ECL · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

ECOLAB INC. · 2026-10-29 · Importance 29 · Surprise 22

Ecolab's reported tax rate rose to 20.2% in the third quarter of 2026 from 17.8% in the third quarter of 2025, and to 21.4% from 19.2% for the first nine months. Adjusted tax rates were 20.4% and 20.0% for the respective quarters, and 20.8% and 20.5% for the nine-month periods. In the first nine months of 2026, discrete tax items generated $7.5 million of net tax expense, compared with a $21.8 million net tax benefit in the same 2025 period; 2026 included $16.3 million of share-based compensation tax benefits and $23.8 million of other net tax expense.

Key facts

• Ecolab's tax rates were 20.2% in third-quarter 2026 and 17.8% in third-quarter 2025, and 21.4% and 19.2%, respectively, for the first nine months of those years. source
• Ecolab's gross liability for unrecognized tax benefits was $66.1 million at September 30, 2026, versus $53.9 million at December 31, 2025; it did not expect significant payments within the next year. source
• Ecolab recorded net tax benefits from discrete items of $1.1 million in third-quarter 2026 and net tax expense of $7.5 million in the first nine months of 2026. source
• Share-based compensation excess tax benefits for Ecolab were $2.0 million in third-quarter 2026 and $16.3 million in the first nine months of 2026. source
• Ecolab's remaining net tax expense from discrete items was $0.9 million in third-quarter 2026 and $23.8 million in the first nine months of 2026, relating to prior-year return adjustments, audit settlements, unrecognized tax benefits, and other estimate changes. source
• Ecolab recognized discrete-item net tax benefits of $16.3 million in third-quarter 2025 and $21.8 million in the first nine months of 2025. source
• Ecolab said the 2026 tax-rate changes versus 2025 were driven primarily by discrete tax items and special gains and charges. source
• Ecolab's reported tax rate was 20.2% in Q3 2026 versus 17.8% in Q3 2025, and 21.4% for the first nine months of 2026 versus 19.2% in 2025. source