Henkel achieved EUR 20.5-billion sales in 2025

As Henkel transitions into 2026, the focus shifts toward sustained top- and bottom-line expansion driven by innovation and strategic acquisitions. Despite persistent foreign exchange pressures impacting nominal results, the company demonstrated financial resilience in 2025 by improving its adjusted EBIT margin by 50 basis points to 14.8%. This performance was supported by a strong free cash flow of EUR 1.9-billion, leading to a proposed dividend increase to EUR 2.07 per preferred share.

Henkel CEO, Carsten Knobel, said, “Our business environment has been and continues to be marked by major challenges, including military conflicts, geopolitical tensions in many parts of the world, and far-reaching trade and tariffs conflicts.” He continued, “The resulting uncertainties weakened consumer sentiment and industrial demand. With the war in the Middle East that began at the end of February, the uncertainties have increased significantly once again.”

Knobel remarked, “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% dividend increase.”

He explained that Henkel achieved organic sales growth and increased profitability in 2025 across both its adhesive technologies and consumer brands divisions. This success was driven by innovation, cost-saving measures, and a focus on high-margin products. He noted that the consumer brands unit specifically benefited from an early integration process and portfolio optimisation.

While nominal sales fell by 5.1% to EUR 20.5-billion — due largely to currency headwinds and the divestment of the North American retailer brands business — organic sales growth reached 0.9%. Furthermore, while adjusted earnings per preferred share saw a nominal dip to EUR 5.33, they increased by 4.7% when calculated at constant exchange rates.

The adhesive technologies division reported sales of EUR 10.67-billion, achieving 1.5% organic growth, bolstered by rising demand in key end markets during the second half of the year. The unit maintained a high adjusted return on sales of 16.7%. 

Simultaneously, the consumer brands segment recorded sales of EUR 9.68-billion. Although this unit faced a dip in volume, it saw 0.3% organic growth driven by strong pricing. 

The merger of the consumer businesses was completed a full year ahead of schedule, delivering over EUR 525-million in annual savings and raising the unit's adjusted return on sales significantly to 14.5%.

Looking ahead to fiscal 2026
Henkel anticipates a continued period of subdued global economic growth influenced by high price levels and material costs. In this environment, the company projects group organic sales growth between 1.0% and 3.0%, with an increased group EBIT margin targeted between 14.5% and 16.0%. 

To secure this future expansion, Henkel has invested in digitalisation and sustainability while finalising EUR 1.2-billion in acquisitions, including ATP Adhesive Systems, the Stahl Group, and the hair care brand Not Your Mother’s.

Henkel celebrates 150 years of history 
Knobel noted, “2025 was a successful year in which we once again mastered major challenges while making significant progress. We met our financial targets to a large extent. We consistently implemented our agenda for purposeful growth across all strategic dimensions and successfully completed the integration of our consumer goods businesses. We are on the right track, and the transformation of our company shows tangible results.”

He continued, “We now look ahead to an exciting year 2026, in which we celebrate our 150th anniversary. We are, of course, proud of our heritage – but for us, this is no reason to stand still. Rather, it is a source of motivation for the road ahead. 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. This is entirely in line with our purpose: Pioneers at heart for the good of generations.”