Henkel delivered a solid financial performance in fiscal 2025, achieving organic sales growth and enhanced profitability despite a complex global economic landscape. Group sales reached approximately 20.5 billion euros, with organic growth of 0.9 percent. The adjusted EBIT margin improved by 50 basis points to 14.8 percent, while adjusted earnings per preferred share at constant exchange rates increased by 4.7 percent to 5.33 euros. The company generated strong free cash flow of about 1.9 billion euros and will propose a dividend increase of 1.5 percent to 2.07 euros per preferred share.
CEO Carsten Knobel acknowledged the challenging environment marked by geopolitical tensions, military conflicts, and trade disputes, which weakened consumer sentiment and industrial demand. "Despite the continuing difficult economic conditions, we successfully moved Henkel forward in 2025," Knobel stated. The company's performance was driven by innovation, cost-saving measures, efficiency improvements, and stronger growth in high-margin areas across both business units.
The Adhesive Technologies business unit generated organic sales growth of 1.5 percent, particularly driven by the Mobility & Electronics business area. The Consumer Brands business unit posted positive organic sales growth of 0.3 percent, led by the Hair business area. Significant progress was made in the company's transformation, with the merger of consumer businesses completed ahead of schedule, exceeding 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.
Henkel continued its active portfolio management through strategic acquisitions. The company agreed to acquire ATP Adhesive Systems AG, a Swiss-based provider of high-performance specialty tapes with sales of around 270 million euros in 2025. In February 2026, Henkel agreed to acquire the Dutch-based Stahl Group, a global player in specialty coatings with sales of approximately 725 million euros. Additionally, the company signed an agreement to acquire "Not Your Mother's," a leading North American hair care brand with sales of around 190 million euros. These transactions represent a combined additional sales volume of around 1.2 billion euros and advance growth potential for both business units. More information about Henkel's corporate developments is available at https://www.henkel.com.
Innovation remained a key focus, with Henkel launching numerous products addressing important market trends. The company introduced Creme Supreme hair coloration from Schwarzkopf, featuring micro-bonding technology that strengthens hair structure. Henkel also expanded its network of research centers, opening an Inspiration Center in Shanghai with an investment of 60 million euros. Sustainability initiatives progressed, with Henkel reducing its absolute greenhouse gas emissions by 29 percent since 2021 and achieving a 98 percent rate for responsibly sourced palm-based ingredients. The company received an A rating in the Climate category of the 2025 CDP assessment.
Digitalization advanced with artificial intelligence applications across both industrial and consumer goods businesses. Henkel launched its first generative AI-supported TV commercial in Germany and uses AI in adhesives development laboratories and battery manufacturing simulations. The company also announced plans to evaluate establishing separate legal entities in Germany for its two business units to enhance agility and support future growth needs.
For fiscal 2026, Henkel expects further growth despite anticipated continued geopolitical uncertainties and elevated price levels. The company forecasts organic sales growth between 1.0 and 3.0 percent, with the Adhesive Technologies unit expected to grow between 1.0 and 3.0 percent and Consumer Brands between 0.5 and 2.5 percent. Adjusted return on sales is projected in the range of 14.5 to 16.0 percent, while adjusted earnings per preferred share at constant exchange rates are expected to increase in the low- to high-single-digit percentage range.
"We now look ahead to an exciting year 2026, in which we celebrate our 150th anniversary," Knobel said. "We are ready for the future. Then as now, we will be drawing on our pioneering spirit to develop forward-looking products and solutions for the generations to come." The company's performance demonstrates resilience and strategic execution in navigating global challenges while positioning for sustainable growth.
