Ecolab Earnings: Price Increases and Lower Costs Drive Profit Growth and Margin Expansion

Ecolab reported strong first-quarter results as adjusted operating income grew 47% versus the prior-year quarter. The growth was driven by higher prices and volumes and lower product costs, which generated 400 basis points of operating margin expansion. The results exemplify our wide moat rating based on Ecolab's strong pricing power. We expect Ecolab's ability to generate revenue and profit growth through price increases will continue into the future, driving companywide margin expansion over the long term to the high-teens levels from 14% in 2023.