Ecolab Inc. reported its financial results for the first quarter of 2025, revealing a net income of $402.5 million, a decrease of 2% from $412.1 million in the same period last year. The company's diluted earnings per share (EPS) also fell slightly to $1.41 from $1.43. Total revenue for the quarter was $3.695 billion, down 2% compared to $3.752 billion in the first quarter of 2024. The decline in revenue was attributed to the sale of the global surgical solutions business and unfavorable currency translation effects, although organic sales increased by 3%.
In terms of operational performance, Ecolab's reported operating income rose by 7% to $555.3 million, with organic operating income increasing by 17%. The company noted that its gross margin improved to 44.2%, up from 43.3% in the prior year, reflecting effective pricing strategies. The company’s Global Water segment saw organic sales growth of 2%, while the Global Institutional & Specialty segment experienced a 4% increase. The Global Pest Elimination and Global Life Sciences segments also reported organic sales growth of 5%.
Ecolab has been actively restructuring under its "One Ecolab" initiative, which aims to enhance growth and margin expansion. The company recorded restructuring charges of $39.4 million in the first quarter, primarily related to severance costs. Cumulatively, the initiative has delivered $25 million in cost savings, with an anticipated annualized savings of $140 million by 2027. The restructuring liability associated with this initiative stood at $84.7 million as of March 31, 2025.
On the operational front, Ecolab's cash provided by operating activities decreased significantly to $369.4 million from $649.4 million in the previous year, largely due to unfavorable changes in working capital. The company invested $238 million in capital expenditures during the quarter, up from $202 million in the first quarter of 2024. Ecolab's total debt remained stable at $7.6 billion, and the company continues to maintain a strong liquidity position with $1.163 billion in cash and cash equivalents.
Looking ahead, Ecolab anticipates continued challenges in the macroeconomic environment, particularly due to fluctuating international trade policies and currency exchange rates. However, the company remains optimistic about its operational strategies and expects to leverage its restructuring initiatives to drive future growth.
About ECOLAB INC.
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