Henkel AG reported fourth-quarter results showing a split performance across its businesses, with consumer volumes and pricing providing upside while group-level organic sales missed analyst expectations.
The company recorded organic sales growth of 2.3% for the quarter, below the consensus forecast of 3.1%. Volume growth for the group was 1.4%, short of the 2.0% consensus, while pricing contributed 0.9% to the organic sales increase.
The consumer division was the standout. Organic sales in that segment rose 4.2%, ahead of the 3.4% consensus. Consumer volumes expanded 2.8%, outpacing the 1.9% consensus, with pricing adding 1.4% in the quarter.
By contrast, the adhesives technologies portfolio lagged. Organic sales in adhesives grew 0.9%, materially below the 3.0% consensus. Volume growth within adhesives was just 0.1%, versus an expected 1.9%, while pricing accounted for 0.8% of organic growth in the division.
On an annual basis, Henkel reported an operating margin of 14.8% for the full year, up 50 basis points from the prior year but marginally under the 14.9% consensus. Underlying earnings per share were €5.33, slightly below the consensus of €5.36.
Looking ahead to fiscal 2026, Henkel set group-level guidance of 1% to 3% organic sales growth. The company expects the consumer division to grow between 0.5% and 2.5%. Management projected an operating margin range of 14.5% to 16.0% and guided constant currency earnings per share growth in the low to high single digits. The company cautioned that it anticipates a low single-digit foreign exchange headwind and described the start of the year as softer.
Segment details
Within Adhesives Technologies, the Mobility and Electronics segment recorded 1.7% growth in the quarter. The electronics subsegment delivered double-digit growth for the full year, while automotive demand remained muted. The Packaging and Consumer part of adhesives declined 1.2%, where weakness in packaging was largely offset by growth in consumer applications. The Craftsmen, Construction and Professional segment posted 2% growth.
In the consumer division, Laundry and Home Care achieved 3.3% growth, although fabric cleaning and hard surface cleaner categories showed soft performance. Home care was supported by double-digit growth in hand dishwashing. The Hair segment grew 6.6% for the period.
Bottom line
Henkel’s fourth-quarter results reflect divergent trends across its businesses: solid consumer volume momentum and constructive pricing, but weaker performance in adhesives that weighed on group organic sales. Full-year operating margin improved modestly, while underlying EPS came in just under consensus. The 2026 outlook points to modest growth, a maintained margin objective and a modest FX headwind, with management flagging a softer start to the year.