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% (price +1.1%, volume +2.1%) and an FX drag of almost 4%. Adjusted gross margin improved 40 bps to 51.7%, adjusted EBIT margin rose slightly to 15.7%, adjusted EBIT was EUR 1.6 billion, and adjusted EPS was EUR 2.86, up 7% at constant currencies. Free cash flow was around EUR 600 million, up about EUR 130 million year over year, while net financial position was minus EUR 1.9 billion. For 2026, Henkel now expects Group organic sales growth of 1.5% to 3.5% and Adhesive Technologies organic growth of 2% to 4%; adjusted EBIT margin is still expected at 14.5% to 16%, and adjusted EPS growth at constant currencies remains in the low to high single-digit range. Management also said the acquired businesses should contribute EUR 700 million in sales in 2026, with the five acquisitions expected to reach EUR 2 billion of sales by 2030.

Carsten Knobel emphasized that Henkel had strong top-line and bottom-line execution despite a difficult macro and geopolitical backdrop, and repeatedly framed the quarter as proof that the company’s “purposeful growth agenda” is working. He highlighted sequential acceleration in Q2, pricing action in Adhesives, premiumization in Consumer Brands, and the acceleration of M&A as strategic priorities. His tone was confident and constructive, especially around the long-term growth potential of recent acquisitions like OLAPLEX and ATP.

Marco Swoboda focused on the mechanics behind the numbers: 3.2% organic growth, 1.1% price, 2.1% volume, nearly 4% FX drag, and nominal sales of EUR 10.3 billion. He noted adjusted gross margin improved to 51.7%, adjusted EBIT margin reached 15.7%, and adjusted EPS was EUR 2.86, with free cash flow around EUR 600 million and net working capital at 7% of sales, up 100 bps due partly to acquisitions. On the balance sheet, he said net financial position was minus EUR 1.9 billion and that leverage should be about 1.5x EBITDA after Stahl closes, still within the A-rating policy range of 2.5x EBITDA.

Analysts pressed on why Henkel kept its raw-material guidance unchanged despite lower oil prices, and management said they had already assumed some second-half easing, with a lag before cheaper inputs reach the P&L. Questions also focused on forward buying in Adhesives, where management quantified H1 effects at roughly 100 bps from forward buying and around 70-75 bps from working-day effects, and said they had not yet seen a reversal. Other notable topics were Laundry share pressure, where management pointed to continued premiumization, consistent marketing, and stable promotional conditions, and M&A integration, where Henkel said systems integration would be tailored by deal rather than fully centralized on day one.