Henkel delivered an overall good performance in fiscal 2025, with group sales of approximately 20.5 billion euros and organic growth of 0.9 percent, according to the company's annual results released on March 11, 2026. The adjusted EBIT margin improved by 50 basis points to 14.8 percent, while adjusted earnings per preferred share at constant exchange rates rose by 4.7 percent to 5.33 euros. Free cash flow reached about 1.9 billion euros, and the company proposed a dividend increase of 1.5 percent to 2.07 euros per preferred share.
CEO Carsten Knobel highlighted the challenging environment, including military conflicts and trade tensions, but noted that Henkel successfully moved forward, achieving key targets and driving transformation. The company completed the merger of its consumer businesses into the Consumer Brands unit ahead of schedule, exceeding the originally targeted annual savings of 525 million euros. The adjusted return on sales for Consumer Brands improved from 8.3 percent in 2022 to 14.5 percent in 2025.
In fiscal 2025, the Adhesive Technologies business unit generated organic sales growth of 1.5 percent, driven by the Mobility & Electronics business area, while Consumer Brands posted organic growth of 0.3 percent, led by the Hair business area. The company also made significant progress in its strategic agenda, including active portfolio management with three recent acquisitions: ATP Adhesive Systems AG (specialty tapes), Stahl Group (high-performance coatings), and "Not Your Mother's" (hair care brand), representing a combined additional sales volume of around 1.2 billion euros.
Looking ahead to fiscal 2026, Henkel expects organic sales growth of 1.0 to 3.0 percent, with Adhesive Technologies growing 1.0 to 3.0 percent and Consumer Brands growing 0.5 to 2.5 percent. The adjusted EBIT margin is forecasted in the range of 14.5 to 16.0 percent, and adjusted earnings per preferred share at constant exchange rates are expected to increase in the low- to high-single-digit percentage range. The company also plans to propose the establishment of separate legal entities for its two business units in Germany at the 2026 Annual General Meeting.
Henkel's sustainability efforts continued, with a 29 percent reduction in greenhouse gas emissions since 2021 and an A rating in the Climate category of the 2025 CDP assessment. The company also opened a new Inspiration Center in Shanghai, investing 60 million euros, and launched AI-supported innovations, including a generative AI TV commercial for Persil. Further details are available at www.henkel.com and the original release on www.newmediawire.com.
