Henkel (HEN) Q2 2026 earnings summary

Executive summary

• Achieved strong organic sales growth of 3.2% in H1 2026, with sequential acceleration in Q2, driven by both price and volume across business units.

• Adjusted EBIT margin improved to 15.7%, with adjusted EPS per preferred share at €2.86, up 7% at constant currencies and 1.8% year-over-year.

• Major acquisitions, including OLAPLEX, ATP Adhesive Systems, and Not Your Mother's, are expected to contribute positively to sales and earnings in 2026 and beyond.

• Upgraded full-year 2026 guidance for group and Adhesive Technologies organic sales growth.

• Share buyback program completed, repurchasing nearly €1 billion in shares.

Financial highlights

• Group organic sales growth reached 3.2% in H1 2026; nominal sales were €10.3 billion, down 0.5% due to FX effects.

• Adjusted EBIT margin rose to 15.7%; adjusted net income after minorities was €1.2 billion.

• Adjusted EPS per preferred share was €2.86, up 7% at constant currencies and 1.8% year-over-year.

• Free cash flow increased to €612 million, up €128 million year-over-year.

• Net financial position at -€1.9 billion, reflecting acquisition and share buyback outflows.

Outlook and guidance

• Upgraded group organic net sales growth guidance to 1.5%-3.5% for 2026; Adhesive Technologies to 2%-4%; Consumer Brands at 0.5%-2.5%.

• Adjusted EBIT margin expected at 14.5%-16%; adjusted EPS growth at constant currencies in low to high single digits.

• Adhesive Technologies margin guidance at 16.5%-18%; Consumer Brands at 14%-15.5%.

• Softer margins anticipated in H2 due to raw material headwinds and absence of working day/forward buying benefits.