Ecolab (ECL) is expected to report Q3 revenue above consensus estimates, driven by organic growth of about 6.5% and pricing increases of 5% to 6% as surcharges are fully implemented, RBC Capital Markets said in a Wednesday note.
The brokerage said it expects Q3 revenue to rise 13% year over year to $4.71 billion, with operating income of $909 million and a 19.3% margin, slightly above consensus. Adjusted earnings per share are projected at $2.18, in line with the $2.17 consensus estimate and within the company's guidance range of $2.13 to $2.23, the brokerage said.
RBC said it expects growth from High Tech, Life Sciences and Pest Elimination, with data center cooling and biologics demand remaining strong. The Iran conflict may reduce volume growth by about one percentage point, while CoolIT-related amortization could pressure margins, according to the note.
Management is expected to reaffirm its 2026 adjusted EPS guidance of $8.05 to $8.25, along with H2 sales growth of 12% to 14%, organic sales growth of 6% to 7%, and adjusted operating margins of about 19%, RBC said. The company is set to report Q3 financial results on Oct. 27.
RBC maintained its outperform rating on the stock, with a price target of $337.
Ecolab shares were up 1.6% in Thursday trading.
Price: 292.24, Change: +4.53, Percent Change: +1.57