Henkel AG & Co. KGaA

Henkel reported H1 2026 sales of EUR 10.3 billion, down 0.5% year over year, with organic sales growth of 3.2%. Adjusted gross profit margin increased by 40 basis points to 51.7%, and adjusted EBIT margin rose slightly to 15.7%. Reported EBIT was EUR 1.4 billion, adjusted EBIT was EUR 1.6 billion, and adjusted EPS per preferred share was EUR 2.86, up 7% at constant currencies. Adhesive Technologies generated EUR 5.5 billion of sales with 4.5% organic growth and a 17.7% adjusted EBIT margin; Consumer Brands generated EUR 4.7 billion of sales with 1.7% organic growth and a 15.3% adjusted EBIT margin. Free cash flow was around EUR 600 million, up around EUR 130 million year over year, while net working capital rose to 7% of sales and net financial position was minus EUR 1.9 billion. For FY 2026, Henkel now expects Group organic sales growth of 1.5%-3.5%, Adhesive Technologies organic sales growth of 2%-4%, adjusted EBIT margin of 14.5%-16%, and adjusted EPS growth in the low to high single-digit range.

Carsten Knobel framed the first half as evidence that Henkel’s strategy is working, emphasizing stronger top-line and bottom-line performance, sequential acceleration in Q2, and the ability to pass through higher raw material costs in Adhesive Technologies. He repeatedly highlighted M&A as a central growth lever, saying the company has now closed 4 of 5 transactions and expects first positive top-line and bottom-line contributions in fiscal 2026. His tone was confident and upbeat, but he also stressed that the operating environment remains highly challenging and that the second half will be less supported by working-day effects and forward buying.

Marco Swoboda focused on the bridge from sales to earnings and cash. He cited H1 organic growth of 3.2%, adjusted gross margin of 51.7%, adjusted EBIT margin of 15.7%, adjusted EPS of EUR 2.86, free cash flow of around EUR 600 million, and net financial position of minus EUR 1.9 billion, with the latter reflecting acquisition and buyback cash outflows. He also said H2 margins should be softer than H1 because raw material headwinds will be more pronounced and the pricing benefit will annualize, but noted this is already reflected in guidance. On M&A, he said the acquired businesses should contribute EUR 700 million in sales in 2026 and that the combined acquired businesses are expected to reach EUR 2 billion of sales by 2030.

Analysts pressed management on oil-price-driven input costs and why guidance was not changed; management said the outlook already assumed some second-half oil normalization and that there is a time lag before lower oil prices flow through to P&L, so no guidance change was needed. Questions also focused on forward buying in Adhesives, Laundry share pressure, and the mix of the electronics versus mobility businesses; management quantified working-day and forward-buying effects, said Laundry is seeing more normal volume-led recovery with premiumization supporting brands like Persil and Perwoll, and noted electronics continues to grow at double digits with no broad-based prebuying. Other questions covered integration of acquisitions and M&A firepower; management said integration will be tailored by deal, expects leverage around 1.5x EBITDA after Stahl closes, and still sees capacity for more transactions if strategically attractive.