Henkel (HEN) Q4 2025 earnings summary

Executive summary

• Achieved 0.9% organic sales growth in fiscal 2025, with positive price and volume development in Q4 across both business units and total sales of €20.5 billion amid challenging global conditions.

• EBIT margin increased by 50 basis points to 14.8%, driven by strong gross margins and continued investment to support growth, despite negative FX effects.

• EPS at constant currency rose 4.7% year-over-year; adjusted EPS per preferred share reached €5.33.

• Integration of Consumer Brands completed a year early, achieving €540 million in net savings, exceeding targets.

• Attractive shareholder returns delivered through increased dividends, a nearly completed €1 billion share buyback, and over €10 billion distributed to shareholders in the past decade.

Financial highlights

• Nominal sales were €20.5 billion, down 5% from the prior year due to FX headwinds and divestments; organic growth was 0.9%.

• Adjusted EBIT margin rose by 50 basis points to 14.8%; adjusted EBIT was €3,026 million.

• Adjusted EPS per preferred share reached €5.33, up 4.7% at constant currency, down 0.6% reported.

• Free cash flow was strong at €1.9 billion, despite higher net working capital and negative FX effects.

• Net financial position improved to €100 million, even after significant cash outflows for dividends and buybacks.

Outlook and guidance

• Fiscal 2026 guidance: organic sales growth of 1%-3% at group level; adjusted EBIT margin expected between 14.5%-16%; adjusted EPS at constant currencies projected to increase by a low to high single-digit percentage.

• Adhesive Technologies: organic sales growth of 1%-3%, EBIT margin 16.5%-18%.

• Consumer Brands: organic sales growth of 0.5%-2.5%, EBIT margin 14%-15.5%.

• Q1 2026 expected to be at the lower half of guidance due to muted consumer sentiment and industrial demand.

• Mid-term ambition: 3–4% organic sales growth, ~16% EBIT margin, mid- to high-single-digit EPS growth.