Henkel has reported its fiscal 2025 results, showing organic sales growth of 0.9% to 20.5 billion euros, with an adjusted EBIT margin improvement of 50 basis points to 14.8%. The company also saw adjusted earnings per preferred share rise by 4.7% at constant exchange rates to 5.33 euros. Free cash flow reached 1.85 billion euros, and the board proposed a dividend increase of 1.5% to 2.07 euros per preferred share.
The results come amid a challenging global environment marked by geopolitical tensions, trade conflicts, and moderate economic growth. Henkel CEO Carsten Knobel noted that the company successfully navigated these headwinds through innovation, cost-saving measures, and efficiency improvements. The Adhesive Technologies business unit posted organic growth of 1.5%, driven by the Mobility & Electronics sector, while Consumer Brands grew 0.3%, fueled by the Hair category.
Henkel made significant progress in its transformation agenda, including the early completion of the Consumer Brands merger, which exceeded cost-saving targets by the end of 2025. The company also advanced its portfolio management with acquisitions such as ATP Adhesive Systems AG, Stahl Group, and Not Your Mother's, collectively adding around 1.2 billion euros in sales.
For fiscal 2026, Henkel expects organic sales growth of 1.0% to 3.0%, with an adjusted EBIT margin between 14.5% and 16.0%. The company anticipates an increase in adjusted earnings per preferred share at constant exchange rates in the low to high single-digit percentage range. However, the start of the year is expected to be softer due to ongoing uncertainties.
Henkel's sustainability efforts continued, with a 29% reduction in greenhouse gas emissions since 2021 and an A rating in the CDP Climate category. The company also expanded its innovation centers, including a new facility in Shanghai, and integrated AI into operations, such as generative AI for marketing and simulation tools for battery manufacturing.
The company is preparing to celebrate its 150th anniversary in 2026, emphasizing its commitment to innovation and sustainability. More details are available at www.henkel.com.
