ECL · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

ECOLAB INC. · 2026-08-06 · Importance 18 · Surprise 14

The reported tax rate increased to 22.3% in the second quarter of 2026 from 19.9% in the second quarter of 2025 and to 22.1% from 20.1% for the first six months. The adjusted tax rate was 21.0% in both 2026 periods versus 20.8% in the comparable 2025 periods. Ecolab recorded $4.2 million of net discrete tax expense in the quarter and $8.6 million year to date, compared with discrete tax benefits of $5.0 million and $5.5 million in 2025. First-half 2026 discrete items included a $14.3 million share-based compensation tax benefit, offset by $22.9 million of expense from prior-year returns, audits, unrecognized tax benefits and estimate changes.

Key facts

• On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S.; an estimate of the financial impact was included in operating results as of June 30, 2026 and OBBBA did not have a material impact to the Company’s income tax expense. source
• Net tax expense related to discrete tax items recognized was $4.2 million in Q2 2026 and $8.6 million in the first six months of 2026. source
• Second quarter 2026 provision for income taxes: $154.9 million source
• Share-based compensation excess tax benefits were a tax benefit of $2.3 million in Q2 2026 and $14.3 million in the first six months of 2026. source
• Net tax expense related to discrete tax items in the second quarter of 2026: $4.2 million, including share-based compensation excess tax benefits of $2.3 million. source
• Net tax expense related to discrete tax items in the first six months of 2026: $8.6 million, including share-based compensation excess tax benefits of $14.3 million. source
• Net tax benefits related to discrete tax items in the second quarter of 2025: $5.0 million, including share-based compensation excess tax benefits of $2.6 million. source
• Reported GAAP tax rate for Q2 2026 was 22.3% and for Q2 2025 was 19.9%. source