Henkel (HEN) Q1 2026 earnings summary

Executive summary

• Achieved 1.7% organic sales growth in Q1 2026, with both business units contributing through positive price and volume development for the third consecutive quarter.

• Group sales reached approximately €5.0 billion, a nominal decrease of 5.5% year-over-year due to negative FX and M&A impacts.

• Successfully executed five M&A transactions totaling €1.6 billion in sales, with three deals closed by March.

• Completed a €1 billion share buyback program and paid over €800 million in dividends in the last 12 months.

• Full year 2026 guidance remains unchanged.

Financial highlights

• Q1 organic sales growth of 1.7%: volume +1.0%, price +0.7%; nominal sales €4,952 million, down 5.5% year-over-year.

• Adhesive Technologies: €2,627 million sales, nominally down 3.2%, organically up 1.7%.

• Consumer Brands: €2,285 million sales, nominally down 8.0%, organically up 1.8%.

• Foreign exchange effects reduced group sales by 5.2%; acquisitions/divestments reduced sales by 2.1%.

• Top 10 brands delivered ~5% organic sales growth, accounting for 60% of Consumer Brands sales.

Outlook and guidance

• Group expects organic sales growth of 1.0–3.0% for 2026.

• Adjusted EBIT margin forecasted at 14.5–16.0%; adjusted EPS expected to increase in the low to high single-digit percentage range.

• Adhesive Technologies: 1.0–3.0% organic growth, 16.5–18.0% EBIT margin; Consumer Brands: 0.5–2.5% organic growth, 14.0–15.5% EBIT margin.

• Acquisitions/divestments expected to have a positive low single-digit impact on nominal sales; FX translation to have a negative low single-digit impact.

• Direct material prices expected to rise by a high single-digit percentage.