Henkel delivered an overall good performance in fiscal 2025, with group sales reaching €20.5 billion and organic growth of 0.9%, the company announced on March 11, 2026. Despite a challenging macroeconomic environment marked by geopolitical tensions and trade conflicts, Henkel increased its adjusted EBIT margin by 50 basis points to 14.8%, while adjusted earnings per preferred share rose 4.7% at constant exchange rates to €5.33.
“Our business environment has been and continues to be marked by major challenges, including military conflicts, geopolitical tensions, and far-reaching trade and tariffs conflicts,” said CEO Carsten Knobel. “We increased our sales organically and significantly improved the profitability of our company.” Henkel proposed a 1.5% dividend increase to €2.07 per preferred share, reflecting the company’s strong financial performance and solid balance sheet.
The Adhesive Technologies business unit generated organic sales growth of 1.5%, driven by the Mobility & Electronics segment, while Consumer Brands posted 0.3% organic growth, led by the Hair category. Adjusted operating profit declined slightly to €3.0 billion due to significant negative foreign exchange effects, but the adjusted EBIT margin improved in both units. Consumer Brands saw its margin rise to 14.5%, a substantial increase from 8.3% in 2022, driven by the successful integration of its consumer goods businesses, completed a year ahead of schedule.
Henkel made major progress in its transformation, completing the merger of its consumer businesses into the Consumer Brands unit and exceeding its targeted annual savings of €525 million. The company also advanced its portfolio management, divesting its Retailer Brands business in North America and announcing three key acquisitions: ATP Adhesive Systems AG, Stahl Group, and “Not Your Mother’s”. These acquisitions, with combined sales of around €1.2 billion, are expected to strengthen Henkel’s positions in adhesives and hair care.
Innovation remained a focus, with Henkel launching products like Schwarzkopf’s Creme Supreme hair coloration and opening a new Inspiration Center in Shanghai for adhesive technologies. The company also made strides in sustainability, reducing absolute greenhouse gas emissions by 29% since 2021 and receiving an A rating in the CDP Climate category for the first time. In digitalization, Henkel deployed AI across its operations, including its first generative AI-supported TV commercial for Persil.
Looking ahead, Henkel expects organic sales growth of 1.0% to 3.0% in fiscal 2026, with an adjusted EBIT margin between 14.5% and 16.0%. The company anticipates a softer start to the year but remains confident in its strategic agenda. “The results for 2025 clearly demonstrate that we are on the right path with our strategy for sustainable, purposeful growth,” Knobel said, as Henkel prepares to celebrate its 150th anniversary in 2026.
For more details, visit Henkel’s press page or view the original release on NewMediaWire.
