Henkel (HEN) Q4 2025 (Media) earnings summary

Executive summary

• Achieved organic sales growth of 0.9% in 2025, with total sales of €20.5 billion amid challenging macroeconomic and geopolitical conditions.

• Adjusted EBIT margin improved by 50 basis points to 14.8%, despite negative foreign exchange effects.

• Proposed a 1.5% dividend increase to €2.07 per preferred share, reflecting strong financial performance.

• Completed the merger of consumer businesses ahead of schedule and executed strategic acquisitions to strengthen growth.

Financial highlights

• Adjusted EBIT was €3.0 billion, slightly below prior year due to currency headwinds.

• Adjusted EPS at constant exchange rates rose 4.7% to €5.33; nominally, adjusted EPS declined by 0.6%.

• Free cash flow was €1.85 billion, down from €2.36 billion in 2024, mainly due to working capital changes and FX effects.

• Net financial position improved to €109 million from -€93 million at end of 2024.

Outlook and guidance

• For 2026, expects organic sales growth of 1.0–3.0% and adjusted EBIT margin of 14.5–16.0%.

• Adjusted EPS at constant exchange rates projected to increase in the low- to high-single-digit percentage range.

• Adhesive Technologies and Consumer Brands units both forecasted to deliver organic growth and margin expansion.