Henkel has reported a stable performance for fiscal year 2025 despite a difficult global economic and geopolitical landscape. The company recorded total group sales of approximately €20.5 billion, while improving its adjusted EBIT margin to 14.8 percent, representing a 50-basis-point increase compared with the previous year.
Adjusted earnings per preferred share rose by 4.7 percent at constant exchange rates, reflecting continued operational improvements and disciplined cost management across the organization. Henkel CEO Carsten Knobel noted that the past year was shaped by significant geopolitical and economic challenges, including ongoing military conflicts, rising trade tensions and heightened global uncertainty. According to Knobel, these factors affected both consumer confidence and industrial demand across multiple markets.
Despite these challenges, Henkel continued to advance its transformation strategy and achieved several operational milestones during the year. “Although the global environment remained difficult, we made strong progress in 2025,” Mr Knobel said. “We met or exceeded key performance targets, improved profitability and continued transforming our company to ensure long-term competitiveness.”
Henkel achieved positive organic sales growth during the year, supported primarily by pricing improvements while sales volumes remained broadly stable compared with the previous year. Group sales totaled €20,495 million, representing a decline of 5.1 percent on a nominal basis. Foreign exchange movements had a negative impact of 4.2 percent on revenue, while acquisitions and divestments reduced sales by 1.7 percent, largely due to the divestment of the Retailer Brands business in North America.
After adjusting for these factors, organic sales growth stood at 0.9 percent. Henkel’s Adhesive Technologies division delivered stronger performance, recording organic sales growth of 1.5 percent. Growth was supported particularly by demand from the Mobility and Electronics segment.
The Consumer Brands division also recorded positive organic sales growth of 0.3 percent, with the Hair category emerging as a key contributor. Adjusted operating profit for the group totaled €3,026 million, slightly below the previous year’s €3,089 million. The decline was primarily due to unfavorable currency effects.
However, profitability improved on a margin basis. Henkel’s adjusted EBIT margin increased to 14.8 percent compared with 14.3 percent in 2024, reflecting operational efficiency initiatives and improved product mix.
Adjusted earnings per preferred share reached €5.33, slightly below the €5.36 reported in the previous year. When adjusted for currency effects, earnings per share increased by 4.7 percent. Free cash flow amounted to €1,850 million, lower than the €2,362 million recorded in 2024. The decline was mainly attributed to changes in net working capital and currency translation effects.
Despite dividend payments and share buyback activities, Henkel strengthened its financial position. Net financial position improved to €109 million compared with negative €93 million at the end of 2024. Based on the company’s performance and financial stability, Henkel’s management and supervisory boards will recommend a dividend increase of 1.5 percent at the Annual General Meeting scheduled for April 27, 2026.
The proposal includes a dividend of €2.07 per preferred share and €2.05 per ordinary share. The payout ratio will remain unchanged at 37.9 percent, which is within the company’s target range of 30 to 40 percent. Mr Knobel emphasized that the results demonstrate the effectiveness of Henkel’s long-term strategy focused on sustainable and profitable growth.
The company has continued to invest in strengthening its brands, expanding innovation capabilities, improving sustainability initiatives and accelerating digital transformation across its operations. Looking ahead, Henkel expects continued growth in both revenue and profitability during fiscal 2026, although the beginning of the year may remain somewhat cautious due to ongoing economic uncertainties.
Henkel is a global leader in both industrial and consumer markets, driven by its strong portfolio of brands, innovative technologies and advanced solutions. The company’s Adhesive Technologies division is the world’s leading supplier of adhesives, sealants and functional coatings. Through its Consumer Brands business, Henkel holds strong positions in several international markets, particularly in laundry and home care as well as hair care products.
Among Henkel’s most prominent global brands are Loctite, Persil and Schwarzkopf. In fiscal year 2025, the company recorded sales of approximately €20.5 billion and reported adjusted operating profit of around €3.0 billion. Henkel’s preferred shares are listed on Germany’s benchmark DAX stock index.
Sustainability has long been a core element of Henkel’s business approach, supported by clearly defined goals and a structured sustainability strategy. Established in 1876, the company today employs around 47,000 people worldwide. Its workforce operates within a strong corporate culture built on shared values and a common purpose: “Pioneers at heart for the good of generations.”
