Ecolab Inc (NYSE:ECL) stock fell 0.41% (As on February 12, 11:28:58 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. The organic sales increased 4% when compared to the prior year. Fourth quarter 2024 reported operating income decreased 1% including the impact of special gains and charges, which were a net charge primarily related to restructuring costs. Organic operating income increased 14%, as solid sales growth more than offset growth-oriented investments in the business.
Moreover, Global Industrial organic sales growth accelerated further to 3% as growth improved across Water, Food & Beverage, and Paper. Industrial segment sales growth has shown a good acceleration through the year, which is notable given the segment’s international exposure, as strong new business and value pricing have overcome softer end-market trends. Water’s improved growth was led by continued strong growth in downstream and light water. Improved Food & Beverage sales reflected good new business wins, which benefited from our One Ecolab enterprise selling approach. Organic operating income increased 10% as solid sales growth and lower delivered product costs more than offset investments in the business. Global Institutional & Specialty organic sales grew 6%. As expected, performance continues to converge within the segment’s long-term 4% to 6% organic growth objective as inflationary impacts normalize and growth from new business, customer penetration gains, and value pricing continue to build. Global Healthcare & Life Sciences Reported sales and operating income declined reflecting the sale of the global surgical solutions business. Organic sales growth improved to 3% reflecting accelerated growth in Life Sciences and modest growth in Healthcare sales. Global Pest Elimination organic sales increased 7%. As expected, performance continues to converge within the segment’s long-term 6% to 8% organic growth objective as inflationary impacts have normalized.
ECL in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.81, beating the analysts’ estimates for the adjusted earnings per share by 1.1%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 1.7 percent to $4.01 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 0.8%.
Ecolab expects full year 2025 adjusted diluted earnings per share to improve further to the $7.42 to $7.62 range, rising 12% to 15% compared with adjusted diluted earnings per share of $6.65 in 2024. Ecolab expects first quarter 2025 adjusted diluted earnings per share in the $1.47 to $1.53 range, rising 10% to 14% compared with adjusted diluted earnings per share of $1.34 a year ago.