Summary Conclusion This quarter’s results met expectations, with adjusted EPS growth of 13% landing at the midpoint of the annual guidance range, primarily driven by strong pricing and accelerating growth engines.

Key Data Organic sales grew 4% (pricing +3%, volume +1%), operating margin expanded 70 bps to 16.8%, and adjusted EPS increased 13% year-over-year.

Business Progress Global High Tech grew over 20%, Life Sciences increased 11% (bioprocessing business doubled), and Pest grew 7%. The CoolIT acquisition has exceeded expectations, with Q1 sales approaching triple-digit growth; OVIVO’s backlog far surpassed expectations, forming a $1.5 billion high-growth segment alongside CoolIT and High Tech. One Ecolab drove the top 35 customers to grow at a pace significantly above average, and F&B United North America grew 5%.

Guidance & Outlook Full-year adjusted EPS growth is maintained at 12%–15% (excluding short-term dilution from CoolIT). Organic sales in 2H are expected to be 6%–7% (5%–6% pricing + 1% volume). Commodity costs rose by high single digits in Q2, but the energy surcharge was implemented in April, fully offsetting the dollar impact expected by end-Q2. Gross margin in 2H is projected to be stable (excluding OVIVO, it increased 70–80 bps).

Risks/Highlight Signals Highlights: Management has strong confidence in the growth engines; CoolIT and OVIVO have outperformed expectations; the long-term margin target of 20% appears achievable. Risks: Q2 EPS is impacted by “several percentage points” from commodity costs; the CoolIT acquisition adds $0.20 of dilution per quarter (to be eliminated by 2027).