Henkel (HEN) Q2 2026 earnings summary

Executive summary

• Achieved strong organic sales growth of 3.2% in H1 2026, with sequential acceleration in Q2 and positive price and volume dynamics across both business units.

• Adjusted EBIT margin improved to 15.7%, with EPS at constant currency up 7% year-over-year and adjusted EPS at €2.86, up 1.8% year-over-year and 7.1% at constant currencies.

• M&A strategy accelerated with five acquisitions, including OLAPLEX, ATP Adhesive Systems, and Not Your Mother's, expected to contribute positively to sales and earnings.

• Upgraded full-year 2026 top-line guidance for the group and Adhesive Technologies, reflecting confidence in continued growth.

• Share buyback program completed, totaling around €1 billion and contributing to higher leverage.

Financial highlights

• Group organic sales growth reached 3.2% in H1 2026; nominal sales were €10.3 billion, down 0.5% year-over-year due to FX headwinds.

• Adjusted EBIT was €1,620 million, slightly above prior year; adjusted EBIT margin increased to 15.7%.

• Adjusted EPS per preferred share was €2.86, up 7% at constant currency.

• Free cash flow rose to €612 million, up €128 million year-over-year.

• Net financial position at minus €1.9 billion, reflecting M&A and share buybacks.

Outlook and guidance

• Upgraded group organic net sales growth guidance to 1.5–3.5% for 2026; Adhesive Technologies to 2.0–4.0%; Consumer Brands at 0.5–2.5%.

• Adjusted EBIT margin expected between 14.5–16%; adjusted EPS growth at constant currencies in low to high single digits.

• Softer margins anticipated in H2 due to raw material headwinds and normalization of growth drivers.