Henkel delivered an overall good performance in a challenging fiscal 2025, which was characterized by moderate global economic growth in a complex geopolitical environment. Group sales in fiscal 2025 amounted to around 20.5 billion euros and the adjusted EBIT margin increased by 50 basis points to 14.8 percent. Adjusted earnings per preferred share at constant exchange rates rose by 4.7 percent. Despite the continuing difficult economic conditions, Henkel successfully moved forward in 2025, achieving or exceeding key targets and continuing to drive the transformation of the company.
The company increased sales organically and further improved profitability in both business units, Adhesive Technologies and Consumer Brands, primarily through further innovations, continued cost-saving measures and efficiency improvements as well as stronger growth in high-margin areas. The margin increase in the Consumer Brands business unit was driven by the completed integration process, continued savings and the further valorization. At the same time, Henkel has continued to invest in the future of both divisions: in strengthening brands, innovation, sustainability, and digitalization.
In addition, over the past three months Henkel has agreed acquisitions in both business units with a combined sales volume of around EUR 1.2 billion in order to strengthen businesses and expand their growth potential. These recent transactions, which are still subject to customary closing conditions and antitrust approvals, represent a combined additional sales volume of around 1.2 billion euros and advance the growth potential for the world-leading Adhesive Technologies business and the Consumer Brands business unit. More information about these strategic moves can be found at https://www.henkel.com.
The results for 2025 clearly demonstrate that Henkel is on the right path with its strategy for sustainable, purposeful growth, effectively positioning the company for the future. This is also reflected in the outlook for fiscal 2026, in which Henkel expects further sales and earnings growth, even though the start to the year is likely to be somewhat softer. Considering current assumptions, Henkel expects to generate organic sales growth of between 1.0 and 3.0 percent in fiscal 2026. Adjusted return on sales is expected in the range of 14.5 to 16.0 percent. For adjusted earnings per preferred share at constant exchange rates, an increase in the low- to high-single-digit percentage range is expected.
Major progress has been made in the transformation process over recent years, with Henkel fundamentally renewing itself across many areas and consistently pursuing its strategic agenda for purposeful growth. The merger of the consumer goods businesses into the Consumer Brands business unit, which was announced at the beginning of 2022, was completed at the end of fiscal year 2025. Overall, the originally targeted annual savings of 525 million euros were exceeded by the end of fiscal year 2025. This successfully completed the integration of the Consumer Brands business unit – one year earlier than originally planned.
In a challenging macroeconomic and geopolitical environment, Henkel continued to consistently implement its strategic agenda in the past fiscal year and made important progress in all areas. The company further developed its business and brand portfolio, strengthened its competitive advantages in innovation, sustainability, and digitalization, optimized business processes, and reinforced its corporate culture. As part of its active portfolio management, Henkel has further developed its portfolio by discontinuing or divesting activities and making acquisitions.
Expanding the portfolio through targeted acquisitions is also an integral part of Henkel's growth agenda. In 2025, Henkel signed an agreement to acquire ATP Adhesive Systems AG. The Swiss-based company is a leading provider of high-performance, water-based specialty tapes for a wide range of end markets. In February 2026, Henkel agreed to acquire the Dutch-based Stahl Group, a global player in high-performance specialty coatings for flexible materials. In addition, Henkel signed an agreement in early March to acquire "Not Your Mother's", one of the leading consumer hair care and styling brands in North America. This strengthens Henkel's position in the hair care business, one of the core categories in the Consumer Brands business unit.
Henkel's sustainability priorities continue to be the reduction of emissions along the value chain. By 2045, the company aims to reduce its absolute Scope 1, 2 and 3 greenhouse gas emissions by 90 percent and thereby achieve net-zero. Across all three scope categories, Henkel made progress last year and has already reduced its emissions by 29 percent since the base year 2021. Henkel has also achieved improvements in the area of sustainable supply chains. The share of palm-based ingredients that are responsibly sourced and certified has now reached 98 percent.
The company has further improved its performance in internationally recognized sustainability ratings. Among other achievements, Henkel received an A rating in the Climate category of the 2025 CDP assessment for the first time. Henkel also further improved its performance in the latest EcoVadis assessment and was once again awarded Gold. Additional details about Henkel's sustainability initiatives are available at https://www.henkel.com/sustainability.
Henkel has also made further progress in digitalization. In 2025, the rapid advances in the field of artificial intelligence were the dominant topic. Artificial intelligence will have a significant influence on how the company will operate in the future. Henkel implements AI technologies in many practical applications across both its industrial and consumer goods businesses. In 2025, Henkel launched its first generative, AI-supported TV commercial in Germany, thereby bringing Persil's iconic White Lady into a new era.
As part of its long-term growth strategy, Henkel is constantly aligning its business units with the requirements of dynamic markets and changing customer expectations in order to achieve long-term success with future-ready operating models. In March 2025, Henkel announced that it would evaluate the possibility of establishing separate legal entities in Germany and selected countries for its two business units Adhesive Technologies and Consumer Brands. This step is also linked to the preparations for the SAP S/4HANA migration.
At Henkel, a strong corporate culture builds the foundation of the agenda for purposeful growth. It is characterized by trust-based collaboration across business units, national borders, and teams, as well as by empowering employees to take responsibility and actively shape outcomes. Such a culture must be continuously fostered. To gain insights into how employees perceive this, Henkel has been conducting so-called pulse checks for several years now. The results from 2025 show that Henkel has made significant progress in these areas.
