Is Ecolab Still The Business You Bought?

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If you own Ecolab (ECL), you likely bought the stock for its steady profits. On the company’s July 28, 2026 call, management said Ecolab had bought the liquid cooling company CoolIT Systems. So is the Ecolab you hold today the same company you bought?

Partly: Ecolab’s Debt Now Exceeds Shareholders’ Equity

Ecolab’s sales are still growing, but its balance sheet no longer looks like the one you bought. At the end of the quarter ended June 30, 2026, Ecolab reported total debt of $13.9 billion against shareholders’ equity of $10.1 billion.

That had not happened in more than two years. From March 2024 through March 2026, Ecolab’s debt stayed below its equity for nine quarter ends in a row. As recently as March 31, 2026, Ecolab owed $9.27 billion against equity of $10.0 billion. Its debt then rose by about half over the following three months.

Ecolab Borrowed To Buy CoolIT, And Sales Kept Growing

Ecolab borrowed to pay for CoolIT Systems, and management said its earnings outlook for 2026 includes financing costs from that acquisition. The company also ended the June quarter holding $5.14 billion of cash and short-term investments, compared with $1.92 billion a year earlier. Net of that cash, its debt was $8.78 billion. But the CoolIT deal closed on July 2, after the quarter ended, so the June 30 figures do not yet show the purchase.

The underlying business still looks like the one you bought. Revenue in the quarter ended June 30, 2026, was $4.42 billion, up 9.7% from a year earlier. Ecolab retained 18.2% of that revenue as operating profit, compared with 18.3% in the second quarter of 2025. Management said growth in its global high-tech business, which serves microelectronics and data centers, sped up to 29% in that quarter. So Ecolab’s business has held up, and its balance sheet is what has changed.

What Ecolab’s Borrowing Means For Your Money

Ecolab said on the call that it was increasing its outlook for 2026. Management now expects adjusted earnings per share of $8.05 to $8.25 for 2026. The $8.15 midpoint is below the $8.53 it forecast in April, but the April forecast left out the CoolIT costs that the new range includes. Management said the range reflects noncash amortization and financing costs from the CoolIT acquisition.

Ecolab still earns far more than its interest bill. Over the twelve months ended June 30, 2026, its operating income was 9.4 times its interest expense. Ecolab’s debt rose only in the last three of those months, so that figure includes at most one quarter of interest on the new borrowing.

From March 2024 until Ecolab bought CoolIT Systems, you could assume its debt stayed smaller than its shareholders’ equity. You can no longer assume that, though its sales growth and operating margin have held up. When the company reports in October 2026, Ecolab’s total debt against its shareholders’ equity at the September 30 quarter end will be the number to watch.

How To Act On ECL?

Not necessarily on Ecolab alone, if your goal is long-term wealth. Wealth is built by owning the companies that keep outperforming, the leaders of their industries, wherever they are. In Ecolab’s own industry, NewMarket stock rose 159% and Element Solutions stock rose 55% over the five years to October 2026, while Ecolab stock rose 40%.

Finding companies like these takes comparison across industries and sectors, and that is what the Trefis High Quality (HQ) Portfolio does. It holds 30 quality companies in equal weight and, since its inception in September 2020, has returned more than 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000. See how we find the leaders.

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