Henkel delivered organic sales growth of 0.9 percent in fiscal 2025, reaching 20.5 billion euros, while increasing its adjusted EBIT margin by 50 basis points to 14.8 percent despite significant foreign exchange headwinds. The company's performance demonstrates resilience in what CEO Carsten Knobel described as "a challenging fiscal 2025, which was characterized by moderate global economic growth in a complex geopolitical environment." 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.
The company's improved profitability resulted from continued innovation, cost-saving measures, and efficiency improvements across both business units. Knobel noted that "the margin increase in the Consumer Brands business unit was driven by the completed integration process, continued savings and the further valorization." Henkel completed the merger of its consumer businesses ahead of schedule, exceeding the originally targeted annual savings of 525 million euros by the end of fiscal 2025. This strategic consolidation has yielded significant results, with the combined adjusted return on sales for these businesses improving from 8.3 percent in 2022 to 14.5 percent in 2025.
Henkel's transformation efforts extended beyond integration, with the company making strategic acquisitions to strengthen growth potential. Recent transactions include the agreement to acquire ATP Adhesive Systems AG, a Swiss-based provider of high-performance specialty tapes, and the Stahl Group, a Dutch-based global player in high-performance specialty coatings for flexible materials. In early March, Henkel also signed an agreement to acquire "Not Your Mother's," one of the leading consumer hair care and styling brands in North America. These acquisitions, representing a combined additional sales volume of around 1.2 billion euros, advance the growth potential for both business units according to company statements available at https://www.henkel.com.
Innovation remained central to Henkel's strategy, with the company launching numerous products addressing important market trends. In consumer goods, the new Creme Supreme hair coloration from Schwarzkopf represents a technological advancement that strengthens hair structure through micro-bonding. The company also expanded its innovation infrastructure, opening an Inspiration Center in Shanghai for the Asia-Pacific region with an investment of 60 million euros, where more than 500 researchers and developers work alongside customers from various industries.
Sustainability initiatives progressed significantly, with Henkel reducing its absolute Scope 1, 2 and 3 greenhouse gas emissions by 29 percent since the base year 2021 toward its goal of achieving net-zero by 2045. The company achieved an A rating in the Climate category of the 2025 CDP assessment for the first time and maintained its Gold status in the latest EcoVadis assessment. Digitalization efforts accelerated with artificial intelligence applications across both industrial and consumer goods businesses, including generative AI-supported advertising and AI-assisted processes in adhesives development laboratories.
Looking ahead to fiscal 2026, Henkel expects organic sales growth between 1.0 and 3.0 percent and an adjusted EBIT margin in the range of 14.5 to 16.0 percent. The company anticipates adjusted earnings per preferred share at constant exchange rates to increase in the low- to high-single-digit percentage range. These projections come despite expectations of continued geopolitical uncertainties and only moderate increases in industrial and consumer demand. The company will propose a 1.5 percent dividend increase to 2.07 euros per preferred share at its Annual General Meeting on April 27, 2026, reflecting confidence in its financial performance and strong base.
