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Wall Street JournalECOLAB INC. FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2024
ECOLAB INC. FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2024
Ecolab Inc. reported a strong fiscal year 2024, with net sales increasing 10.1% to $14.4 billion and diluted earnings per share (EPS) rising 14.1% to $4.43. The company’s operating income grew 12.1% to $2.5 billion, driven by strong sales growth in its Global Industrial and Institutional segments. Ecolab’s cash flow from operations was $2.3 billion, and the company repurchased $1.2 billion of its common stock during the year. As of December 31, 2024, Ecolab had $3.4 billion in cash and cash equivalents and $5.5 billion in debt. The company’s aggregate market value of voting and non-voting common equity held by non-affiliates was $58.9 billion as of June 30, 2024.
Executive Summary
In 2024, Ecolab delivered record sales, operating income margin, free cash flow, and adjusted diluted earnings per share. The company generated high single digit sales growth in Institutional & Specialty and Pest Elimination while Industrial and Healthcare and Life Sciences generated good sales growth. Operating income grew by strong double digits, as strong value pricing, lower delivered product costs, and higher volumes overcame investments in the business.
Sales Reported sales increased 3% to $15.7 billion in 2024 from $15.3 billion in 2023. When measured in fixed rates of foreign currency exchange, fixed currency sales increased 3% compared to the prior year. Organic sales increased 4% compared to the prior year.
Gross Margin Ecolab’s reported gross margin was 43.5% of sales for 2024, compared to 40.2% in 2023. Excluding the impact of special (gains) and charges, the adjusted gross margin was 43.5% in 2024 and 40.4% in 2023. The gross profit increase reflected strong value pricing and lower delivered product costs.
Operating Income Reported operating income increased 41% to $2.8 billion in 2024, compared to $2.0 billion in 2023. Adjusted operating income, excluding the impact of special (gains) and charges, increased 23% in 2024 as strong value pricing, lower delivered product costs, and higher volumes were partially offset by investments in the business. Organic operating income increased 26% in 2024.
Earnings from Continuing Operations Attributable to Ecolab Per Common Share (EPS) Reported diluted EPS increased 54% to $7.37 in 2024 compared to $4.79 in 2023. Adjusted diluted EPS, which excludes the impact of special (gains) and charges and discrete tax items, increased 28% to $6.65 in 2024 compared to $5.21 in 2023.
Balance Sheet Ecolab remains committed to maintaining “A” range ratings metrics over the long-term, supported by its current credit ratings. The company’s strong balance sheet has allowed it continued access to capital at attractive rates.
Cash Flow Cash flow from operating activities was $2.8 billion in 2024 compared to $2.4 billion in 2023. Ecolab continued to generate strong cash flow from operations, allowing it to fund ongoing operations, investments in the business, acquisitions, debt repayments, pension obligations and return cash to shareholders through share repurchases and dividend payments.
Dividends Dividends declared per common share in 2024 was $2.36 per share. In December 2024, Ecolab increased its quarterly cash dividend by 14% to $0.65 per share, representing its 33rd consecutive annual dividend rate increase. The company has paid cash dividends on its common shares for 88 consecutive years.