Q3 2025 Ecolab Inc Earnings Call

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If anyone should require operator assistance during the conference. Please press star zero from your telephone keypad.

As a reminder, today's conference is being recorded.

At this time, it's now my pleasure to introduce your host Andy Hedberg, Vice President Investor Relations for Ecolab. Thank.

Thank you Andy you May now begin.

Thank you and Hello, everyone welcome to <unk> third quarter Conference call with me today are Chris Dot back <unk>, Chairman and CEO and Scott <unk> our CFO.

A discussion of our results along with our earnings release and the slides referencing the quarter's results are available on <unk> website at Ecolab Dot Com slash investor.

Speaker #1: Greetings . Welcome to the Ecolab third Quarter 2020 Earnings Conference call . At this time , all participants will be in listen only mode .

In a moment to read the cautionary statements in these materials, which states that this teleconference and the associated supplemented those include estimates of future performance.

Speaker #1: Question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star Zero from your telephone keypad.

These are forward looking statements and actual results could differ materially from those projected factors that could cause actual results to differ are described under the risk factors section in our most recent Form 10-K, and our posted materials. We also refer you to the supplemental diluted earnings per share information in the release with that I would like to turn the call over to Christophe Beck for his comments.

Speaker #1: As a reminder , today's conference is being recorded . At this time , it's now my pleasure to introduce your host , Andy Hedberg , Vice President , Investor Relations for Ecolab .

Speaker #1: Thank you, Andy. You may now begin.

Speaker #2: Thank you . And hello , everyone . Welcome to Ecolab third quarter conference . Call with me today . Are Christophe Beck , Ecolab's , chairman and CEO .

Thank you Andy and welcome to everyone joining us today and I'd like to start by recognizing the strength and the resilience of ecolab.

Speaker #2: And Scott Kirkland , our CFO . The discussion of our results , along with our earnings release in the slides referencing the quarter's results , are available on Ecolab's website at Ecolab investor , please take a moment to read the cautionary statements in these materials , which state that this teleconference and the associated supplement materials include estimates of future performance .

Because in a year defined by persistent macro uncertainty that we all.

OLED through and shifting global dynamics, our team continues to deliver consistent double digit earnings growth.

And the focus on what matters most of our customers our strategy on our long term goals is what enables us to perform at a very high level quarter after quarter.

Speaker #2: These are forward-looking statements, and actual results could differ materially from those projected. Factors that could cause actual results to differ are described under the Risk Factors section.

Speaker #2: In our most recent Form 10-K and our posted materials, we also refer you to the Supplemental Diluted Earnings Per Share information in the release.

And we've seen that in the third quarter with sales growth improved fueled by accelerating pricing up to 3% from 2% last quarter, while volumes increased 1%.

Speaker #2: With that, I'd like to turn the call over to Christophe Beck for his comments.

Speaker #3: Thank you , Andy , and welcome to everyone joining us today . And I'd like to start by recognizing the strength and the resilience of Ecolab team , because in the year defined by persistent macro uncertainty that we've all lived through and shifting global dynamics , our team continues to deliver consistent double digit earnings growth .

This momentum was driven by double digit organic growth in our growth engines, which is remarkable and which includes pest elimination life Sciences Global high Tech in Ecolab digital.

Our core business institutional and specialty in the rest of global water delivered solid growth all of this supported by exception their total value delivery through best in class breakthrough innovation and disciplined execution of our one ecolab enterprise growth strategy.

Speaker #3: And they focus on what matters most: our customers, our strategy, and our long-term goals. This focus enables us to perform at a very high level.

Speaker #3: Quarter after quarter . And we've seen that in the third quarter , where sales growth improved , fueled by accelerating pricing up to 3% from 2% last quarter , while volumes increased 1% , this momentum was driven by double digit organic growth in our growth engines , which is remarkable and which includes best illumination , life Sciences , global high tech and Ecolab digital .

So our growth engines and core businesses represent about 85% of our total sales and they delivered 4% organic sales growth and mid teens organic operating income growth. This strong performance more than offset ongoing market softness underperforming businesses basic industries and paper.

<unk>, which together represent the remaining 50% of our global sites and has two businesses declined 3% and had an impact of one percentage point on volume in the quarter.

Speaker #3: Our core businesses , institutional and specialty , and the rest of global water delivered solid growth . All of this supported by exceptional total value delivery through best in class breakthrough innovation and disciplined execution of our one Ecolab Enterprise Growth strategy .

So let me briefly expand on each of these drivers before sharing how we're thinking about the remainder of the Europe and how are we positioned to deliver another strong year of double digit EPS growth in 2026.

Speaker #3: In total, the growth engines and core businesses represent about 85% of our total sales, and they delivered 4% organic sales growth and mid-teens organic operating income growth.

Pricing accelerated to 3% this quarter driven by the full implementation of our trade surcharge and continued value pricing, that's working really well as always the total value we deliver to customers continued to outpace and by far our total pricing.

Speaker #3: The strong performance more than offset ongoing market softness in our underperforming businesses: Basic Industries and Paper, which together represent the remaining 50% of our global sales.

As our technologies and services had to deliver enhanced business outcomes operational performance and environmental impact for our customers.

Speaker #3: And these two businesses declined 3% and had an impact of one percentage point on volume in the quarter. So let me briefly expand on each of these drivers before sharing how we're thinking about the remainder of the year and how we're positioned to deliver another strong year of double-digit EPS growth in 2026.

Our breakthrough innovation.

Is the strongest it's ever been delivering significant value for customers and growth for ecolab institutional and specialty breakthrough innovations like the ones you've seen at Investor day, like <unk> IQ <unk> IQ and really those are growing double digits. As these solutions help our customers improve operational performance optimize this.

Speaker #3: Pricing accelerated to 3% this quarter, driven by the full implementation of our trade surcharge and continued value pricing. That's working really well.

Gas labor resources and reduce total cost.

Speaker #3: As always , the total value we delivered to customers continued to outpace and by far our total pricing as our technologies and services had to deliver enhanced business outcomes .

Past intelligence platform, we've now installed over 400000 intelligent devices, formerly called mouse traps on our way to deploying over 1 million devices with this leading technology, we aim to deliver 99% that's pre outcomes as we harnessed the power of how ecolab <unk>.

Speaker #3: Operational performance and environmental impact for our customers. Our breakthrough innovation is the strongest it's ever been, delivering significant value for customers and growth for Ecolab in institutional and specialty.

<unk> infrastructure and our expert service capabilities within.

Speaker #3: Breakthrough innovations like the ones you've seen at Investor Day , like IQ , Aqua IQ and Ready Dose are growing double digits as these solutions help our customers improve operational performance , optimize their scarce labor resources , and reduce total cost .

Within global water, we've recently launched <unk> tradeoff with directed cheap liquid cooling for next generation AI data centers, which uniquely monitors and optimize it coolant performance in real time and.

And when combined with our full portfolio of data center cooling technologies, we have been to reduce up to 10% of the power used to cool data centers, which can now be utilized for compute power.

Speaker #3: In our past, intelligence platform, we've now installed over 400,000 intelligent devices, formerly called mousetraps, on our way to deploying over 1 million devices.

And this is just the beginning as we build our leadership position in data center cooling and water circular routine.

Speaker #3: With this leading technology, we aim to deliver 99% pest-free outcomes as we harness the power of our Ecolab 3D digital infrastructure and our expert service capabilities within global water.

And finally within global Life Sciences, we've launched a series of cutting edge drug purification residence for the bio processing industry, which drives the improved product quality and significant operational efficiencies by our estimates.

Speaker #3: We recently launched 3D tracer for direct to chip liquid cooling for next generation AI data centers , which uniquely monitors and optimizes coolant performance in real time .

When he got focuses its breakthrough innovation are solving critical customer challenges like these everyone wins.

Speaker #3: And when combined with our full portfolio of data center cooling technologies, we're helping to reduce up to 10% of the power used to cool data centers, which can now be utilized for compute power.

One ecolab is helping us unlock significant cross sell opportunities across our customer base in total.

This represents a 65 billion growth opportunity with $3 5 billion of visiting with our largest customers and we're seeing early successes in businesses like institutional and specialty and food and beverage.

Speaker #3: And this is just the beginning . As we build our leadership position in data center cooling and water circularity in might . And finally , within global life sciences , we've launched a series of cutting edge drug purification resins for the bioprocessing industry , which drives improved product quality and significant operational efficiencies for our customers .

Rowing very nicely.

Talking about that in institutional and specialty what organic sales grew by 4% outpacing end market trends and this good performance is being fueled by the exceptional value we are delivering to customers.

Speaker #3: When Ecolab focuses its breakthrough innovation on solving critical customer challenges like these . Everyone wins . One is helping us unlock significant cross-sell opportunities across our customer base .

Recapture through value pricing and growth from when he came up with this we're working to deliver best in class operating performance for customers as they utilize more of our breakthrough technologies across more of their locations.

Speaker #3: In total , this represents a 65 billion growth opportunity with 3.5 billion of this sitting with our largest customers . And we're seeing early successes in businesses like institutional specialty and food and beverage that are growing very nicely .

In food and beverage growth continued to accelerate with organic sales up 4%. This quarter. Once again ahead of market trends.

The strong acceleration is being driven by one ecolab, where we bring together our industry, leading cleaning and sanitizing water treatment and digital technologies.

Speaker #3: Talking about that in institutional specialty , well , organic sales grew by 4% . Updating and market trends . And this good performance is being fueled by the exceptional value we are delivering to customers , which we capture through value , pricing and growth from when Ecolab , with this , we're working to deliver best in class operating performance for customers as they utilize more of our breakthrough technologies across more of their locations in food and beverage growth continued to accelerate , with organic sales up 4% this quarter .

This comprehensive offering delivers significant customer value through improved food safety low operating cost and optimized water usage, which was always our promise and of course, our growth engine delivered another quarter of double digit sales growth. This business is gaining momentum and ecolab is well positioned to cap at the.

Is on the strong secular tailwind driving these markets. So let me unpack them one by one.

Pest elimination delivered 6% organic sales growth and as mentioned earlier the best intelligence rollout is going extremely well our best team has just won another very large retailer here in the U S. We just thousands of locations, which we will be deploying in the coming months.

Speaker #3: Once again ahead of market trends . This strong acceleration is being driven by one Ecolab , where we bring together our industry leading cleaning and sanitizing water treatment and digital technologies .

Speaker #3: This comprehensive offering delivers significant customer value through improved food safety, lower operating costs, and optimized water usage, which was always our promise.

This innovation is transforming our pest elimination model as we shift from spending 95% of her time physically checking every device to 95% of our time solving critical customer problems and selling new solutions.

Speaker #3: And, of course, our growth engine delivered another quarter of double-digit sales growth. These businesses are gaining momentum, and Ecolab is well positioned to capitalize on the strong secular tailwinds driving this market.

Even with ongoing investment in best Intelligence operating income margins improved to nearly 21% driven by our strong sales growth and the leverage we are generating from best intelligence.

Speaker #3: So let me unpack them one by one . First , elimination delivered 6% organic sales growth . And as mentioned earlier , the best intelligence rollout is going extremely well .

Life Sciences sales growth also improved to 6% led by double digit growth in Biopharma and pharma and personal care.

Speaker #3: Our best team has just won another very large retailer here in the U.S., which has thousands of locations that we will be deploying in the coming months.

This very strong performance overcame capacity constraints within our water purification business looking at the fourth quarter. We expect license is year on year sales growth to moderate a little bit from third quarter, 6% growth as we compare against nearly 70% growth in our bio processing business last year, but.

Speaker #3: This innovation is transforming our pest elimination model as we shift from spending 95% of our time physically checking every device to 95% of our time solving critical customer problems and selling new solutions.

Speaker #3: Even with ongoing investment in pest intelligence , operating income margins improved to nearly 21% , driven by our strong sales growth and the leverage regenerating from pest intelligence , life sciences , sales growth .

Your line same trends despite the strong operation, we expect bio processing to still grow double digits in the fourth quarter as we continued to gain share in the super attractive market.

Global High Tech continues to grow rapidly with sales up 25%. We've built an incredible growth platform, where we're uniquely positioned to serve the high growth data center and microelectronics industry.

Speaker #3: Also improved to 6% , led by double digit growth in biopharma and pharma and personal care . This very strong performance overcame capacity constraints within our water purification business .

And the pending acquisition of Aviva electronics.

Speaker #3: Looking at the fourth quarter, we expect life sciences year-on-year sales growth to moderate a little bit from third quarter 6% growth.

And more than double the size of Ecolab Global high Tech business to nearly $900 million further strengthening this growth engine by bringing together <unk>.

Speaker #3: As we compare against nearly 70% growth in our bioprocessing business last year, we see underlying same trends. Despite these strong comparisons, we expect bioprocessing to still grow double digits in the fourth quarter as we continue to gain share in this super attractive market.

It's very unique ultra pure water technologies with ecolab, leading water solutions digital technologies and global service capabilities.

Combined technology platform will enable us to expand our offerings to provide circle of water solutions for microelectronics has been to maximize chip production and quality for these booming industry.

Speaker #3: Global high tech continues to grow rapidly , with sales up 25% . We've built an incredible growth platform where we uniquely positioned to serve the high growth data center and microelectronics industries , and the pending acquisition of vivo Electronics will more than double the size of Ecolab's global high tech business to nearly 900 million .

[laughter] Ecolab digital maintained its strong momentum delivering 25% sales growth this quarter.

Digital now has annualized sales of more than $380 million driven by rapid growth in subscription revenue and digital hardware overall digital is a 13 billion growth opportunity for ecolab with <unk> billion of this sitting with our existing customer base. So we remain focused.

Speaker #3: Further strengthening this growth engine by bringing together Vivo's very unique ultrapure water technologies with Ecolab's leading water solutions, digital technologies, and global service capabilities.

On capturing these high margin.

Speaker #3: The combined technology platform will enable Ecolab to expand our offerings to provide circular water solutions for microelectronics, helping to maximize chip production and quality.

Opportunity as we leverage our leading digital technologies and monetize our large and expanding installed base we've.

We're not only leveraging AI to bid new fast growing capabilities and global Heidrick and Ecolab digital.

Speaker #3: For this booming industry . Ecolab digital maintained its strong momentum , delivering 25% sales growth this quarter . Ecolab digital now has annualized sales of more than 380 million , driven by rapid growth in subscription revenue and digital hardware .

We are rapidly leveraging it in our own operations to dramatically improve our customer experience and enterprise performance was this I'm very proud to share that ecolab is ranked number nine on the fortune 50 list recognizing the company as most prepared for the age of AI.

Speaker #3: Overall , digital is a 13 billion growth opportunity for Ecolab , with 3 billion of this sitting within our existing customer base . So we remain focused on capturing these high margin opportunity as we leverage our leading digital technologies and monetize our large and expanding installed base .

Global teams quickly scaling AI to drive innovation deliver customer impact to our best in class model and deliver significant cost savings.

Finally, we remain confident in our team's ability to get our two underperforming businesses basic industries and paper back to growth and Theyre already making meaningful meaningful progress we've shifted resources to support emerging opportunities like empower them precious metals, where they're supporting AI driven power build outs.

Speaker #3: We are not only leveraging AI to build new, fast-growing capabilities in global high tech and Ecolab Digital, we are rapidly leveraging it in our own operations to dramatically improve our customer experience and enterprise performance.

Speaker #3: With this , I'm very proud to share that Ecolab has ranked number nine on the fortune AI 50 list , recognizing the company's most prepared for the age of AI .

For end markets still facing near term demand headwinds like paper, we focusing on the innovation that can drive significant operational savings for our customers.

We're also leveraging our one ecolab growth strategy in the businesses to expand relationships with existing customers as actions are working as evidenced by our share gains our relative outperformance in these end markets, but we're not satisfied what do we expect these markets to remain soft in New York and in the near term with actions well underway we are.

Speaker #3: Our global teams are quickly scaling AI to drive innovation , deliver customer impact to our best in class model , and deliver significant cost savings .

Speaker #3: Finally, we remain confident in our team's ability to get our two underperforming businesses, Basic Industries and Paper, back to growth. And they're already making meaningful, meaningful progress.

Anticipating businesses to return to growth during 2026.

Speaker #3: We've shifted resources to support emerging opportunities like empower and Precious Metals , where they're supporting AI driven power . Buildouts when markets still facing near-term demand headwinds like paper .

One of the greatest strengths of Ecolab for decades has been the breadth and diversity of our portfolio, while not every business delivered strong performance at all times our deepest.

Speaker #3: We are focusing on innovation that can drive significant operational savings for customers. We are also leveraging our own Ecolab growth strategy in these businesses to expand relationships with existing customers.

<unk> is the key reason ecolab collectively delivered double digit EPS growth in nearly any environment.

With our strong performance, we drove 110 basis points increase in our organic operating income margin, which reached a record $18, 7%. This quarter. We continued to expect our operating income margin to expand at steady levels due to growth in high margin businesses value price share gains and productivity improvements reaching.

Speaker #3: These actions are working as evidenced by our share gains and relative outperformance . In these end markets . But we note that far , when we expect these markets to remain soft in the near term , with actions well underway .

Speaker #3: We anticipate this business to return to growth during 2026. One of the greatest strengths of Ecolab for decades has been the breadth and diversity of our portfolio.

A strong 18% for the full year 'twenty five.

Ultimately our margin expansion also includes significant and ongoing investments in our business. We continue to make these growth investments as they fuel the fuel high performance in the quarters and years ahead. As a result, we are increasing our 25 full year adjusted diluted EPS midpoint to $7 53.

Speaker #3: While not every business delivers strong performance at all times, our diverse portfolio is the key reason Ecolab collectively delivers double-digit EPS growth in nearly any environment.

Speaker #3: With our strong performance, we drove a 110 basis points increase in our organic operating income margin, which reached a record 18.7% this quarter.

A range of $7 48 to seven P T H.

Beyond this year, we remain firmly on track to achieve a 20% Oi margin by 2007 and as mentioned during our Investor Day last month, we expect to continue our momentum with 100 to 150 basis points of annual Oi margin expansion through 2013.

Speaker #3: We continue to expect our operating income margin to expand at a steady levels due to growth in high margin businesses , value price share gains and productivity improvements reaching a strong 18% for the full year 25 .

Speaker #3: Importantly , our margin expansion also includes significant and ongoing investments in our business . We continue to make this growth investments as they feel they fuel high performance in the quarters and years ahead .

This position positions us extremely well to continue to deliver steady to up to 15% earnings growth in 2006 and beyond in closing.

Our third quarter results reflect the strength of our business and the power of our strategy.

Speaker #3: As a result, we are increasing our 2025 full-year adjusted diluted EPS midpoint to $7.53, with a range of $7.48 to $7.58.

Our pricing discipline breakthrough innovation, one ecolab execution continued to drive share gains and margin expansion across our core business.

Speaker #3: Beyond this year, we remain firmly on track to achieve a 20% margin by 2027, and as mentioned during our Investor Day last month, we expect to continue our momentum with 100 to 150 basis points of annual margin expansion through 2030.

Gross engines are scaling rapidly and positioned to benefit from long term secular tailwind.

This is enabling us to deliver consistent earnings growth even in a complex.

And complicated microenvironment.

With strong and resilient free cash flow and an extremely strong balance sheet, we're very well positioned to capitalize on both organic and inorganic growth opportunities to create significant value for our customers and drive attractive returns for our shareholders I remain very confident in our ability to deliver sustained strong performance in Q4 this year.

Speaker #3: This positions US extremely well to continue to deliver steady 12 to 15% earnings growth in 26 and beyond . In closing , our third quarter results reflect the strength of our business and the power of our strategy .

Speaker #3: Our pricing discipline, breakthrough innovation, and one Ecolab execution continue to drive share gains and margin expansion across our core business. Our growth engines are scaling rapidly and are positioned to benefit from long-term secular tailwinds.

And beyond Thanks again for your continued trust and your investment in Ecolab and look forward to your questions.

Thanks, Christoph technicals are far more remarks, operator would you. Please begin the question.

And answer period.

Speaker #3: All of this is enabling us to deliver consistent earnings growth even in a complex and complicated macro environment, with strong and resilient free cash flow and an extremely strong balance sheet.

Yes. Thank you.

To ask a question at this time you May press Star one from your telephone keypad.

A confirmation tone will indicate your line is in the question queue.

Speaker #3: With well positioned to capitalize on both organic and inorganic growth opportunities to create significant value for our customers and drive attractive returns for our shareholders.

If I start to if you like to move to a question from the queue.

<unk> picker equipment may be necessary to pick up your handset before pressing the star keys.

We ask you please limit yourself to one question.

Speaker #3: I remain very confident in our ability to deliver sustained, strong performance in Q4 this year and beyond. Thanks again for your continued trust and your investment in Ecolab.

Let me follow up per caller, so the others will have a chance to participate.

Thank you and the first question is from the line of Tim Mulrooney with William Blair. Please proceed with your question.

Speaker #3: I look forward to your questions .

Hi, This is moving fast and author Tim Thanks for taking my questions I wanted to ask by global High Tech business.

Speaker #2: Thanks , Christophe Beck . That concludes our formal remarks . Operator , would you please begin the question and answer period ?

Speaker #1: Yes, thank you. If you'd like to ask a question at this time, you may press Star One from your telephone keypad.

We noticed the slides mentioned some recent market share wins in data centers can you talk a bit more about how youre achieving in measuring the gains here and I know you haven't closed the deal yet, but curious to hear any updated thoughts on the <unk> acquisition.

Speaker #1: And a confirmation tone will indicate your line is in the question queue. You may press *2 if you'd like to remove your question from the queue.

Speaker #1: For participants using speaker equipment may be necessary to pick up your handset before pressing the star key's . We ask that you please limit yourself to one question .

And how you would characterize the growth opportunity in microelectronics post deal close relative to your already strong performance in this end market today.

Speaker #1: Remember, you follow up with a caller so that others will have a chance to participate. Thank you. And the first question is from the line of Tim Moroney with William Blair.

Hey, Thank you Luke.

That field.

You know so let me step back a bit.

Speaker #1: Please proceed with your question .

Because it's important for all of us to understand so high tech for US is a combination of data centers and microelectronic plants many call it.

Speaker #4: Hi , this is Luke McFadden on for Tim . Thanks for taking our questions . I wanted to ask about your global high tech business .

Speaker #4: We noticed the slides mentioned some recent market share wins and data centers. Can you talk a bit more about how you're achieving and measuring the gains here?

Fabs.

Which at some point so we will be two businesses focused on different technologies that Disney but for now it's really saw high tech combining data centers in microelectronics and each of these.

Speaker #4: And I know you haven't closed the deal yet, but I'm curious to hear any updated thoughts on the Vivo acquisition and how you would characterize the growth opportunity in microelectronics post-deal?

Drugs most of the global investments as we know and we expect these global investment so to continue to drive that growth trends, even though we don't expect it to be a straight line to have and there will be a because it's a more difficult in some better times ahead, but generally it's going to be the growth.

Speaker #4: Close relative to your already strong performance in this market today ?

Speaker #3: Thank you . Luke . Love that field . As you know , so let me step back a bit . Because it's important .

Speaker #3: So for all of us to understand so high tech for us is a combination of data centers and microelectronic plants . Many call it fabs , which at some point will be two businesses focused on different technologies , obviously .

<unk> of our times.

When we think about some of the facts talking about metrics look.

Look so one data center opens in the World every one to two weeks.

With an investment ranging from $500 million to $3 billion and El 10000 data centers in the world to die. So it's showing a hot.

Speaker #3: But for now, it's really high tech, combining data centers and microelectronics. And it's a field that attracts most of the global investments.

Strong base, that's getting even bigger as we speak on the other hand.

Speaker #3: As we know, we expect these global investments to continue to drive that growth trend, even though we don't expect it to be a straight line to heaven.

One fab one microelectronics.

And that's opening up roughly every month or so with average investments in into billions still 500 Pops today.

Speaker #3: There will be obviously some more difficult than some better times ahead , but generally it's going to be the growth of our times .

<unk> expected to be hundreds more getting to 600.

Speaker #3: When we think about some of the facts , talking about metrics . Luke . So one data center opens in the world every 1 to 2 weeks with an investment ranging from 500 million to 3 billion .

In the next 10 years, so we can see the pace at which.

Those data centers and labs.

Opening up and our objective is ultimately to be in and hopefully one each of them.

Speaker #3: And there are 10,000 data centers in the world today. So, it's showing a strong base that's getting even bigger as we speak.

Round the world. So the key thing is that all of this will require way more power and way more water, which is where our role comes into it because as mentioned as well.

Speaker #3: On the other hand, you have one fab one microelectronics plant that's opening up roughly every month or so, with average investments in the billions.

2030, we expect that this industry powering AI with Fabs and data centers, we need the incremental power of the whole of Asia.

Speaker #3: There are 500 pubs today, and we expect to have 100 more, getting to 600 in the next ten years. This shows us the pace at which those data centers and fabs are opening up.

In the next four years and the drinking water needs.

The whole of the United States as well at the same time, because data centers will need to be cooled and fabs require vast amounts.

Speaker #3: And our objective is ultimately to be in and hopefully own each of them around the world . So the key thing is that all of this will require way more power and way more water , which is where our role comes into it , because as mentioned , as well , by 2030 , we expect that this industry powering AI with fabs and data centers will need the incremental power of the whole of India in the next four years .

Ultra pure water.

And the cool news is that those are technologies that we master we've been monitoring for a very long time, nobody understands water better than ecolab, we've been in the cooling business for a very long time and we've been in the water business, obviously for a very long time.

As well so we're building offerings that are helping data centers.

To be cooled in more efficient way by reducing the amount of water and moving towards the erected cheap technologies that helps cooling foster this means more compute power and this means less power for cooling and more powerful compute which is exactly what the tech industry.

Speaker #3: And the drinking water needs of the whole of the United States, as well. At the same time, because data centers will need to be cooled and fabs require vast amounts of ultrapure water.

Speaker #3: And the cool news is that those are technologies that we master. We've been mastering them for a very long time. Nobody understands water better than Ecolab.

<unk> is looking for on the other hand, we providing circle of water solutions for microelectronics manufacturers, because one five requires roughly drinking water needs.

Speaker #3: We've been in the cooling business for a very long time, and we've been in the water business, obviously for a very long time.

19 million people in the pace at which it's being built while thats not going to work for.

Speaker #3: As well, we're building offerings that help data centers to be cooled in a more efficient way by reducing the amount of water and moving towards direct cooling technologies.

For the communities because they saw the tech industries, the famous once especially in Asia and the U S. As well, we're looking for solutions to reuse and recycle water.

Speaker #3: That helps cooling faster. This means more compute power, and this means less power for cooling and more power for compute, which is exactly what the tech industry is looking for.

But here's the key point that water, that's being used in those bob's needs to be ultra pure water, which means roughly a thousand times more PURA and the.

The water that you would use in drugs that you inject in your bloodstream, which is exactly what <unk> always doing so by bringing what ecolab has always done in water circuit, our 80, plus the capabilities of Evo in ultra pure water, we had microelectronics ultimately, we're using recycled water at ultra pure water.

Speaker #3: On the other hand, we are providing circular water solutions for microelectronics manufacturers because one fab requires roughly the drinking water needs of 17 million people and the pace at which it's being built.

Speaker #3: Well , that's not going to work for the communities that so the tech industries , the famous ones , especially in Asia , but in the US as well , we are looking for solutions to reuse and recycle water .

<unk> levels so at the end.

26 for global High Tech, assuming we close obviously saw on Evo, we'd be roughly a $900 million business growing double digits with very strong margins and it's important to keep in mind that for us, It's and you step further step.

Speaker #3: But here's the key point . That water that's being used in those fabs needs to be ultra pure water , which means roughly 1000 times more pure than the water that you would use in drugs that you inject in your bloodstream , which is exactly what vivo is doing .

On our high Tech journey, and one that will change over time the growth profile of our company. So a very good new chapter for our company.

Speaker #3: By bringing together what Ecolab has always done in water circularity, along with the capabilities of Vivo in ultra-pure water, we help microelectronics ultimately reuse and recycle water at ultra-pure quality.

Okay.

Our next question comes from the line of <unk> with RBC capital markets. Please proceed with your question.

Speaker #3: Levels . So at the end , 26 for global high tech , assuming we close , obviously . So on a vivo , we'll be roughly 900 million business growing double digit with very strong margins .

Thanks for taking my question I, just wanted to focus on the basic industries and people are returning back to growth in 2026 I was wondering if you could come down further.

Shifting resources innovation has been a share gains how that can help offset some of the end market.

Speaker #3: And it's important to keep in mind that for us, it's a new step, a further step on our high-tech journey.

Yes. Thank you Ashish I really like the underlying performance of that business. It's a good margin business just that you know as well is slightly below.

Speaker #3: And one that will change over time: the gross profile of our company. So, a very good new chapter for our company.

Our company average, but it's still.

Speaker #1: Our next question comes from the line of Ashish Subhadra with RBC Capital Markets. Please repeat your question.

A good business good margin and good underlying performance.

The issue we have in that industry is its consolidating which means that they are closing mills and mirrors are very big and those mills, obviously when they close.

Speaker #5: Thanks for taking my question . I just wanted to focus on the basic industries and people returning back to growth in 2026 . I was wondering if you could drill down further about on the shifting resources innovation , as well as share gains .

<unk> our growth and there's not much we can do we lose very little competition, we gained share in the existing and new mills, but when the mill is closing while we lose.

Speaker #5: How that can help offset some of the end market weakness. Thanks.

Speaker #3: Yeah . Thank you . I really like the underlying performance of that business . It's a good margin business , just that , you know as well it's slightly below our company average .

Those seats and that's what's happened.

Over the last 18 months, we see that process of consolidation slowing down we see our underlying performance driven by what you were saying innovation, improving as well and I think the combination of both.

Speaker #3: But it's still a good business . Good margin . And good underlying performance . The biggest issue we have in that industry is it's concentrating , which means that they are closing Mills and mills are very big and those mills , obviously when they close , are impacting our growth and there's not much we can do .

Ultimately saw will be.

Positive for paper, so I think that we are reaching the bottom of the cycle in paper and saying in the next I don't know.

Speaker #3: We lose very little to competition . We gain share in the existing and new mills . But when a mill is closing , well , we lose those sales and that's what's happened over the last 18 months .

No one through three quarters paper is going to get back to a growth trajectory and the sooner the better obviously and on the basic industries.

We have regrouped our resources driving.

Speaker #3: We see that the process of consolidation is slowing down. We see our underlying performance driven by what you were saying: innovation is improving as well.

Critical mass as well driving efficiencies, but it's really making sure.

We capture as much market share as we can and right now as the market recovers as well similar to paper, but for different reasons, we see as well.

Speaker #3: And I think the combination of both ultimately so will be positive for paper . So I think that we are reaching the bottom of that cycle in paper .

<unk> come in the next.

Couple of quarters, and then we should get back to a good place so in both.

Speaker #3: And I think in the next, I don’t know, one, two, three quarters, paper is going to get back to a growth trajectory.

Businesses here, 50% of our company, we need to keep that in mind and there will always be a few businesses that are having subpar performance like the underlying performance.

Speaker #3: And the sooner, the better, obviously. And on the basic industries, we have regrouped our resources. We are driving critical mass as well, driving efficiencies.

<unk> trends have been hard in the past. This is changing so that's why I'm quite optimistic we will like where those two businesses are going to go but at the end of the day lets keep in mind that 85% of the company is growing very well with mid teens operating income growth so very healthy place.

Speaker #3: But it's really making sure that we capture as much market share as we can right now as the market recovers as well . And similar to paper , but for different reasons , we see as well kind of the bottom come in the next couple of quarters , and then we should get back to a good place .

Our next question comes from the line of John Mcnulty with BMO capital markets. Please proceed with your question.

Speaker #3: So in both businesses here , 50% of our company , we need to keep that in mind . And there will always be a few businesses that are having subpar performance , like the underlying performance , the market .

Yeah. Good afternoon, Thanks for taking my question Christoph.

So I had a question on pricing I guess, if you can take the tariff surcharge out of the equation I guess would you would you say the pricing is getting easier to push through just because the value proposition is becoming more evident or would you say it would you characterize it as maybe getting tougher just because they're there may.

Speaker #3: Trends have been hard in the past. This is changing. So that's why I'm quite optimistic. We will like where those two businesses are going to go.

Speaker #3: But at the end of the day, let's keep in mind that 85% of the company is growing very well, with mid-teens operating income growth.

Price fatigue, Inflations, maybe moderating a little bit I guess, how would you characterize it.

Speaker #3: So, in a very healthy place.

Thank you John I would say the same thought to put the metric are busy on that but generally the fact that pricing is getting stronger our total value delivered by the way is getting much stronger too and we're always trying to get two to three.

Speaker #1: Our next question comes from the line of John McNulty with BMO Capital Markets. Please see your question.

Speaker #6: Yeah . Good afternoon . Thanks for taking my question , Christophe . So had a question on pricing . I guess if you can take the tariff surcharge out of the equation , I guess , would you would you say that pricing is getting easier to push through just because the value proposition is becoming more evident ?

Alright, more total value delivered that pricing.

That's being captured so it's a good deal for customers.

I feel that we're in a pretty good place in our.

Speaker #6: Or would you say , or would you characterize it as maybe getting tougher just because there there may be price fatigue ? You know , inflation's maybe moderating a little bit I guess .

Retention.

He is very high in the Ninety's as you know in each remaining stable.

Stable as well at the same time, so a good story.

Speaker #6: How would you characterize it .

Speaker #3: Thank you John . I would say the same . It's hard to put a metric on that . But generally the fact that pricing is is getting stronger .

Customer for life with good retention share.

Sharing the savings that they get in their operations that translates into value pricing and you are right on top of it so the.

Speaker #3: Our total value delivered, by the way, is getting much stronger too. And we are always trying to get 2 to 3 times.

Terry surcharge of trade surcharge as we called it.

He is helping as well, but that's why it is that the 2% to 3%.

Speaker #3: Sorry , more total value delivered than pricing . That's being captured . So it's a good deal . So for customers I feel that we're in a pretty good place and our retention is very high in the 90s .

Value price for the long run seems to be the sweet spot so far with kempen.

The next question is from the line of Andrew Wittmann with Baird.

Speaker #3: As you know , and it's remaining very stable as well . At the same time . So a good story of of customer for life with good retention , sharing the savings that they get in their operations .

For your question.

Great. Thanks, I had two questions I guess, Chris I was just talking about the water business as well here you you discussed the topline impact the quarter, a very detailed and I was just wondering if you could just help us understand a little bit about how that top line is affecting that segment's margin performance.

Speaker #3: That translates into value pricing . And you're right on top of it . So the the tariff surcharge or trade surcharge , as we called it , is helping as well .

Maybe if you could bifurcate that as well and then just quickly could you kind of a technical question here you mentioned, a large new pest customer I was just wondering was that referenced into it an entirely new customer, there's not a customer today or where you're saying that's just a conversion to the new technology.

Speaker #3: But that's why I feel that the 2% to 3% value price for the long run seems to be the sweet spot for our company.

Thank you Andy so two different questions, obviously, I think the easiest way to talk about water topline and margin if you exclude <unk>.

Speaker #1: Next question is from the line of Andrew Whitman with Baird. Please receive your question.

Speaker #7: Great , thanks . I had two questions , I guess . Christoph , just talking about the water business as well . Here you discussed the top line impacts the quarter , very detailed .

Basic industries, and paper, which I know is a bit tougher.

Speaker #7: I'm just wondering if you could help us understand a little bit about how that top line is affecting that segment's margin performance.

John engine accounting approach here to make sure our remaining gap.

But generally.

Speaker #7: Maybe if you could bifurcate that as well. And then just quickly, kind of a technical question here. You mentioned a large new customer.

Water would be <unk>.

A 4% top line growth and a 15%.

Operating income growth, excluding those two businesses, so it's pretty clear.

Speaker #7: I was just wondering, was that reference to an entirely new customer? That is, not a customer today, or were you saying that's just a conversion to the new technology?

Where our work is focused on and that's why we're focusing on.

Speaker #7: Thanks .

These two businesses to make sure that we enjoy yourself on the good side of the water business that we really love and that keeps getting better now on the first.

Speaker #3: Thank you indeed . So two different questions . Obviously , I think the easiest way to talk about water to line and margin , if you exclude basic industries and paper , which I know is a bit of a challenging .

Question. So we never mentioned salt, which customer that is just due to respect obviously they own confidentially T. But it is a new one.

Speaker #3: So, accounting approach here to make sure I remain in GAAP, but generally, water would be having a 4% top-line growth and a 15% operating income growth.

Which has been so really interested by that new technology. The fact that we focused early on on.

Speaker #3: Excluding those two businesses . So it's pretty clear we are we're work is focused on . And that's why we're focusing on these two businesses to make sure that we we enjoy .

The biggest out there helps obviously saw everyone else see that's it's good leading companies are embarking on that journey and that is really working so that's going to be I think helping us for the future as well because the more of those great retailers.

Speaker #3: All the good side of the water business that that we really love . And that keeps getting better . Now , on the best question .

We have on board the more others will join us well eats and ideal proposition sits at that 99% So best free.

Speaker #3: So we never mentioned which customer that is just to to respect . Obviously their own confidentiality , but it's a new one which has been so really interested by that new technology .

A good deal for their own operations, it's good for us.

Exactly the model that we want to build in the future. We early on that journey as mentioned software, having thousands of devices today, but we will be at the million.

Speaker #3: The fact that we focus early on on the biggest out there helps . Obviously . Everyone else see that it's good . The leading companies are embarking on that journey , and that it's really working .

First half of next year, so it's showing how quickly moving here and we're clearly leading the industry.

Which is helping customers come to us.

Speaker #3: So that's going to be , I think , helping us for the future as well , because the more of those great retailers we have on board , the more others will join as well .

Our next question is from the line of Vincent Andrews from Morgan Stanley. Please proceed with your question.

Thank you good afternoon, Christophe if I could ask you for an update on one eco lab in particular I know the focus initially was the top 35 customers. So as we get to year end 2025, where will you be in terms of sort of the work you wanted to do with that top 35, and as we get into 'twenty six will you be rolling it out.

Speaker #3: It's an ideal proposition for that 99%. So, best to free a good deal for their own operations. It's good for us. It's exactly the model that we want to build in the future.

Speaker #3: We are early on that journey, as mentioned. So, 400,000 devices today. But we will be at the million in the first half of next year.

More aggressively to the next 25 or 50 or what have you or how should we think about the layering in of a incremental one ecolab efforts from $25 26.

Speaker #3: So it's showing how quickly we're moving here, and we are clearly leading the industry, which is helping customers come to us.

Thank you Vincent.

So the way we approached it and I don't remember, it's all public I was with it so we announced one ecolab.

Speaker #1: Our next question is from the line of Vincent Andrews with Morgan Stanley. Please proceed with your question.

Speaker #8: Thank you . Good afternoon . Christoph , if I could ask you for an update on one Ecolab in particular . I know the focus initially was the top 35 customers .

A year plus ago as you remember.

Mid of last year, and we said so we'll start with three customers in three Beatrix industries of the company.

Speaker #8: So, as we get to year-end 2025, where will you be in terms of sort of the work you wanted to do with that top 35?

To move to the weird stuff.

We call it internally the Max seven and not exactly the same as the ones you would have in mind, but some of you'll see saw in 'twenty five and then to move towards the top 20 <unk> 2026.

Speaker #8: And as we get into '26, will you be rolling it out more aggressively to the next 25 or 50, or what have you? Or how should we think about the layering in of incremental Ecolab efforts from '25 to '26?

To really make sure we can demonstrate that customer after customer and learn.

Speaker #3: Thank you . Vincent . So the way we approached it , and I don't remember how public I was with it . So we launched one Ecolab a year plus ago .

As an organization.

Well without boiling the ocean.

It's progressing very well customers are very receptive and the best example is really sore.

Speaker #3: As you remember , mid of last year . And we said so we will start with three customers in three major industries of the company to move towards the we call it internally , the Max seven .

In beverage.

United.

Where we brought hygiene and water together.

In North America.

Which do you see the results in food and beverage. So all the growth trends have shifted towards higher growth, it's exactly driven by one ecolab focused on.

Speaker #3: They're not exactly the same as the ones you would have in mind, but some are obviously so in 25. And then to move towards the top 20 E15 in 2026 to really make sure we can demonstrate that customer of the customer and learn as an organization as well, without boiling the ocean.

Some of those critical customers. It's we're in a hole 90 came from when we acquired Michael by the way in 2011. So it's an old idea that's coming to life very well received by customers working in terms of growth and we will expand as we move forward in 2026.

Speaker #3: It's progressing very well . Customers are very receptive and the best example is really some food and beverage . United , where we brought hygiene and water together in North America , which you see the results in food and beverage .

The next question is from the line of Patrick Cunningham with Citigroup. Please proceed with your question.

Oh, hi, good afternoon.

Speaker #3: So how have the growth trends shifted towards higher growth? It's exactly driven by one Ecolab focused on some of those critical customers.

I think.

How should we think about SG&A leverage, particularly pest in life Sciences next year as you start to lap some of the growth investments we've made across both businesses.

Speaker #3: It's where the whole idea came from . When we acquired Natco , by the way , in 2011 . So it's an old idea that's coming to life very well received by customers working in terms of growth , and we will expand as we move forward in 2026 .

Is it a relatively linear path to 2027 targets or is there sort of a continued step up in growth investments embedded next year.

Thank you Patrick So Scott was looking for a question. So this is a perfect segue.

I would suggest we started this journey in general as well and then focusing on this too.

Speaker #1: The next question is from the line of Patrick Cunningham with Citigroup. Please proceed with your question.

Yeah, Hey, Thanks, Patrick.

We've talked about SG&A productivity has been a great story over the last several years less in 2019, our SG&A leverage has improved to 150 basis points and we're expecting to improve another 20 to 30 basis points. This year for full year 2025.

Speaker #9: Hi . Good afternoon . You know , I think you know , how should we think about SG&A leverage , particularly in pest and life sciences next year as you start to lap some of the growth investments you've made across both businesses , is it a relatively linear path to your 2027 targets , or is there sort of a continued step up in growth investments embedded next year ?

As we talked about at Investor day beyond 2025, with the benefit of the one ecolab savings that we're driving and net of investments. We will continue to invest in the business in that leverage I expect it to be pretty broad based certainly we're investing enough in the growth businesses the growth engines, but expect going forward to deliver <unk>.

Speaker #3: Okay . Thank you , Patrick . So Scott was looking for a question . So this is a perfect segue . And I would suggest we start this journey in general as well .

Speaker #3: And then focusing on these two. Yeah, yeah.

5% to 50 basis points of SG&A leverage benefiting from the one ecolab program and the technology, we're deploying and what are really the.

Speaker #2: Thanks , Patrick .

Speaker #10: As we've talked about, productivity has been a great story over the last several years, particularly since 2019. Our leverage has improved by 150 basis points.

On that whole journey, it's not becoming cheap and saving money left on the right.

Speaker #10: And we're expecting to improve another 20 to 30 basis points this year for full year 2025 . As we talked about at Investor Day , beyond 2025 , with the benefit of the one Ecolab savings that we're driving and net of investments , we will continue to invest in the business and that leverage , I expect it to be pretty broad based .

Leveraging digital technology.

Agents.

We have many now.

In our organization, that's why being recognized as one of the leading AI company in the World. It was a really cool newest so for us, it's really leveraging technology to do more with less.

And we are still early on that journey. So I think he's going to keep getting better. So really good work here that that's feeding ultimately the growth story that we want to capture.

Speaker #10: Certainly we're investing in the in the growth businesses , the growth engines , but expect going forward to deliver 25 to 50 basis points of leverage , benefiting from the one Ecolab Inc and the technology we're deploying .

Yeah.

Thank you. The next question is from the line of Manav Patnaik with Barclays. Please proceed with your question.

Speaker #3: And what I really love on that whole journey, it's not about becoming cheap and saving money. So left and right, it's about leveraging digital technology agents.

Thank you good afternoon pushed off I just had a question you know the 85% of your business. The core I guess that he said was growing 4%.

Speaker #3: We have many now in our organization. That's why we are being recognized as one of the leading AI companies in the world. So, it was really cool news.

Assuming the macro stay the same I guess it sounds like it's the growth engines that could take that higher and so I'm just trying to understand from your perspective, how long do you think before that mix is big enough to start you know me.

Speaker #3: So for us, it's really about leveraging technology to do more with less. And we are still early on that journey. So I think it's going to keep getting better.

Moving moving the needle because you've obviously delivered well on the margins and EPS and I think we're all looking to see revenue growth can be better.

Speaker #3: So, really good work here that's feeding ultimately the growth story that we want to capture.

It's a great question.

Sharing so I think thats, a day and with the team.

The beauty of the company is our broad exposure to end markets.

Which means that we won't have all end markets and the rent at the same time, which means that we won't have all end markets and the green same time.

So focusing on this 15%.

You bet.

Our time to make sure that those loans are becoming less of a drag in ultimately.

Positive driver, but when we look at these 85% growing 4% in mid teens.

The growth engines are growing 12% and even more on operating income so which is a very good story of Evo was going to add to it.

As mentioned earlier, obviously saw.

Hi Tech is going to get bigger.

That group of gross engines is growing double digit obviously that mix is going to shift towards them.

Over time.

And I think that in the next few years as growth engines.

Going to become a relevant part of our company, it's roughly 20% today at $3 billion.

I would not be surprised if it becomes 30% to 40% in a few years down the road.

The next question from the line of David Begleiter with Deutsche Bank.

With your question.

Christoph on their price surcharge, how much did you realize and what that surcharge now fully in place should we think about this 3% pricing continuing for the next perhaps two or three quarters. Thank you.

It's hard to know exactly because some businesses like institutional for instance decided to bring.

And also the same in 'twenty, two so nothing to use or too heavy directly so within the structure of price.

So we don't have a perfect tracking up that and honestly I don't really care, if we get any way.

Also converging towards structure and price.

So it was the surcharge we closer to three.

That's why I'm, saying two to three.

Is the sweet spot and since we round those numbers, sometimes you might be rounding down to two and sometimes two three.

But I feel pretty good.

Thank you, Christophe, on the price surcharge. How much did you realize with this surcharge now that it's fully in place? Should we think about this 3% pricing continuing for the next perhaps 2 to 3 quarters? Thank you.

Where we all know our objective is to stay closer to three.

But it depends on what's happening with the terrorists as well.

We're looking at as well as what's happening with China.

Weak we would know that in the next few days as well. The good news is that we know exactly how to manage that if we need to and it leads to a very good margin performance. So.

For me to G. III is the sweet spot and our objective is to be as close to three as we can.

Okay.

The next question is from the line of Chris Parkinson with Wolfe Research. Please proceed with your question.

Great. Thank you so much im just taking a little bit more into the life Sciences segment.

Understanding it's been volatile over the last few years. However, it seems like there's a decent recovery pending in bio processing and pharma, so and so forth. So if we could hit on the top line first that'd be helpful. And then if we could move into just the.

You know, it's it's hard to know exactly because some businesses, uh, like institutional for instance, has decided to to bring. Uh, and that was the same in 22, so nothing new. So too, heavy directly So within the structural price, um, so we don't have a perfect tracking of that, and honestly, I don't really care because anyway, uh, also converging towards structural price. Um, so with the search charge, we, we closer to 3. Um, obviously. That's why I'm saying. 223, um, is the, is The Sweet Spot and since we round those numbers, sometimes you might be rounding down to 2 and sometimes to 3. Um, but I feel pretty good um, with with where we are now. Our objective is to stay closer to 3, um but it depends what.

The capacity additions, where we stand there and your ultimate progress towards 2010 goals and how you feel about them. Thank you so much.

Thank you Chris.

It's a business in an industry that I love and as odd as it has been.

The last few years I would do it again, and we will love where this business is heading.

Happening with the terrorists as well. Um, well again, as well as what's happening with China. Um, this week, we will know that in the next few days as well. The good news is that we know exactly how to manage that, if we need to, and it leads to very good margin performance. So for me, $223 is the sweet spot, and our objective is to be as close to $3 as we can.

<unk> team focused exactly on the right innovations that the pharma industry.

The next question is from the line of Chris Parkinson, with Wolf Research. Please receive a quick question.

Looking forward to produce foster high quality lower cost drugs at a lower environmental impact really converging.

With with an ecolab model when I look at the.

The three elements that you mentioned, so top line capacity and marching song, let me take them one by one so the top line we've been growing so low to mid single the last two years that both less than what we had.

Great, thank you so much. Um, please take a look a little bit more into the life science segments. Um, understanding it's been, you know, volatile over the last few years. However, it seems like there's a decent recovery, you know, pending in bioprocessing in pharma, so and so forth. So if we could hit on the top line first, that would be helpful. And then if we could move into just the, you know, the capacity additions, where we stand there and your ultimate progress towards 2027 goals and how you feel about them. Thank you so much.

Planned for.

When we acquired pure light while that was during a time when the market went down and most of our competitors. So went down in terms of growth doesn't make it great for us, but at least it's adding some perspective when I look at the growth trajectory that we have now.

It's clearly accelerating I mentioned is Q4 is going to be a bit softer because it compares to a huge growth in Q4 last year, but underlying it is clearly accelerating.

Thank you, Chris. Um, it's it's a business and industry that I love and as hard as it's been, um, the last few years, I would do it again and and we would love uh, where where this business is is heading. Uh, great team focused, exactly. Um, on the right innovations that the farmer industry um is looking forward to produce faster, high quality, lower cost drugs, at the lower environment. The impacts are really converging um with with an Ecolab model when I look at um

<unk> is very strong getting more commercial drugs as well so in our pipeline, which makes a big difference.

Obviously.

And the team keeps getting stronger and better as well one of the only few companies, having as well at capacities in various places around the world that adds to the resilience as well to it and we asked the whole water component.

The the 3 elements that, that you mentioned. So Top Line capacity. Um, and margins, let me take them, uh, 1 by 1. So the Top Line we've been growing so low to mid single, um, the last 2 years, uh, that was less than what we had, uh, planned for um, when we acquired pure light. Well, that was during a time where the market went down and most of our

Environmental hygiene that the other ones do not as well so top line.

Finally, so getting from goods too much better and it's going to keep extra ranking with one caveat is this capacity John is that we have in our purification business just because we have a max capacity of what we can manufacture that's our plan.

In China in mid 2026 is going to open and he is going to enable us to unleash that growth in that part.

Well, if the business, which is going to be great for the local market and as well for some international markets and last point.

On the margin as we've shared as well.

Activities. So when down in terms of growth, doesn't make it great for us. But at least it's adding some perspective when I look at, um, the growth trajectory that we have now, um, it's clearly accelerating. I mentioned, this Q4 is going to be a bit softer because it compares to a huge growth in our EQ for last year, but underlying it's clearly, um, accelerating the new business is very strong. We getting more commercial drugs, um, as well. So in our pipeline, which makes a big difference, um, obviously. Um, and the team keeps uh, getting stronger and better as well. We 1 of the only few companies having as well, capacities in various places around the world that add to the resilience as well to it, and we add the whole water component, um, and environmental hygiene that the other ones do not. Um,

Investor Day, we are kind of in this mid teens today.

Underlying it's more mid twenties.

Because of the investments that we're making in that business as we build that franchise. So from the mid twenty's to the therapy.

We see a clear path, but our focus is really to drive growth that phase of the investments and then start to drive margins. Once we get enough growth that we can leverage the critical mass that we've built.

Our next question is from the line of John Roberts with Mizuho Securities.

With your question.

Thank you in hospitality you use a metric called seats in the seats.

Could you give us an update on that it seems like we have a lot of mixed trends going on in the full service restaurant market.

So thank you John.

I'm using to terms of foot traffic.

For our business Europe is as you know so it's it's been very different versus in 2019 saw before.

International markets, and last point, um, on the margin. Um, as we've shared as well, uh, at the Investor Day, we are kind of in this meetings of today. Um, but underlying, it's more mid-20s, um, because of the investments that we are making in that business as we build that franchise. So from the mid-20s to the 30, um, we see a clear path, but our focus is really to drive growth in that.

All of it.

People going and sitting in a restaurant so.

Investment, and then start to drive margins. Once we get enough growth, we can leverage the critical mass that we've built.

130%.

2019, and that Hasnt changed.

Our next question is from the line of John Roberts with MUO Security.

Unfortunately, or fortunately, depending on how we wanted to get at.

This is easier question.

A third of the people saw or just.

Going for takeaway for delivery.

Delivery or for drive through the famous three D.

Thank you. In hospitality, we use a metric called seats in the seats. Could you give us an update on that? It seems like we have a lot of mixed trends going on in the full-service restaurant market.

So we see a stabilization.

Of the foot traffic, which is kind of a good news, but we've gotten used to that.

Model and ultimately with all the digital solutions that we have offered to that industry to manage.

This different way of selling products with less people as well it's been a very good story, because we could grow very nicely because what we did but even more important to the hospitality industry any facade at the higher margin.

So thank you John. Uh, so I'm using the terms of food traffic, um, uh, for um, our our business here. It's um, as you know, so it's it's been very different uh, versus than 209. So before uh Soviet um people going and sitting in our restaurants, so um it's down 30% uh, versus 2019 and that hasn't changed. Um,

As well so less volume.

Better margins very good growth and I think for US it's been exactly.

What we needed and it's made institutional or the hospitality business, even much better than what it used to be and you can seek in the margin industrials are 20% today and it's going to keep moving up with very nice topline growth as well. So so far so good and the last point I'd say as well is that with <unk>.

Unfortunately, or fortunately, depending on how we want to look at it. Um, a third of the people saw are just, um, going for take away for, um, delivery or for, um, drive through the same as 3D. Um, so we see a stabilization, um, of the foot traffic, which is kind of a good news, but we've gotten used to that, um, new model and ultimately, with all the, uh, digital solutions that we have offered to that industry, to manage. Um,

Specialty business.

He is doing extremely well doing even better than full service restaurants.

So the Qs.

The fast food business is growing into high single.

Very good.

This different way um of selling products with less people as well, it's been a very good story because we could grow very nicely because what we did was even more important to the hospitality industry and it was sold at a higher margin uh as well. So less volume.

Story, as well, there, which helps us capture.

For people Golar depending on.

We're kind of eight times debt to be facing so overall net net a very good story and a very new market.

The next question is from the line of Jeff Zekauskas with Jpmorgan.

With your question.

Thanks very much.

In the water business this quarter and then volume grow.

And and basic industries and paper.

With volume growth negative high single digits and did that represent a deceleration from that number you would experience then.

Better, margins. Very good growth. And I think for us it's been exactly, um, what what we needed and it's made institutional or the hospitality business, even much better than what it used to be. And you can see it in the margin. That's north of 20%. Uh, today, and it's going to keep moving up with very nice Topline drawers as well. So, so far so good. And the last point I'd say, as well as our specialty business, um, is doing extremely well, uh, doing even better, um, than full service restaurants. Um, so the qsr, uh, the fast food business is

Growing into high single digits. Um, it's very good.

Previous quarter.

So thank you Jeff.

As you know.

So we don't disclose so.

And so by by business for obvious reasons.

Story as well there, which helps us capture, um, wherever people go, depending on the economic times that we are facing. So overall, net-net, a very good story in a very new market.

Mentioned, so every segments all had positive growth.

That were reported so that's that's the good news. So there was no segment that was going down and for me. It's really important that all businesses solve maintain positive growth whether you're in high tech where it's much more obvious because the flow of the river is very strong or you're in more challenged businesses like hospitality as we talked about.

The next question, it's in the line of Jessica kasus with JP Morgan.

See if there a question.

Uh, thanks very much.

Um, in the water business, this quarter did volume grow.

And in basic industries and paper.

Before it seemed there so our teams are doing.

Well so water was.

What was volume growth? Negative high single digits. Did that represent a deceleration from the numbers you would have experienced in the previous quarters?

Positive.

That perspective, obviously.

Paper within water.

It was not.

And it's in the low to mid single.

But it's improving so that's why I feel.

Quite.

Optimistic with the next few quarters with our so called underperforming businesses a paper on basic industries.

They're not where they should be they the way exactly the right things at the underperforming.

Underlying.

<unk> of underperforming businesses.

<unk> markets are not.

So uh, thank you Jeff. Um, we here as you know. So we don't disclose so, uh, volumes of by, by business, uh, for obvious reasons. But, but as mentioned, so every segments I had positive graphs, um, that we reported so that's, that's the good news. So there was no segment that was going down and for me, it's really important that all businesses solve maintain Positive Growth, whether you're in high-tech, where it's much more obvious, because the flow of the river is very strong or, um, you're in more challenged. Um, businesses like Hospitality as we talked about um, before and still there. So our team so are doing uh, really well. So,

But net net we're going to get to a good place in the next few quarters. So we're doing all the right things here.

so water, um, was

Okay.

The next question isn't the line of Matthew device with Bank of America.

To answer your question.

Thank you.

Follow up on Vincent's question earlier on cross selling and one ecolab do until you have any idea how much that contributed to organic growth in the quarter or an expectation you can kind of give us for this year as it relates to just overall.

Positive. Um, with that perspective, uh, obviously, um, paper within water, um, was not, um, and it's, um, in the low to mid single, um, but it's improving. Uh, so that's why I feel, um, quite.

Revenue generation.

So-called underperforming businesses in paper and basic industries, um, they're not where they should be. They do exactly the right thing. So the underperforming underlying...

Well Matt.

Good actually so we our corporate accounts as we call it exon driven organization enterprise customers to use a different term as well.

Performance of underperforming businesses. Um is strong markets. Are not but net, net. We're going to get to a good place in the next few quarters. So we're doing all the right things here.

And the top 2015 focus is contributing.

The next question is on the line of Matthew Devo with Bank of America.

Overall average to the growth of the company.

So this is exactly the right place to focus it's always been true.

Thank you. Um,

As a company, but to get the old one ecolab within an enterprise.

Is harder to make you work very well and that's why we've chosen to go with all our innovation all our technology, bringing one ecolab digital services together with the Max seven as mentioned before then the T 20, <unk>. So the top 20 customers in emerging 15, so for next.

A follow up on Vincent's question. Earlier on cross-selling in 1 Ecolab. Do we know do you have any idea how much that like contributed to organic growth in the quarter or an expectation? You can kind of give us for this year as it relates to just overall

Revenue generation.

<unk> as well, but they are doing better than the average of the company as well. So it's clearly a strategy thats working and as we expand the focus beyond the 35 customers. It's gonna have drive as well as better performance for the overall company and higher margin because it's healthy.

Customers drive even more efficiencies within.

Well, uh, Matt. It's it's, it's very good. Uh, actually. So we are a corporate account as we call it. It's a driven organization, Enterprise customers, uh, to use a different term as well. Um, and uh, the top 20 E15 focus is is contributing, um, over average uh, to the growth of the company. Um, so this is exactly the right place. Um, to focus, it's always been true um as a company but to get the whole 1 E collab within an Enterprise. Uh,

Their own operations and the Best example is food and beverage.

And beverage United as we call it within our own company.

Where we brought hygiene and water together and you can see the performance of food and beverage has been remarkable in the third quarter and it's going to keep getting better it's only north America that'd be done it.

Right away and it's a very global business, serving global customers with global quality standards.

Woods.

Imagine this one is going really well, it's a great team with great customer.

Feedback.

Also because no one else can do it as well, which is a great way for us to strengthen our moat. So generally just one ecolab approach on our enterprise customers is really working and it's gonna be a growth driver for the years to come.

Is hotter to make before it could very well and that's why we've chosen. So to go with all our Innovation, all our technology, bringing 1 Eola Digital Services together towards those Max 7 as mentioned before, then the T20 e-15. So the top 20 customers and emerging 15. So for next year as well, but they're doing better than the average of the company, um, as well. So, it's clearly a strategy that's working. And as we expand the focus Beyond, um, those 35 customers, it's going to help drive as well. Better performance for the overall company at higher margin because it's helping customers Drive even more efficiencies within, um, their own operations. And the best example is food and beverage,

Food and beverage, as we call it, United. So, within our own company, we've brought hygiene and water together. You can see the performance of food and beverage has...

Thank you.

The next question is from the line of Mike Hansen, Mike Harrison excuse me with Seaport Research Partners. Please proceed with your question.

Hi, good afternoon Christoph.

Christophe.

Kind of following up on what you were just talking about with food and beverage the performance this quarter was that.

The best organic growth that you've shown in several quarters.

Remarkable, um, in the third quarter, and it's going to keep getting better. It's only North America that we've done it. Um, by the way, it's a very global business serving global customers with global quality standards, um, as you would, um, imagine. And this one is going really well with a great team and great customer, um, uh, feedback.

Mentioned that there is some momentum from one ecolab and from pricing, but I was hoping you could help us understand a little bit more about what's going on with underlying market dynamics.

That you're seeing there and to the extent that you are winning new business is that mostly share of wallet.

Also, because no one else can do it as well, which is a great way for us to strengthen our amount. So generally, this one collab approach with our enterprise customers is really working and it's going to be a growth driver for the years to come.

Thank you.

And one of your co lab opportunities with existing customers or are you seeing some new wins in that business and food and beverage as well.

The next question, from the line of Mike Hansen. Mike Harrison, excuse me, with Cport Research Partners. Please receive your questions.

A good question.

Mike It's a.

4% organic growth.

Food and beverage is strong so for sure.

Yes.

It's much better than the market consumer goods are not exactly growing fast when you look at the companies out there.

Because they saw a famous names out there closer to flat and then.

Two mid single type of growth, so really pleased with the performance that we're driving and.

And we're doing it while increasing our margins.

Well at the same time, so it's almost the perfect play what's happening in food and beverage here with this unification.

Hi, good afternoon. Uh, Kristoff, uh, just uh, kind of following up on what you were just talking about with food and beverage. The performance this quarter was, I think, the best organic growth that you've shown in several quarters. Uh, you mentioned that there is some momentum from 1 Ecolab and from pricing, but I was hoping you could help us understand a little bit more about what's going on with underlying market dynamics that you're seeing there. And to the extent that you are winning your business, is that mostly share of wallet, uh, and 1 Ecolab opportunities with existing customers, or are you seeing some new wins, uh, in that business, uh, in food and beverages as well?

Hygiene and water and again, it's only North America that we've done it so far which is let them off our global business like showing how well it's working.

Good question. Um, Mike. It's, uh,

That all approach and to your point on the share of wallet.

White space is it's a combination.

Of bowls, we get things gaining.

Definitely some some new customers.

New plants as well within existing customers as well because by bringing water and hygiene together, we had them not only produce.

4% organic growth, um, in food and beverage, uh, is strong. Uh, so for sure, um, it's, um, it's much better than the market consumer goods are not exactly growing fast. Um, when you look at the companies out there all the, because they saw a famous names, uh, out there as a closer to, to Flat, um, than to Mid single, uh, type of growth. So really pleased with the performance that we're driving. Um, and we're doing it while increasing our margins. Um,

Higher quality safer food, but reduce a lot of cost as well at the same time, so in a slow growth industry, that's exactly what they're looking for so what we're doing for them is exactly what they are expecting but at the same time.

Adding digital technology.

Definitely monetize charge for using a different term and we get this weather value share. So our share of the savings we are generating for them in terms of value pricing. That's also incrementals. So it's a combination of white spaces and share gains overall and also story.

For probably one of our best global businesses that we have.

Hygiene and water. And again it's only North America that we've done it so far which is uh less than a half, um, our Global business. So it's showing how well it's working. Um, that all approach and to your point on the share of wallet. Um, and uh, um, white spaces, It's a combination, um, of both, we get in gaining, uh, definitely some some new customers, um, new plants as well within existing customers, um, as well, because by bringing water and hygiene together, we help them. Not only produce

Our next question is from the line of Laurence Alexander with Jefferies.

With your question.

Good afternoon.

It looks like your operating results are running I mean, your organic growth is running pretty much in line or better than what you thought earlier in the year.

FX looks like it's basically double the tailwind of what it was last year can you talk a little bit about the gives and takes and what levers you have to pull if currency moves the other way next year.

Yeah. Good question Laurence.

Is it too.

Scott because its an FX DPC question, yeah. Thanks Laurence.

Higher quality safer food, but reduce a lot of cost um as well as the same time. So in a slow growth industry, that's exactly what they're looking for. So what we're doing for them is exactly what they're expecting. But at the same time, um, we adding digital technology um that will monetize or charge for um using a different term and we get as well, the value share so our share of the savings we generating for them in terms of value pricing. That's also incremental. So it's a combination of white spaces and uh share gains overall and awesome story for probably 1 of our best Global businesses that we have.

As we've talked about the underlying performance remains really strong.

So even with FX I mean, the underlying EPS is always growing double digits and if you think about just in Q3 itself. While FX is in line with what we expected and as we guided you also have the impact of year over year SG&A comp that is that is offsetting that FX and benefit of the nonoperating. So that underlying growth is really very strong.

Our next question comes from Lawrence Alexander with Jeffries. Please, just see if there are questions.

Good afternoon. Um,

Like your operating results are running. I mean your organic growth is running pretty much in line, or better than what you thought earlier in the year.

We previewed that the year over year comp and SG&A during the Q2 call and expect that Q2 or Q4 Q4 performance to continue as the SG&A normalizes, but we also are seeing commodity costs growing low to mid single digits in overcoming that as well.

FX looks like it's basically double the tailwind of what it was last year.

Can you talk a little bit about the gives and takes and what levers you have to pull with currency moves the other way next year?

The next question.

Line of Jason Haas with Wells Fargo. Please proceed with your question.

Hey, good afternoon, Thanks for taking my question.

I'm curious if you could just talk about the pest business have you seen any.

Increasing.

Certainly there are any increased competition in that space recently, thank you.

So if I understood well your question so on past Jason.

DTD SG&A.

And versus competition.

Is it what you asked.

Sorry, just to be more clear I'm asking if there if the customer acquisition costs have gone up at all if you've seen any any step up in competition.

Yeah, uh, good question. Lawrence, uh, let me ask you to, uh, discuss because it's an effect. Uh, DBC question. Yeah, thanks Lawrence. Um, hey, as we've talked about the underlying performance remains really strong. Um, so even with FX, I mean, the underlying EPS is the oi is growing double digits. And if you think about just in Q3 itself, while FX is in line with what we expected. And as we guided, you also have the the impact of year-over-year sna comp that is that is offsetting that FX and and benefit of non-operating. So that underlying growth is really, uh, very strong. We previewed that the year-over-year components today during the Q2 call and expect that Q2, our Q4 Q4 for performance to continue as um, you know, the sgna normalizes. But we also are seeing commodity costs. Um, growing a little low to mid single digits in overcoming that as well.

From one of the major players out there. Thanks.

Customer acquisition costs, Okay, I wanted to make sure so I got it right.

The next question is from the line of Jason Hos with Wells Fargo. Please see if there are questions.

Jason.

Actually it's it's become easier.

Hey good, good afternoon. Thanks for taking my question.

Because and we early on that journey as mentioned so we got.

One major.

Taylor.

In the U S. We get into the second.

I'm curious. If you could talk about the the past business that you've sent seen any um, increasing uh, costs for leads or or any increased competition in that space recently. Thank you.

As we speak we wanted to do it.

Large customer by large customer it's not the geographic play customer play because ultimately one brand wants to be say safe.

Hey, F just doing well, your question, so on, on past Jason, so the um, uh the the DSG, and a um in versus competition.

Is it what you asked?

And not have any.

Issue in social media or whatever we need to concentrate on guest satisfaction and quality of the experience of the food.

Sorry, just to be more clear. I'm asking if there if the customer acquisition cost have gone up at all, if you've seen any um, any type of things and competition, uh, from from 1 of the major players out there. Thanks.

Obviously here, but what we offer here with old and digital technology all of the AI.

That we've developed within the company for many years now well is serving the needs of.

Customer acquisition cost. Okay, I wanted to make sure I got it right. Um, Jason, um, actually it's big. Um, easier. Um, because anyway, early on that good, as mentioned, so we got um, one major.

Our intelligence business.

No one else can.

<unk> provides as much technology as we can and have such a backbone like ecolab three D as well at the same time so.

Retailer, um, in, uh, in the U.S., we get in the second, um, as we speak, we won't need to do it.

It's a leading.

<unk>.

Heads.

The competition customers are very open to it and what I really like as well with it is that the whole industry even.

Large customer buy, large customer. It's not the geographic play; it's the customer play. Because ultimately, one brand wants to be safe and not have any issues on social media or whatever. They really want to concentrate on guest satisfaction and quality of the experience.

If not moving all at the same pace.

<unk> is trying to add value to customers and get paid for it as well at the same time, so very healthy competition.

And it's a good thing for customers and for the guests are the ultimate consumer so the other thing whatever those locations are.

Ultimately and in terms of operating costs, well when 95% of few time was spend in the past you'd checking devices that were empty and you spend 5% of your time doing needs of tomorrow within your system. Your operating costs are getting better and you can spend much more time acquiring.

New customers and serving them.

It is bad right, which is why our margin is improving as well at the same time loves that business getting a key buckets on a strong base of performance right now, it's going to keep improving as well.

We move forward and margin is margin is going to improve as well I don't want to make sure that we keep investing as well in there because.

Until we are 100% with the best intelligence model around the world. While it was not slow down our investments that has little impact on the operating margin, but it's been improving as you could see it in Sop, we know sub 20% now.

Our next question is from the line of Josh Spector with UBS.

With your question.

Yeah, Hi, good afternoon, I wanted to ask on the general context, you talked about 26 confident in the low to mid teens EPS growth I think around this time a year ago. You made comments around you don't really need strong volumes to get there you were really confident in the price cost equation.

I really like as well with it is that the whole industry um even um if not moving all at the same Pace um is trying to add value to customers and get paid for it um as well at the same time, so very healthy competition. Um and it's a good thing for customers able to guess or the ultimate consumers of the thing, whatever those locations are. Um ultimately and in terms of um operating cost well when 95% of your time was spent in the past um checking devices that were empty and you spend 5% of your time doing it. So tomorrow within your system, you're operating costs are getting better and you can spend much more time acquiring new customers and serving them in a even better. Which is why our margins is improving as well. At the same time. I love that business. It's going to keep back. It's on a strong base of performance.

I guess when you sit here today and look out a year do you feel the same way that you can kind of get there was zero to 1% volumes and if you start to see an acceleration that's upside or would you frame it differently.

I see exactly the same way.

Performance right now, it's going to keep improving. Um, as we move forward, and margins is margin is going to improve as well, but I want to make sure that we keep investing as well in there because uh until we are 100% with the best intelligence model around the world, while we will not slow down our investments, that has the impact on the operating margin, but it's still improving as you could see, it's inside.

We know it's at 20% now.

The way that you've described it was the only caveat.

We don't know so how the environment is going to be in 'twenty six.

Our next question is from the line of Josh Spectre with UBS. This is your question.

We had a very firm plans for 25 with very.

Strong FX headwinds.

Delivered product costs that would be.

Really helping what it goes exactly the other way around but it happened in 2025 and still.

We delivered what we promised in terms of applying but most importantly in terms of bottom line. So.

When I think about.

26 for me, it's going to be a strong year very similar to 25, 3% to 4%.

Yeah, hi, good afternoon. Um, I wanted to ask, from a general context, you talked about 26% confident in the low to mid teens EPS growth. I think around this time a year ago you made comments around, you don't really need strong volumes to get there. You're really confident in the price-cost equation. I guess when you sit here today and look out a year, do you feel the same way that you can kind of get there with 0 to 1% volumes? And if you start to see an acceleration, that's upside? Or would you frame it differently?

Line positive volume teaches III price to drive these towards 15% EPS and at least 100 basis points in terms of operating income margins up to get to 19, plus which is bringing us closer to the 20% that we committed to.

I see exactly the same way. Um, I...

For 2007, FX not gonna be ahead infill.

Inflation might be a little bit of a headwind in 'twenty six and everything else that we don't know put up.

Feel really good on that trajectory and to your point if things improve if our end markets are even more open to what we do well that's gonna be upside and that's why.

I feel really good.

The way to keep described it, uh, with the only gabat, uh, we don't know. So how do you environment, uh, is going to be in 2026? Um, we had some very firm plans for 2025, um, with very strong FX headwinds, um, and, uh, delivered product costs that would be, um, really helping while it goes exactly the other way around. But it happened, um, in 2025, and still, uh, we delivered what we had promised in terms of applying, but most importantly in terms of bottom line. So, um, when I think about, um, 2026, for me, it's going to be a stronger year, very similar to 2025, with 3 to 4% um, applied positive volume.

Where we had them in 2026, one more time like it's been in the past few years.

Thank you.

Our final question is from the line of Kevin Mccarthy with vertical Research partners. Please proceed with your <unk>.

Yeah.

Hi, This is Matt on for Kevin Mccarthy.

2 to 3 price to drive these 2 out to 15% uh Epps and at least uh 100 basis points in terms of uh operating income margin. So to get to 19 plus which is bringing us closer to the 20% that we committed to um for 27 FX are going to be a help.

Thanks for all the color on data centers that you gave earlier just following up on that conversation I wanted to get your thoughts on how ecolab is positioned with regards to next generation cooling technologies, such as directed chip cooling, but do you have everything you need to compete and win there.

Or should we expect additional bolt on bolt on deals in that arena.

Yeah.

Love that question Matt.

No one has everything.

They need to.

Inflation might be a little bit, um, of a headwind in 2026 and everything else that we don't know. But, uh, I feel really good on that objective, and to your point, um, if things improve, uh, if our end markets, um, are even more open to what we do, well, that's going to be outside. And that's why, um, I feel really good, uh, with where we're heading in 2026. One more time, like it's been in the past few years.

For the erected cooling this is leading edge Brigitte technology, it's 5% after that our centers those are the U S.

Thank you. Our final question is from the line of Kevin McCarthy with Vertical Research Partners. Please proceed with your questions.

But interestingly enough when you say <unk>.

Hi. This is Matt. How are you on for Kevin McCarthy?

<unk> achieved cooling liquid cooling. This is fluid management. This is exactly what we've done for very long time, so managing fluids in a bunch of different industries obduce. So in a way it's coming closer.

Our own.

Model straight off of science and technology, So when I think.

Uh, thanks for all the color on data center that you gave earlier. We're just following up on that conversation. I wanted to get your thoughts on how Ecolab is positioned with regards to next-generation cooling technologies, such as directed chip cooling. Do you have everything you need to compete in that arena, or should we expect additional bolt-on deals in that arena?

Thank you.

Directed chip cooling well we've talked about.

Our cooling distribution unit that we call coolant intelligence unit, because that integrates <unk> technology that we'd been abuses you're dropping for many many years. So we have that technology in the middle.

Without a center integrating <unk> trays are we've developed as well connected coolant.

Liquid itself so to make sure that you have the best.

Performance to cool the chips as well, we have coolant monitoring systems as well to make sure that you don't want to have leaks. You don't have you don't have anything bad that's happening as well to maximize as well.

The performance of the data center and you have everything else the PUC, that's going up the chain and cheeses and.

Towers.

In towers.

On the roof debates with data centers that'd be surveying has no coding towers on the roof and have no walk in there as well. So we have many pieces that we need.

And we keep dropping and exploring the new PC is that we will need as well in the future and Thats why I think we're just at the beginning of that journey.

But that's.

That's exactly what ecolab should be focused on we should become the owner of cooling technology.

For data centers in the World and Thats, we focusing all our efforts all of our resources and all of our investments as well.

Coming closer, um, to our own, um, uh, Mastery of, um, of science, uh, and technology. So when I think, um, director chip cooling well, we talked about, um, our cooling distribution units that we call coolant intelligence unit because they integrate 3D trays of technology that we've been obviously developing for for many many years. So we have um that uh technology in the middle um of a data center integrating 3D trays are we've developed as well connected uh coolant so the liquid um itself. So to make sure that you have the best um thermal uh performance to cool. The chips as well. We have coolant monitoring systems as well to make sure that you don't have leaks. You don't have bowing you don't have anything bad that's happening as well to maximize as well. Um the

In global high Tech and half of it we do similar obviously with microelectronics.

Different technology as mentioned before its use in recycled of ultra deep water and Thats, where our vivo is playing exactly.

In that C itself, it's really so.

Our dual strategy in high tech to be the owner of soak in the water.

The performance of the data center and everything else that you see that's going up the chain in chillers and, uh, towers, um, either the same towers, um, on the roof. The latest data centers that we are serving have no cooling towers on the roof and have no water in there as well. So we have many pieces that we need, and we are developing and exploring the new pieces that we will need as well in the future. And that's why I think.

Oh trucks, you water standards in microelectronics and cooling technologies.

In data centers, and that's why I'm, so bullish about what we've done where we ought to die, but most importantly, where we're going and that's why I'm, saying.

It's going to change over time the growth profile of this company.

A huge growth wave and we are very well positioned.

I think we are just at the beginning of that journey. Uh, but that's the field. That's exactly what EOL should be focused on. We should become the owner of cooling technology for data centers in the world. And that's where we are focusing all our efforts, all our resources, and all our investments as well. Um, in global hijacking on top of it. Um, we do similar, obviously, with microelectronics.

On that wave so we like where we are and the competitive set is strong out there, but no one understands coding and what are better than we do so I would clearly bet on the ecolab team.

Okay.

Thank you.

This time, we've reached the end of our question and answer session I'll turn the floor back to management for closing comments.

Thank you that wraps up our third quarter Conference call. This conference call and the associated discussion slides will be available for replay on our website. Thank you for your time and participation and hope everyone has a great rest of your day.

Ladies and gentlemen, this concludes today's conference.

Your lines at this time and have a wonderful day.

Different technology as mentioned before which we use and recycle of Ultra Pure Water. And that's where a Vivo is playing exactly, um, in that field. So it's really serving. Um, our dual strategy in high-tech, to be the owner of circular water, um, at Ultra Pure Water, uh, standards in micro electronics and cooling Technologies, uh, in data centers. And that's why I'm so bullish about what we've done where we are today, but most importantly, where we going, and that's why I'm saying, um, it's going to change over time, the gross profile of these companies because it's a huge growth wave and we very well positioned um uh on that wave. So I really like where we are. The competitive Set uh, is strong out there but no 1 understand Cooling and water better than we do. So I would clearly bet um on the Eco lab team.

Thank you. At this time, we've reached the end of our question-and-answer session. I'll turn the floor back to management for closing comments.

Thank you. That wraps up our third-quarter conference call.

This conference call on the associated discussion, slides will be available for replay on our website. Thank you for your time and participation, hope everyone has a great rest of your day.

Ladies and gentlemen, this concludes today's conference. Please disconnect your lines at this time. Have a wonderful day.