Ecolab Inc. ( ECL ) shares are trading lower on Tuesday. The company reported third-quarter adjusted EPS of $2.07, in line with the consensus estimate.

Quarterly sales of $4.165 billion outpaced the Street view of $4.120 billion.

Reported sales increased 4% year over year (Y/Y), with organic sales growth of 3%.

Also Read: Ecolab Expands High-Tech Water Business With $1.8 Billion Acquisition Of Ovivo Electronics Unit

Organic sales were driven by value price rising from 2% to 3%, and volume growth of 1%.

Adjusted gross profit in the quarter under review expanded to $1.87 billion, higher than $1.74 billion a year ago.

Adjusted gross margin expanded to 44.8% from 43.5% in the year-ago period.

Adjusted organic operating margin expanded 110 bps to 18.7% on strong sales growth and improved productivity.

The company exited the quarter with cash and equivalents worth $1.96 billion.

Segment Performance

Global Water fixed currency sales rose 3% Y/Y and organic sales increased 2% Y/Y, while Global Institutional & Specialty fixed currency sales upped 1% and organic sales rose 4% Y/Y in the quarter.

Global Pest Elimination Fixed currency sales increased 7% Y/Y, while Global Life Sciences Fixed currency and organic sales growth both remained solid at 6% Y/Y.

Outlook

Ecolab ( ECL ) narrowed its fiscal year 2025 adjusted EPS guidance to the range of $7.48 and $7.58 from $7.42 to $7.62 prior, compared with the $7.53 analyst estimate.

The company also issued fourth-quarter adjusted EPS guidance of between $2.02 and $2.12, compared to the $2.08 consensus.

Management Commentary

“As we approach the end of another year of double-digit earnings growth, we are very well positioned for strong and steady 12%-15% earnings growth in 2026, beginning in the first quarter,” said Ecolab ( ECL ) CEO Christophe Beck.

Price Action: ECL shares were trading lower by 4.02% to $268.47 at last check Tuesday.

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