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Ecolab reaffirms annual profit forecast despite tariffs, weak quarter
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Ecolab reaffirms annual profit forecast despite tariffs, weak quarter
May 25, 2025 8:54 PM

April 28 (Reuters) -

Water solutions company Ecolab ( ECL ) kept its annual

profit forecast unchanged on Tuesday despite tariff

uncertainties and lower first-quarter revenue and profit,

sending its shares 1.7% higher.

The company, which offers cleaning, sanitization, cooling

and other water-related services to a host of industries, said

it still expects earnings to grow 12% to 15% this year.

Ecolab ( ECL ) is leveraging its diverse supply chain, 'local for

local' production model and a recently announced 5% surcharge on

all its products and services in the U.S. to mitigate tariff

impact, it said.

U.S. President Donald Trump's tariffs on trade partners, and

retaliatory levies by countries such as China, have threatened

to inflate prices of raw materials and equipment for companies

such as Ecolab ( ECL ).

The company's first-quarter sales fell 1.5% from a year

ago to $3.69 billion, as its global institutional and specialty

segment was hurt by the sale of its surgical unit announced last

year and weak demand from healthcare customers.

It posted a profit of $402.5 million, or $1.41 per

share, in the quarter ended March 31, compared with $412.1

million, or $1.43 per share, a year ago.

The Saint Paul, Minnesota-based company also forecast

current quarter adjusted profit between $1.84 per share and

$1.94 per share. Analysts were expecting $1.90 per share,

according to data compiled by LSEG.

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