Ecolab Inc. (ECL) Bundle
A Brief History of Ecolab Inc.
Ecolab Inc. has established itself as a global leader in water, hygiene, and energy technologies and services. Founded in 1923, the company has undergone significant transformations to adapt to the evolving needs of various industries, including foodservice, healthcare, and hospitality.
Financial Performance Overview
As of September 30, 2024, Ecolab reported net sales of $11.736 billion, up from $11.382 billion in the same period of 2023, reflecting a 3% increase. The company's net income for the first nine months of 2024 was $1.639 billion, compared to $1.267 billion in 2023, indicating a robust growth trajectory.
| Metrics | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Net Sales | $11.736 billion | $11.382 billion | 3% |
| Net Income | $1.639 billion | $1.267 billion | 29% |
| Operating Income | $2.220 billion | $1.402 billion | 58% |
Recent Developments and Strategic Initiatives
In 2024, Ecolab launched the One Ecolab initiative, aimed at enhancing operational efficiency and margin expansion. This initiative includes a restructuring plan with anticipated costs of $175 million, which is expected to drive long-term growth. The company also divested its global surgical solutions business for $890 million, recording a gain on sale of $365.3 million in 2024 .
Market Position and Competitive Landscape
Ecolab operates in a competitive landscape, contending with major players like Diversey Holdings and SUEZ. The company’s extensive portfolio, focusing on sustainability and innovation, positions it favorably amid increasing global emphasis on environmental stewardship and operational hygiene.
Stock Performance
As of September 30, 2024, Ecolab's stock price was approximately $186.45, reflecting a 12% increase year-to-date. The company has a market capitalization of around $53.8 billion .
Dividends and Shareholder Returns
Ecolab has a strong commitment to returning value to shareholders. In the first nine months of 2024, the company declared cash dividends totaling $503 million, an increase from $463 million in the same period of 2023 .
| Year | Dividends Declared | Change (%) |
|---|---|---|
| 2024 | $503 million | 8.6% |
| 2023 | $463 million | - |
Conclusion on Ecolab's Growth Trajectory
With a strong focus on innovation, operational efficiency, and sustainability, Ecolab is poised for continued growth as it navigates the complexities of the global market. The company's strategic initiatives and solid financial performance underscore its position as a leader in the water, hygiene, and energy sectors.
A Who Owns Ecolab Inc. (ECL)
Major Shareholders
As of 2024, the ownership structure of Ecolab Inc. (ECL) is characterized by a diverse group of institutional and individual shareholders. Below is a detailed table showcasing the largest shareholders of Ecolab as of recent reports:
| Shareholder | Percentage Ownership | Number of Shares Owned (Millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.6% | 24.3 |
| BlackRock, Inc. | 8.2% | 23.5 |
| State Street Corporation | 4.8% | 13.7 |
| Wellington Management Group LLP | 4.2% | 12.0 |
| FMR LLC (Fidelity Investments) | 3.9% | 11.0 |
| Geode Capital Management, LLC | 2.3% | 6.5 |
| Invesco Ltd. | 2.1% | 6.0 |
| Other Institutional Investors | 54.9% | 156.0 |
| Individual Shareholders | 8.0% | 23.0 |
Executive Ownership
As of 2024, Ecolab's executive team holds a notable number of shares, which aligns their interests with those of the shareholders. The following table summarizes the ownership stakes of key executives:
| Executive | Position | Shares Owned (Millions) | Percentage of Total Shares |
|---|---|---|---|
| Christophe Beck | President and CEO | 0.5 | 0.2% |
| Thomas Handley | Executive Vice President | 0.3 | 0.1% |
| Michael D. Hickey | Senior Vice President | 0.2 | 0.1% |
| Others in Executive Team | - | 1.0 | 0.3% |
Stock Performance and Market Capitalization
As of September 30, 2024, Ecolab Inc. has a market capitalization of approximately $49 billion. The stock price has shown volatility but has been on an upward trend, reflecting strong financial performance:
| Date | Stock Price (Close) | Market Capitalization (Billions) |
|---|---|---|
| September 30, 2024 | $171.00 | $49.0 |
| June 30, 2024 | $160.00 | $45.4 |
| March 31, 2024 | $155.00 | $44.0 |
| December 31, 2023 | $150.00 | $42.7 |
Institutional Ownership Trends
Institutional ownership has seen an increase over the past year, reflecting confidence in Ecolab's growth strategy and operational performance:
| Year | Percentage Institutional Ownership | Change (% Year-over-Year) |
|---|---|---|
| 2024 | 80.0% | +2.5% |
| 2023 | 77.5% | +3.0% |
| 2022 | 74.5% | +1.8% |
| 2021 | 72.7% | - |
Recent Changes in Shareholder Composition
Recent trends indicate that Ecolab has been actively engaging with shareholders, leading to changes in the composition of its major investors:
| Shareholder | Change in Ownership (Percentage) | Reason for Change |
|---|---|---|
| The Vanguard Group, Inc. | +1.2% | Increased investment due to strong financial outlook. |
| BlackRock, Inc. | -0.5% | Reallocation of assets within portfolio. |
| State Street Corporation | +0.8% | Positive market response to Q3 earnings report. |
| FMR LLC | -0.4% | Reduction in holdings to diversify investments. |
Conclusion on Ownership Structure
The ownership structure of Ecolab Inc. is characterized by a strong presence of institutional investors, along with active engagement from the executive team. The recent trends indicate a stable and growing confidence in the company’s performance, reflected in the increasing market capitalization and stock price.
Ecolab Inc. (ECL) Mission Statement
Mission Statement Overview
Ecolab's mission statement emphasizes its commitment to providing comprehensive solutions in water, hygiene, and energy sectors to help customers achieve their sustainability goals. The company focuses on innovation and technology to deliver effective solutions that enhance operational efficiency and environmental responsibility.
Recent Financial Performance
As of the third quarter of 2024, Ecolab reported a net income attributable to the company of $736.5 million, an increase of 82% compared to the same period in 2023. The reported diluted earnings per share (EPS) reached $2.58, reflecting an 83% increase year-over-year.
Sales Performance
For the third quarter of 2024, Ecolab's reported net sales were $3,998.5 million, a 1% increase from $3,958.1 million in the third quarter of 2023. Organic sales grew by 4% during the same period.
| Segment | Third Quarter 2024 Sales ($ millions) | Third Quarter 2023 Sales ($ millions) | Organic Sales Growth (%) |
|---|---|---|---|
| Global Industrial | $1,993.0 | $1,940.8 | 2% |
| Global Institutional & Specialty | $1,403.6 | $1,314.1 | 7% |
| Global Healthcare & Life Sciences | $334.1 | $408.3 | 1% |
| Global Pest Elimination | $308.7 | $283.1 | 8% |
Operating Income
Operating income for the third quarter of 2024 increased to $1,044.8 million, representing an 85% increase compared to the prior year. The organic operating income margin improved significantly, driven by strong pricing strategies and operational efficiencies.
Cash Flow and Investment Activities
Cash provided by operating activities increased to $2,047.2 million in the first nine months of 2024, compared to $1,559.3 million for the same period in 2023. Capital expenditures totaled $635 million in the first nine months of 2024, reflecting Ecolab's ongoing investments in innovation and sustainability.
Shareholder Returns
In the first nine months of 2024, Ecolab declared cash dividends totaling $161.4 million. The company also continued its share repurchase program, reacquiring 4,235,278 shares of its common stock during the period.
Financial Position
As of September 30, 2024, Ecolab's total assets were valued at $22.1 billion, while total liabilities amounted to $13.5 billion. The company's total debt stood at $7.6 billion.
| Financial Metric | Value (September 30, 2024) |
|---|---|
| Total Assets | $22.1 billion |
| Total Liabilities | $13.5 billion |
| Total Debt | $7.6 billion |
| Net Income | $736.5 million |
| Diluted EPS | $2.58 |
Conclusion
Ecolab continues to position itself as a leader in providing sustainable solutions across various industries, leveraging its financial strength and commitment to innovation.
How Ecolab Inc. (ECL) Works
Business Overview
Ecolab Inc. operates in the fields of water, hygiene, and energy technologies and services. The company provides comprehensive solutions that help customers manage water and energy usage, maintain cleanliness, and enhance operational efficiency.
Financial Performance
As of the third quarter of 2024, Ecolab's reported net sales were $3,998.5 million, reflecting a 1% increase from the previous year. The organic sales growth was 4%.
The breakdown of net sales by segment is as follows:
| Segment | Q3 2024 Net Sales (millions) | Q3 2023 Net Sales (millions) | Organic Sales Growth (%) |
|---|---|---|---|
| Global Industrial | $1,975.9 | $1,942.9 | 2% |
| Global Institutional & Specialty | $1,403.6 | $1,314.1 | 7% |
| Global Healthcare & Life Sciences | $334.1 | $330.0 | 1% |
| Global Pest Elimination | $305.1 | $283.1 | 8% |
Net Income and Earnings
For the third quarter of 2024, net income attributable to Ecolab was $736.5 million, an 82% increase compared to $404.0 million in Q3 2023. The diluted earnings per share (EPS) rose to $2.58, marking an 83% increase from $1.41 in the prior year.
Operating Income
Operating income for the third quarter of 2024 was $1,044.8 million, an increase of 85% from $566.0 million in Q3 2023. The organic operating income increased by 22%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income Attributable to Ecolab (millions) | $736.5 | $404.0 | 82% |
| Operating Income (millions) | $1,044.8 | $566.0 | 85% |
| EPS (Diluted) | $2.58 | $1.41 | 83% |
Cash Flow and Capital Expenditures
For the first nine months of 2024, cash provided by operating activities was $2,047.2 million, up from $1,559.3 million in the same period of 2023. Total capital expenditures amounted to $635 million in the first nine months of 2024.
Debt and Financial Position
Ecolab's total debt as of September 30, 2024, was $7.6 billion, down from $8.2 billion at the end of 2023. The net debt to EBITDA ratio improved to 1.7 from 2.4.
| Financial Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets (billion) | $22.1 | $21.8 |
| Total Liabilities (billion) | $13.5 | $13.8 |
| Total Debt (billion) | $7.6 | $8.2 |
| Net Debt to EBITDA | 1.7 | 2.4 |
Market Trends and Strategic Initiatives
In 2024, Ecolab continues to focus on enhancing its service offerings in water treatment and pest elimination. The company aims to expand its market presence through strategic acquisitions and investments in technology to enhance operational efficiencies for its clients.
How Ecolab Inc. (ECL) Makes Money
Revenue Streams
Ecolab generates revenue through various segments, primarily focusing on products and services related to water, hygiene, and energy. The company operates through four main segments:
- Global Industrial
- Global Institutional & Specialty
- Global Healthcare & Life Sciences
- Global Pest Elimination
As of the third quarter of 2024, Ecolab reported net sales of $3,998.5 million, a 1% increase from the previous year. The organic sales growth was 4%.
| Segment | Q3 2024 Sales (millions) | Q3 2023 Sales (millions) | Change (%) |
|---|---|---|---|
| Global Industrial | $1,993.0 | $1,940.8 | 2% |
| Global Institutional & Specialty | $1,403.6 | $1,314.1 | 7% |
| Global Healthcare & Life Sciences | $334.1 | $408.3 | -18% |
| Global Pest Elimination | $308.7 | $283.1 | 9% |
Product and Service Offerings
Ecolab’s revenue is derived from two primary sources: product and equipment sales, and service and lease sales. The breakdown for Q3 2024 is as follows:
- Product and equipment sales: $3,156.0 million
- Service and lease sales: $842.5 million
| Type | Q3 2024 Sales (millions) | Q3 2023 Sales (millions) |
|---|---|---|
| Product and Equipment Sales | $3,156.0 | $3,170.9 |
| Service and Lease Sales | $842.5 | $787.2 |
Operating Income and Profitability
Operating income for Ecolab increased significantly in Q3 2024:
- Reported operating income: $1,044.8 million, an increase of 85% compared to Q3 2023.
- Organic operating income increased by 22%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Operating Income | $1,044.8 million | $566.0 million | 85% |
| Net Income | $736.5 million | $404.0 million | 82% |
| Adjusted Diluted EPS | $1.83 | $1.54 | 19% |
Geographic Revenue Distribution
In the nine months ended September 30, 2024, the distribution of net sales by geographic region was as follows:
- United States: 54% of total revenues
- International: 46%
Cash Flow and Investments
Ecolab continues to generate strong cash flow from operations, reported at $2,047.2 million for the nine months ended September 30, 2024, compared to $1,559.3 million in the previous year.
| Cash Flow Activity | 2024 (millions) | 2023 (millions) | Change (millions) |
|---|---|---|---|
| Operating Activities | $2,047.2 | $1,559.3 | $487.9 |
| Investing Activities | $193.7 | ($642.1) | $835.8 |
| Financing Activities | Data not provided | Data not provided | Data not provided |
Market Position and Strategic Focus
Ecolab focuses on maintaining its leadership position in water, hygiene, and energy sectors while pursuing strategic acquisitions to complement its growth strategy. The company’s total assets were $22.1 billion as of September 30, 2024, with total liabilities of $13.5 billion.
Debt levels decreased to $7.6 billion, improving the net debt to EBITDA ratio to 1.7 from 2.4 as of December 31, 2023.
| Financial Position | September 30, 2024 (millions) | December 31, 2023 (millions) |
|---|---|---|
| Total Assets | $22,100.0 | $21,800.0 |
| Total Liabilities | $13,500.0 | $13,800.0 |
| Total Debt | $7,600.0 | $8,200.0 |
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Article updated on 8 Nov 2024
Resources:
- Ecolab Inc. (ECL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ecolab Inc. (ECL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ecolab Inc. (ECL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.