Henkel Delivers Organic Growth and Strategic Progress in 2025 While Preparing for 150th Anniversary

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Cover: Annual Report 2025

(IN BRIEF) Henkel reported solid financial performance for fiscal year 2025, with group sales reaching approximately 20.5 billion euros and organic sales growth of 0.9 percent despite geopolitical tensions and economic uncertainty. The company improved profitability, raising its adjusted EBIT margin to 14.8 percent while generating adjusted earnings per preferred share of 5.33 euros and strong free cash flow of around 1.9 billion euros. Henkel plans to increase its dividend to 2.07 euros per preferred share. During the year, the company completed the merger of its consumer goods businesses into the Consumer Brands unit ahead of schedule, significantly improving profitability in the division. Henkel also strengthened its portfolio through acquisitions including ATP Adhesive Systems, Stahl Group, and the haircare brand Not Your Mother’s, representing additional potential sales of about 1.2 billion euros. The company continued investing in innovation, sustainability, and digitalization while advancing its strategic agenda for purposeful growth. For 2026, Henkel expects moderate economic conditions but anticipates further sales and earnings growth while preparing to celebrate its 150th anniversary.

(PRESS RELEASE) DÜSSELDORF, 11-Mar-2026 — /EuropaWire/ — Henkel has reported its financial results for fiscal year 2025, highlighting solid operational performance despite a challenging economic and geopolitical environment. The company generated group sales of approximately 20.5 billion euros and continued to improve profitability through innovation, operational efficiency, and strategic portfolio management. In light of the results, Henkel plans to increase its dividend to 2.07 euros per preferred share, representing a 1.5 percent increase compared with the previous year.

The company recorded organic sales growth of 0.9 percent, supported mainly by price increases while overall volumes remained stable. Adjusted operating profit (EBIT) reached 3.0 billion euros, slightly below the previous year due primarily to significant negative foreign exchange effects. At the same time, the adjusted EBIT margin improved to 14.8 percent, reflecting a 50-basis-point increase compared with 2024.

Adjusted earnings per preferred share amounted to 5.33 euros. While this represented a slight decline of 0.6 percent on a reported basis, earnings increased by 4.7 percent when adjusted for currency effects. Henkel also generated strong free cash flow of approximately 1.9 billion euros, demonstrating the company’s continued financial strength.

Chief Executive Officer Carsten Knobel said the company operated in a complex environment during 2025, marked by geopolitical tensions, global conflicts, trade disputes, and weakened consumer and industrial demand. Despite these challenges, Henkel achieved or exceeded key performance targets and continued advancing its strategic transformation.

According to Knobel, improvements in profitability were achieved across both of Henkel’s core business units – Adhesive Technologies and Consumer Brands – supported by product innovation, cost-efficiency programs, and growth in higher-margin segments. At the same time, the company continued investing in areas such as brand development, digitalization, innovation, and sustainability to strengthen its long-term competitive position.

A major strategic milestone in 2025 was the completion of the merger of Henkel’s consumer goods businesses into the Consumer Brands unit, which concluded ahead of schedule. The integration process exceeded the originally targeted cost savings of 525 million euros annually and significantly improved the profitability of the division. Since the new unit was formed in 2022, its adjusted return on sales has risen from 8.3 percent to 14.5 percent.

Henkel also continued actively managing its portfolio through divestments and acquisitions. The company finalized the sale of its Retailer Brands business in North America in 2025 as part of the restructuring of its consumer portfolio. At the same time, Henkel announced several acquisitions aimed at strengthening growth opportunities in both business units.

Among the transactions, Henkel signed an agreement to acquire ATP Adhesive Systems AG, a Swiss manufacturer of high-performance specialty tapes used in industries such as automotive, electronics, medical technology, and construction. The company generated sales of about 270 million euros in 2025.

In early 2026, Henkel also agreed to acquire the Stahl Group, a Netherlands-based provider of specialty coatings for flexible materials used in automotive, fashion, lifestyle, and packaging applications. Stahl recorded sales of approximately 725 million euros in 2025.

Additionally, Henkel announced the acquisition of “Not Your Mother’s,” a fast-growing haircare and styling brand in North America with sales of about 190 million euros and strong double-digit growth. The brand strengthens Henkel’s presence in the hair category, one of the key segments within the Consumer Brands business.

Together, these transactions represent additional annual sales potential of around 1.2 billion euros and are intended to support the long-term growth of both Adhesive Technologies and Consumer Brands.

Innovation remained a central element of Henkel’s strategy during 2025. In the consumer segment, the company introduced products such as Schwarzkopf Creme Supreme hair coloration, which incorporates micro-bonding technology to strengthen hair fibers and reduce breakage. The company also expanded its “House of Hair” innovation hub in Hamburg, where more than 300 specialists work across research, product development, marketing, and training.

In its industrial business, Henkel continued investing in advanced research facilities. In 2025, the company opened a new Inspiration Center in Shanghai for the Asia-Pacific region, supported by an investment of 60 million euros and involving more than 500 researchers and developers collaborating with industrial customers.

Sustainability initiatives also progressed. Henkel aims to reduce Scope 1, 2, and 3 greenhouse gas emissions by 90 percent by 2045 compared with its 2021 baseline. By 2025, the company had already lowered emissions across the value chain by 29 percent. The company also reported that 98 percent of palm-based ingredients used in its products are now responsibly sourced and certified. Henkel also achieved improved ratings in sustainability assessments, including receiving an A rating in the CDP Climate category and maintaining EcoVadis Gold status.

Digital transformation and artificial intelligence also played an increasingly important role across Henkel’s operations. AI technologies are now used in product development, manufacturing simulations, and marketing initiatives. In 2025, the company launched its first AI-generated television commercial in Germany for its Persil brand, demonstrating new applications for generative AI in advertising.

Looking ahead to fiscal year 2026, Henkel expects moderate economic growth globally amid continuing geopolitical uncertainty and elevated price levels. Within this environment, the company forecasts organic sales growth between 1.0 and 3.0 percent, an adjusted EBIT margin between 14.5 and 16.0 percent, and growth in adjusted earnings per preferred share in the low- to high-single-digit percentage range at constant exchange rates.

Henkel will celebrate a significant milestone in 2026, marking 150 years since the company’s founding. The anniversary highlights the company’s long history of innovation and development while reinforcing its focus on future growth and transformation.

Key figures Q4 2025 & 1-12 2025

Annual Report 2025
incl. Sustainability Statement

For further information, please contact:

Lars Witteck
Henkel
Head of External Communications
Headquarters, Düsseldorf/Germany
+49-211-797-2606
press@henkel.com

Wulf Klüppelholz
Henkel
Corporate Media Relations
Headquarters, Düsseldorf/Germany
+49-211-797-1875
press@henkel.com

Hanna Philipps
Henkel
Corporate Media Relations
Headquarters, Düsseldorf/Germany
+49-211-797-3626
press@henkel.com

This document contains statements referring to future business development, financial performance and other events or developments of future relevance for Henkel that may constitute forward-looking statements. Statements with respect to the future are characterized by the use of words such as expect, intend, plan, anticipate, believe, estimate, and similar terms. Such statements are based on current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. These statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially (both positively and negatively) from the forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.

This document includes supplemental financial indicators that are not clearly defined in the applicable financial reporting framework and that are or may be alternative performance measures. These supplemental financial indicators should not be viewed in isolation or as alternatives to measures of Henkel’s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.

This document has been issued for information purposes only and is not intended to constitute an investment advice or an offer to sell, or a solicitation of an offer to buy, any securities.

SOURCE: Henkel AG & Co. KGaA

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