Ecolab Inc. stock research
FY2025 Q4
Ecolab (ECL) Gross Margin — Quarter Ended Dec 31, 2025
For the quarter, revenue remained stable sequentially while cost of revenue was unchanged, but gross profit decreased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit increased, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
For the quarter, revenue remained stable sequentially while cost of revenue was unchanged, but gross profit decreased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit increased, leading to a higher gross margin.
- The strongest observable margin driver is the change in gross profit relative to revenue. Sequentially, gross profit declined with revenue flat, weakening margin; year-over-year, gross profit rose faster than revenue, improving margin.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.0%
Gross profit
$1.8B
Revenue
$4.2B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $3.7B | $1.6B | $2.1B | 44.2% |
| Jun 30, 2025 | $4.0B | $1.8B | $2.2B | 44.8% |
| Sep 30, 2025 | $4.2B | $1.9B | $2.3B | 44.8% |
| Dec 31, 2025 | $4.2B | $1.8B | $2.3B | 44.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.8 pts
Year-over-year change
Dec 31, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in gross profit relative to revenue. Sequentially, gross profit declined with revenue flat, weakening margin; year-over-year, gross profit rose faster than revenue, improving margin.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Monitor the company's liquidity and capital resources, including net debt to EBITDA, as discussed in the management's discussion and analysis.