AI Takeaway
Ecolab (ECL) delivered FY2025 revenue growth of 2.2% to $16.1B, but operating income and net income declined modestly as higher SG&A costs and a sharp increase in investing activity weighed on profitability and cash balances.
Revenue
$16.08B
++2.16% YoY
EPS (Basic)
$7.33
-1.35% YoY
Operating Income
$2.74B
-2.31% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
ECL grew total revenue by 2.2% YoY to $16.1B in FY2025 (from $15.7B in FY2024), suggesting continued demand for its water, hygiene, and infection prevention solutions, even as macroeconomic headwinds persisted.
Source: Source: 10-K Income Statement
Despite cost of revenue growing only 0.3% YoY to $8.9B, operating income fell 2.3% to $2.74B as SG&A expenses rose 0.7% to $4.26B, compressing operating margin from 17.8% to 17.0%.
Source: Source: 10-K Income Statement
Investing cash outflows surged to -$2.71B in FY2025 from -$434M in FY2024, a 524% increase, signaling major capital deployment — likely acquisitions or significant capital expenditures — which also contributed to a 48.6% decline in cash and equivalents to $646M.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockECL's debt-to-equity ratio stands at 1.52 and cash and equivalents fell sharply by 48.6% to $646M in FY2025. The current ratio of 1.08 leaves limited liquidity buffer, and the surge in current liabilities (up 15.5% to $5.5B) could pressure near-term financial flexibility.
Source: Source: 10-K Balance Sheet
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Upgrade to unlockReported EPS of $2.08 versus the $2.09 analyst consensus — a -0.3% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $16.08B | $15.74B | +2.16% |
Cost of Revenue | $8.93B | $8.9B | +0.35% |
Operating Income | $2.74B | $2.8B | -2.31% |
Net Income | $2.08B | $2.11B | -1.74% |
EPS (Basic) | $7.33 | $7.43 | -1.35% |
EPS (Diluted) | $7.28 | $7.37 | -1.22% |
R&D Expense | $202M | $207M | -2.42% |
SG&A Expense | $4.26B | $4.23B | +0.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $24.7B | $22.39B | +10.31% |
Current Assets | $5.96B | $6.03B | -1.16% |
Total Liabilities | $14.89B | $13.6B | +9.51% |
Current Liabilities | $5.53B | $4.79B | +15.48% |
Stockholders' Equity | $9.77B | $8.76B | +11.57% |
Cash & Equivalents | $646.2M | $1.26B | -48.58% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.95B | $2.81B | +4.93% |
Investing Cash Flow | $-2.71B | $-433.8M | -524.07% |
Financing Cash Flow | $-853.3M | $-2.02B | +57.84% |
Share Buybacks | $783.8M | $986.5M | -20.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.0% | 17.8% | -0.78% |
Net Margin | 12.9% | — | — |
ROE | 21.2% | — | — |
ROA | 8.4% | — | — |
Current Ratio | $1.076 | — | — |
Debt to Equity | $1.524 | — | — |
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ECL grew FY2025 revenue 2.2% to $16.1B, but net income declined 1.7% to $2.08B and diluted EPS fell 1.2% to $7.28 as rising SG&A costs offset top-line gains. Operating margin compressed from 17.8% to 17.0%, reflecting the cost headwinds the company faced during the year.
ECL's cash and equivalents fell 48.6% to $646M in FY2025, primarily because investing cash outflows surged to -$2.71B from just -$434M in FY2024 — a 524% increase. This dramatic rise in investing activity likely reflects a major acquisition or large capital program undertaken during the fiscal year.
ECL's financial health is generally solid, with operating cash flow of $2.95B and an ROE of 21.2%, but liquidity is tighter with a current ratio of just 1.08 and cash down to $646M. The debt-to-equity ratio of 1.52 and a 15.5% rise in current liabilities are areas to watch as the company digests its elevated investment spending.
ECL's operating margin declined in FY2025, falling from 17.8% to 17.0%, as SG&A expenses of $4.26B grew faster than the benefit from controlled cost of revenue. This margin compression resulted in operating income falling 2.3% to $2.74B despite revenue growth of 2.2%.
ECL spent $783.8M on share repurchases in FY2025, a 20.5% decline from $986.5M in FY2024, likely reflecting a reallocation of capital toward the company's significantly higher investing activities during the year.