Ecolab Inc. ( ECL ) shares are trading lower on Tuesday.

The company reported second-quarter adjusted earnings per share of $1.89 missing the analyst consensus estimate of $1.90. Quarterly sales of $4.025 billion outpaced the Street view of $4.016 billion.

Reported sales increased 1%, including a 2% unfavorable impact from the sale of the global surgical solutions business. Organic sales increased 3%.

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“Our growth engines, which include Life Sciences, Pest Elimination, Global High-Tech and Ecolab Digital, collectively grew sales double digits, with very strong operating income growth,” said Ecolab ( ECL ) CEO Christophe Beck.

Global Water fixed currency and organic sales both increased 2%, while Global Institutional & Specialty fixed currency sales declined 2% due to the sale of the global surgical solutions business last year.

Global Pest Elimination Fixed currency sales increased 7%, while Global Life Sciences Fixed currency and organic sales growth both remained solid at 4%.

Adjusted gross profit in the quarter under review expanded to $1.804 billion, higher than $1.745 billion a year ago. Adjusted gross margin expanded to 44.8% from 43.8% in the year-ago period.

Organic operating income increased 14%, as value pricing and improved productivity more than offset growth-oriented investments in the business.

The company exited the quarter with cash and equivalents worth $1.92 billion. The company’s short-term debt expanded to $688.5 million at quarter end, higher than $5.9 million in the year-ago period.

Ecolab ( ECL ) Outlook

"In the second half of the year, we expect to continue to deliver 12-15% earnings growth,” Beck added.

“While the macroeconomic environment remains unpredictable, we are confident in our growth drivers and our ability to execute.”

Ecolab ( ECL ) reaffirmed its fiscal year 2025 adjusted EPS guidance in the range of $7.42 to $7.62, compared with the $7.50 analyst estimate. The company also issued third quarter adjusted EPS guidance between $2.02 and $2.12, compared to the $2.06 consensus.

Price Action: ECL shares are trading lower by 4.29% to $258.28 at last check Tuesday.

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