Henkel delivered organic sales growth of 0.9 percent to 20.5 billion euros in fiscal 2025 while increasing its adjusted EBIT margin by 50 basis points to 14.8 percent, demonstrating resilience in a complex global economic environment. The company's adjusted earnings per preferred share rose by 4.7 percent at constant exchange rates to 5.33 euros, and management will propose a 1.5 percent dividend increase to 2.07 euros per preferred share.
CEO Carsten Knobel noted the challenging conditions marked by military conflicts, geopolitical tensions, and trade disputes that weakened consumer sentiment and industrial demand. "Despite the continuing difficult economic conditions, we successfully moved Henkel forward in 2025," Knobel stated. "We achieved or even exceeded key targets and continued to drive the transformation of our company."
The Adhesive Technologies business unit generated organic sales growth of 1.5 percent, driven particularly by the Mobility & Electronics business area, while Consumer Brands posted positive organic growth of 0.3 percent, led by the Hair business area. Both units improved profitability through innovation, cost-saving measures, and efficiency improvements, with Consumer Brands achieving significant margin improvement through completed integration and portfolio valorization.
Henkel made substantial progress in its transformation process, completing the merger of consumer businesses ahead of schedule and exceeding targeted annual savings of 525 million euros. The company also strengthened its portfolio through strategic acquisitions including ATP Adhesive Systems AG, Stahl Group, and "Not Your Mother's" hair care brand, representing combined additional sales volume of around 1.2 billion euros. More information about these developments is available at https://www.henkel.com.
Innovation played a central role in Henkel's 2025 performance, with the company launching numerous products addressing important market trends. In consumer goods, the new Creme Supreme hair coloration technology from Schwarzkopf represents a significant advancement in hair care. For Adhesive Technologies, Henkel continued expanding its network of research centers, opening a new Inspiration Center in Shanghai with a 60 million euro investment.
The company advanced its sustainability agenda, reducing absolute greenhouse gas emissions by 29 percent since 2021 and achieving 98 percent responsibly sourced palm-based ingredients. Digitalization efforts included implementing artificial intelligence across both business units, from AI-supported TV commercials to automation in adhesives development laboratories.
Looking ahead to fiscal 2026, Henkel expects organic sales growth between 1.0 and 3.0 percent, with adjusted EBIT margin projected in the range of 14.5 to 16.0 percent. Adjusted earnings per preferred share at constant exchange rates are expected to increase in the low- to high-single-digit percentage range. The company will continue evaluating structural enhancements, including establishing separate legal entities for its two business units in Germany to increase agility.
Henkel's performance demonstrates how established industrial and consumer goods companies can navigate economic headwinds through strategic focus, operational efficiency, and continuous innovation. The company's ability to grow organically while improving profitability in challenging conditions provides a model for business leaders managing through geopolitical uncertainty and market volatility.
