Water technology company Ecolab raised its full-year earnings forecast on Tuesday after reporting an 11 percent increase in adjusted earnings for the second quarter, driven by higher prices, productivity gains, and growth in its high-tech and life sciences segments.
Companies that offer water treatment, cooling, and cleaning systems aim to capitalize on the rapid expansion of data centers focused on artificial intelligence, which require sophisticated cooling and water management technologies.
The company raised its full-year 2026 adjusted diluted earnings per share guidance to $8.05 to $8.25, up from its previous range of $8.03 to $8.23 per share.
For the third quarter, the company forecasts adjusted diluted earnings of between $2.13 and $2.23 per share, compared with $2.07 per share in the prior-year period.
Ecolab explained that operational disruptions at customers due to the conflict in the Middle East, as well as higher raw material costs, weighed on the quarter. However, prices rose by 4 percent, aided by the early implementation of an energy surcharge.
The company expects prices to rise by a total of 5 to 6 percent in the second half of 2026 once the surcharge takes full effect.
Ecolab reported that organic revenue in its “Global High-Tech” business segment rose 29 percent during the quarter, driven by demand from customers in the microelectronics and data center sectors.
The company recently completed the acquisition of liquid cooling provider CoolIT Systems, thereby expanding its presence in the AI infrastructure sector.
CoolIT’s revenue rose by more than 100 percent in the first half of the year prior to the acquisition.
The St. Paul, Minnesota-based company reported adjusted diluted earnings of $2.09 per share for the three months ended June 30, while analysts had expected an average of $2.08 per share, according to LSEG data.
