Ecolab

Ecolab has demonstrated consistent ‘value pricing’ as part of its playbook, expanding gross margin and operating margin while growing organically. In Q4 2025, reported gross margin reached 44.0% and adjusted operating margin improved to 18.5%.

Management expects further operating margin expansion in 2026 alongside productivity savings, indicating ongoing room to monetize value creation.

Latent pricing power is supported by mission‑criticality (food safety, infection prevention, water reliability), low product cost relative to customer failure costs, and embedded systems that make vendor switches risky. Offsets include exposure to cyclical verticals (paper/basic industries) and customer consolidation that can pressure contracts.

On balance, pricing power is solid and improving with digital differentiation.