ECL · 10-Q · 2026Q2 · Full report

FX / Currency Headwinds

ECOLAB INC. · 2026-08-06 · Importance 57 · Surprise 64

Ecolab manages foreign-exchange exposure through foreign-currency forwards, cross-currency swaps, and foreign-currency debt covering operations and transactions in Europe, China, Canada, and Switzerland. Foreign-currency translation adjustments produced a $198.6 million cumulative other-comprehensive-income benefit in the first six months of 2026, compared with a $0.9 million loss in the prior-year period, while second-quarter translation adjustments were a $52.4 million loss. As of June 30, 2026, cross-currency swaps designated as net-investment hedges included €2,275 million, CNH 3,984 million, and additional Swiss franc and Canadian-dollar exposures. The company also had $2,612 million of foreign-currency-forward notional contracts and $4,934 million of cross-currency-swap notional contracts outstanding.

Key facts

• Subsequent event: In July 2026 the Company entered into cross-currency swap derivative contracts with aggregate notional amount of CNH 3,385 million designated as net investment hedges of its Chinese Yuan exposures. source
• Total revaluation loss, net of tax, for the six months ended June 30, 2026: ($210.7) million. source
• Currency translation had a favorable impact of approximately $0.04 per share on diluted EPS for Q2 2026 compared to Q2 2025. source
• Revaluation loss on cross-currency swap derivative contracts for the second quarter ended June 30, 2026: ($8.8) million, net of tax. source
• Total revaluation loss, net of tax, for the second quarter ended June 30, 2026: ($8.8) million. source
• Amount of foreign currency forward contract loss reclassified from AOCI to COS for the second quarter ended June 30, 2026: ($3.3) million. source
• Amount of foreign currency forward contract gain recognized in SG&A for the second quarter ended June 30, 2026: $1.5 million (total gain across COS/SG&A/Interest shows SG&A $1.5). source
• Unrealized gain on derivative and hedging instruments amount recognized in AOCI for the second quarter ended June 30, 2026: $29.0 million. source