Global consumer goods and industrial adhesives major Henkel has delivered strong performance in fiscal 2025, navigating a challenging global economy marked by geopolitical tensions and moderate growth.
Group sales reached around €20.5 billion, while the adjusted EBIT margin rose 50 basis points to 14.8%. Adjusted earnings per preferred share at constant exchange rates increased 4.7%.
“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. 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,” said Henkel CEO Carsten Knobel.
“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.”
Henkel’s performance was underpinned by growth in both its Adhesive Technologies and Consumer Brands units.
“We increased sales organically and further improved profitability in both business units, Adhesive Technologies and Consumer Brands, primarily through further innovations, continued cost-saving measures and efficiency improvements as well as stronger growth in high-margin areas. The margin increase in the Consumer Brands business unit was driven by the completed integration process, continued savings and the further valorization – i.e. the targeted improvement of the product portfolio.
'At the same time, we have continued to invest in the future of both divisions: in strengthening our brands, in innovation, sustainability, and digitalization. In addition, over the past three months we have agreed acquisitions in both business units with a combined sales volume of around €1.2 billion in order to strengthen our businesses and expand their growth potential.
"The results for 2025 clearly demonstrate that we are on the right path with our strategy for sustainable, purposeful growth, effectively positioning the company for the future. This is also reflected in our outlook for fiscal 2026, in which we expect further sales and earnings growth, even though the start to the year is likely to be somewhat softer. I would like to thank all employees for their outstanding performance. Thanks to their teamwork and extraordinary commitment, we have once again successfully navigated our company through a challenging environment,” Knobel added.
Financial snapshots
Henkel’s 2025 group sales totaled €20,495 million, down 5.1% year-on-year in nominal terms. After adjusting for foreign exchange effects (-4.2%) and acquisitions/divestments (-1.7%), organic sales growth stood at 0.9%, driven mainly by price increases.
Adhesive Technologies saw organic growth of 1.5%, powered by the Mobility & Electronics segment. Adjusted EBIT reached €1,779 million, with a margin of 16.7%.
Consumer Brands posted 0.3% organic growth, led by the Hair business. Adjusted EBIT totaled €1,400 million, with the adjusted return on sales rising to 14.5%.
Adjusted operating profit for the group was €3,026 million, slightly below 2024 levels due to negative currency effects. Adjusted earnings per preferred share dipped 0.6% to €5.33 but rose 4.7% at constant exchange rates. Free cash flow declined to €1,850 million, impacted by working capital changes and translation effects. The net financial position remained solid at €109 million.
Outlook for 2026
Henkel expects moderate global economic growth to continue in 2026, amid ongoing geopolitical uncertainty and elevated prices.
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