Ecolab (ECL) shares plummeted 5.10% in Tuesday's pre-market trading session following the release of its third-quarter earnings report, which fell short of analysts' expectations and included lowered guidance for the upcoming quarter.

The water solutions company reported adjusted earnings per share of $2.07 for the quarter ended September 30, in line with analysts' estimates. However, net income fell about 20.5% to $535 million, primarily due to the comparison with last year's gain on the sale of its global surgical solutions business. While sales rose 4.2% to $4.17 billion, slightly above the expected $4.12 billion, the company's profit margins were pressured by ongoing soft demand from businesses such as basic industries and paper.

Investors were particularly discouraged by Ecolab's fourth-quarter outlook. The company expects adjusted earnings for Q4 to be between $2.02 and $2.12 per share, with the midpoint falling below analysts' estimate of $2.08. Additionally, Ecolab narrowed its full-year 2025 adjusted profit forecast to between $7.48 and $7.58 per share, from the previous range of $7.42 to $7.62 per share. This adjustment, while maintaining a positive growth outlook, suggests some caution regarding near-term business conditions.

The disappointing results and guidance reflect the challenging macroeconomic environment, including the impact of ongoing manufacturing contraction in the United States. Despite these headwinds, Ecolab remains optimistic about its long-term prospects, stating it is well-positioned for strong and steady 12-15% earnings growth in 2026. However, the market's immediate reaction indicates concerns about the company's near-term performance in the face of softer demand for its water solutions and services.