Henkel Maintains 2026 Outlook Following Strong Performance in Adhesives and Consumer Brands Businesses

Henkel Maintains 2026 Outlook Following Strong Performance in Adhesives and Consumer Brands Businesses

(IN BRIEF) Henkel reported organic sales growth of 1.7 percent in the first quarter of fiscal 2026, supported by positive price and volume development across both its Adhesive Technologies and Consumer Brands divisions. Group sales reached approximately EUR 5.0 billion, while growth in electronics, industrial adhesives and hair care products helped offset continued market challenges in some sectors. CEO Carsten Knobel said the company continues to execute its strategic growth agenda, including several acquisitions totaling around EUR 1.6 billion in additional sales volume. Henkel maintained its full-year outlook for 2026, forecasting organic sales growth between 1 and 3 percent despite rising raw material costs and ongoing economic uncertainty.

(PRESS RELEASE) DÜSSELDORF, 7-May-2026 — /EuropaWire/ — Henkel reported solid organic sales growth during the first quarter of fiscal 2026 despite ongoing market challenges, supported by positive price and volume developments across both its Adhesive Technologies and Consumer Brands divisions.

The company generated Group sales of approximately EUR 5.0 billion during the quarter, with organic sales increasing by 1.7 percent year over year. While nominal sales declined by 5.5 percent due to foreign exchange impacts and portfolio changes linked to acquisitions and divestments, Henkel said underlying business performance remained positive across key markets and segments.

Carsten Knobel said the company delivered good organic growth in a challenging economic environment while continuing to execute its long-term strategic agenda focused on sustainable and profitable expansion. He highlighted positive pricing and volume contributions from both business units and pointed to recent acquisitions as an important driver of future growth.

Henkel also confirmed continued progress in its mergers and acquisitions strategy, announcing that five transactions representing approximately EUR 1.6 billion in combined sales volume had either been completed or were underway. The company has already finalized the acquisitions of Wetherby Laroc, ATP Adhesive Systems and Not Your Mother’s, strengthening positions across industrial and consumer-focused product categories.

The company additionally completed its approximately EUR 1 billion share buyback program at the end of March 2026.

Within the Adhesive Technologies business unit, organic sales increased by 1.7 percent, driven mainly by strong demand in the Mobility & Electronics business area. Sales growth was particularly strong in electronics and industrial applications, while automotive-related business remained under pressure due to continued weakness in parts of the automotive sector.

The Packaging & Consumer Goods business area posted moderate growth supported by consumer goods demand, although packaging activities recorded a slight decline. The Craftsmen, Construction & Professional segment experienced lower sales due to weakness in consumer and construction markets despite positive development in general manufacturing and maintenance activities.

Regionally, Adhesive Technologies recorded especially strong growth in the IMEA and Asia-Pacific regions, with double-digit expansion supported by electronics demand in China and industrial activity across emerging markets.

Henkel’s Consumer Brands division achieved organic sales growth of 1.8 percent despite a nominal decline linked to exchange rate effects and divestments. The strongest performance came from the Hair business area, which recorded very strong growth driven by hair colorants and professional salon products.

The Laundry & Home Care business remained broadly stable overall, with weakness in fabric cleaning products offset by stronger demand in fabric care and hand dishwashing categories. The company also reported positive growth in body care products within North America.

The IMEA and Asia-Pacific regions delivered particularly strong performance for Consumer Brands, while Europe recorded weaker development primarily due to lower Laundry & Home Care sales.

Henkel maintained its full-year fiscal 2026 outlook, continuing to forecast organic sales growth of between 1 and 3 percent at Group level. The company also reiterated expectations for an adjusted EBIT margin between 14.5 and 16 percent and projected adjusted earnings per preferred share to rise in the low to high single-digit percentage range at constant exchange rates.

The company warned, however, that direct material costs are now expected to rise at a high single-digit percentage rate during 2026, revising its earlier expectations upward. Henkel also expects negative impacts from currency translation and plans restructuring expenses of between EUR 150 million and EUR 200 million during the year.

Despite continued geopolitical and economic uncertainty, Henkel stated that its strategic investments, acquisitions and operational initiatives position the company well for long-term growth and profitability.

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SOURCE: Henkel AG & Co. KGaA