ECL ECOLAB INC.

Overview and Growth

In fiscal 2025, ECOLAB INC. recorded $16.08B of revenue, net income of $2.08B, and an operating cash inflow of $2.95B. Revenue of $16.08B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $15.74B in fiscal 2024, revenue recorded a 2.2% year-over-year increase. The company reported diluted EPS of $7.28, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $7.37 in fiscal 2024, the current result was 1.2% lower. Asset turnover was 0.65x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $7.15B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 44.5% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $2.74B of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 17.0%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $2.08B, completing the progression from revenue through gross and operating profitability to the final reported result. The final earnings result represented 12.9% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $2.55B of earnings, providing a bridge between the operating result and final net income. The pretax margin was 15.8%, relating income before taxes directly to revenue. The reported income-tax provision was $454.60M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 17.8%, without assuming a statutory-rate comparison. Net income equaled 21.2% of period-end equity, showing the earnings generated on shareholders’ book capital. Return on period-end assets was 8.4%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

At period end, the $24.70B asset base was financed through $14.89B of liabilities and $9.80B of equity. The near-term balance sheet paired $5.96B of current assets with $5.53B of current liabilities at the reporting date. At 1.08x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $646.20M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 11.7% of current liabilities, showing how much near-term coverage came from cash alone. The liabilities-to-assets relationship was 60.3%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 2.6%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 10.3% higher than fiscal 2024 assets of $22.39B, measuring the company’s own balance-sheet change. Against $8.79B of equity in fiscal 2024, the current book-equity balance moved 11.6% and ended higher.

Cash Flow and Earnings Quality

Cash flow from operations was $2.95B, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.42x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $1.05B, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 35.5%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $1.90B of positive free cash flow for the period. Relative to revenue, free cash flow equaled 11.8%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 7.7%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.