Henkel AG & Co. KGaA

Henkel reported H1 2026 sales of EUR 10.3 billion, down 0.5% reported, with organic sales growth of 3.2%. Adjusted gross margin improved to 51.7% (+40 bps), adjusted EBIT margin was 15.7%, adjusted EBIT came in at EUR 1.6 billion, and adjusted EPS per preferred share was EUR 2.86, up 7% at constant currencies. In business units, Adhesive Technologies posted EUR 5.5 billion of sales, 4.5% organic growth, and a 17.7% adjusted EBIT margin; Consumer Brands posted EUR 4.7 billion of sales, 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, and net financial position was minus EUR 1.9 billion. For full-year 2026, Henkel now expects Group organic sales growth of 1.5% to 3.5%, Adhesive Technologies organic sales growth of 2% to 4%, an adjusted EBIT margin of 14.5% to 16%, and adjusted EPS growth at constant currencies in the low to high single-digit range.

Carsten Knobel said the first half showed “very strong performance on both the top and the bottom line,” driven by both price and volume and supported by a sequential acceleration in Q2. He emphasized that Adhesive Technologies and Consumer Brands are both benefiting from the M&A strategy, innovation, and targeted investments in high-growth markets and new manufacturing capabilities. His tone was confident and strategic, repeatedly framing the business as better positioned for long-term competitiveness and future success.

Marco Swoboda detailed H1 sales growth of 3.2%, with pricing contributing 1.1%, volumes 2.1%, and acquisitions/divestments adding 0.2%, while FX was almost minus 4%. He said adjusted gross margin rose to 51.7%, adjusted EBIT margin to 15.7%, and adjusted EPS reached EUR 2.86 per preferred share, up 7% at constant currencies. On cash, he highlighted free cash flow of around EUR 600 million, net working capital at 7% of sales, and a net financial position of minus EUR 1.9 billion, mainly due to acquisitions and share buybacks. He also said the newly acquired businesses are expected to contribute EUR 700 million in sales in 2026 and roughly 1% to earnings that year, with leverage expected around 1.5x EBITDA after Stahl closes.

Analysts focused on raw materials and pricing, prebuying in Adhesives, Laundry share trends, and the pace of acquisition integration. Management said oil-price volatility was already partly assumed in guidance, that input-cost effects lag pricing, and that there was no reason to change guidance. They quantified H1 forward buying and working-day effects in Adhesives, said they have not yet seen a reversal of prebuying, and explained that Laundry remains under competitive pressure but is benefiting from premiumization, marketing investment, and improving brand performance. On integration, they said Consumer Brands deals should integrate relatively quickly on systems but will be managed in a tailored way to preserve business dynamics, while Stahl could take 1-2 years to fully integrate after closing.