Henkel reported a solid performance in fiscal 2025, with group sales reaching 20.5 billion euros, reflecting organic growth of 0.9 percent. The company's adjusted operating profit (EBIT) was 3.0 billion euros, slightly below the prior year due to significant negative foreign exchange effects, but the adjusted EBIT margin improved by 50 basis points to 14.8 percent. Adjusted earnings per preferred share at constant exchange rates rose by 4.7 percent to 5.33 euros. Free cash flow remained strong at approximately 1.9 billion euros, supporting a proposed dividend increase of 1.5 percent to 2.07 euros per preferred share.
The company's Adhesive Technologies business unit generated organic sales growth of 1.5 percent, driven particularly by the Mobility & Electronics area. The Consumer Brands unit posted organic growth of 0.3 percent, led by the Hair business area. Adjusted return on sales improved in both units, reaching 16.7 percent for Adhesive Technologies and 14.5 percent for Consumer Brands. The merger of consumer businesses into Consumer Brands was completed ahead of schedule, exceeding the targeted annual savings of 525 million euros by the end of fiscal 2025.
Henkel continued its purposeful growth agenda with active portfolio management, including the divestiture of the Retailer Brands business in North America and several acquisitions. In 2025, Henkel agreed to acquire ATP Adhesive Systems AG, a Swiss specialty tapes provider. In February 2026, it announced the acquisition of Stahl Group, a global leader in specialty coatings, and in March, it signed an agreement to acquire "Not Your Mother's," a fast-growing hair care brand in North America. These acquisitions represent a combined additional sales volume of around 1.2 billion euros, enhancing growth potential in both business units.
Henkel also advanced its innovation and sustainability efforts. Notable innovations include the Schwarzkopf Creme Supreme hair coloration with micro-bonding technology and the opening of an Inspiration Center in Shanghai. In sustainability, Henkel achieved an A rating in the Climate category of the 2025 CDP assessment for the first time and reduced its absolute greenhouse gas emissions by 29 percent since 2021. The company continued to invest in digitalization, launching its first generative AI-supported TV commercial for Persil and using AI in adhesives development.
Looking ahead to fiscal 2026, Henkel expects further top- and bottom-line growth despite a softer start to the year. The company forecasts 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. Adjusted EBIT margin is expected in the range of 14.5 to 16.0 percent, with Adhesive Technologies between 16.5 and 18.0 percent and Consumer Brands between 14.0 and 15.5 percent. Adjusted earnings per preferred share at constant exchange rates are expected to increase in the low to high single-digit percentage range.
Henkel CEO Carsten Knobel commented: "Despite the continuing difficult economic conditions, we successfully moved Henkel forward in 2025. We achieved or even exceeded key targets and continued to drive the transformation of our company. We increased our sales organically and significantly improved the profitability of our company. We want our shareholders to participate in the company’s successful development. Therefore, we will propose a 1.5 percent dividend increase."
The company's strategic agenda remains focused on innovation, sustainability, digitalization, and portfolio optimization. Henkel is evaluating the establishment of separate legal entities for its two business units in Germany to enhance agility. With 2026 marking its 150th anniversary, Henkel aims to leverage its pioneering spirit for future growth. For more details, visit www.henkel.com or view the original release on www.newmediawire.com.
