Systems transactions or the impact of special (gains) and charges as these are not allocated to the Company's reportable segments.
Our non-GAAP financial measures for organic sales, organic gross profit, organic gross profit margin, organic operating income and organic operating income margin are at fixed currency and exclude the impact of special (gains) and charges where applicable, the results of our acquired businesses from the first twelve months post acquisition and the results of divested businesses from the twelve months prior to divestiture.
These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. Investors should not rely on any single financial measure when evaluating our business. We recommend that investors view these measures in conjunction with the GAAP measures included in this presentation. Reconciliations of our non-GAAP measures are included in the following "Non-GAAP Financial Measures" tables of this communication.
We do not provide reconciliations for non-GAAP estimates on a forward-looking basis (including those contained in this presentation) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of various items that have not yet occurred, are out of our control and/or cannot be reasonably predicted, and that would impact reported earnings per share and the reported tax rate, the most directly comparable forward-looking GAAP financial measures to adjusted earnings per share and the adjusted tax rate. For the same reasons, we are unable to address the probable significance of the unavailable information.
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