Ecolab Inc (NYSE:ECL) shares are trading higher after the company reported a first-quarter sales decline of 2% year-on-year (Y/Y) to $3.69 billion, missing the consensus estimate of $3.70 billion.

Organic sales grew 3% Y/Y, led by growth in the Institutional & Specialty, Pest Elimination, and Life Sciences segments.

Effective the first quarter, Ecolab reorganized its segment reporting: Global Industrial is now Global Water (including the former Water, Food & Beverage, and Paper segments); Global Institutional & Specialty remains unchanged (with Healthcare moving in); Global Life Sciences became a standalone segment; and Global Pest Elimination remains a standalone segment.

In fixed currency, Global Water sales grew 3% Y/Y to $1.80 billion, Global Institutional & Specialty fell 3% Y/Y to $1.41 billion, Global Life Sciences upped 5% Y/Y to $167.0 million and, Global Pest Elimination increased 7% Y/Y to $278.1 million.

Adjusted operating income increased 8% Y/Y to $589.6 million, with an adjusted operating margin of 15.9% vs. 14.3% a year ago.

Organic operating margin expanded 190 bps Y/Y to 16.0%, on improved value pricing and productivity.

Adjusted EPS of $1.50 (+12% Y/Y) in line with the consensus estimate.

The company held $1.16 billion in cash and equivalents as of March 31, 2025.

Outlook: Ecolab expects second-quarter adjusted EPS of $1.84-$1.94 (+10% to 15% Y/Y), vs. the $1.91 estimate.

The company reiterated 2025 adjusted EPS at $7.42 – $7.62 (+12% to 15%), compared to the $7.49 estimate.

The company repurchased around 0.6 million shares during the quarter.

Christophe Beck, Ecolab's chairman and chief executive officer, said, ”We expect to deliver continued 12-15% earnings growth this year, even as we face a very unpredictable operating environment with soft end market demand and rapidly changing international trade policy. We are making proactive and strategically consistent adjustments to our delivery path due to these external conditions.”

”We look to continue to outperform our end markets as we work to convert our strong new business wins, which all leverage our One Ecolab growth initiative and our record innovation pipeline.”

”To overcome the impact from tariffs, we are leveraging the strength of Ecolab’s world-class supply chain, our ‘local for local’ production model, and our recently announced trade surcharge.”

Investors can gain exposure to the stock via VanEck Environmental Services ETF (NYSE:EVX) and iShares U.S. Basic Materials ETF (NYSE:IYM).

Price Action: ECL shares are up 2.3% at $244.51 at the last check Tuesday.

Read Next:

• Benzinga’s ‘Stock Whisper’ Index: 5 Stocks Investors Secretly Monitor But Don’t Talk About Yet

Photo: Shutterstock